Mississippi Form 80-105 Instructions
The following is a brief description of selected legislative changes. A copy of all legislative bills is available at http://billstatus.ls.state.ms.us/ .
Senate Bill 2833: This bill amends Miss. Code Ann. §27-7-22.32. Before this amendment, a person adopting a child was allowed to take up to a $2,500 credit against Income Tax for the expenses incurred in adoption. But an exemption could not be taken in the same year the adoption credit was taken for the adopted child. The bill removes this restriction to allow both the exemption and credit. The amendment went into effect January 1, 2013.
AD VALOREM TAX CREDIT CARRYFORWARD PROVISION. Any unused ad valorem tax credit claimed under Miss. Code Ann. §27-7-22.5 can now be carried forward for five consecutive years from the close of the tax year in which the credit was earned. The change went into effect July 1, 2012.
Important tips to help expedite processing of your return:
- Use black ink when preparing the return.
- Make sure your social security number is entered correctly on all returns, schedules and attachments.
- Sign and date your tax return (on a joint return, the husband and wife signature is required).
- Attach a copy of the federal return behind the state return including returns filed electronically. W-2s, 1099s, any additional schedules and attachments should be stapled to the back of the return.
- Do not include W-2Gs with your tax return. Gaming withholding cannot be claimed as a deduction on your tax return.
- Copies or reproductions of the official tax forms are not acceptable.
- Do not place a staple in the barcode area of the form.
Visit our website at www.dor.ms.gov to download forms by tax year and tax type.
MARRIED AND MARRIAGE AS USED IN MISSISSIPPI INCOME TAX LAW. Under the Constitution (Art. 14, § 263A) and law (Miss. Code Ann. § 93-11-1(2)) of this state, we are prohibited from treating same-sex couples as married, even if married in a state that recognizes same-sex marriages. As an agency of this state, we are required to comply with the Constitution and laws of this state unless and until repealed by the Legislature or declared invalid by a final order of a Court. To date, the Constitutional provision and statute barring recognition of same-sex marriages is still the law in this state and has not found to be invalid by any Court.
TAXPAYER ACCESS POINT (TAP).
Remember, TAP is...
- Easy to use
With TAP, you have the option to Go Paperless. This means that you pay your taxes on-line and receive certain correspondence electronically.
TAP e-mail lets you know that you have new correspondence to view on-line. You then logon to TAP to read the letter or message and take appropriate action on your account. Only you, or persons you authorize, can see your correspondence.
When making payments or updating profile information, you should always log directly into TAP using your User ID and password. TAP does not provide links containing your transaction or personal information to any external web site.
Remember, you can pay your bill on-line through TAP without registering for a TAP account. For more information on TAP, view the Electronic Filing Section of this booklet.
DO I HAVE TO FILE?
You should file a Mississippi Income Tax Return if any of the following statements apply to you:
- You have Mississippi income tax withheld from your wages (other than gambling income).
- You are a non-resident or part year resident with income taxed by Mississippi (other than gambling income).
- Single resident taxpayers - you have gross income in excess of $8,300 plus $1,500 for each dependent.
- Married resident taxpayers - you and your spouse have gross income in excess of $16,600 plus $1,500 for each dependent.
- Minor resident taxpayers - you have gross income in excess of the personal exemption plus the standard deduction according to the filing status.
- Residents working outside of Mississippi - you must file a Mississippi return and report the total gross income regardless of the source if you are a Mississippi resident working out of state (employer of interstate carriers, construction worker, salesman, offshore worker, etc).
- Resident working outside of the United States - you must file a return and report the total gross income if you are a Mississippi resident employed in a foreign country on a temporary or transitory basis. If you qualify to exclude foreign wages for federal purposes, enter the amount as a deduction on schedule N and attach the Federal Form 2555.
- Deceased taxpayer - if you are a survivor or representative of a deceased taxpayer, you must file a return for the taxpayer who died during the tax year or before the 2013 return was filed. For more information on the filing requirements of a deceased taxpayer, see the Death of a Taxpayer Section of this booklet.
AM I A RESIDENT OR A NON-RESIDENT?
An individual who maintains a home, apartment or other place of abode in Mississippi, or who exercises the rights of citizenship in Mississippi by meeting the requirements as a voter or who enjoys the benefits of homestead exemption, is a legal resident of the State of Mississippi and remains a resident although temporarily absent from the state for varying intervals of time. An individual remains a legal resident of Mississippi until citizenship rights are relinquished and a new legal residence is established. Changes in driver's license, vehicle tags, voter registration, and property taxes show intent to change legal residence.
What is my status if I moved into or out of Mississippi in 2013? You are considered a part-year resident and must file the Non-Resident and Part-Year Resident Return, Form 80-205. You will be taxed only on income earned while a resident of Mississippi and you will prorate your deductions and exemptions.
WHEN AND WHERE SHOULD I FILE?
Calendar year returns must be filed no later than April 15th annually. Fiscal year returns must be filed no later than the 15th day of the 4th month following the end of the fiscal year. Please write the fiscal year period and the words "Fiscal Year Return" in bold letters on the front of the return.
Need more time to file your return?
If you will receive a refund or will not owe any additional tax, Mississippi will allow you the same time to file your return as allowed by federal. However, if you owe additional taxes, you must remit the tax due with Form 80-106, on or before the due date of the return.
The authorized extension of time to file does not extend the time for payment of tax due. Interest and penalty will apply on any underpayment of tax. See the Interest and Penalty Provisions Section of this booklet for more information.
The return should be mailed to:
Additional Tax Due or No Tax Due:
Department of Revenue
P.O. Box 23050
Jackson, MS 39225-3050
Department of Revenue
P.O. Box 23058
Jackson, MS 39225-3058
LINE ITEM INSTRUCTIONS
The below instructions serve as a general guide for filing your 2013 Mississippi Resident Individual Income Tax Return (Form 80-105) or your 2013 Mississippi Non-Resident or Part-Year Resident Individual Income Tax Return (Form 80205). Line item instructions are generally the same for both the Resident and the Non-Resident returns; however, the line numbers differ in some cases. The instructions are keyed to the line numbers on the Resident return. However, specific instructions for the Non-Resident or Part-Year Resident returns are in the Non-Resident and Part-Year Resident Section of this booklet.
Please make sure that you write in your name, address, and SSN. If you are married and filing a joint, combined, or separate return, write in the social security number for both you and your spouse. If a spouse died in the tax year, enter the surviving spouse as the first taxpayer. Enter the code corresponding to your resident county on page 1 of the return (see Appendix for a list of the codes).
FILING STATUS AND EXEMPTIONS
Mark an 'X' in the box applicable to your filing status on the last day of the tax year. After checking the applicable filing status, enter the corresponding dollar amount of exemption on page 1, line 11, (the dollar amount is shown next to the filing status you selected). The exemption and standard deduction for each filing status for 2013 are listed in the table below.
|Filing Status||Exemption||Standard Deduction|
|Married - Filing Joint or Combined Return||$12,000||$4,600|
|Married - Spouse Died 2013||$12,000||$4,600|
|Married - Filing Separate Returns||$6,000||$2,300|
|Head of Family||$8,000*||$3,400|
*Note: The additional $1,500 will be allowed in the calculation of the dependent exemption amount entered on line 10.
Filing Status for Married Persons
Married persons may file tax returns in any of these three methods: 1) joint, 2) combined, or 3) separate. Choose the method which results in the least amount of tax.
- A joint return is usually completed when only one spouse has income. Place all income, deductions, exemptions, etc. in Column A (Taxpayer).
- A combined return is completed when both spouses have income. Place one spouse's income in Column A (Taxpayer) and the other spouse's income in Column B (Spouse). The exemptions and deductions may be divided in any manner you choose. If only one spouse has income, this income may not be split between husband and wife.
- Separate returns (two returns) are filed when each spouse completes his/her own return. Each spouse reports his/her own income and deductions on a separate return. BOTH spouses must file returns even though one spouse may have little or no income. If one spouse elects to itemize deductions, both must itemize. If one spouse elects to use the standard deduction, both must use the standard deduction. Each spouse is entitled to only one-half of the total exemption authorized. Each spouse must list the other spouse on his/her return.
Standard Deductions & Exemptions for Married Persons
- Married - Filing Joint or Combined Return - The standard deduction ($4,600) and the authorized exemption ($12,000) may be divided between the spouses in any manner they choose when filing a combined return.
