Retirement tax questions

That is correct.  It is not taxable on the federal level but is taxable in the state of Mississippi.  the next thing is, how do we declare this in your Mississippi return. 

1. Log into Turbo Tax
2. Select the State Taxes Section located in the left pane of your program
3. There will be a section that asks if there is any other income and loss.  Here is where you will enter your PSLF income and amount.
4. As a FYI, I have included a screenshot on how to include this in your Mississippi return.
5. Note: Ignore the three bottom lines in this example. We are only concerned about the first entry.