Go back and edit the 1099-R form in the Federal section.
After you enter your 1099-R form, and "Continue" thru the pages that follow it...until you find the selections for:
1) "Bailey settlement...."....................<<<<you are selecting this one
2) "Faulkenbury settlement...."
3) "Railroad Ret-SS.........."
4) "None of the above"
You need to select the "Bailey Settlement..."
Your NC Distribution amount is the same a box 2a of the 1099-R form (or the calculated federally-taxable amount for box 2a, if 2a is empty)....... that same $$ will be removed in the NC section depending on what selection you made above.
(Picture Below)

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