- Married - Filing Separate (Two Returns) - each individual must claim the authorized exemption ($6,000) and the standard deduction ($2,300). Any unused portion of the standard deduction ($2,300) or the exemption ($6,000) by one spouse on his/her separate return may not be used by the other spouse on his/her separate return.
Line 1: Married - Combined or Joint Return
Enter $12,000 on line 11. A married individual is a person who was legally married on the last day of the tax year. The filing status exemption for married individuals is a joint exemption and in the case of husband and wife filing a joint or combined return (one return), the exemption may be claimed by either or divided between them in any manner they choose to the extent that the total amount of exemption claimed by husband and wife does not exceed the total exemption authorized ($12,000). Mississippi law does not recognize common law marriages entered into after April 5, 1956.
Line 2: Married - Spouse Died in 2013
Enter $12,000 on line 11. Use this filing status if your spouse died in 2013 and you did not remarry in 2013. Report your spouse's income before death and your income for all of 2013. Write "Deceased" and the date of death beside spouse's name on the return. List surviving spouse's name and SSN first when completing form.
Line 3: Married - Filing Separate Returns
Enter $12,000 on line 11. Mississippi law provides that married individuals filing separate returns (two returns) shall divide equally between the two spouses the total exemptions authorized. If the box on line 3 is checked, the only deduction you may claim for exemptions is one-half of the amount indicated on line 12. Checking the box "Married -Filing Separate Returns" implies that both husband and wife will file separate returns regardless of the amount or source of income of each. Any unused portion of the exemptions on one return may not be claimed on the other. If you elect to file separate returns, enter the Spouse's Name and Spouse's SSN in the heading of the return.
If this computation produces an inequity, it is suggested that married individuals check the box on line 1 and file one combined return, so the filing status and additional exemptions may be divided between the spouses in any manner they choose. If you elect to file jointly, enter the Spouse's Name and Spouse's SSN in the heading of the return.
Line 4: Head of Family
Enter $8,000 on line 11. A Head of Family individual is a taxpayer who is single and who maintains a household which constitutes the principal place of abode for himself or herself AND one or more dependents. A married individual must live apart from his/her spouse for the entire year to qualify for Head of Family filing status. If the dependent does not live in the same home with the taxpayer, such taxpayer does not qualify as head of family even though the taxpayer may contribute to the support and maintenance of a separate household for the dependent.
You must have a dependent of yours living in the home with you for the entire year to file as head of family. By checking line 4 of the tax return to file as head of family, you are allowed $8,000 and on line 6 you are allowed $1,500 for the required dependent, which totals $9,500 for your head of family status exemption. If you have additional dependents, list them on the additional lines available on line 6.
Line 5: Single
Enter $6,000 on line 11. A single taxpayer status is allowed for a person who is not married or who is married but legally separated from his/her spouse on the last day of the tax year.
An additional exemption may be claimed for a taxpayer and/or spouse ONLY if blind or age 65 or over. The status on the last day of the tax year will determine the additional exemptions authorized except in the case of death of a spouse or dependent. See the following chart for a list of additional exemptions.
The additional exemptions are as follows:
- Each dependent, other than yourself or
- Age 65 or over, taxpayer or spouse only......................................................$1,500
- Blind, taxpayer or spouse only......................................................$1,500
Line 6: Dependents
Enter the dependent's name, the dependent's relationship to you, and the dependent's Social Security Number. A dependent is a relative or other person who qualifies for federal income tax purposes as a dependent of the taxpayer. A dependency exemption is not authorized for yourself or your spouse.
An additional exemption may be taken by the taxpayer for each authorized dependent claimed. You must enter the SSN and relationship for each dependent claimed on your tax return.
Line 7: Number of Dependents Claimed
Enter the number of dependents claimed on line 6. Additional dependents are listed on Form 80-491.
Line 8: Age and Blindness
If the taxpayer or spouse is age 65 or over, or blind, an additional exemption may be claimed. Mark an "X" in the applicable box(es) on line 8 and enter on line 9 the number of boxes checked. For tax purposes, a person is 65 years of age on the day before his 65th birthday. No additional exemption for age or blindness may be claimed for dependents.
Line 9: Total Number of Dependents Claimed and Total Number of Age and/or Blindness Exemption(s)
Enter the total number of dependents claimed on line 7 and/or blindness exemptions claimed on line 8.
Line 10: Total Additional Exemption(s) Amount
Multiply line 9 by $1,500 and enter the result on line 10.
Line 11: Filing Status Exemption
Enter the dollar amount corresponding to the Filing Status you selected from lines 1 through 5.
Line 12: Total Filing Status/Additional Exemption Amounts
Add the amounts from line 10 and line 11 and enter the result on line 12.
MISSISSIPPI ADJUSTED GROSS INCOME
Married individuals with separate incomes electing to file a combined return (both spouses having earned incomes) should separate their incomes beginning with line 13 and throughout the return in order to take advantage of the lowest tax rates.
Line 13: Mississippi Adjusted Gross Income
Enter the amount of Mississippi Adjusted Gross Income from page 2, line 58.
Non-Resident Return: Enter amount from line 59 or 60, as appropriate.
You may choose to either itemize individual non-business deductions or claim the standard deduction for your filing status, whichever provides the greater tax benefit. In the case of married individuals filing separate returns, one spouse may itemize only if the other spouse itemizes. If one spouse claims the standard deduction on a separate return, the other must claim the standard deduction. You cannot take the standard deduction if your spouse itemizes deductions.
- State income taxes, or any other taxes allowed for federal purposes in lieu of state income tax, including taxes withheld on Mississippi gaming winnings, are not deductible on your itemized deductions schedule. See the instructions for Schedule A, Itemized Deductions, on page 14.
- Losses incurred at Mississippi gaming establishments are not deductible on your Mississippi itemized deduction schedule.
- Married individuals having separate income and filing a combined return may divide their itemized deductions in any amount between them.
Line 14: Standard or Itemized Deductions
Itemized Deductions. State income taxes or any other taxes allowed for federal purposes in lieu of state income tax are not deductible on your itemized deductions schedule. This also includes the non-refundable income tax withheld on gaming winnings. See instructions for Schedule A (Itemized Deductions). Married individuals having separate income and filing a combined return may divide their itemized deductions in any manner they choose for column A and column B. Mississippi Gaming Losses are not deductible on Mississippi itemized deductions.
Standard Deduction. In lieu of an allowance for itemized personal deductions, you may claim an allowance for the standard deduction. Refer to the table on page 4 for the amounts of standard deduction allowances. Married individuals having separate incomes and filing a combined return (one return), may divide the authorized standard deduction ($4,600) between the spouses in any manner they choose for column A and column B. Married individuals filing separate returns (two returns) and electing to claim the standard deduction must EACH claim the amount specified - any unused portion of the standard deduction by one spouse on his/her separate return may not be used by the other spouse on his/her separate return.
Enter the amount of your itemized or standard deduction on page 1, line 14. Form 80-108 must be attached.
Line 15: Amount of Exemption
Enter the amount from line 12. If Married-Filing Separate, divide this amount by 2.
TAX AND CREDITS
Line 16: Mississippi Taxable Income
Subtract lines 14 and 15 from line 13 and enter the result on line 16. The amount of income tax due is calculated based on this amount. Use the Schedule of Tax Computation (see Appendix) to compute the amount of income tax due.
Line 17: Total Income Tax Due
Using the taxable income amount(s) from line 16, the Tax Computation Schedule should be completed to determine the total Mississippi income tax liability. If Married Filing Joint or Combined, or Married - Spouse Died in Tax Year, filing status is elected, and the amounts in both Column A and Column B are positive amounts, use Column A (Taxpayer) and Column B (Spouse) of the Tax Computation Schedule to compute the tax liability on line 5 of the Schedule.
If Married Filing Joint or Combined, or Married Spouse Died in Tax Year, filing status is elected, and the taxable income on line 16 of either Column A or B is a positive amount, and the taxable income on line 16 of the other column is a negative amount, the positive and negative amounts should be combined. If a net positive amount results, the tax liability should be computed on the net amount using Column A of the Tax Computation Schedule. If combining the positive and negative amounts reflected in Column A and Column B results in a negative amount, there will be no income tax liability. If the amounts shown on line 16, Columns A and B, are both negative, there will be no income tax liability. The tax liability for taxpayers using any other filing status should be computed using Computation Schedule on line 17, page 1, of the tax return.
Line 18: Credit for Income Tax Paid to Another State (not applicable on the Non-Resident Return)
If you are a resident of Mississippi who earns income in another state and are required to pay an income tax to that other state, you are allowed to take a credit against your Mississippi income tax due in the same year for the total income tax due to the other state (subject to certain limitations).
