Gail in Virginia Posted April 2, 2013 Report Posted April 2, 2013 I am preparing a NC tax return for the son of one of my VA clients. I know that there is a possible deduction for benefits withdrawn from an IRA of up to $2,000 but I can't find in the instructions in there are any requirements to qualify other than taking money out of your IRA. In this particular case, it is a premature distribution from a Roth IRA of the entire balance and the earnings are about $6000 after excluding an even larger amount as contributions. Can they actually exclude another $2000 on the North Carolina return even though they are nowhere near retirement age? Quote
JohnH Posted April 2, 2013 Report Posted April 2, 2013 Yes, you can exclude it. Age is not a factor in the $2,000 exclusion rule on the NC return. Everybody gets it. Quote
Gail in Virginia Posted April 2, 2013 Author Report Posted April 2, 2013 Thanks, John. That is what I was finding, but it sounded too good to be true! Quote
JohnH Posted April 2, 2013 Report Posted April 2, 2013 File a NC return with a Schedule C this year and you'll be absolutely giddy. Quote
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