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TaxAct® allows a deduction for Bailey Retirement benefits on the North Carolina return. You must first enter the retirement income on Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. during the Federal Q&A.

To enter the retirement income in the program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand, then click IRA, 401(k), and pension plan distributions (Form 1099-R).
  3. Click + Add Form 1099-R to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.

Entering the deduction in the North Carolina Q&A:

  1. From within your TaxAct return (Online or Desktop), click State, then click North Carolina (or NC). On smaller devices, click in the upper left-hand corner, then click State.
  2. Click Deductions in the North Carolina Quick Q&A Topics menu, then continue with the interview process to enter all of the appropriate information.
  3. On the screen titled North Carolina - Retirement Benefits, enter the retirement income as Vested government retirement benefits (Bailey Settlement), then click Continue.

If you instead received retirement benefits reported to you as wages as a vested government retiree (Bailey Settlement), you would expand Miscellaneous Topics, then click Bailey Settlement as Wages.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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