Why is my NC retirement income on my 1099-R being state taxed when it is Bailey qualified and I should not be paying state income tax on the retirement amount?

If you qualify for the Bailey Decision, you will select this in the NC portion of your return. This will make eligible income non-taxable in NC.

Bailey Decision Concerning Federal, State and Local Retirement Benefits

While there is a place in the NC section to indicate it.....the primary place it should be selected is on a follow-up page after the main 1099-R is entered in the Federal section  (Assuming you were still an NC resident when you received those $$)

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