My aunt passed away in2021. She left an inheritance from her pension. She worked for the state of Maryland as a teacher. I know in NC we claim Bailey, Emory etc for state income. Do I need to do anything special for this situation

hilliarddebbie · ‎February 28, 2022

PattiF · ‎February 28, 2022

To clarify your question, is the inherited pension reported on a 1099-R with your social security number?

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hilliarddebbie · ‎March 1, 2022

The inherited pension is reported on a 1099 R with my social security number

PattiF · ‎March 1, 2022

No, you would enter the information found on the 1099-R in your return. There should be Code 4 in Box 7 to indicate that it is a distribution made to a non-spouse beneficiary.

The Bailey Exemption "exclusion does not apply to retirement paid to former teachers and state employees of other states and their political subdivisions" or their beneficiaries.

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My aunt passed away in2021. She left an inheritance from her pension. She worked for the state of Maryland as a teacher. I know in NC we claim Bailey, Emory etc for state income. Do I need to do anything special for this situation