The credit for taxes paid to another state is automatically calculated in your account when you add a Nonresident return to your already created Resident Mississippi return if you pay taxes to both Mississippi and another state. If the other state return is a Part-Year Resident return, you will be required to enter the information asked of you within your Mississippi return.
The limitations to take this credit are:
- The credit can't be greater than the income tax amount due to Mississippi.
- The credit can't be greater than the amount of tax actually paid to the other state.
- The credit can't be greater than the amount computed by applying the highest applicable Mississippi rates to the taxable income (net) reported to the other state.
If you are required to manually enter the information into the return, you can do so by following these steps.
- State Section
- Mississippi Return
- Credit for taxes paid to another state