MISSISSIPPI INDIVIDUAL INCOME TAX CHECKLIST

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1 MISSISSIPPI INIVIUAL INCOME AX CHECKLIS JANUARY 2016 Please use this checklist as a quick reference to taxable and deductible items for SAE income tax purposes. here might be some differences in the treatment of these items for federal tax purposes, be careful. If you have any questions or suggestions, please contact the Income ax Bureau. Updates will be distributed as they are needed.

2 INCOME IEMS Every subject listed below is a type of income received by an individual taxpayer. his income could be in the form of cash or other non-cash items, such as non-cash prizes. his table is only true for state income tax purposes. Note: denotes that the item is axable and is required to be included in gross income. N denotes that the item is Not axable and may be excluded from gross income. You must look to the state income tax forms to determine where this income is to be reported. -A- Advances.. Agreements not to compete. Agricultural program subsidies. Alimony. Allowances for dependents of military N Amounts withheld from wages... Annuities - after retirement.. N Annuities - before retirement... Annuities - Railroad retirement N Armed Forces pay Awards and prizes - cash or FMV of non-cash. -B- Back pay... Baptismal offerings. Bartering... Benefits under veterans acts... N Bequests and devises. N Bonuses.. Bribes. Business profits... -C- Cancellation of debts - see attached.. Capital gains Certificate of eposit - interest Child support. N Clergy fees Clergy - home allowance N Combat or hazardous duty pay - military.. N Page 2

3 Commissions Compensation.. Constructively received income. Contest awards or prizes Contractors - bonus for completion of contract -- amages recovered for physical injury. N evises and bequests. N irectors fees... isability payments - employer paid premiums... isability payments - taxpayer paid premiums... N ividends. -E- Election official pay. Embezzlement proceeds. Endowment policy benefits Executor s fees. Expense reimbursements - non-deductible expenses... Expense reimbursements - over standard rates... Extortion proceeds... -F- Farm income Farm subsidies. Federal Social Security Act benefits. N Fellowship grants - generally N Fiduciary fees Foster care payments... N -G- G. I. Bill benefits.. Gain from property sale. Gambling winnings Mississippi casino... Gambling winnings non Mississippi casino... Gifts - cash. Gifts - income from.. Government subsidies... Group term life insurance - paid by employer over $50, N N Page 3

4 -H- Hazardous duty pay - military.... N Health insurance premium paid by employer N Health Savings Account qualified expenses. N Health Savings Account non qualified withdrawals Hobby income. -I- Illegal transactions... Illness - employee compensation... Income assigned to another.. Income tax refunds - federal N Income tax refunds - state.. N Inheritance N Inheritance - income from... Installment sales. Insurance - lost income Insurance - non-physical awards Insurance - physical awards. N Insurance property damage. N Insurance - punitive awards. Interest - insurance awards. Interest - Mississippi obligations.. N Interest - other state obligations.. Interest - savings account.. Interest - tax refunds Interest - U. S. Government obligations.. N Interest - Certificate of eposits.. Page 4

5 -J- Jury pay Jury pay given to employer N -K- -L- Life Insurance proceeds.. N Livestock sold Living quarters and meals - compensation. Living quarters and meals - convenience of employer... N Lodging furnished - convenience of employer... N Lottery income. -M- Marriage fees received by clergy... Marriage settlement - property settlement... N Meals - convenience of employer. N Military disability payments... N Military Reserve pay.. Moving expense reimbursement Mutual fund dividends -N- National Guard pay - see adjustment to income... Notary public fees. -O- Old age benefits - Social Security.. N Overtime pay -P- Parsonage rental allowance... N Partnership income.. Pensions N Per diem allowances to military. N Prizes Proceeds from life insurance. N Page 5

6 Produce consumed by farmer and family... N Profit from sales of property... -Q- Qualified isaster Relief Payments.. N -R- Railroad Retirement Act benefits... N Recovery of expenses previously deducted.. Recovery of losses previously deducted Reenlistment bonus military.... Refund of state income taxes previously deducted. N Rents. Retirement income normal distributions. N Retirement income early distributions. Royalties -S- Salaries. Sale of stock MS corporation... N Sale of stock non MS corp... Scholarship grants tuition and fees N Scholarship grants room and board. Service pay military.. Settlements for back pay... Severance pay... Sick pay. Social Security benefits.. N Stipends Support payments - alimony.. Survivor s benefits Social Security. N -- axes of employee paid by employer.. ips. uition under Educational Assistance Programs... N -U- Unemployment compensation Uniform allowance military... Unlawful gains or income. Page 6 N

7 -V- Vacation pay Veteran s disability pensions... N Veterans retirement pay N -W- Wagering income. Wages... Worker s compensation. N -X- -Y- -Z- Page 7

