1. What you keep leaving out is that the code is (2) Early withdrawal WITH EXCEPTION. Ok?
2) I am not going to go through addressing your contention again that it is an early distribution that possibly, could be, maybe should be taxed in Mississippi because we aren't really sure at TurboTax although their seems to be a great preponderance of evidence to the contrary..... It is not and every retiree under 59.5 for the past several years knows this or else Mississippi would be auditing and charging them for unpaid taxes. Ok?
Let's leave both of those things for the time being and look at the fact that TURBOTAX has operated with the assumption for EVERY YEAR up until this one that there is no tax due in Mississippi on public employees retirement benefits if they are under the age of 59.5. Every person on the other thread knows this as that is how TurboTax has calculated their taxes previously. Ok?
We are left with 2 possibilities:
1) Every year, up until this one, TurboTax has calculated taxes incorrectly for every retiree in the state of Mississippi that had the code "2" - Early Withdrawal WITH EXCEPTION (a reminder, in case you forgot) and then suddenly in 2021 they changed course and are now calculating taxes correctly.
2) Every year up until this one, TurboTax has calculated taxes correctly for every retiree in the state of Mississippi that had the code "2" and this year, they have it incorrect when they say state pension benefits are taxable.
It can only be one of the above. Which is it?
Regards.
@BillM223
2)
