Mississippi. General. Forms to File. New for Residency Status. Filing Requirements. The Magnolia State

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1 The Magnolia State Forms request mailing address General Forms request Tax assistance Website Refund hotline Income Tax Division P.O. Box 1033 Jackson MS dor.ms.gov/downloadforms/main.html New for 2012 Consumer use tax is reported on the individual return if no sales tax was previously paid to any state. Forms , and have been discontinued. Residency Status Residents are individuals who maintain a home or other place of abode in Mississippi, or who exercise the rights of citizenship in Mississippi (such as voting or receiving benefits of homestead exemption). Legal residents of Mississippi remain residents until citizenship rights are relinquished and a new legal residence is established. Changes in driver s license, vehicle tags, voter registration and property taxes show intent to change legal residence. Part-year residents are individuals who move into or out of Mississippi during the year. Nonresidents are individuals with Mississippi-source income who were not residents at any time during the year. Military personnel who enter the Armed Forces while Mississippi residents retain legal residency. Nonresidents of Mississippi stationed in the state are not subject to Mississippi income tax on military pay. A spouse of a service member relocating to Mississippi solely to accompany the military spouse is not taxed for services performed in Mississippi. Filing Requirements Any taxpayer with Mississippi taxes withheld from wages must file a return. In addition, the following taxpayers must file: Residents must file as outlined in the table below. Filing Status Single Married Minor Gross income exceeds: $8,300 + $1, 500 for each dependent $16,600 (both spouses) + $1,500 for each dependent Personal exemption + standard deduction per filing status Residents are also required to file if they are working: Outside the United States (total gross income must be reported). Any foreign-source income excluded for federal purposes is deducted on Mississippi Schedule N. Attach federal Form Out of state (total gross income is subject to Mississippi tax). Part-year and nonresidents must file if they receive income taxed by Mississippi (other than gambling income). Part-year residents are taxed on income earned while a resident of Mississippi. Nonresidents are taxed on Mississippi-source income. Deceased taxpayers have a filing requirement by the survivor or representative of the decedent. The return must be filed on the form that would have been appropriate had the decedent lived. See instructions for Form for other requirements. Forms to File Form , Resident Individual Income Tax Return. Form , Individual/Fiduciary Income Tax Payment Voucher. Form , Income/Withholding Tax Schedule. Form , Adjustments & Contributions attachment to Form or Form , contains these schedules: Part 1: Schedule A, Itemized Deductions. Part 2: Schedule B, Interest and Dividend Income. Part 3: Voluntary Contribution Check-Offs. Part 4: Income (Loss) From Rents, Royalties, Partnerships, S Corporations, Trusts and Estates. Part 5: Schedule N, Other Income (Loss) and Supplemental Income. Form , Net Operating Loss Schedule. Form , Tax Credit for Income Tax Paid to One or More Other States. Form , Nonresident/Part-Year Resident Individual Income Tax Return. Form , Tax Credit Summary Schedule. Note: Photocopies of Mississippi tax forms are not acceptable for filing. Forms may be downloaded from the state website. Filing Status Married persons who were legally married on or before the last day of the tax year may file under one of three methods: (1) joint return, (2) combined return or (3) separate returns. Joint Return. Usually completed when only one spouse has income. All income, deductions, exemptions, etc., are listed in the Taxpayer column of the return. Combined Return. Income of each spouse is computed separately on the return. Exemptions and deductions may be divided in any manner the taxpayers choose. If only one spouse has income, the income may not be split between spouses. Separate Returns. Both spouses must file regardless of income. If one spouse elects to itemize deductions, the other spouse must also itemize. Total exemptions authorized must be split equally between the spouses. Married spouse died in Use this filing status if the taxpayer s spouse died in 2012 and the taxpayer did not remarry in Report the decedent s income before death and the taxpayer s total income for Write deceased and date of death beside decedent s name on return. Head of family (HOF). An HOF taxpayer is an individual who is single (or married but has lived apart from the spouse for the entire year) and maintains a household which constitutes the principal place of abode for the taxpayer and one or more dependents. The dependents must have lived in the taxpayer s home the entire year. Single. An individual who is unmarried or is married but legally separated from his spouse on the last day of the tax year Tax Year All States Quickfinder Handbook MS-1