In order to be allowed this credit, you MUST file an income tax return with the other state, and attach a copy of this return to your Mississippi return. The withholding amounts shown on your W-2 forms are NOT the same as actual tax paid to the other state.
Form 80-160 must be attached. Copies of withholding statements are not sufficient to establish the credit.
Miss. Code Ann. §27-7-77 provides for three limitations which are:
- The credit may not exceed the amount of income tax due the State of Mississippi, indicated on line 17;
- The credit may not exceed the amount of income tax actually paid to the other state; and
- The credit may not exceed an amount computed by applying the highest applicable Mississippi rates to the net taxable income reported to the other state. Highest rates are meant to mean the highest rates at which the net taxable income reported to the other state is taxable by the State of Mississippi.
Line 19: Other Credit(s)
All other allowable credits should be combined and the total entered on this line. For each type of credit taken, enter the applicable two digit code on Form 80-401 as provided in the Appendix.
Line 21: Consumer Use Tax
If during 2013 you made out-of-state purchases of goods or services that you used, stored or consumed in Mississippi and did not pay sales taxes to any state, you are required to pay Mississippi Consumer Use Tax at a rate of 7% of the purchase price.
An example of such purchases includes books, clothing, computers, electronics, furniture, household items and downloads of digital products such as music, movies, e-books and software.
Line 23: Mississippi Income Tax Withheld
Add the amounts shown as "MS Income Tax" withheld on your Form W-2 and Federal Forms 1099 and/or 1099-R. Enter the total amount withheld on line 23. You must complete Form 80107, Income/Withholding Tax Schedule.
Tax withheld on gaming winnings cannot be claimed as Mississippi income tax withheld.
Include readable copies of your Form W-2 with your return. Copies of your Form W-2 are available only from your employer. Also include any other forms, (1099, etc.) which have Mississippi withholding, to the back of the return. The withholding credit may be disallowed if W2s are not attached to the return. These items should be listed on Form 80-107, Income/Withholding Tax Schedule, which must be attached to your return.
Line 24: Estimated 2013 Tax Payments, Extension and/or Amount Paid on Original Return
Enter the total estimated tax payments you made before filing your 2013 Mississippi tax return plus any amount credited from your 2012 tax return. Any amount paid with a request for extension of time to file should also be included in this amount.
Line 25: Refund Received and/or Amount Carried Forward From Original Return
Enter the amount of refund received and/or carried forward from the original return. This line only applies to amended return.
REFUND OR BALANCE DUE
Line 27: Interest on Underestimated Tax and Late Filing Penalty (from Form 80-320, line 15)
An individual taxpayer is subject to making estimated tax payments if such taxpayer does not have at least 80% of his/her tax liability withheld through wages subject to withholding and such liability exceeds $200.
Farmers or Fishermen Exception: You will not be charged interest for underpayment of tax if your gross income from farming or fishing is at least two- thirds of total gross income and (a) estimate tax paid by the 15th day of the first month after the close of the income year or (b) income tax return is filed by the first day of the third month following the close of the income year and tax shown due is paid.
The penalty imposed for failure to file a return is 5% per month not to exceed 25% in the aggregate. The failure to file penalty is based on the Total Income Tax Due (page 1, line 17). Such failure to file penalty shall not be less than $100 and will be applied to all returns filed after October 15 (including returns resulting in a refund).
If you are subject to making estimated tax payments or have failed to file a return timely, use Form 80-320 to calculate the penalties.
Line 28: Overpayment
If line 26 is larger than line 22 plus line 27, subtract line 22 and line 27 from line 26 and enter the overpayment of tax on line 28.
Line 29: Credit to Estimated Tax
Enter on line 29 the amount of your overpayment you wish to be credited to your 2014 estimated tax account. This amount will not be mailed to you.
Line 30: Voluntary Contribution Check-Offs (not applicable on the Non-Resident Return)
You may contribute all or part of your 2013 income tax refund to one or more of the seven (7) funds approved by the Legislature. In order to contribute to one of the funds, you must complete and attach Form 80-108, Part 3. The total from Form 80-108, Part 3 should be entered on here.
Your contribution may be claimed as a tax deductible charitable contribution on your state and federal income tax returns. Once your return is filed, your contribution is final and cannot be refunded.
Contributions to the Mississippi Military Family Relief Fund. You may elect to contribute all or any portion, of your income tax refund (at least $1) to the Mississippi Military Family Relief Fund. If you are due a refund and wish to contribute to the Mississippi Military Family Relief Fund, please write the amount you wish to donate on Form 80-108, Part 3. This fund is to provide grants to families that experience a financial hardship as a result of a family member who is a Mississippi resident and who is a member of the Mississippi National Guard or the reserves of the Armed Forces of the United States being called to active duty as a result of September 11, 2001, terrorist attacks.
Contributions to Mississippi Commission for Volunteer Service Fund. You may elect to contribute all or part (at least $1) of your income tax refund to the Mississippi Commission for Volunteer Service Fund. These refund donations may be expended by the Mississippi Commission for Volunteer Services to advance community service and volunteer work among Mississippians. If you are due a refund and wish to contribute to the Mississippi Commission for Volunteer Services Fund, please write the amount you wish to donate on Form 80-108, Part 3.
Contributions to the Mississippi Wildlife Heritage Fund. You may elect to contribute all or part (at least $1) of your income tax refund to the Mississippi Wildlife Heritage Fund. These refund donations are used to study, protect and manage our non-game wildlife, endangered species and special natural areas.
Since 1986, when the Wildlife Heritage Fund was established, tax refund contributions have been used to: (1) fund more than one hundred research projects which produced valuable information on rare plant and animal species; (2) reintroduce bald eagles to our state's barrier islands; (3) record and publish the songs and sounds of Mississippi's birds and frogs; and (4) help rehabilitate injured birds of prey.
If you are due a refund and wish to contribute to the Wildlife Heritage Fund, please write in the amount you wish to donate on Form 80-108, Part 3. If you are not due a refund, but wish to contribute, make a check or money order payable to the Wildlife Heritage Fund and mail it to the Mississippi Department of Wildlife, Fisheries and Parks, P. O. Box 451, Jackson, MS 39205-0451.
Contributions to the Mississippi Educational Trust Fund. You may elect to contribute all or any portion, of your income tax refund (at least $1) to the Mississippi Educational Trust Fund. If you are due a refund and wish to contribute to the Mississippi Educational Trust Fund, please write the amount you wish to donate on Form 80-108, Part 3. Your donation is tax deductible and will be placed in this trust fund which will be used for the improvement of education within the State of Mississippi.
The principal of the trust fund shall remain inviolate and shall be invested as provided by general law. Interest and income derived from investment of the principal of the trust fund may be appropriated by a majority vote of the elected membership of each house of the Legislature and expended exclusively for the education of the elementary and secondary school students and/or vocational and technical training in this state.
Contributions to Mississippi Wildlife Fisheries and Parks Foundation. You may elect to contribute all or part (at least $1) of your income tax refund to the Mississippi Wildlife Fisheries and Parks Foundation. These refund donations are used to build, upgrade, and/or improve our Fisheries and Parks managed by the Mississippi Wildlife Fisheries and Parks Commission. If you are due a refund and wish to contribute to the Mississippi Wildlife Fisheries and Parks Foundation, please write the amount you wish to donate on Form 80-108, Part 3.
If you are not due a refund, but wish to contribute, make a check or money order payable to Mississippi Wildlife Fisheries and Parks Foundation. The mailing address is Mississippi Department of Wildlife, Fisheries and Parks, P.O. Box 14194, Jackson, MS 39236.
Contributions to Mississippi Bicentennial Celebration Fund. You may elect to contribute all or part (at least $1) of your income tax refund to the Mississippi Bicentennial Celebration Fund. These funds will be used for the purpose of designating, coordinating and providing programs with respect to the formal Bicentennial celebration of the State of Mississippi in 2017. If you are due a refund and wish to contribute to the Mississippi Bicentennial Celebration Fund, please write the amount you wish to donate on Form 80-108, Part 3.
Contributions to Mississippi Burn Care Fund. You may elect to contribute all or part (at least $1) of your income tax refund to the Mississippi Burn Care Fund. If you are due a refund and wish to contribute to the Mississippi Burn Care Fund, please write the amount you wish to donate on Form 80-108, Part 3. Donations to the Fund will be forwarded to the Burn Center for use in its operations.
