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just enter the 1099-R form as you normally would. When you get to the NC tax forms in the step x step interview, it's going to ask you about your eligibility.
have you tried yet and didn't see it or
are you just asking before you attempt it?
the Bailey settlement only impacts the NC tax form and has no impact on the federal form
here is an earlier post on the topic. being retired military is not automatic eligibility for Bailey
January 31, 2020 3:30 PMActually, you make the selection During the entry of the 1099-R form in the Federal section.
You Edit that 1099-R form and continue thru the followup pages until you see the one below. (The NC Distribution amount is the same as box 2a on your military 1099-R form (or the Federally taxable of box 1 if 2a is empty). it is that $$ amount that will be removed from NC income, so it has to be entered ) .
Be careful though, the only Military pensions eligible for the Bailey Exemption are for those military who were 5 year vested before Aug of 1989, SO. you had to be in-service before 12 Aug of 1984. Military members retiring right now are rarely eligible (it can happen though..35 yrs of service).
@NCperson There is a Bailey question in the NC interview about Bailey Paid on a W-2. but it only refers to a rare W-2 Bailey, not a 1099-R.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
