topic NC Bailey Exclusion NC Retiree not being allowed to access in Retirement tax questions

NC Bailey Exclusion NC Retiree not being allowed to access

JEP2022 — Fri, 13 Feb 2026 21:50:58 GMT

The Bailey Exclusion doesn't function. When I click it the screen comes back to where it was before.

Re: NC Bailey Exclusion NC Retiree not being allowed to access

SteamTrain — Sat, 14 Feb 2026 14:32:51 GMT

Are you doing this in the Federal section?

OR the state section of the interview?

The selection must be made in the Federal section as one of the follow-up questions for the 1099-R involved.

(The selection in the NC state interview is ONLY for an extremely small subsets of Bailey Settlement people who happen to get some benefits on an Actual W-2 form...not on a 1099-R)

Re: NC Bailey Exclusion NC Retiree not being allowed to access

JEP2022 — Sat, 14 Feb 2026 15:18:49 GMT

I have it checked in the Federal section and when the state section comes up I get this block. When the revisit is selected for Bailey deduction is selected, it comes back to this screen. When the US Uniformed service is selected it goes to the area that you fill in that information.

Re: NC Bailey Exclusion NC Retiree not being allowed to access

SteamTrain — Sat, 14 Feb 2026 15:43:48 GMT

@JEP2022

Yeah, I noticed something strange there

In the Federal area...for the 1099-R involved

1) You have to make sure that "NC" is listed as the state in box 15 even if nothing else in boxes 14 or 17.

2) Then on the very next page, you choose Bailey Settlement...and continue thru the remaining Q&A until you get out to the main menu.

3) Then...when in the NC Q&A, clicking that Bailey "Revisit" will bring up what $$ amount you are "supposedly" claiming for the deduction (should be the box 2a value from the 1099-R, if it is slightly lower than box 1...but not if box 2a is blank/marked "Undetermined")

When I didn't have box 15 tagged as being NC on the 1099-R...I had the same behavior as you did.

Re: NC Bailey Exclusion NC Retiree not being allowed to access

JEP2022 — Sat, 14 Feb 2026 23:05:34 GMT

I went back and decided I would complete the state again and it worked. The page I got before didn't come up and the amount for the state seems right. I guess they caught on to my looking at Taxact as an alternative. Thank you for your replies. Jon