Line 31: Refund (Line 32 on Non-Resident Return)
Subtract lines 29 and 30 from line 28 (Non-Resident Return, subtract line 30 from line 31). Subject to correction of error, this is the amount of your refund. Please allow at least ten weeks to process your refund, perhaps longer if filed near April 15 or if you have a prior delinquency. The refund will be mailed to the address on your return. No refund will be made for amounts less than $1.00. Failure to file penalty will be applied to all returns filed after October 15 (see line 27 instructions above).
If the Department of Revenue is notified of a debt in excess of $25 by the State Department of Human Services, an Educational Board, Educational Institution, Educational Loan Agency, State Department of Medicaid, or Mississippi Department of Employment Security Commission, a portion or all of your refund may be offset in payment of that debt.
Line 32: Balance Due (Line 33 on Non-Resident Return)
If line 26 is less than lines 22 and 27, subtract line 26 from lines 22 and 27 and enter the balance due on this line (Non-Resident Return, if the total payments on line 28 are less than the total tax due on line 24, subtract line 28 from lines 24 and 29 and enter the balance due on this line).
Line 33: Late Payment Interest and Penalty
Enter the amount from Form 80-320, line 19. An extension of time only extends the time for filing a return, not payment of the tax. If the income tax is not paid by the original due date of the return, then interest is due at the rate of 1% per month.
The penalty imposed for failure to pay the tax when due is 1/2% per month not to exceed 25% in the aggregate. The penalty is based on the balance due. Interest and penalty for late payment is not charged on interest and penalty on underestimated income tax payments.
Line 34: Total Due
Add lines 32 and 33 and enter the amount on this line. This is the amount you owe. You must pay the FULL AMOUNT of your income tax due when you file your return (or before the due date of April 15). Payments can be made by check or money order payable to the Department of Revenue. Do not send cash by mail. BE SURE TO ENCLOSE PAYMENT VOUCHER, FORM 80-106, WITH YOUR PAYMENT. You may pay your tax in person at any of the Department of Revenue District Service Offices or through Taxpayer Access Point (TAP) on our website. Balances due of less than $1.00 need not be paid.
Line 35: Wages, Salaries, Tips, Etc.
Show the total of all wages, salaries, fees, compensation, commissions, tips, bonuses, and other amounts your employers paid you before they deducted taxes, insurance, etc. Include in this total:
- The amount shown on your Wage and Tax Statement (Form W-2) in the box "State wages, tips, etc."
- Wages you received but for which you do not have a Wage and Tax Statement.
- Tips you did not report to your employer.
- Fair market value of meals and living quarters if given by your employer as a matter of your choice and not for your employer's convenience.
- Strike and lockout benefits paid by a union from union dues, including both cash and the fair market value of goods received, unless the facts clearly show that such benefits were intended as a gift.
Include all W-2's with your return. Also, you must complete the Income/Withholding Tax Schedule (Form 80-107) and submit it with your return.
Differences may exist between the amount of state taxable income entered on this form (line 36 through line 46) and the amount of federal taxable income entered on Form 1040, 1040A, etc. In such cases, reconciliation must be provided. This can be accomplished in one of two ways. The first method is to enter the amount per the federal return for the corresponding line item (e.g. line 36 - Schedule C income) on the Mississippi return. A separate adjustment is recorded on Schedule N identifying the difference(s) between federal and state reportable income (e.g. Bonus Depreciation Adj. - Schedule C -1). The alternative is to enter the amount of Mississippi reportable income on the appropriate line (e.g. line 39 - Farm Income) and attach a separate schedule reconciling the federal amount, the item(s) of difference, and the state amount reported on page 2 of Form 80-105.
Non-Resident Return: On Form 80-205, married individuals with separate incomes electing to file a combined return (both spouses having earned incomes) should combine their incomes beginning with line 36, and throughout the schedule to determine Total Income from All Sources and Income(s) Earned in Mississippi Only.
Line 36: Business Income or Loss
Enter your profit or loss if you owned a business or practiced a profession. If you had more than one business, or if you and your spouse had separate businesses, complete a Schedule C for each business. If the Mississippi net profit or loss amount varies from the Federal Schedule C net profit or loss, then provide reconciliation. If you enter the federal amount on this line, but there is a difference between Mississippi and federal amounts, enter the adjustment on Form 80-108, Schedule N. The Federal Schedule C must be attached to your return.
If some of your expenses are part business and part personal, you can only deduct the business part as a business expense.
Line 37: Capital Gain or Loss
Enter the amount of capital gain or loss. Mississippi generally follows IRS rules concerning computation of capital gains and losses. Capital loss deductions are subject to the same limitations as federal. However, Mississippi does not have different tax rates for capital gains. All income is taxed at the same rate. Gains from the sales of ownership interests must first be reduced by the amount of any losses determined from sales or transactions described in Miss. Code Ann. § 27-7-9(f)(10). If the amount reported on this line is different than the amount reported for federal purposes, reconciliation should be attached. If you enter the federal amount on this line, but there is a difference between Mississippi and federal amounts, enter the adjustment on Form 80-108, Schedule N. The Federal Schedule D must be attached to your return.
Line 38: Rental Real Estates, Royalties, Partnerships, S Corporations, Trusts, etc.
Enter the income or loss from activities reported on Federal Schedule E on this line. If the amount reported is different than the amount reported for federal purposes then attach reconciliation. If you enter the federal amount on this line, but there is a difference between Mississippi and federal amounts, enter the adjustment on Form 80-108, Schedule N. The Federal Schedule E must be attached to your return.
Line 39: Farm Income or Loss
Enter the net farm income or loss on this line. If you are a farmer or rent your farm on shares, attach Federal Schedule F to your tax return.
If the amount reported is different than the amount reported for federal purposes then attach reconciliation. If you enter the federal amount on this line, but there is a difference between Mississippi and federal amounts, enter the adjustment on Form 80-108, Schedule N.
Farm losses claimed by persons who do not devote full time to farming will not be allowed unless such person can clearly establish the fact that he is in the business of farming for gain or profit.
Line 40: Interest Income
Complete Form 80-108, page 1, Schedule B, lines 1 through 3. Enter interest received or credited to your account during the tax year on bank deposits, notes, mortgages and corporation bonds. Interest on bonds is considered income when received or credited. Interest income from obligations of the U.S. Government, the State of Mississippi and subdivisions thereof, is exempt. Interest on obligations of other countries, states, cities, or political subdivisions outside Mississippi is taxable.
Line 41: Dividend Income
Complete Form 80-108, page 1, Schedule B, lines 4 through 6. Report the amount of all dividends received during your tax year. Dividends include distributions of money as well as property.
Line 42: Alimony Received
Enter the amount received as alimony and separate maintenance payments. The recipient of alimony must include the amount received in gross income. For Alimony Paid, see the instructions for line 50.
Line 43: Total Pensions and Annuities
Enter the total amount of taxable pensions and annuities received on this line. Pensions and annuities that is taxable as early or excess distributions under the Federal Internal Revenue Code (see Federal Form 5329) do not qualify for exemption from Mississippi income tax. Such income should be reported on this line as taxable income. Separation pay is not retirement income and does not qualify for exemption. Deferred compensation plan distributions received prior to attainment of retirement age and/or service requirements are taxable for Mississippi purposes and should be reported on this line. Do not report Social Security benefits, annuity benefits received under the Federal Railroad Retirement Act, or retirement income on this line. Social Security benefits, Railroad Retirement benefits, and retirement income from federal, state, and private retirement systems are exempt in total.
Line 44: Unemployment Compensation
Enter from Form(s) 1099-G the amount of unemployment compensation received in 2013. Unemployment compensation is taxable for Mississippi income tax purposes. Complete Form 80-107.
Line 45: Other Income or Loss
Enter the amount from Form 80-108, Schedule N.
Line 46: Total Other Income or Loss (Total Income or Loss on Non-Resident Return, line 47)
Add lines 35 through 45. Enter the total on this line.
Non-Resident Return: Add lines 36 through 46 of both columns "Total Income From All Sources" and "Mississippi Income ONLY". Enter the totals on this line.
Non-Resident Return: On Form 80-205, married individuals with separate incomes electing to file a combined return (both spouses having earned income) must combine their adjustments beginning with line 48, and continue throughout the schedule to determine Total Income from All Sources and Incomes Earned in Mississippi Only. Non-Resident or part-year residents not reporting total income to Mississippi are entitled to claim that portion of certain adjustments in the ratio that income from sources within Mississippi.
