Mississippi uses source-based taxation for nonresidents and part-year residents. The following income may need to be reported on your Part-Year/Non-Resident Mississippi state return.
W-2 Adjustments
If the amount in Box 1 (Federal Wages) on your W-2 is different from Box 16 (State Wages), enter the difference
Rent Real Estate and Royalties
The activities reported on the Federal Schedule E are reported here.
Interest Income
Enter any interest received or credited during the tax year on notes, mortgages, bank deposits, and/or corporation bonds. Bond interest, when received or credited is considered income. Interest income is exempt if from obligations from the U.S. Government, State of Mississippi and any subdivisions thereof. Interest income is taxable on obligations outside Mississippi of other countries, states, cities, or political subdivisions.
Dividends
The amount of all dividends received during your tax year should be reported. Dividends include distributions of money as well as property.
Alimony Received
The portion of alimony and separate maintenance payments taxable to Mississippi must be reported as gross income.
Business Income or Loss
If you owned a business, enter your profit or loss.
Capital Gain or Loss
If you have a capital gain or loss on your federal return, you would enter it here. The state generally follows the IRS rules for computation of capital gains and losses and are subject to the same federal limitations. Unlike the federal, Mississippi doesn’t have separate tax rates for capital gains, so gains are taxed at the same rate as other income.
Total Pensions and Annuities
Under the Federal Internal Revenue Code (see Federal Form 5329), pensions and annuities that are taxable as early or excess distributions do not qualify for exemption from Mississippi income tax. This is reported here as taxable income. Separation pay is not retirement income and doesn’t qualify for exemption. Also taxable for Mississippi purposes are deferred compensation plan distributions received prior to attainment of retirement age and/or service requirements. Don’t report Social Security benefits, annuity benefits received under the federal Railroad Retirement Act, or retirement income from federal, state, and private retirement systems as they are exempt from tax.
Farm Income or Loss
Enter net farm income/loss here.
Unemployment Compensation
Enter the amount of unemployment compensation from Form(s) 1099-G received in the tax year that is taxable as Mississippi income.
Other Gains/(Loss) from Form 4797 attributable to Mississippi
Enter the portion of gains or losses from the sale or exchange of business property that is taxable in Mississippi. Form 4797 reports transactions such as sales of real estate used in a trade or business, depreciable property, involuntary conversions, and depreciation recapture. For Mississippi purposes, only gains or losses from property located in Mississippi are included. Nonresidents report Mississippi-sourced property only, while part-year residents include transactions during their Mississippi residency or involving Mississippi property.
Non-qualified distribution from a catastrophe savings account
Enter the amount of funds withdrawn from a Mississippi Catastrophe Savings Account for purposes other than those allowed by law. These accounts are designed to help taxpayers save for expenses related to hurricane, flood, or other catastrophic events. Qualified withdrawals include costs for repairs, deductibles, or other disaster-related expenses.
First-time Home Buyer Unqualified Expenses
Enter the amount that does not meet the requirements for qualified withdrawals from a Mississippi First-Time Home Buyer Savings Account.
Other Income/(Loss), from Federal Form 1040 Line 8, attributable to Mississippi
Enter the amount from Form 80-108, Part V, Line 10 (Schedule N).
Click here to view Form 80-108, Schedule N.