State taxes NC

How do I enter my NC state taxes so my state taxes show zero. As my wife and I are retired school teachers part of our retirement is we do not pay state taxes.

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After you enter the information from your 1099-R you will come to a screen, Where is this distribution from? Mark the first radio button--Bailey settlement retirement benefits. As a result of the North Carolina Supreme Court’s decision in Bailey v. State of North Carolina, North Carolina may not tax certain retirement benefits received by retirees (including teachers) of the state of North Carolina.