state tax for North Carolina and retirement deduction

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"

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but they're a little cagey about how this is defined. At some point, they seem to say it needs to be income from an IRA. I would like to deduct income from a SPIA (annuity) that I have at AIG. Any idea if this is eligible fo the $2000 deduction ? If not, I guess I can still take it for any Roth conversion I do, but if I did no Roth conversion ...

Reply to
JGE
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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.

Reply to
Alan

Yes, that's what I'm asking about - and thanks for responding.

This site, by no means definitive, seems to say it IS ok:

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Since I managed to have snagged someone who knows about NC taxes, let me bring another issue: credit for taxes paid to another state or country. I never took this, even though I do take the federal foreign tax credit for foreign taxes paid by mutual funds. The NC return says you must attach the tax return submitted to the other entity, but I called and they said I could just attach the mutual fund stmt showing the tax withheld. So I guess I need to file a bunch of amended returns, roughly $100-200 per year, and I can do back through TY 2006 if I understand correctly - worth it I guess. No real question, but any comments ?

Reply to
JGE

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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.

Reply to
Tempuser

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.

Reply to
JGE

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