North Carolina cannot tax certain retirement benefits received by retirees of the U.S. government and the state of North Carolina and it's local governments as a result of the North Carolina Supreme Court's decision in Bailey v. North Carolina.
Other benefits that qualify for the subtraction:
- North Carolina Teachers' and 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
To make this manual entry, go to:
- State Section
- Subtractions from Income
- Enter the amount of taxable retirement benefits that qualify for the Bailey Settlement included on the federal return.