topic Bailey Settlement in State tax filing

Bailey Settlement

fgsanchez — Mon, 23 Feb 2026 14:24:55 GMT

I am eligible for the Bailey Settlement in North Carolina. I reported State tax withheld in my 1099-R but I am not getting a refund for that in my State Tax form. Am I doing something wrong?

Re: Bailey Settlement

SteamTrain — Tue, 21 Mar 2023 17:51:56 GMT

The $$ withheld should just go into the total state $$ paid in...and if you have too much other income, it will be used to offset any other taxes you owe. (But it's true, I haven't tested that situation yet...I'll go check now after i post this)

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If using the Desktop software, and on the Federal follow-up page where you make the Bailey Settlement selection, make sure the NC state distribution amount is set to the $$$ in box 2a, if box 2a has a real non-zero value in it, (or the box 1 value if all of the distribution is federally taxable).

Re: Bailey Settlement

SteamTrain — Tue, 21 Mar 2023 17:54:13 GMT

Yep...sems to work appropriately in the Desktop software.

Put in $300 of NC withholding for a Bailey Settlement 1099-R form, and NC refund went up $300.