(Line 47, Mississippi Only Income) bears to total income from all sources (line 47, Total Income From All Sources). The ratio determined cannot exceed 100%. Adjustments that must be prorated are (a) Payments to an IRA (line 48); (b) Payments to self-employed SEP, SIMPLE, and qualified plans (line 49); (c) Alimony Paid (line 51); (d) Moving Expenses (line 52); Self-Employed Health Insurance Deduction (line 56), Health Savings Account Deduction (line 57). If the adjustment to income is not listed in lines 48 through 57, then the adjustment must be reported on Form 80-108, Schedule N. You must give a description of the adjustment and enter the figure as a negative amount. Our system will not read the statements. An adjustment in this section requires attachment of a schedule or other detailed explanation. See the following example.
Example: John and Mary Johnson moved from Arkansas to MS in October of 2013. Together they had $2,000 of qualified unreimbursed moving expenses. In completing the return, John and Mary had total income of $50,000 (line 47, left column) and total Mississippi income of $20,000 (line 47, right column). On line 52, moving expense, the $2,000 of qualified unreimbursed moving expenses is entered in the left column. On line 52, moving expense, $800 ($2,000 X (20,000/50,000)) is entered in the right column (Mississippi column).
Line 47: Payments to an IRA
You may deduct payments to an IRA to the extent that such payments are deductible for federal income tax purposes. Use the worksheet in your federal income tax instructions to figure your deduction for payments to an IRA.
Non-Resident Return: See note above concerning proration.
Line 48: Payments to Self-employed SEP, SIMPLE, and Qualified Plans.
You may deduct contributions to Self-Employed Retirement Plans to the extent that such contributions are deductible for federal income tax purposes. If the contributions or any part thereof, are not deductible for federal income tax purposes, they are not deductible for Mississippi income tax purposes.
Non-Resident Return: See note above concerning proration.
Line 49: Interest Penalty on Early Withdrawal of Savings
Federal Form 1099-INT given to you by your bank or savings and loan association will show the amount of any interest penalty you were charged because you withdrew funds from your time savings deposit before its maturity. The amount of such penalty is deductible.
Line 50: Alimony and Separate Maintenance Paid
Alimony payments you made are deductible to the extent allowable for federal income tax purposes. Include the name, social security number and state of residency of the individual to whom the alimony was paid. If you paid more than two individuals alimony payments, attach a supplemental schedule and enter the total on this line.
Non-Resident Return: See note above concerning proration.
Line 51: Moving Expense
You may deduct moving expense(s) as an adjustment to gross income to the extent allowable for federal income tax purposes. Attach a copy of Federal Form 3903.
Non-Resident Return: See note above concerning proration.
Line 52: National Guard and Reserve Pay
Enter the lesser of the National Guard or Reserve pay or the $15,000 Statutory Exclusion per taxpayer. Report National Guard or Reserve pay on line 52 (Non-Resident Return: line 53).
Line 53: MPACT - MS Prepaid Affordable College Tuition Program AND/OR
Line 54: MACS - MS Affordable College Savings
Enter the prepaid tuition contract (MPACT) costs you paid during 2013 to the Mississippi Treasury Department on behalf of a student beneficiary and/or the amount contributed to a MACS Program account on behalf of a qualified beneficiary. Under the MACS Program, the maximum annual contribution deductions are $20,000 for joint filers and $10,000 for single and other filers. Contributions must be made on or before the deadline for making contributions to an IRA under federal law for such years (by the due date of the return, not including extensions.) Only amounts contributed to these programs are excluded from Mississippi income.
Line 55: Self-Employed Health Insurance Deduction
Enter the amount of the Self-Employed Health Insurance Deduction you claimed on your federal income tax return.
Non-Resident Return: See note above concerning proration.
Line 56: Health Savings Account Deductions
Enter the amount deposited into a health savings account plus any accrued interest as defined in the Health Savings Account Act. Any amounts withdrawn other than for the purpose of paying qualified medical expenses or to procure health coverage shall be included in gross income.
Line 57: Total Adjustments to Gross Income
Add lines 47 through 56. If the adjustment to income is not listed on lines 47 through 56, then the adjustment must be reported on Form 80-108, Schedule N. You must give a description of the adjustment and enter the figure as a negative amount. Our system will not read the statements.
Line 58: Mississippi Adjusted Gross Income
Subtract line 57 from line 46. Enter the total here and on line 13, page 1, of Form 80-105.
Non-Resident Return Only (Lines 59 and 60):
Line 59: Total Adjusted Gross Income from ALL Sources and Mississippi Adjusted Gross Income
Subtract line 58 from line 47 and carry the Mississippi Only Income to line 13a. Carry the Total Income from All Sources to line 13b. These are the amounts you will use to calculate the ratio on line 13c. Carry the Mississippi Only Income to line 16 as well for Single or Head of Family Filers. If you are Married-Filing Combined Return, enter amounts on line 60.
Line 60: Total for Married - Filing Combined Return
If you are Married-Filing Combined Return, split the Mississippi Adjusted Gross income from line 59 according to ownership between Taxpayer and Spouse. Enter the amounts for Taxpayer and Spouse on page 1, line 16, of Form 80-205.
For the year 2013, Form 80-108 includes Schedule A - Itemized Deductions; Schedule B - Interest & Dividends Income; Voluntary Contribution Check-Offs; Income (Loss) from Rents, Royalties, Partnerships, S Corporations, Trusts & Estates and Schedule N - Other Income (Loss) and Supplemental Income. Information for completing Schedule A is transferred from Federal Form 1040 Schedule A. If you filed your federal return using the standard deduction and wish to itemize deductions for Mississippi purposes, please use a Federal Form 1040 Schedule A as a worksheet and transfer the information from the specific lines indicated to the Mississippi Schedule A.
SCHEDULE A - ITEMIZED DEDUCTIONS
Individual taxpayers may elect to either itemize their individual nonbusiness deductions or claim a standard deduction. If your itemized personal deductions are greater than the standard deduction for your filing status (see instructions for line 14), it will be to your advantage to complete and file Schedule A. If the standard deduction for your filing status is greater than the amount of itemized deductions you can substantiate, it is to your advantage to claim a standard deduction.
Line 1: Federal Adjusted Gross Income
Enter the amount reported on Federal Form 1040, line 38.
Lines 2a through 2c: Medical and Dental Expenses
The instructions included with your federal return should be used in determining your medical deduction. You should base your 10% limitation, line 2b, on your federal adjusted gross income from your federal income tax return. Enter the amounts from Federal Form 1040, Schedule A. Subtract 10% of Federal AGI on line 2b. However, if either you or your spouse was born before January 2, 1949, you can deduct the part of your medical and dental expenses that exceeds 7.5% of Federal AGI on line 2b.
If line 2b is more than line 2a, enter zero on line 2c.
Lines 3a through 3c: Taxes Paid
State income taxes paid or any other taxes allowed in lieu of federal purposes including withholding taxes on Mississippi gaming winnings, are not deductible as an itemized deduction. These amounts should be subtracted on line 3b. Also, you cannot deduct federal income tax or Social Security tax. Enter amounts from Federal Form 1040, Schedule A.
Line 4: Interest Paid
Federal income tax limitations with regard to interest expense apply fully to Mississippi income tax. Enter only interest expense deductible for federal income tax purposes. Enter amount from Federal Form 1040, Schedule A.
Line 5: Gifts to Charity
You can deduct what you gave to organizations that are religious, charitable, educational, scientific, or literary in purpose. The amounts you deduct are subject to the federal limitations. Enter amount from Federal Form 1040, Schedule A.
Line 6: Casualty and Theft Losses
A casualty or theft loss is computed on the same basis and subject to the same limitations as under federal law. Use federal instructions included with your federal tax return to determine your loss. Federal Form 4684 must be attached.
For information about federal disaster area losses, including the election to claim a casualty loss deduction for the tax year(s) proceeding the year of the casualty, net casualty loss carrybacks and carryovers, contact the Department of Revenue. Enter amount from Federal Form 1040, Schedule A.
Lines 7a through 7d - Job Expenses and most Other Miscellaneous Deductions
You may deduct certain miscellaneous expenses authorized by federal law and regulations such as educational expenses and employee expenses, but only to the extent that such expenses exceed the 2% federal adjusted gross income limit. Enter amount from Federal Form 1040, Schedule A. Subtract 2% of federal AGI on line 7b. If line 7c is more than lines 7a and 7b, enter zero on line 7d.
