topic Nc does not tax military retirement. I think maybe you did not see that when estimating nc taxes in Retirement tax questions

Nc does not tax military retirement. I think maybe you did not see that when estimating nc taxes

kbdunedi — Tue, 04 Jun 2019 20:43:56 GMT

Weelllll.......NC does tax the military retirement of rec...

SteamTrain — Tue, 04 Jun 2019 20:43:58 GMT

Weelllll.......NC does tax the military retirement of recent military retirees....because the vast majority no longer qualify.

In order for a military retirement to be exempt from NC taxes under the Bailey Settlement, the military person must have had 5 years of service before 12 Aug 1989. Someone retiring in 2016 would need to have more than ~30 years of service and only a small % of recent retirees have been in that long

But if yours qualifies, and you are doing 2017 estimates, you could just not include that pension income in the NC estimates for next year.

Now...if you are talking about 2016 taxes....and you qual...

SteamTrain — Tue, 04 Jun 2019 20:43:59 GMT

Now...if you are talking about 2016 taxes....and you qualify, then you have to edit the 1099-R and make sure you ave selected the "Bailey settlement" on the followup questions in the Federal section...."IF" you qualify. The NC Distribution noted on the same page must not be a zero...it has to be the same as box 1 on the 1099-R.....that number has to be there so that the NC form knows how much to remove from NC income.