Q. I plan to start withdrawing a specific amount each month from my Thrift Savings Plan account next year. Will my withdrawals be taxed by my state of North Carolina?
A. From the North Carolina Department of Revenue website:
“If you received retirement benefits as a former employee of the State of North Carolina or any of its local governments or as a former employee of the federal government and you did not have five years of service with the government as of August 12, 1989, you may deduct the amount included in federal adjusted gross income or $4,000, whichever is less. This deduction also applies to retirement benefits paid to former teachers and state employees of other states and their political subdivisions regardless of the five-year service date. If you are married filing jointly and both you and your spouse received federal, state or local government retirement benefits, you may each deduct up to a maximum of $4,000 for a total of $8,000.”