A deduction of up to $35,000 is allowed from severance pay taxed to N. C. by
entering the amount on page 2 of D-400, line 48.
entering the amount on page 2 of D-400, line 48.
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Last edited by dyne; 03-19-2010, 03:28 PM. -
Good grief! And how much exclusion does NC allow a military retiree?Originally posted by dyne View PostChEAr$,
Harlan Lunsford, EA n LA -
A N. C. RESIDENT may deduct up to $4,000 of military retirement pay on line 47 of page
2 of the N. C. D-400 tax return. Of course if the taxpayer is a resident of ANOTHER state
the military retirement is taxed ONLY to that OTHER state.
In my case a S. C. resident's STATE tax is INCREASED by almost the same amount of tax saved
on the N. C. return since S. C. allows a credit for the tax paid to N. C., which was reduced
by the 35,000 severance pay deduction. S. C. has NO severance pay deduction. So, there is
virtually NO net tax benefit!Comment
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