NC H604

Adds a new deduction to North Carolina income tax law allowing taxpayers to deduct military retirement pay received from the United States government for retired members of the Armed Forces.

Extends the deduction to include survivorship benefits paid to survivors of active duty or retired members of the Armed Forces.

Prohibits taxpayers from deducting military retirement income under multiple provisions, specifically preventing it from being claimed under existing settlement-related deductions or other general deductions.

Effective for all taxable years beginning on or after January 1, 2011.