NC S392

Exempts military retirement income from North Carolina state income tax for retired members of the Armed Forces of the United States.

Extends the exemption to survivorship benefits paid to survivors of active duty or retired members of the Armed Forces of the United States.

Adds new subdivision (5c) to G.S. 105-134.6(b) allowing deduction of federal military retirement pay and survivorship benefits from North Carolina taxable income.

Prevents double deductions by prohibiting amounts deducted under the new military exemption from also being deducted under other existing provisions.

Effective for taxable years beginning on or after January 1, 2013.