NC S188

Allows retired members of the Armed Forces of the United States to deduct retirement pay received from the federal government from North Carolina taxable income.

Allows survivors of active duty or retired Armed Forces members to deduct survivorship benefits received from the federal government from North Carolina taxable income.

Allows active service members who are North Carolina residents to deduct military pay for periods when stationed outside the state due to military orders reassigning them to a permanent duty station.

Prevents amounts deducted under the new military provisions from also being deducted under existing settlement-based court order deductions to avoid double deductions.

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