turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the W-4! >> Event happening NOW!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

aj1nbj2
New Member

How do you include the Bailey decision deduction my State tax

This makes retire military exempt from taxes
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
DawnC
Expert Alumni

How do you include the Bailey decision deduction my State tax

You have to indicate that the 1099-R is for Bailey settlement retirement benefits when you enter it in the Federal interview.  After you enter the 1099-R, TurboTax will ask you ''Where is this distribution from?''.  As long as you select the 'Bailey settlement' radio button, TurboTax will apply the deduction to your NC state return automatically.  

 

 

 

 

This applies to federal or North Carolina government pensions if you qualified before August 12, 1989.   Your defined benefit distributions qualify if you had five or more years of creditable service as of August 12, 1989 from one of the following:

 

 - Federal Employees' or US Civil Service retirement system

 - North Carolina Teachers' or State Employees' retirement system

 - North Carolina Local Governmental Employees' retirement system

 - North Carolina Consolidated Judicial retirement system

 

You also qualify if you made contributions to the North Carolina 401(k) or 457 plan before August 12, 1989.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How do you include the Bailey decision deduction my State tax

@aj1nbj2 

AND.....note that the NC distribution amount must be the same $$ amount tah is in box 2a of your 1099-R form.

 

It uses that value to know how much to deduct from the federal total.

...so if you enter a zero there, or leave it blank, then zero will be deducted from Fed income to arrive at  the revised NC income amount.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies