Why am I charged taxes in NC, when it is exempt from my state taxes?

Edit that Pension.

@kittysnooks 

On the page AFTER the main form

1)   you need to select "Bailey Settlement"

2) and the NC Distribution amount should be the value of box 2a of the main form

.......(the NC software uses that 2a value as how much to subtract from NC-taxable income, but that follow-up page "Distribution" amount needs to be filled in......if it's blank or zero, then nothing gets subtracted.)  If box 2a is empty/blank, then that distribution amount is the Federally-taxable portion of box 1 (i.e. whatever the Feds taxed)

_________________

Of course, if you have other income, those $$ are taxed.