Should my Bailey Settlement Benefits be listed on item 20, Part B, NC State Tax or am I no longer eligible after 22 years of being exempt from NC Tax?

No.  If you have been eligible before you are still eligible for the NC Bailey Settlement exclusion.  Revisit the "Retirement" topic in the federal "Wages and Income" section.  Edit the 1099R for the eligible retirement pay.  

After verifying the form entries you should arrive at a follow on page titled "Where is this distribution from?"  You can select the appropriate category.  

• Social Security can be excluded, 
• Military Retirement can be excluded, 
• and the Bailey Settlement for certain state and federal government pensions can be excluded.  

The Bailey exclusion applies to retirement benefits received from certain defined benefit plans, such as the North Carolina Teachers' and State Employees' Retirement System, the North Carolina Local Governmental Employees' Retirement System, the North Carolina Consolidated Judicial Retirement System, the Federal Employees' Retirement System, or the United States Civil Service Retirement System, if the retiree had five or more years of creditable service as of August 12, 1989.  The exclusion also applies to retirement benefits received from the state's §401(k) and §457 plans if the retiree had contributed or contracted to contribute to the plan prior to August 12, 1989.  The exclusion does not apply to retirement benefits paid to former teachers and state employees of other states and their political subdivisions.