Below is a list of income that can be subtracted on your Mississippi return.
- Pension Income from Federal, State and Private Retirement Systems
Retirement income: Social Security benefits, Railroad Retirement benefits, and from federal, state, and private retirement systems are exempt from Mississippi income tax.
- National Guard or Reserve Pay
You may enter the compensation received for National Guard or Reserve pay or the $15,000 Statutory Exclusion per taxpayer, whichever is less.
- Prepaid Affordable College Tuition (MPACT) Contributions AND/OR Affordable College Savings (MACS) Contributions
Enter the MPACT (prepaid tuition contract) costs and/or amount contributed to MACS (affordable college savings) for a qualified beneficiary. The maximum annual contribution deductions for MACS are $20,000 for joint filers and $10,000 for all other filers. The amounts contributed to MPACT and MACS are the only amounts that can be excluded from Mississippi income.
- Self-Employed Health Insurance
If you claimed this deduction on your federal return, you may claim it on your Mississippi return. Enter the amount allowed on your federal return.
- Interest Penalty on Early Withdrawal of Savings
The amount of penalty you received on form 1099-INT from an early withdrawal on your time savings account before its maturity is deductible.
- Catastrophe Savings Account Deduction
As defined in the Catastrophe Savings Account Act, the amount deposited into a catastrophe savings account plus any accrued interest may be deducted. Any contributions made during the tax year and withdrawn during the tax year should be netted to report total contributions as an adjustment to income. Any amounts withdrawn and not used for the specified purpose of qualified catastrophe expenses shall be included in gross income.
- Self-Employment Tax deduction
You may deduct up to 50% of the federal self-employed tax imposed on your gross income.
- First-time Home Buyers Savings Account Deduction
If you deposited money into a first-time home buyers savings account, you may claim that amount plus any accrued interest (defined in First-Time Home Buyers Savings Act). If an amount was withdrawn but was not used to pay for eligible expenses, the amount should be reported on Form 80-108, Schedule N.
- Agricultural Disaster Program Compensation
If you received compensation from an agricultural disaster program, it may be deducted.
- Alimony and Separate Maintenance Paid
The amount of alimony paid may be deducted, to the extent allowable for federal income tax purposes.
- ABLE Act Deductions
Enter the amount deposited into an ABLE savings account.
Where do I enter?
- State Section
- Subtractions from Income
For more information, please see Mississippi's Income Tax Instructions.