I hope it's kosher to ask about a specific state's tax here ...
NC allows one to deduct up to $2000 of income from a "private retirement plan"
I hope it's kosher to ask about a specific state's tax here ...
NC allows one to deduct up to $2000 of income from a "private retirement plan"
If you are asking about a single premium immediate annuity that you purchased... the answer is: No deduction.
NC allows the deduction for government plans, private employer retirement plans and either an Individual Retirement Account or Individual Retirement Annuity. I don't believe your SPIA from AIG falls into any of those categories.
Yes, that's what I'm asking about - and thanks for responding.
This site, by no means definitive, seems to say it IS ok:
I see nothing in that site that says a commercial annuity you purchase meets the criteria. The reference to "annuity" is to an Individual Retirement Annuity, a unique form of annuity that operates like an IRA. NC is one of the few states that allows a credit for taxes paid to another country that is also taxed by NC. NC uses the 3 year rule from the due date including extensions for amending for a refund.
Ok, the site says "personal IRA or annuity": i guess if "personal" modifies "annuity" ... Oh well, I usually do at least $2000 of Roth IRA conversion (at least when I'm down in the 15% federal bracket) and that clearly qualifies, right ?
Yeah, I thought it was funny, getting credit from both Uncle and NC for the same taxes paid. But since the NC (and the fed too, I think) are capped by a percentage of NC tax equal to the percentage of your income which the foreign income represents, all they're really doing is saying "we're not gonna tax you on money that the foreign entity already taxed". So I'll do all three years and mail 'em together with a cover letter.
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