2 d tax n an nt of and t and my fore are er to your w at ginal your ction turn date iness how ords dited uires the your the sippi turn ed to ears turn ithin le an oses ions, W- the ow. Taxpayer Information Please make sure that you write in your name, address, and SSN. If you are married and filing a joint, combined, or separate return, write in the social security number for both you and your spouse. If a spouse died in the tax year, enter the Resident surviving spouse Summary first as taxpayer. Form Resident County Codes County codes. Enter the correct code for the taxpayer s county Enter of residence the code corresponding the heading to of your Form resident county or on page 1 of the return (in the address area). County codes are listed in the following table: County Codes County County County Code Adams 01 Itawamba 29 Pike 57 Alcorn 02 Jackson 30 Pontotoc 58 Amite 03 Jasper 31 Prentiss 59 Attala 04 Jefferson 32 Quitman 60 Benton 05 Jefferson-Davis 33 Rankin 61 Bolivar 06 Jones 34 Scott 62 Calhoun 07 Kemper 35 Sharkey 63 Carroll 08 Lafayette 36 Simpson 64 Chickasaw 09 Lamar 37 Smith 65 Choctaw 10 Lauderdale 38 Stone 66 Claiborne 11 Lawrence 39 Sunflower 67 Clarke 12 Leake 40 Tallahatchie 68 Clay 13 Lee 41 Tate 69 Coahoma 14 Leflore 42 Tippah 70 Copiah 15 Lincoln 43 Tishomingo 71 Covington 16 Lowndes 44 Tunica 72 Desoto 17 Madison 45 Union 73 Forrest 18 Marion 46 Walthall 74 Franklin 19 Marshall 47 Warren 75 George 20 Monroe 48 Washington 76 Greene 21 Montgomery 49 Wayne 77 Grenada 22 Neshoba 50 Webster 78 Hancock 23 Newton 51 Wilkinson 79 Harrison 24 Noxubee 52 Winston 80 Hinds 25 Oktibbeha 53 Yalobusha 81 Holmes 26 Panola 54 Yazoo 82 Humphreys 27 Pearl River 55 Non-Resident 83 Resident Living Issaquena 28 Perry 56 Out of State 90 Filing Status and Exemptions Exemption amounts for taxpayers are based on filing status. Note: Mark The exemption an X in the amounts box applicable (and to standard your filing deduction status the amounts) last day of may the be divided tax year. between After checking spouses the in applicable any manner filing they status, choose enter when the corresponding filing a combined dollar return. amount of exemption on Page 1, Line 12, (Dollar. amount is shown next to the filing status you selected). The exemption Exemption and standard Amounts deduction Based for each on filing Filing status Status for 2012 (no are listed on the following MFJ or Combined page. $ 12,000 and For Married Spouse Died in , MFS, Single 6,000 Head of Family 8,000 Additional Exemptions Each dependent who qualified under federal rules $ 1,500 Page 3 Age 65 or over Taxpayer or spouse only 1,500 Blind Taxpayer or spouse only 1,500 Mississippi Income Mississippi starts with Mississippi income and adjustments based on Mississippi state law. Residents report income items on Form Married persons. For married persons filing a combined return, taxable income is reported separately for each spouse. Mississippi/federal differences. Differences may exist between the amount of Mississippi taxable income reported on Form and the amount of federal taxable income reported on Form Taxpayers must provide reconciliation in one of two ways: Method 1: Enter the amount reported on the federal return on the corresponding line item of the Mississippi return then report a separate adjustment on Schedule N of Form identifying the difference between federal and state reportable income or Method 2: Enter the amount of Mississippi reportable income on the appropriate line of Form and attach a separate schedule reconciling the federal amount, the items of difference and the state amount. Wage, salaries, tips. Report the following amounts: The amount shown on Forms W-2 in the box Wages, tips and other compensation. Wages received but for which the taxpayer did not receive a Form W-2. Tips not reported to an employer. Fair market value (FMV) of meals and living quarters if given by an employer as a matter of the taxpayer s choice and not for the employer s convenience. Strike and lockout benefits paid by a union from union dues, including both cash and the FMV of goods received, unless the facts show that such benefits were intended as a gift. Business income or loss. Report the profit or loss from business activities. Provide reconciliation if the Mississippi net profit or loss amount is different from the federal Schedule C net profit or loss. Mississippi does not recognize bonus depreciation. Capital gains. Mississippi generally follows IRS rules for capital gains and losses, except that there is no preferential capital gain tax rate. Loss deductions limits are the same as federal. If the only income was from capital gain distributions, and federal Schedule D was not required, enter the amount directly on Form Gains from sales of ownership interests must first be reduced by the amount of any losses determined from sales or transactions described in Mississippi Section (f)(10)(A). Provide reconciliation if Mississippi amount differs from federal Schedule D. Rental real estates, royalties, partnerships, S corporations, trusts, etc. Enter the income or loss from activities reported on federal Schedule E. Provide reconciliation if the Mississippi amount differs from federal Schedule E, such as for bonus depreciation. Farm income or loss. Enter net farm income or loss. Provide reconciliation if the Mississippi amount is different from the federal Schedule F amount. Farm losses cannot be claimed by persons who do not devote full time to farming unless they can clearly establish that they are in the business of farming for gain or profit. Interest. Complete Schedule B of Form Enter interest received or credited to taxpayer s account during the year on bank deposits, notes, mortgages and corporation bonds. Bond interest is taxable when received or credited. Interest income from obligations of the U.S. Government, the State of Mississippi and subdivisions thereof, is exempt. Interest on obligations of other countries, states, cities or political subdivisions outside Mississippi is taxable. MS Tax Year All States Quickfinder Handbook

3 Dividends. Complete Schedule B of Form Report the amount of all dividends received during the year. Dividends include distributions of money as well as property. Alimony received. Report alimony received. Pensions and annuities. Social Security and railroad retirement benefits and retirement income from federal, state and private retirement systems are exempt from Mississippi income tax. Note: Pensions and annuities that are taxable as early or excess distributions under the federal Internal Revenue Code do not qualify for exemption. See federal Form Distributions from deferredcompensation plans received prior to attainment of retirement age and/or service requirements and separation pay are taxable. Unemployment compensation received during the year is taxable to Mississippi. Other income. Use Schedule N of Form to report income or loss not reported elsewhere on the return including non-mississippi gambling winnings, prizes and awards and net operating loss (NOL) carryforwards. Explain the nature and source of each income or loss item. Mississippi gambling Income is not reported for Mississippi income tax. Schedule N of Form may also be used to report differences between federal and state taxable income such as when the net profit or loss from a Schedule C business is different due to bonus depreciation adjustments. See Mississippi/federal differences on Page MS-2. Individuals filing federal Schedules C, D, E and/or F must complete Schedule N and include a copy of the federal schedule. Adjustments Residents report adjustments to income on Form Married persons filing a combined return report adjustments separately for each spouse. Mississippi allows the following adjustments. IRA contributions. Same as federal. Self-employed SEP, SIMPLE and qualified plan contributions. Same as federal. Penalty on early withdrawal of savings. An interest penalty incurred due to withdrawal of funds from time savings deposit before maturity is deductible. Alimony paid. Same as federal. Complete Schedule P. Moving expenses. Amount allowable from federal Form 3903, prorated on nonresident/part-year resident return if interstate move. National Guard and reserve pay. Lesser of National Guard or Reserve pay or $15,000 (per taxpayer). Mississippi Prepaid Affordable College Tuition Program (MPACT) and Mississippi Affordable College Savings (MACS). Enter the prepaid tuition contract (MPACT) costs paid during 2012 to the Mississippi Treasury Department on behalf of a student beneficiary and/or the amount contributed to a MACS program account on behalf of a qualified beneficiary. Under the MACS program, the maximum annual contribution deductions are $20,000 for joint filers and $10,000 for single and other filers. Contributions must be made on or before the deadline for making contributions to an IRA under federal rules. Self-employed health insurance deduction. Same as federal. Health savings accounts (HSAs). A deduction is allowed for contributions to a HSA and any qualified accrued interest. Withdrawals for anything other than qualified medical expenses will be included in gross income. Deductions The taxpayer may choose between the standard deduction or itemized deductions regardless of the method used on the federal return. Exception: Married individuals filing separate returns may itemize only if the other spouse itemizes. If one spouse claims the standard deduction on a separate return, the other must claim the standard deduction. Any unused portion of the standard deduction by one spouse on his separate return may not be used on the other spouse s separate return. Mississippi deductions generally follow federal rules. Married individuals who have separate incomes and are filing a combined return may divide their standard deduction or itemized deductions in any manner they choose. Itemized deductions. Taxpayers who claim itemized deductions must complete Form , Schedule A, Itemized Deductions. Enter the amounts from federal Schedule A. Adjustments to itemized deductions. Mississippi does not allow a deduction for state and local income taxes and withholding taxes on gambling winnings or for Mississippi gambling losses. Standard deduction. Married individuals having separate incomes and filing a combined return may divide the standard deduction between the spouses in any manner they choose. Married individuals filing separate returns must each claim the specified amount. Mississippi Standard Deduction MFJ or Combined $ 4,600 Married Spouse Died in ,600 MFS, Single 2,300 HOF 3,400 Calculating Tax Residents Calculate tax on Mississippi taxable income (Mississippi income, minus Mississippi adjustments, deductions and exemptions). Use either the Schedule of Tax Computation on Page MS-5 or the 2012 Quick Tax Method below. The Quick Tax Method produces the same result as the Schedule of Tax Computation on Page MS-5. All Filing Statuses 2012 Quick Tax Method $ 0 5,000 3% minus $ 0 = Tax 5,001 10,000 4 minus 50 = Tax 10,001 and over 5 minus 150 = Tax Note: Married individuals filing a combined return apply the tax rate schedule separately and combine the amounts to calculate total income tax. Consumer use tax. A 7% tax is imposed on any out-of-state purchases of goods or services used, stored or consumed in Mississippi if no sales tax was paid to any state. Credits Credit for income tax paid to another state is available to Mississippi residents who received income in another state and were required to pay income tax to that state. The taxpayer must file a tax return with the other state and attach a copy of that state s return to their Mississippi return. File Form Tax Year All States Quickfinder Handbook MS-3

4 The credit may not exceed: 1) The amount of income tax due the State of Mississippi, 2) The actual amount of tax paid to the other state and 3) An amount computed by applying the highest applicable Mississippi rates to the net taxable income reported to the other state. Highest rates mean the highest rates at which the net taxable income reported to the other state is taxable by the State of Mississippi. Other credits: Mississippi allows the following credits. File Form : Premium retaliatory tax credit. 03: Finance company privilege tax paid for same tax year. 04: (Carryforward only) Advanced technology zone or enterprise zone credits. 05: Jobs tax credit. 06: National or regional headquarters credit. 07: Research and development skills credit. 08: Child and dependent care credit (employers only). 09: Basic skills training or retraining credit. 10: Reforestation tax credit. 11: Credit for gambling license fee based on gross revenue. 12: Financial institution jobs credit. 13: Mississippi business finance corporation revenue bond service credit. 14: Ad valorem inventory tax credit. 15: Export port charges credit. 16: Insurance guaranty credit. 17: Import credit. 18: Land donation credit. 19: Broadband technology credit. 21: Brownfield credit. 22: Airport cargo charges credit. 23: Manufacturer s investment tax credit. 24: Producer of alternative energy job credit. 25: Child adoption credit. 26: Historic structure rehabilitation credit. 27: Long-term care credit. 28: New markets tax credit. 29: Biomass energy investment credit. 30: Wildlife land use credit. 50: Bank share credit. Part-Year and Nonresident Summary Form Income Part-year and nonresidents report income on page 2 of Form Married couples with separate incomes filing a combined return must combine incomes to determine total income. Column A. Enter total income from all sources. Follow the same rules as for a full-year Mississippi resident. Column B. Enter Mississippi income only. MS Tax Year All States Quickfinder Handbook Adjustments Part-year and nonresidents report adjustments on page 2 of Form Married couples with separate incomes filing a combined return must combine adjustments to determine total adjustments. Column A. Enter total adjustments from all sources. Follow the same rules for a full-year Mississippi resident. Column B. Part-year and nonresidents must generally pro-rate their adjustments by the ratio of income from sources within Mississippi to total income from all sources. Adjustments that must be pro-rated are payments to IRAs, payments to SEP, SIMPLE and qualified plans, alimony paid, moving expenses, the self-employment health insurance deduction and the health savings account deduction. Attach a schedule or detailed explanation for reported adjustments. Total AGI. Subtract total adjustments from total income. Mississippi AGI. Subtract Mississippi adjustments from Mississippi income. Married couples filing a combined return. Combined Mississippi AGI must be split according to ownership between the taxpayer and his spouse for purposes of determining taxable income of each. Ratio Mississippi ratio is determined by dividing Mississippi AGI by total AGI. The ratio cannot exceed 100%. The ratio is applied to deductions and exemptions. Deductions and Exemptions Part-year and nonresidents calculate deductions and exemptions the same as full-year residents, then pro-rate the amounts by the Mississippi ratio. The pro-rated amounts are subtracted from Mississippi income to determine taxable income. Calculating Tax Part-Year and Nonresidents Calculate tax on Mississippi taxable income (Mississippi income minus Mississippi adjustments, pro-rated deductions and exemptions). For married individuals filing a combined return, tax is computed separately for each spouse and then added together. Use either the Schedule of Tax Computation on Page MS-5 or the 2012 Quick Tax Method on Page MS-3. The 2012 Quick Tax Method on Page MS-3 produces the same result as the Schedule of Tax Computation on Page MS-5. Credits Generally, part-year and nonresidents calculate credits the same as full-year residents. However, the credit for income tax paid to another state is only available to full-year residents. Assembling Return U Caution: Photocopies of Mississippi forms are not acceptable for filing. Do not staple over the barcode. Attach required forms to Form or Forms W-2. Attach Form and the state copy of Forms W-2 (excluding Form W-2G from Mississippi casinos) and Forms 1099 that show Mississippi tax withheld to the back of the return. Payment. Attach payment and Form , Payment Voucher, to the front of the return. Federal attachments. Attach federal Schedules C, D, E and F, Forms 1099G, 1099R, 3903 and 4684, if applicable. Other attachments. If claiming a credit for income tax paid to another state, attach a copy of the other state s return.

5 Return Due Date Calendar year tax returns are due April 15, Refund Balance due or No tax due Return Mailing Addresses Make check payable to P.O. Box Jackson MS P.O. Box Jackson MS Extensions Form Allowable extension: No Tax Due. Mississippi allows the same time allowed by the federal extension without written request. Tax Due. Mississippi allows an automatic six-month extension if Form is filed with payment by April 15, Extension mailing address P.O. Box Jackson MS Also, Mississippi honors the federal extension. Estimated Tax Form Filing requirements. Form must be filed if Mississippi tax liability less withholding is $200 or more. The required annual amount to be paid is 80% of the actual Mississippi tax liability. Payment due dates. Mississippi follows federal rules. Farmers and fishermen. Mississippi follows federal rules. Estimate mailing address P.O. Box Jackson MS Electronic Payments Payments of tax may be made online at: Internet: click on Taxpayer Access Point (TAP). Payments of tax may be made by credit card (Discover, Master- Card, VISA and American Express) by: Internet: Telephone: Any type of electronic payment will incur a service fee. Schedule of Tax Computation Use taxable income from page 1, line 21, of Form (or ) to complete this Schedule. Tax Rate(s) Taxpayer (Column A) taxable income Spouse (Column B) taxable income Total (Column A +B) Rates Income Tax 1) First $5,000 or Part + = 3% 2) Next $5,000 or Part + = 4% 3) Remaining balance + = 5% 4) Subtotal + = 5) Total income tax. Enter on page 1, line 22. Mississippi Greenville Columbus Vicksburg JACKSON Meridian Hattiesburg Biloxi Gulfport Pascagoula Miles 2012 Tax Year All States Quickfinder Handbook MS-5

6 Notes End of Mississippi MS Tax Year All States Quickfinder Handbook