This is a state exemption.
To enter in TurboTax, report his income as normal on your federal return. If it is wages, enter in wages. If it is retirement, enter in retirement.
In the state section, TurboTax will ask a series of questions to ensure the income is exempt.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"