Why do I need to pay NC income tax if I haven't had to in previous years due to the Bailey settlement?

welldick55 · ‎June 3, 2019

Why do I need to pay North Carolina income tax if I haven't had to in previous years due to the Bailey settlement?

DanielV01 · ‎June 3, 2019

If your retirement income is exempt in North Carolina because of the Bailey settlement, here is how to enter:

Enter your 1099-R in the Federal portion of the program. Select no to the question about if it's an IRA (unless it is an IRA).
Answer the question about if you were a Public Safety Officer (such as police or fire).
The next screen shows a list of states. Check the North Carolina box.
On the screen Where is this Distribution From, select the first radial, Bailey settlement retirement benefits

Make sure the amount subject to the Bailey settlement and any withholdings are entered on the screen. The following screenshot may assist you further:

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View solution in original post

DanielV01 · ‎June 3, 2019

If your retirement income is exempt in North Carolina because of the Bailey settlement, here is how to enter:

Enter your 1099-R in the Federal portion of the program. Select no to the question about if it's an IRA (unless it is an IRA).
Answer the question about if you were a Public Safety Officer (such as police or fire).
The next screen shows a list of states. Check the North Carolina box.
On the screen Where is this Distribution From, select the first radial, Bailey settlement retirement benefits

Make sure the amount subject to the Bailey settlement and any withholdings are entered on the screen. The following screenshot may assist you further:

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Why do I need to pay NC income tax if I haven't had to in previous years due to the Bailey settlement?