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Employee
June 1, 2019
Solved

Are survivor annuities of a deceased military member taxed in NC? Yes, he met the Bailey.

  • June 1, 2019
  • 1 reply
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Best answer by SteamTrain

That qualifies:

Page 25:

"As a result of the North Carolina Supreme Court’s decision in Bailey v. State of North Carolina and the settlement subsequently reached in that case, North Carolina may not tax retirement benefits received by a retiree (or by a beneficiary of a retiree) from qualifying State, local, or federal retirement systems if the retiree was vested in the retirement system as of August 12, 1989."

http://www.dornc.com/practitioner/individual/bulletins/income_bulletins_09-10.pdf#page=31

1 reply

SteamTrain
Employee
June 1, 2019

That qualifies:

Page 25:

"As a result of the North Carolina Supreme Court’s decision in Bailey v. State of North Carolina and the settlement subsequently reached in that case, North Carolina may not tax retirement benefits received by a retiree (or by a beneficiary of a retiree) from qualifying State, local, or federal retirement systems if the retiree was vested in the retirement system as of August 12, 1989."

http://www.dornc.com/practitioner/individual/bulletins/income_bulletins_09-10.pdf#page=31

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