state tax credit

[TC7983]

I worked in Pennsylvania for over 33 years and my contributions to

my 403 B plan were subject to Pa income tax. Now I retire, rolled that 403 B into

North Carolina is same as federal and will tax any distributions from the IRA. Pa income tax is 3.07 %

NC is in the area of 4.5 %..

Now my question is shouldn't I get a credit for the Pa tax I paid on my contributions . I know I would have

to pay the full tax rate on any distributions not classified as my contributions.

[DianeW777]

It depends. Some states do allow exclusion in your situation and some do not. It appears that North Carolina (NC) doesn't specifically allow exclusion in your situation.

The exclusion does not apply to local government §457 plans or to §403(b) annuity plans. Benefits from other state, local, and federal retirement plans may or may not be excluded depending on rulings in the Bailey case. 

• NC Instructions Form 401