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June 1, 2019
Solved

After entering my 1099-R's it's charging me for NC state income tax even though it would be exempt due to military service for more than 5 years prior to 1989.

  • June 1, 2019
  • 1 reply
  • 0 views
I've left the state tax withheld boxes blank as instructed.
Best answer by SteamTrain

Well it could be other income too that is causing the problem.

BUT...on the page following the  main 1099-R enter.

1) Select the "Bailey settlement...." 

and

2) The NC distribution amount must be the same as box 2a ...(or the Federally taxable amount of box 1 if box 2a is empty)  The NC distribution is not blank or zero.  The software uses that number to subtract from Federal gross to create NC gross.

 

_____________________

 

__________________

 

1 reply

SteamTrain
Employee
June 1, 2019

Well it could be other income too that is causing the problem.

BUT...on the page following the  main 1099-R enter.

1) Select the "Bailey settlement...." 

and

2) The NC distribution amount must be the same as box 2a ...(or the Federally taxable amount of box 1 if box 2a is empty)  The NC distribution is not blank or zero.  The software uses that number to subtract from Federal gross to create NC gross.

 

_____________________

 

__________________

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
slade1013Author
June 1, 2019
That was it. I figured it out right after posting my question and going through everything again. Thank you!