8 AJUSMENS O GROSS INCOME Every subject listed below is some type of adjustment to gross income of an individual taxpayer or you could say exclusion to gross income. hese adjustments are to be deducted from the gross income of a taxpayer and are similar to federal adjustments to gross income. his table is only true for state income tax purposes. hese adjustments should be reported on page 2 of the resident and non-resident forms Payments to an IRA You may deduct payments to an IRA to the extent that such payments are deductible for federal income tax purposes. Use the worksheet in your federal income tax instructions to figure our deduction for payments to an IRA. Payments to Self-employed SEP, SIMPLE, and Qualified Plans You may deduct contributions to Self-Employed Retirement Plans to the extent that such contributions are deductible for federal income tax purposes. If the contributions or any part thereof, are not deductible for federal income tax purposes, they are not deductible for Mississippi income tax purposes. Interest Penalty on Early Withdrawal of Savings Enter penalty from 1099-IN or 1099-OI for early withdrawal of savings or certificates. o not deduct figure from reportable interest on Schedule B. Alimony Paid SSN of Recipient and State of Recipient Include the recipient s Social Security number. If the taxpayer made alimony payments to more than one person, enter one SSN and attach a statement listing the numbers of the other alimony recipients. o be deductible, alimony or separate maintenance payments must be required by a divorce or separation instrument and must meet several other requirements. Child support, property settlements, and voluntary payments are not deductible alimony. Moving Expenses (Attach Federal Form 3903 or 3903F.) Form 3903 is filed to deduct qualified moving expenses that were not reimbursed by an employer or to deduct qualified expenses in excess of any amount reimbursed. eductible moving expenses include costs of moving household goods and personal effects (including in-transit or foreign-move storage expenses), and travel expenses (including lodging but not meals) for one trip by the taxpayer and each member of the household. Household members do not have to travel together or at the same time. he standard mileage rate is 20 per mile, plus parking and tolls. here are no dollar limits on the amount of deductible moving expenses. he new job site must be 50 miles farther from old residence to old job. Page 8

9 First $15,000 of National Guard Reserve Pay Enter the lesser of the National Guard or Reserve pay or the $15,000 Statutory Exclusion per taxpayer. Compensation which qualifies for exclusion is that received for inactive duty training (monthly or special drills or meetings), active duty training (summer camps, special schools, cruises), and for state active duty (emergency duty). Full-time National Guard pay is not allowed an exclusion. Report full-time National Guard or Reserve pay on Line 15. Prior to 2005, the exclusion was limited to $5,000 Mississippi Prepaid Affordable College uition (MPAC) or Mississippi Affordable College Savings (MACS) Enter the prepaid tuition contract (MPAC) costs you paid during the calendar year to the Mississippi reasury epartment 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 due date of the return no extensions. Self-Employed Health Insurance Premiums A self-employed individual or S corporation shareholder may deduct 100% of health insurance premiums paid for taxpayer, spouse, and dependents. Premiums paid in any month that the taxpayer or spouse is eligible to participate in an employer subsidized health plan cannot be included. Long-term care insurance premiums can be included up to the dollar limitation for the insured s age. he deduction is the lesser of the health insurance premiums or income earned from business. Income earned from business is generally net profit from Schedule C minus the deductions on Line 48. An S corporation shareholder s deduction is limited to wages received from the S corporation. Health Savings Account eduction Enter the amount deposited, and any interest accrued, that is part of a Health Savings Account (HSA). hese accounts are available to eligible individuals that are covered by a high deductible health plan individually or with dependents. he individual cannot be covered under another health plan that is not a high deductible health plan. High deductible health plans have annual deductibles of $1,000 for single individuals and $2,000 for family coverage. he maximum annual out-of-pocket expenses are $5,100 for individual coverage and $10,200 for family coverage. Catastrophe Savings Account eduction Enter the amount deposited into a catastrophe savings account plus any accrued interest as defined in the Catastrophe Savings Account Act. Any amounts withdrawn other than for the purpose of paying qualified catastrophe expenses shall be included in gross income. Page 9

10 IEMIZE EUCION IEMS Every subject listed below is some type of deduction that could be claimed by an individual taxpayer. his deduction could be in the form of cash or other non-cash items. Mississippi allows the filing of federal itemized deductions for state tax purposes with the exceptions of state income taxes, sales taxes allowed in lieu of state income taxes and gaming losses from Mississippi casinos. hese items must be added back to itemized deductions for state tax purposes. Note: denotes that the item is eductible and can be included in the itemized deductions. N denotes that the item is Not eductible and cannot be included in the itemized deductions. You must look to the Schedule A to determine where this item is to be reported. -A- Abortion expenses - legal.... Acupuncture expenses. Ad Valorem taxes Addiction treatments Adoption expenses (allowed as other credit)... N Alcohol treatment expenses. Ambulance expenses.. Anesthetist fees.. Artificial limbs & teeth. Attendant for blind or deaf students... Attorney s fees. N Automobile upkeep N -B- Bank overdraft fees N Beer axes... N Birth Control Pills. Blood donated... N Braille books extra cost of regular cost.... Bribes... N Burglar alarm system... N Burial expenses.. N -C- Campaign contributions.... N Campaign expenses.. N Car insurance premiums... N Carrying charges interest N Casualty losses car accident... Casualty losses car accidents due to willful negligence. N Casualty losses earthquakes. Casualty losses fires, floods. Page 10

