According to the Mississippi filing instructions, you are required to file a Mississippi return and include all of your income no matter where it was earned.
If you are a resident of Mississippi, all of your income is subject to Mississippi tax no matter the source or where it was earned. You are required to file a Mississippi return and include your active duty pay.
If you are a nonresident of Mississippi, your active duty military income is not taxed in Mississippi. However, any income other than active duty military pay is subject to Mississippi tax. If Mississippi is not listed in Box 15 of your W-2, the nonresident return will not calculate any tax on the active duty pay.
If one spouse is a resident of Mississippi and the other is not, you should file a Mississippi nonresident return. The resident spouse will report income earned the other spouse will report only Mississippi source income into the return. Within the program, follow the steps below to make any adjustments to income:
- State Section
- Nonresident Mississippi Return
- Income Subject to Tax-Adjustments to Income Subject to Tax - make any adjustments needed.
Review the PDF prior to e-filing to see the amounts reported on the return.
Military Pensions
Military pension income is exempt from Mississippi taxes.
On the resident return, follow these steps in the program:
- State Section
- Resident Mississippi Return
- Subtractions From Income
- Enter amount in box labeled "Enter the portion of Pension and IRA Income from Federal, State and private retirement systems that are Exempt from MS tax"
- Save
On the nonresident return, follow these steps in the program:
- State Section
- Nonresident Mississippi Return
- Income Subject to Tax
- Enter the amount that is taxable to Mississippi in the box labeled "Enter the portion of Pension and Annuities taxable to Mississippi"
- Save
National Guard or Reserve Pay Adjustment
The first $15,000 of qualified income received by servicemembers in the National Guard or reserve forces can be excluded from the resident income tax return. Income that qualifies for the adjustment includes payments received for inactive duty training (monthly meetings/ special drills), active duty training (summer camp, school) and state active duty (Emergency duty). Full-time National Guard pay is not allowed an exclusion.
To claim the subtraction on the return, follow the steps below in the program
- State Section
- Mississippi Resident Return
- Subtractions from Income
- Enter compensation received as National Guard or Reserve Pay received; do not enter more than $15,000-enter the amount
- Save