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.
Where do I make the entry?
If you are required to manually enter the information into the return, you can do so by following these steps.
- State Section
- Credit for taxes paid to another state
For additional information, see the Mississippi instructions and Form 80-160-21.