Mississippi Individual Income Tax Checklist

MISSISSIPPI

INDIVIDUAL INCOME TAX

CHECKLIST

MARCH 2019

Please use this checklist as a quick reference to taxable and deductible items for STATE income

tax purposes. There 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 Tax

Bureau. Updates will be distributed as they are needed.

Mississippi Individual Income Tax Checklist

Page 2

INCOME ITEMS

Every subject listed below is a type of income received by an individual taxpayer. This income

could be in the form of cash or other non-cash items, such as non-cash prizes. This table is only

true for state income tax purposes. Note: “T” denotes that the item is “Taxable” and is required to

be included in gross income. “NT” denotes that the item is “Not Taxable” 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 ………………………………………………………………………..……… T

Agreements not to compete ………………………………………………………. T

Agricultural program subsidies ……………………. .……………………………….… NT

Alimony (Not taxable on divorce decrees after December 31, 2018)……………………. T

Allowances for dependents of military ………………………………………………… NT

Amounts withheld from wages ……………………………………………………….….. T

Annuities - after retirement …………………………………………………………….. NT

Annuities - before retirement ……………………………………………………….….. T

Annuities - Railroad retirement ………………………………………………………… NT

Armed Forces pay ………………………………………………………………………… T

Awards and prizes - cash or FMV of non-cash ………………………………………. T

-B-

Back pay …………………………………………………………………………………... T

Baptismal offerings ………………………………………………………………………. T

Bartering …………………………………………………………………………………... T

Benefits under veterans’ acts …………………………………………………………... NT

Bequests and devises ……………………………………………………………………. NT

Bonuses ……………………..…………………………………………………………… T

Bribes ………………………………………………………………………………………. T

Business profits ……………………………………………………………………….….. T

-C-

Cancellation of debts ………………….………………………………………………….. T

Capital gains …………………………………………………………………………… T

Certificate of Deposit - interest ………………………………………………………… T

Child support ………………………………………………………………………………. NT

Clergy fees ………………………………………………………………………………… T

Clergy - home allowance ………………………………………………………… NT

Combat or hazardous duty pay - military ……….…………………………………. NT

Mississippi Individual Income Tax Checklist

Page 3

Commissions …………………………………………………………………………… T

Compensation …………………………………………………………………………….. T

Constructively received income ……………………………………………………………. T

Contest awards or prizes ………………………………………………

Contractors - bonus for completion of contract ………………………………………

-D-

Damages recovered for physical injury ………………………………………………….

Devises and bequests …………………………………………………………………….

Directors’ fees ……………………………………………………………………………...

Disability payments - employer paid premiums ……………………………………...

Disability payments - taxpayer paid premiums ……………………………………...

Dividends ……………………………………………………………………………………….

-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 …………………………………………………….

Fellowship grants - generally ……………………………………………………………

Fiduciary fees ……………………………………………………………

Foster care payments ……………………………………………………...............

-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 $50,000 …………………...........

Mississippi Individual Income Tax Checklist

Page 4

-H-

Hazardous duty pay - military ………………………………………………………..………..

Health insurance premium paid by employer …………………………………………………

Health Savings Account – qualified expenses ……………………………………………….

Health Savings Account – non qualified withdrawals …………………………………………

Hobby income …………………………………………………………………………….

-I-

Illegal transactions ………………………………………………………………………......

Illness - employee compensation ……………………………………………………...

Income assigned to another ………………………………………………………………..

Income tax refunds - federal ……………………………………………………………

Income tax refunds - state ……………………………………….……………………….

Inheritance ……………………………………………………………………………………

Inheritance - income from ………………………………………………………………...

Installment sales …………………………………………………………………………….

Insurance - lost income ……………………………………………………………………

Insurance - non-physical awards ………………………………………………………

Insurance - physical awards …………………………………………………………….

Insurance – property damage …………………………………………………………….

Insurance - punitive awards …………………………………………………………….

Interest - insurance awards …………………………………………………………….

Interest - Mississippi obligations ………………………………………………………..

Interest - other state obligations ………………………………………………………..

Interest - savings account ……………………………………………………………………..

Interest - tax refunds ……………………………………………………………………………

Interest - U. S. Government obligations ………………………………………………..

Interest - Certificate of Deposits ………………………………………………………..

Mississippi Individual Income Tax Checklist

Page 5

-J-

Jury pay …………………………………………………………………………………… T

Jury pay given to employer ……………………………………………………………… NT

-K-

-L-

Life Insurance proceeds …………………………………………………………………….. NT

Livestock sold ………………………………………………………………………………… T

Living quarters and meals - compensation ……………………………………………. T

Living quarters and meals - convenience of employer ………………………………........ NT

Lodging furnished - convenience of employer ………………………………………......... NT

Lottery income ……………………………………………………………………………. T

-M-

Marriage fees received by clergy ………………………………………………………... T

Marriage settlement - property settlement ……………………………………………......... NT

Meals - convenience of employer ……………………………………………………………. NT

Military disability payments …………………………………………………………………... NT

Military Reserve pay …………………………………………………………………….. T

Moving expense reimbursement ……………………………………………………………… T

Mutual fund dividends ……………………………………………………………………… T

-N-

National Guard pay - see adjustment to income ……………………………….................. T

Notary public fees ………………………………………………………………………………. T

-O-

Old age benefits - Social Security ……………………………………………………….. NT

Overtime pay ……………………………………………………………………………… T

-P-

Parsonage rental allowance ……………………………………………………………...

Partnership income ………………………………………………………………………..

Pensions ……………………………………………………………………………………

Per diem allowances to military ………………………………………………………….

