topic Does Turbo basic have a place for veterans to claim the NC Bailey Retirement tax exemption? in Retirement tax questions

Does Turbo basic have a place for veterans to claim the NC Bailey Retirement tax exemption?

Remmy3103 — Mon, 09 Mar 2026 08:56:50 GMT

I am a 23 year veteran and eligible for the NC Bailey exemption. Where do I enter this? Defense 1099R has no place and Turbo charges me taxes for NC.

Re: Does Turbo basic have a place for veterans to claim the NC Bailey Retirement tax exemption?

DMarkM1 — Sun, 06 Mar 2022 21:21:53 GMT

Yes, there are follow on questions after you enter the 1099R form information. One of them is "Where is the distribution from?" You should select the Baily Settlement option which will exclude the income from your NC tax return.

The Bailey settlement applies to federal or North Carolina government pensions if you earned it for at least 5 years of service before August 12, 1989.

Re: Does Turbo basic have a place for veterans to claim the NC Bailey Retirement tax exemption?

SteamTrain — Sun, 06 Mar 2022 21:33:42 GMT

Go back to the Federal section, where you will "edit" the 1099-R form that you entered there from DFAS.

On one of the pages AFTER the main entries, you will see the following page to make the Bailey Settlement selection. The "Online" software selection page is different from the "Desktop" software selection page....so pay close attention to which page applies to which software you are using.:

_______________________________

Online software Bailey selection Page

___________________________________

Desktop software Bailey Selection page: