Mississippi allows certain pass-through entities (PTEs) to pay state income tax at the entity level. If you are an owner, partner, member, or shareholder of an electing pass-through entity, you may qualify to claim a credit for your share of the tax paid by the entity using Form 80-161.
What Is the Mississippi PTE Tax Credit Paid?
Mississippi permits certain pass-through entities to elect to pay income tax at the entity level. When the entity makes this election and pays Mississippi tax, each eligible owner can claim a credit equal to their pro rata or distributive share of the tax paid by the entity.
You should enter this credit only if:
- You received a Mississippi Schedule K-1 from an electing PTE.
- The Schedule K-1 reports Mississippi PTE tax paid on your behalf.
- You are claiming the credit on your Mississippi individual return.
Program Entry:
- Mississippi
- Credits
- PTE Tax Credit Paid (Form 80-161)