Lump Sum Distributions
You received a lump-sum distribution if you received payment of the entire
balance from your employer's qualified pension plan, qualified stock bonus
plan, or qualified profit sharing plan within a single tax year.
If your federal adjusted gross income includes your lump-sum distribution you do not
need to adjust your North Carolina return.
But, if you computed your federal tax separately on this income
you must make an adjustment on your North Carolina return. This
is necessary because your distribution amount is not included in
your federal adjusted gross income which is used as the starting point
for your North Carolina return for tax years beginning on or after January 1, 2012.
To make this adjustment, enter the total taxable amount of your
lump sum distribution on line 36 of Form D-400. This amount will
become part of the total line 7 amount on page 1 of your Form D-400.
Last modified on:
01/03/13 03:39:48 PM.