11 Casualty losses hurricanes, tornadoes.. Casualty losses pet accidents... N Casualty losses storms, shipwrecks. Casualty losses thefts, vandalism.. Childbirth class. Child care N Child support. N Chiropractor fees... Cigarette taxes. N Commuting expenses. N Contact lenses Contributions Boy/Girl Scouts, Boys/Girls Clubs Contributions Civic leagues, chambers of commerce.. N Contributions clubs social, country, sports N Contributions governments (for public purpose). Contributions lodges, fraternal orders... N Contributions non-profit schools, hospitals, volunteer fire depts. Contributions political groups or candidates. N Contributions public parks, recreation facilities. Contributions religious organizations. Contributions Salvation Army, Red Cross, Goodwill, United Way... Cosmetic surgery face lifts, hair transplants, liposuction.. N Cosmetic surgery to improve deformity... Credit card interest.. N Crutches -- ance lessons. N ental expenses iaper service... N octor fees... ogs guide... onations river s license fees.. N rugs across the counter with substantiation... rugs illegal... N rugs prescription.. ues to professional societies.. Page 11

12 ues to social clubs N -E- Educational expenses. Employment agency fees.. Employment related education. Estate taxes. N Exchange student limit of $50 per school month. Eyeglasses expenses Eye surgery -F- Face lift. N False teeth Federal income taxes N FICA taxes. N Fertility enhancements Finance charges home mortgage. Fines for law violation. N Fire damage Food. N Funeral expenses N -G- Gaming losses (Mississippi casinos) N Gaming losses (non-mississippi casinos) to the extent of gaming income. Gasoline taxes N Gift taxes N Guide ogs Gynecologist fees... -H- Health club dues.. N Health insurance premiums Hearing aids Hobby losses to extent of hobby income.. Home insurance N Home owners fees. N Home repairs N Hospital expenses... Hospitalization insurance premiums..... House rent. N -I- Illegal drugs.. N Page 12

13 Illegal operation, treatment, surgery. N Income tax - federal N Income tax - state... N Inheritance taxes... N Insurance premiums for medical Interest on business loans only on Schedule C.. * Interest on credit cards N Interest on investments to the extent of net investment income.. Interest on mortgage Interest on personal loan. N Investment expenses IRA fees. -J- -K- Kickbacks... N -L- Labor union dues. Laboratory fees Legal expenses, personal.. N Licenses, business subject to limitations... N Life insurance premiums.. N Liquor taxes N Lobbying expenses N Long erm Care expenses (with limits) Loss, casualty or theft limited by insurance reimbursement Lost cash or property N -M- Marriage licenses... N Maternity clothes. N Medical aids Medical expenses.. Medical insurance premiums. Mortgage insurance premiums. Mortgage interest and points... Mortgage prepayment penalty. -N- National Guard Reservist s uniform... Nurse s uniforms. Nursemaid for children of employed parents... N Page 13

14 Nursing Home for medical reasons only -O- Optometrist fees.. -P- Penalty payment on taxes... N Physician fees. Political contributions N Privilege tax. N Property tax... Prosthetic limbs Psychiatric care... -Q- -R- Railroad Retirement taxes. N Real property tax Remedial reading Rent, home or apartment. N Repairs to personal residence. N Ring lost from owner s finger (casualty loss) N -S- Safe deposit box rental (for income producing property). Safe deposit box rental (for personal property) N Sales tax.. N Self-employment tax. N Shifting soil damage... N Small tools & supplies used in work Social activities (personal) N Social Security taxes N Sterilization- legal. Stop smoking programs. Subscription to professional journals subject to limitation ax penalty payments N ax return preparation fee... axes custom duties. N axes estate N axes federal excise N axes - foreign. axes gift. N Page 14

15 axes income federal. N axes income state. N axes Medicare... N axes property. N axes Railroad Retirement. N axes sales. N axes social security.. N axes tobacco.. N eeth Whitening N ermite damage or treatment N heft loss ools required in work ornado damage (casualty loss) subject to insurance.. ransplants ransportation for medical care... ravel (commuting expenses).. N uition... N -U- Union dues & expenses.. Uniforms, work clothes... Utilities.... N -V- Vacation.. N Vitamins..... N Vitamins prescribed by doctor... -W- Weight Loss Program. N Wheelchair Work Clothes, uniforms. Work Shoes... -X- X rays... -Y- -Z- Page 15