BCinSC Posted April 3, 2009 Report Share Posted April 3, 2009 Am I correct that military retirement (all service prior to 1989) is totally excludable from NC taxable income? I am not clear about the $4000 exclusion vs total exclusion. Thanks in advance for clarifying this for me. Quote Link to comment Share on other sites More sharing options...
JohnH Posted April 3, 2009 Report Share Posted April 3, 2009 The key is whether the retiree was vested before Aug 12, 1989. If so, then the entire pension is excludable. They are considered vested if they had 5 or mer years of creditable service prior to Aug 12, 1989, so that means creditable service must have begun before Aug 12, 1984. http://www.dor.state.nc.us/taxes/individual/benefits.html The $4,000 exlcusion applies to State and Federal employees who don't meet the Aug 12, 1989 test under Bailey. Quote Link to comment Share on other sites More sharing options...
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