Lines 8a through 8c - Other Miscellaneous Deductions
Other miscellaneous expenses not subject to the 2% federal adjusted gross income limit are deductible on line 8. Refer to federal instructions to determine type and amount. Enter amount from Federal Form 1040, Schedule A. Mississippi gaming losses are not deductible and should be subtracted on line 8b.
Line 9: Mississippi Itemized Deductions
Add the total amounts for lines 2 through 8 (2c, 3c, 4, 5, 6, 7d and 8c).
Line 10: Limitation on Mississippi Itemized Deductions
If the federal AGI from Form 1040 is more than $300,000 (Married - Filing Joint or Combined Return), $275,000 (Head of Family), $250,000 (Single), and $150,000 (Married-Filing Separate), do not use the amount shown on line 9 above. You must use your Federal Schedule A to complete the Mississippi State Income Tax Adjustment Worksheet on the following page.
The amount determined on line 8 of the Worksheet should be entered here and on Form 80-108, Schedule A, line 10.
Mississippi State Income Tax Adjustment Worksheet
Note: To complete the worksheet shown on the following page, you will need to refer to your Federal Itemized Deductions Worksheet in your federal instructions.
|1. Enter total itemized deductions from Federal Schedule A, line 29||_____|
|2. Divide line 9 by line 3 on the Federal Itemized Deductions Worksheet||_____|
|3. Multiply state income taxes from Federal Schedule A, line 5 by line 2 above||_____|
|4. Subtract line 3 above from state income taxes from Federal Schedule A, line 5||_____|
|5. Subtract line 4 above from line 1 above||_____|
|6. Enter the amount of federal itemized gaming losses||_____|
|7. Enter the amount of non-Mississippi (residents only) gaming losses to the extent of non-Mississippi gaming income.||_____|
|8. Line 5 less line 6 plus line 7. Enter the result here and on Form 80-108, Schedule A, line 10||_____|
SCHEDULE B - INTEREST AND DIVIDEND INCOME
Report any interest you received or that was credited to your account so you could withdraw it. Examples are interest on savings or other bank accounts; interest on a promissory note, a mortgage, or a corporate bond or debenture; interest on state obligations other than the State of Mississippi or subdivisions thereof, etc. Interest income from obligations of the United States Government and the State of Mississippi and subdivisions thereof is exempt.
Line 1: Interest Income
Enter the total amount of interest income reported on Federal Form 1040, Schedule B, line 2.
Line 2: Amount of Mississippi Non-taxable Interest
Enter the amount of Mississippi non-taxable interest received on obligations of the United States or Mississippi or political subdivision from line 1.
Line 3: Total Mississippi Interest
Subtract line 2 from line 1. Enter the total here and on Form 80-105, line 40 or Form 80-205, line 41.
Report all dividend income received regardless of the amount. Include cash and the value of stock, property or merchandise you receive as a dividend. The payer should send you a Form 1099-DIV.
- Ordinary dividends. See Form 1099-DIV, Box 1a.
- Qualified dividends. See Form 1099-DIV, Box 1b.
- Nontaxable distributions. Some distributions are nontaxable because they are a return of your cost. They will not be taxed until you recover your cost. You must reduce your cost by these distributions. After you recover your cost, you must report these dividends as capital gains.
Note: Capital gain distributions reported on Form 1099-DIV. If you have other capital gains or losses, enter your capital gain distributions on Federal Schedule D. If you don't need Federal Schedule D to report any other gains or losses, report capital gain distributions on line 37 of Form 80-105 or line 38 of Form 80-205.
Line 4: Total Dividend Income
Enter the total amount of dividend income received.
Line 5: Amount of Nontaxable Distributions
Enter the amount of distributions included in line 4 above which would not be taxable for Mississippi purposes (example: interest on federal obligations included with dividends reported).
Line 6: Dividends for Mississippi
Subtract line 5 from line 4. Enter the result on Form 80-105, line 41 or Form 80- 205, line 42.
SCHEDULE N - OTHER INCOME (LOSS) AND SUPPLEMENTAL INCOME
Schedule N is used to report income or loss not reflected elsewhere on this return such as Non-Mississippi gambling winnings, prizes and awards, net operating loss carry forwards, etc. Explain the nature and source of each income or loss item. If the adjustment to income is not listed in lines 47 through 56, then the adjustment must be reported on Schedule N. You must give a description of the adjustment and enter the figure as a negative amount. Our system will not read the statements. Mississippi Gambling Income is no longer reported for Mississippi income tax.
Form 80-108, Schedule N may also be used to report differences between federal and state taxable income such as when the net profit or loss from a business (Schedule C) is different due to bonus depreciation adjustments. Attach a copy of Form 80-108 to your return. ALL INDIVIDUALS FILING FEDERAL SCHEDULES C, C-EZ, E, AND/OR F MUST INCLUDE A COPY OF EACH SCHEDULE AND MUST COMPLETE THIS SCHEDULE.
INCOME TAX CREDITS
General restrictions exist on the use of income tax credits on a Mississippi individual income tax return. Most often these credits will be passed through from an entity filing a Mississippi Partnership or S Corporation tax return.
The following will show the maximum credit allowed. Some of the credits do allow the unused portion to be carried forward for a period of time. If a taxpayer has more than one credit and/or more than one type of credit, the credits may be used in any sequence so as to obtain the greatest tax savings. Form 80-401 must be attached to your income tax return. If more than three income tax credits are claimed, attach a supplemental schedule and enter the total on line 3 of Form 80-401.
Ad Valorem Inventory Tax Credit. This credit is limited to the lesser of $5,000.00 per location or the income tax attributable to the location paying the ad valorem tax. This credit can be acquired in two ways, the first would be from a pass through entity and the second from a business whose income is being reported using a Schedule C in the individual tax return (if the credit is from a Schedule C then attach a copy of the ad valorem tax bills). This credit is calculated as follows: multiply the net income passing through from the entity or the income off the Schedule C by the effective tax rate/rates (starting at your highest effective tax rate then work down if some of the business income is taxed at 4% and/or 3%). Any unused credit may be carried over for five years. Any expenses on which the credit is calculated must be added back to taxable income.
Jobs Tax Credit; National or Regional Headquarters Credit; Research and Development Skills Credit. These credits combined are limited to 50% of the income tax that is attributable to income derived from operations in the state for a year. The allowable credit is calculated as follows: multiply the net income passing through from the entity by the effective tax rate/rates (starting at your highest effective tax rate then work down if some of the business income is taxed at 4% and/or 3%); then multiply by the 50% limitation. Any unused credit may be carried over for 5 years.
Job Development Assessment Fee. Employees whose wages have been assessed to help pay for Business Finance Corporation issued bonds which created their jobs, may claim a credit against their income taxes. Job Development Assessment Fee amounts are shown in the city or local income tax withholding block on the W-2 form, with the word "RED" for the city or local name. Credit amounts which exceed the tax due are not refundable and may not be carried forward to another tax year.
Reforestation Tax Credit. This credit, based on the costs incurred for certain approved reforestation practices, is an amount equal to the lesser of fifty percent (50%) of the actual cost of approved practices or fifty percent (50%) of the average cost of approved practices as established by the Mississippi Forestry Commission. In any taxable year, the credit shall not exceed the lesser of $10,000 or the amount of income tax imposed upon the eligible owner for the taxable year reduced by the sum of all other credits allowable to the eligible owner (except for withholding credits, estimated tax payments, and/or credit for tax paid to another state). The maximum reforestation tax credit that an eligible owner may utilize during his lifetime is $75,000 in the aggregate. Any unused portion of the credit may be carried forward to succeeding years. Generally, reforested acreage on which the eligible owner receives any state or federal cost share assistance funds to defray the cost of an approved reforestation practice is not eligible for the credit, unless the eligible owner's adjusted gross income is less than the federal earned income credit level. Any expenses on which the credit is calculated must be added back to taxable income.
Child Adoption Credit. An income tax credit is available up to $2,500 for qualified adoption expenses paid or incurred during the tax year for each child legally adopted by a taxpayer. The credit may be claimed for the tax year in which the adoption becomes final and any unused credit may be carried forward for three (3) years. Formerly, if the Child Adoption Credit was claimed, then the child could not be claimed as a dependent. Senate Bill 2833 removes the restriction to allow both the exemption and credit. The amendment went into effect January 1, 2013.
Long Term Care Credit. Effective January 1, 2007, there is a credit available against individual income taxes for premiums paid during the taxable year for certain qualified long term care insurance policies as defined in Section 7702B of the Internal Revenue Code. The credit available is twenty-five percent (25%) of premiums paid during the taxable year not to exceed $500 or the taxpayer's income tax liability, whichever is less, for each qualified long term care insurance policy. No carry forward is allowed for any unused portion.
