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:
Entering the deduction in the North Carolina Q&A:
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.