Should the Bailey Settlement Deduction for NC be evident on the 1099-R?

[vabandit]

Should the Bailey Settlement Deduction for NC be evident on the 1099-R? And if it isn't there but should be, do we need to contact the agency that produced the 1099-R to correct the error and issue a new 1099-R?  Thanks!

[Ashby]

No, the Bailey Settlement Deduction is not anywhere on your 1099-R. You have to denote "Bailey Settlement" in the program. Here are the instructions:

Enter or go back and edit the 1099-R form in the Federal Income section.

 After you enter your 1099-R form, and "Continue" thru the pages that follow it...until you find the selections for:

1) "Bailey settlement...."....................<<<<you are selecting this one

2) "Faulkenbury settlement...."

3) "Railroad Ret-SS.........."

4) "None of the above"

You need to select the "Bailey Settlement..."

Your NC Distribution amount is the same as box 2a of the 1099-R form (or the calculated federally-taxable amount for box 2a, if 2a is empty)....... that same $$ will be removed in the NC section depending on what selection you made above.

[vabandit]

So how do I split that amount between 2 states?  I moved halfway through the year and have to pay taxes on the pension in VA, but not in NC?  The entire amount is showing up as not taxed in NC--maybe that's what it's supposed to look like?

[Ashby]

That's correct as long as a portion of the income is showing up for VA. It probably is.

[vabandit]

ok thanks!!

[vabandit]

On the 1099-R where it asks for the NC distribution amount, do I divide the 2a total amount of the pension earned while living in NC?  For example divide the total 2a amount by the 6 months we lived in NC?  sorry this is confusing!

[Ashby]

Yes, you should divide.