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C
clfras
June 28, 2020
Question

Applying Bailey deduction accurately for part-year

  • June 28, 2020
  • 1 reply
  • 0 views

We are filing as part-year NC residents with military retirement income that qualifies for the Bailey deduction. I entered the 1099-R information, apportioning part of the year to NC and part of the year to MD. However, when the Bailey deduction is applied, it is the total amount of the distribution, not just the amount attributable to NC, resulting in a deduction that is greater than the amount of the income rather than zeroing it out. How or where can I fix this?

    1 reply

    T
    TomD8
    Employee
    June 28, 2020

    The steps outlined in this previous TT response might be useful:  

    https://ttlc.intuit.com/community/retirement/discussion/i-want-to-ensure-that-my-military-retirement-is-not-being-taxed-by-state-of-north-carolina-my-state/00/461479#M42248

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.
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