NC Military Retiree pay and SOURCE of distribution.

Forum|Forum|1 year ago
April 1, 2025
2 replies
0 views

In wages and income section. For a 1099-R input. TT is asking: "Select the SOURCE of this distribution and enter any other NC information". My 1099-R draw is from my IRA not my Military retiree pay BUT should I check the BAILEY settlement since I am not charged NC Tax on my retiree pay?

Best answer by SteamTrain

No. IRA distributions are not eligible for the Bailey Settlement selection.

Only your actual DFAS 1099-R, and a DFAS 1099-R is not an IRA.

An IRA is an entirely separate personal account.

@Pirate6BR

SteamTrainAnswer

Employee

No. IRA distributions are not eligible for the Bailey Settlement selection.

Only your actual DFAS 1099-R, and a DFAS 1099-R is not an IRA.

An IRA is an entirely separate personal account.

@Pirate6BR

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

SteamTrain

Employee

And in the NC Q&A, there will be a question about a Military Retirement subtraction.

You don't put in anything there since you a e apparently using the Bailey Settlement.

That extra section is ONLY for DFAS Military 1099-R form distributions that do not qualify for the Bailey Settlement.....i.e. any retired Military person who did not have 5yrs of eligible military service before 12 August of 1989. (which is a more common situation for recent military retirees)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*