Why doesn't the Bailey Retirement Deduction shown on state return match the Baikey benefit shown on form 1099-R?

[wsessoms0]

Why doesn't the Bailey Retirement Deduction shown on state return match the Bailey benefit shown on form 1099-R?

[NCperson]

@wsessoms0  Box 1 is the gross distribution while Box 2a is the TAXABLE portion of the distribution.  The difference between Box 1 and Box 2a is not taxable.  

since your federal return taxes what is in Box 2a, the adjustment on the State return is also box 2a. 

is that the issue? 

[SteamTrain]

@wsessoms0 

Or....if the amount allowed for NC is zero, even if box 2a has a value..

I noticed that you do have to have the state letters "NC" entered for the state in box 15

[NCperson]

@SteamTrain how could the amount allowed be zero? if it is bailey eligible and federal AGI is greater than zero, then there is something to subtract.  

[SteamTrain]

@NCperson 

That's not what I'm saying.

What I meant, is that unless a person puts NC into box 15 (or selects North Carolina for box 15) of the 1099-R (or CSA-1099-R), the software will ignore the Bailey selection on the follow-up page, and will not subtract  the box 2a amount from NC taxable income in the NC tax return.

At least that's what happens in my Windows Desktop Premier software.

Fortunately, the final state error check picks up the problem and allows you to correct it.  

What I don't know is if the software maintains that correction during filing, in that the "NC" still isn't on the 1099-R worksheet for box 15..