Biomass Energy Investment Credit. A credit is allowed for eligible facilities equal to five (5%) of investments made in the initial establishment of this facility. An eligible facility is a new facility that creates at least twenty (20) full time jobs with a minimum investment from private sources of $50,000,000 and produces electric energy from biomass. The credit shall commence within two (2) years from the date becomes operational and may be carried forward for five (5) consecutive years. The credit is limited to fifty percent (50%) of the total state income tax liability.
Wildlife Land Use Credit. Effective January 1, 2011, a state income tax credit is allowed that provides a $5.50 per acre tax credit for certain taxpayers that allow land to be used as a natural area preserve, wildlife refuge, wildlife management area or public outdoor recreation area. Land must first be approved to be suitable for the uses listed above by the Mississippi Commission on Wildlife, Fisheries and Parks. Any unused credit amount may be carried forward for five (5) years from the close of the taxable year in which the land was approved for such a use.
You may visit our web site at www.dor.ms.gov for information on other credits and their limitations. Other credits include Enterprise Zone Credit, Business Child/Dependent Care Credit, Basic Skills or Training Credit, Finance Company Privilege Tax Credit, Mississippi Business Finance Corporation Revenue Bond Service Credit, Export Port Charges, Temporary Assistance for Needy Families (TANF) for federal income tax purposes. The credit referred to Credit. here is allowable to employers who provide facilities for the care of dependents of their employees.
NOTE: The Business Child/Dependent Care Credit referred to above IS NOT the same credit that is allowed
The Department of Revenue offers several electronic filing methods to make filing returns easier. The advantages of filing electronically are:
- More accurate
- Some are even FREE!!!
Federal/State Electronic Filing Program: Your professional tax practitioner can file both your federal and state returns by using the E-File program. Returns are more accurate and refunds are much faster when you file electronically. An approved transmitter must sign Form 80115 (MS8453), Mississippi State Declaration for Electronic Filing. Ask your tax preparer about electronic filing!
Federal/State On-Line Filing Program: You can file your tax return from the convenience of your home computer by purchasing the computer program from the store or over the internet. Visit our website at www.dor.ms.gov for additional information on how to file Mississippi returns on-line and how to access approved on-line software providers.
Updates to the Electronic Filing Program and other updated filing information can be accessed through our website at www.dor.ms.gov . The Department of Revenue notifies your transmittor that your return has been received and accepted.
Direct Deposit: Have your tax refund deposited directly into your checking or savings account. This is available for Individual Income Tax Returns that are filed using the E-File Program. Returns must be filed electronically through an approved tax preparer or through an on-line service provider. Ask your tax preparer about direct deposit or visit our website at www.dor.ms.gov for more information. If you electronically file a complete and accurate return, your refund may be issued in 7 to 10 business days.
Taxpayer Access Point (TAP). TAP provides online access to your tax account information 24 hours a day, 7 days a week. TAP is free and convenient!
Users of TAP are able to:
- make electronic payments;
- view recent account activity and history;
- view tax correspondence, and;
- make address changes.
Your SSN/ITIN, Mississippi Adjusted Gross Income (AGI) from your latest filed return and your email address will be needed to sign up for access to your account on-line.
Third Party Access for Tax Practitioners: Tax practitioners can have TAP access to account information for each of your clients-- from one login. First, create your own TAP account (only one per FEIN). Once you are registered in TAP, select "Add Access to Existing Account." Your client (taxpayer) must provide you the Letter ID and Account ID in order for you to have access to their accounts. All accounts you set up for third party access are found under the "Other Taxpayers' Accounts" tab in TAP. For more information on TAP, visit our website at www.dor.ms.gov .
WHO MUST SIGN?
You must sign your tax return. The return is not considered legal until you sign and date it. If you and your spouse are filing a joint or combined return, both of you must sign even if only one had income. If your return was prepared by someone else, that person must sign the return as the preparer. No refunds will be made unless the return is properly signed.
The total tax due on the return must be paid in full no later than the 15th day of the 4th month after the end of the tax year.
- On-line Payments: To pay on-line, go to www.dor.ms.gov , click on Taxpayer Access Point (TAP) and follow the instructions. Without a MARS account or a TAP login, users are able to make estimate payments on- line.
- Check or Money Order Payments: To pay by check or money order, complete the payment voucher (Form 80106), make the check or money order payable to the Department of Revenue and mail both to P.O. Box 23075, Jackson, MS 39225-3075. Write your identification number on the check or money order. DO NOT send cash through the mail.
- Credit Card or Electronic Check Payments: To pay by credit card or electronic check go to www.officialpayments.com . There is a 2 1/2% convenience fee for using the credit card service or a $3.00 transaction fee to process electronic check payments. Visa, Master Card, Discover and American Express cards are accepted. The Jurisdiction code for Mississippi is 3400.
An installment agreement is available to taxpayers that have a tax liability of at least $75. In order to qualify for the installment agreement, the return must be filed on or before the due date, or any extensions allowed, and Form 71-661 must be submitted with the return. You (and your spouse if a joint return) must have filed all required income tax returns and paid all taxes due for the past five years. You also can not have previously entered into an installment agreement during the past five years.
There are two types of installment agreements for taxpayers that have a tax liability:
- Tax liability of $75 but no more than $3,000 - The installment agreement allows you to pay the amount due in twelve equal monthly installments.
- Tax liability exceeding $3,000 and an installment agreement with the Internal Revenue Service (IRS) for the same tax year - The installment agreement allows you to pay the amount due in sixty equal monthly installments. You must attach a copy of the approved installment agreement notification from the IRS. The agreement may be terminated if any installment payment is not made timely. It may also be terminated if you do not pay any other tax liability when the liability is due.
Interest of one percent (1%) per month continues to accrue during the installment agreement period. You will need to contact our office for the remaining balance on the account prior to the last payment to ensure the interest is paid correctly. If you have a pending bankruptcy case, you may be barred by federal law from participation in an installment agreement; please contact our office for more details. Additionally, if you file bankruptcy during the installment period, you must notify our Bankruptcy Section immediately at 601-923-7393; due to the automatic stay provisions of the U.S. Bankruptcy Code the installment agreement may be void at the time you file your bankruptcy case.
DECLARATION OF ESTIMATED TAX
Generally, you must file a Declaration of Estimated Tax, Form 80-106, for the income tax year if you do not have at least 80 percent (80%) of your annual Mississippi income tax liability prepaid through withholding and if your annual tax liability exceeds $200.
Estimate payments may be filed on-line through TAP. From the TAP home page, click on "Make an Estimated Payment". Your name, SSN/ITIN and contact information will be needed in order to make an estimated payment.
Underestimating the required amount of tax or failure to file estimated tax returns and pay the tax within the time prescribed will result in an assessment of interest of 1 percent (1%) per month on underpayment of tax from the date payment is due until paid (see exception below). Form 80-320, Interest and Penalty Worksheet, should be used to determine the amount of underestimated interest due.
Exceptions: You will not have to pay the underestimated interest if either of the following applies:
- Gross income from farming or fishing is at least two-thirds of total gross income and (a) estimate tax paid by the 15th day of the first month after the close of the income year or (b) income tax return is filed by the first day of the third month following the close of the income year and tax shown due is paid.
- Filing requirements met after the payment due date. Compute the interest in the applicable columns and provide the explanation on page 2 of Form 80-320.
INTEREST AND PENALTY PROVISIONS
- Late Payment: Interest and penalty are charged on taxes paid late even if an extension of time to file is granted. The interest is at the rate of 1% per month from the due date until paid. The penalty imposed for failure to pay the tax when due is 1/2% per month not to exceed 25% in the aggregate. Late payment interest and penalty apply to any unpaid tax after April 15.
- Failure to File: The penalty for failure to file a return is imposed after October 15. The penalty is 5% per month not to exceed 25% in the aggregate. The penalty imposed for failure to file is based on the amount shown as tax on the return. Such failure to file a return penalty shall not be less than $100.
ROUND TO THE NEAREST DOLLAR
All dollar amounts should be rounded to the nearest whole dollar (no pennies). Round down to the next lower dollar amounts under $.50 and round up to the next higher dollar amounts of $.50 and over. For example: $2.15 becomes $2.00; $4.75 becomes $5.00; and $3.50 becomes $4.00.
WHAT TAX RECORDS DO I NEED TO KEEP?
