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New Member
posted Jan 24, 2023 6:48:34 AM

If NC State tax rate dropped for the year 2022 and my status hasn’t changed, why was last year’s State return 4 times greater?

I’m retired military who claims single plus five an additional $140 monthly so they take out the max then I file joint with a child to get max return. Now I’m not even getting back my retired pay which is supposed to be non-taxed now.

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2 Replies
Expert Alumni
Jan 24, 2023 7:12:08 AM

Please verify that you selected "United States Armed Forces retirement benefits" on the "Where is your distribution from?" screen when you enter your 1099-R in the federal interview:

 

  1. Click on "Search" on the top right and type “1099-R” 
  2. Click on “Jump to 1099-R”
  3. Enter your 1099-R
  4. On the "Where is your distribution from?" screen select "United States Armed Forces retirement benefits"

 

Then during your NC state interview enter the amount on the "Retirement Benefits Received by a Member of the U.S. Armed Forces" screen

 

  1. Click "State" on the left
  2. Start your state return 
  3. Continue through the questions until the "Retirement Benefits Received by a Member of the U.S. Armed Forces​​​​​​​" screen and enter the amount

 

Please be aware we cannot see the details on your return. I would recommend comparing the last year's and this year's returns line by line. Is it possible that you had less withheld this year?

Level 15
Jan 24, 2023 7:23:07 AM

..........make sure your $$ from your Military Retirment 1099-R is being deducted from NC income

 

One of two ways.

 

When you enter your military retirement 1099-R, there is a follow-up page where you have selections to make:

__________________________

_________________________

1)  IF you had to select the US Armend Forces selection, the pension $$ may not be removed immediately....finish all your Federal entries, then go thru the NC interview...there is an area there where it asks about your military retirement $$ and you enter the box 2a value from your 1099-R to remove the $$ from NC income at that point.

 

2)  IF you were eligible to select the Bailey Settlement selection, then the $$ listed in box 2a of the 1099-R are removed from NC income automatically.