I'm on the phone with NC DOR now to ask this question but thought this may be a good outlet while I wait and wait and wait! I have a lady who got a 1099-R for her now dead spouse, done LOTS of research and feel sure this is taxable money for Federal. However, my state, NC, has a "private retirement benefits" deduction for amounts on 1040. I'm thinking 1099-R--Retirement Benefits, but this is a nonqualified annuity. Will this work for retirment benefits?
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all agents are busy please remain on the line......
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HELP!--One agent said yeah, I can take it since it's taxed on 1040 and the next agent said I can't since it's an annuity!!!!!!!!!!!!!!!!! Obviously I'll have to make this call myself, I can't find anything on this. Any insight?Comment
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The instructions indicate
Retirement benefits are amounts paid by
an employer to a former employee or to
a beneficiary of a former employee under
a written retirement plan established by
the employer to provide payments to an
employee or beneficiary after the employee
ends employment with the employer where
the right to receive the payments is based
upon the employment relationship.
So I guess the question is what's the source of this annuity? Is this like an annuity the (deceased) taxpayer had purchased on their own, or was this something through their employer?Comment
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On his own, I thought those instruction were for the 4,000 not the 2,000????Comment
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According to the worksheet in my software the $4,000 applies to federal, state and local govt retiree benefits. The $2,000 to "private" retirement benefits, which I take to mean what David1980 said. You deserve a medal for Service Above and Beyond the Call of Duty for this case.Comment
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Private annuities are a headache here in NC. If from the former employer, then they qualify for the $2000 exclusion, but often what we see is a 401k rolled into an annuity -- and then there is no deduction! To qualify, the annuity must be purchased by the employer or in an IRA. <Sigh>Comment
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