Keep a copy of your return with all attachments. Also, keep the original or a copy of any schedules or statements you used to prepare your return. Keep your records that support an item of income or a deduction appearing in a tax return until the statute of limitations for the return expires. The statute of limitations is generally three years from the date the return was due or filed, whichever is later.
Save any records concerning property, home, stocks, and business property you bought and may sell later. The records kept should show the purchase price, date and related cost. For real property, keep records showing the cost and date of improvements.
Your return may be audited by the IRS or the Department of Revenue. If audited, the law requires you to show proof of your income, expenses, and cost of assets. In the case of an audit by the IRS, the statute of limitations for adjusting income tax return is extended for three additional years beginning with the date the audit is disposed of by the IRS.
Income Tax: 3% on the first $5,000 of taxable income, 4%on the next $5,000 of taxable income and 5% on taxable income in excess of $10,000.
File an amended return to:
- make adjustment to tax;
- claim a refund due to an adjustment to tax;
- report federal adjustments (1040X), and;
- report IRS audit adjustments.
When to File: A taxpayer may apply to the Commission for revision of any return filed at any time within 3 years of the due date; or, if an extension was granted, 3 years from the date the return was filed. The 3 year period is not applicable to an IRS audit; however, no additional assessment or refund will be made more than 3 years after the date the IRS disposes of the tax liability in question.
Internal Revenue Service Audit (RAR): To document adjustments made as a result of an IRS audit, the Revenue Agent Report should be attached to the Mississippi amended return. If the amended return is filed within 30 days of the finalized IRS audit, penalties will not be assessed.
Amended Federal: To document adjustments made as a result of an amended federal return, a copy of the amended federal (Form 1040X) should be attached to the amended Mississippi return.
Any other documentation supporting the adjustments made should also be included with the amended Mississippi return. Attach a copy of the original filed return.
DEATH OF A TAXPAYER
If you are a survivor or representative of a deceased taxpayer, you must file a return for the taxpayer who died during the tax year or before the 2013 return was filed. A return for the deceased taxpayer should be filed on the form which would have been appropriate had he or she lived. Enter the word "deceased" and the date of death after the decedent's name on the return. Include the decedent's social security number in the space provided.
If a refund of less than $500 is requested on the decedent's return, a refund may be paid, without the necessity of administration, to the decedent's surviving spouse, or in the absence of a surviving spouse, to a survivor in the order listed in Miss. Code Ann. § 27-73-9. In either case, the survivor must complete and attach to the refund check an affidavit attesting to the fact that he or she is the rightful heir to the decedent's refund of Mississippi income tax. An affidavit of heirship, Form 80-699, may be obtained from the Office of Tax Administration of the Department of Revenue.
Information about your refund can be assessed by visiting www.dor.ms.gov and clicking on "Where's My Refund?" 24 hours a day. The following information is required to get information concerning your refund:
- The primary filer's social security number or ITIN
- The tax year for which the refund is requested.
- Mississippi AGI from the most recent individual income return.
Refund information is also available by phone 24 hours a day (touch tone telephones only) by calling (601) 923-7801. You will need your Social Security Number to get information about your refund.
Please allow ten (10) weeks from the date you file your return before contacting the Department of Revenue concerning your tax refund. Electronic filers please wait ten (10) business days. Refund calls will only be answered on the line indicated.
Taxpayer Assistance.............(601) 923-7700
The following is intended to provide general information concerning frequently asked questions about taxes administered by the Mississippi Department of Revenue. It is an informal interpretation of the tax law and is not intended to serve as a rule, regulation, declaratory opinion, or letter ruling. Legislation, regulations, court decisions, notices and announcements could affect the accuracy of this information. Please refer to the Mississippi Code Annotated and the Mississippi Administrative Code for the most current version of the law and administrative procedures.
1. I am a full-year resident but my spouse is not. How should we file? You must file a Mississippi Return Form 80-205 (Non- Resident Form). The resident spouse will report to Mississippi income earned from ALL sources for the entire year. The spouse that is not a resident will report to Mississippi income earned in Mississippi, but will declare his or her total income for purposes of prorating the exemptions and deductions.
2. I am in the armed forces. What is my residency status? What is my spouse's residency status? Mississippi Resident - If you enter the armed forces when you are a Mississippi resident, you do not lose your Mississippi residency status, even if you are absent from this state on military orders. You are subject to the same residency requirements as any other Mississippi resident and are required to file a Mississippi income tax return. Non-Resident - If you are not a Mississippi resident but are stationed in this state by military orders, your military income is not subject to Mississippi income tax. However, if you have income subject to Mississippi tax, file Form 80-205 (Non-Resident Form). Mississippi does tax other income earned in this state by you.
The Military Spouses Residency Relief Act (MSRRA), effective January 1, 2009, provides that spouses of military personnel who move to Mississippi due to a service member spouse being posted for military duty can keep their former residence for tax purposes. This allows non-resident spouses to exclude Mississippi income if the spouse meets certain criteria, such as filing and paying income tax to the state of residency. For more information regarding the MSRRA please visit www.dor.ms.gov .
3. I am getting an income tax refund this year. When will I get my check? ELECTRONIC return filers please allow ten business days before calling about your refund. All other returns which are filed early are processed before and usually more quickly than returns filed closer to the due date. Ordinarily, within ten weeks after we receive your completed return, we will mail your refund check. Therefore, allow at least TEN WEEKS for your refund to arrive before contacting us.
4. What if I am audited by the IRS? If you receive a refund or owe additional federal tax, you should file an amended Mississippi return after the Internal Revenue Service disposes of the tax liability in question (See Miss Code Ann. § 27-7-49 (3)). See the Amended Return Section of this booklet for additional information on filing an amended return.
5. Why did I receive a 1099-G? The 1099-G is an information-only form. It is sent because the Internal Revenue Service requires us to inform you of the amount of the state income tax refund issued to you last year. If you deducted state income taxes on last year's federal income tax return (Federal Schedule A,) then you are required to report this amount as income on your federal tax return this year. If you did not itemize your deductions on the federal return, then this form is only for your records.
6. Why didn't I receive an income tax form through the mail? The Mississippi Department of Revenue discontinued mailing personal income tax forms to taxpayers. With over 90% of the state's taxpayers now using a computer to file or to generate their return, it is no longer economically feasible for the agency to mail forms. Forms and instructions are available on the website, or, forms may be picked up at any of the agency's district offices. Additionally, forms are available at public libraries across the state.
Failure to receive a form from the Department of Revenue does not relieve anyone from filing and reporting their state income tax. Paper forms may be printed and completed by hand, or completed on-line and printed. The on-line fill-in form does not provide mathematical assistance or other prompts, but it does allow the taxpayer to complete return information and print the form ready for mailing. Filing your return electronically can speed up receiving your refund by 8 weeks!
7. How do I report gambling winnings? Gambling winnings reported on a W2G, 1099, or other informational return from Mississippi casinos are subject to a three percent (3%) non-refundable income tax. The casinos withhold the tax at the time of payout.
The amount withheld is non-refundable to the taxpayer. Miss. Code Ann. §27-7-901 provides that the amount of winnings reported on W2G, 1099 or other informational return from Mississippi casinos are not included in Mississippi income and no income tax credit is allowed for the amount of withholding.
A non-resident taxpayer with only Mississippi gambling winnings and/or losses should not file a Mississippi tax return. The document provided by the casino is considered the income tax return for this type of Mississippi income and therefore is proof that the tax was paid to Mississippi.
8. Where do I mail my return?
If you are receiving a refund
P.O. Box 23058
Jackson, MS 39225-3058
All other income returns
P.O. Box 23050
Jackson, MS 39225-3050
9. What are my payment options?
- On-line Payments: To pay on-line, go to www.dor.ms.gov , click on Taxpayer Access Point (TAP) and follow the instructions. Without a MARS account or a TAP login, users are able to make estimate payments on-line.
- Check or Money Order Payments: To pay by check or money order, complete the payment voucher (Form 80-106), make the check or money order payable to the Department of Revenue and mail both to P.O. Box 23075, Jackson, MS 39225-3075. Write your identification number on the check or money order. DO NOT send cash through the mail.
- Credit Card or Electronic Check Payments: To pay by credit card or electronic check go to www.officialpayments.com . There is a 2 1/2% convenience fee for using the credit card service or a $3.00 transaction fee to process electronic check payments. Visa, Master Card, Discover and American Express cards are accepted. The Jurisdiction code for Mississippi is 3400.
To view a complete list of our most frequently asked questions, visit our website at www.dor.ms.gov