North carolina social security and military income not taxed, yet turbo tax did not deduct correctly How can I get this fixed

Many of the state forms are not finalized yet.

But note that, in North Carolina,  military retirement pay may be exempt if the taxpayer had five or more years of service as of Aug. 12, 1989.

It's certainly properly active in the desktop NC software.  (At least if yesterday's software update was installed)

1)  Your SSA-1099 has to be entered as an SSA-1099 the Federal section...then it is applied automatically in the NC section.

and

2) Not all Military retirement 1099-R forms entered are exempt from NC taxation...fewer and fewer are eligible every year. 

As noted above, you had to be 5-year vested in that military retirement by 12 Aug of 1989.....meaning you had to be in-service before 12 Aug of 1984.  IF you were , then when you entered your military 1099-R, you had to mar the distribution as being eligible for the Bailey Settlement on one of the pages after the main form.....AND, the NC distribution amount must have been set to the $$ in box 2a...that $$ amount is what is removed from NC income when the Bailey settlement is selected.

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