North Carolina cannot tax certain retirement benefits received by retirees (or by beneficiaries of retirees) of the U.S. government and the state of North Carolina and its local governments as a result of the North Carolina Supreme Court's decision in Bailey v. North Carolina.
What benefits may qualify for this subtraction?
- North Carolina Teachers' and State Employees' Retirement System
- North Carolina Local Governmental Employees' Retirement System
- North Carolina Consolidated Judicial Retirement System
- Federal Employees' Retirement System
- United States Civil Service Retirement System
Important: The exclusion does not apply to retirement benefits paid to former teachers and state employees of other states and their political subdivisions.
Log in and go to:
- Edit (three dots)
- Subtractions from Income
- Enter the amount of taxable retirement benefits that qualify for the Bailey Settlement included on the federal return.
- Continue to save