NC H650

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

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

Prevents double deduction of amounts under the new Armed Forces retirement deduction and existing court-ordered settlement deductions (subdivision 5a and subdivision 5 are mutually exclusive).

Effective for taxable years beginning on or after January 1, 2019.