Prizes ………………………………………………………………………………………

Proceeds from life insurance …………………………………………………………….

Mississippi Individual Income Tax Checklist

Page 6

Produce consumed by farmer and family ……………………………………………...

Profit from sales of property ……………………………………………………………...

-Q-

Qualified Disaster Relief Payments ………………………………………………………..

-R-

Railroad Retirement Act benefits ………………………………………………………...

Recovery of expenses previously deducted …………………………………………..

Recovery of losses previously deducted ………………………………………………

Reenlistment bonus military …...………………………………………………………….

Refund of state income taxes previously deducted ………………………………….

Rents …………………………………………………….………………………………

Retirement income – normal distributions ………………………………………………….

Retirement income – early distributions ………………………………………………….

Royalties ……………………………………………………………………………………

-S-

Salaries ……………………………………………………………………………………. T

Sale of stock – MS corporation ………………………………………………………............ NT

Sale of stock – non MS corp ………………………………………………………................ T

Scholarship grants –tuition and fees ………………………………………………………… NT

Scholarship grants – room and board ………………………………………………………. T

Service pay military ………………………………………………………………………….. T

Settlements for back pay ……………………………………………………………………... T

Severance pay ……………………………………………………………………………........ T

Sick pay ……………………………………………………………………………………. T

Social Security benefits ……………………………………………………………………….. NT

Stipends …………………………………………………………………………………… T

Support payments - alimony (Not taxable on divorce decrees after December 31, 2018) T

Survivor’s benefits Social Security …………………………………………. NT

-T-

Taxes of employee paid by employer ………………………………………………….. T

Tips …………………………………………………………………………………………. T

Tuition under Educational Assistance Programs ……………………………………... NT

-U-

Unemployment compensation …………………………………………………………… T

Uniform allowance military …………………………………………………….……….. NT

Unlawful gains or income …………………………………………………………………. T

Mississippi Individual Income Tax Checklist

Page 7

-V-

Vacation pay …………………………………………………………………………………… T

Veteran’s disability pensions ……………………………………………………………... NT

Veterans’ retirement pay ………………………………………………………… NT

-W-

Wagering income ……………………………………………………………………………. T

Wages ………………………………………………………………………………………... T

Worker’s compensation …………………………………………………………………. NT

-X-

-Y-

-Z-

Mississippi Individual Income Tax Checklist

Page 8

ADJUSTMENTS TO 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. These adjustments are to be deducted from the gross

income of a taxpayer and are similar to federal adjustments to gross income. This table is only

true for state income tax purposes. These 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

Federal Form 1099-INT given to you by your bank or savings and loan association will show the

amount of any interest penalty you were charged because you withdrew funds from your time

savings deposit before its maturity. The amount of such penalty is deductible.

Alimony Paid SSN of Recipient and State of Recipient

Alimony payments you made are deductible to the extent allowable for federal income tax

purposes. Include the name, social security number and state of residency of the individual to

whom the alimony was paid. If you paid more than three individuals alimony payments,

attach a supplemental schedule and enter the total on this line.

Moving Expenses (Attach Federal Form 3903 or 3903F.)

You may deduct moving expense(s) as an adjustment to gross income to the extent

allowable for federal income tax purposes. Attach a copy of Federal Form 3903. Note: Per

TCJA, moving expenses will no longer be deductible except for active duty members of the

military based on military orders. Miss. Code Ann. §27-7-18(2) provides the deduction from

Mississippi income taxes in accordance with federal provisions.

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. Report National Guard or Reserve pay on line 54 (line 55).

Mississippi Individual Income Tax Checklist

Page 9

Mississippi Prepaid Affordable College Tuition (MPACT) or Mississippi

Affordable College Savings (MACS)

Enter the prepaid tuition contract (MPACT) costs you paid during 2018 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 law for such years (by the due date of the return, not

including extensions.) Only amounts contributed to these programs are excluded from

Mississippi income. Per the TCJA, qualified education expenses for purposes of 529 plans

are no longer limited to higher education but will also include elementary and secondary

public, private, home school or religious school expenses up to $10,000 per year.

Self-Employed Health Insurance Premiums

Enter the amount of the Self-Employed Health Insurance Deduction you claimed on your

federal income tax return.

Health Savings Account Deduction

Enter the amount deposited into a health savings account plus any accrued interest as

defined in the Health Savings Account Act. Any amounts withdrawn other than for the

purpose of paying qualified medical expenses or to procure health coverage shall be

included in gross income.

Catastrophe Savings Account Deduction

Enter the amount deposited into a catastrophe savings account plus any accrued interest

as defined in the Catastrophe Savings Account Act. Any contributions made during 2018

and withdrawn during 2018 should be netted to report total contributions as an adjustment

to income. Any amounts withdrawn other than for the purpose of paying qualified

catastrophe expenses shall be included in gross income. See Form 80-360, Catastrophe

Savings Tax Schedule.

Self-employment Tax Deduction

You may deduct from gross income an amount equal to: Seventeen percent (17%) of the

federal self-employment taxes imposed on such individuals for taxable years ending in

calendar year 2017; thirty four percent (34%) for taxable years ending in calendar year

2018; and fifty percent (50%) for taxable years ending in calendar year 2019 and thereafter.

Enter the amount of the self-employment tax deduction calculated based on what you

claimed on your federal income tax return. If applicable, the Federal Schedule SE must be

attached to your return.

Mississippi Individual Income Tax Checklist

Page 10

First-Time Home Buyers Savings Account Deduction

Enter the amount deposited into a first-time home buyers savings account plus any accrued

interest as defined in the First-Time Home Buyers Savings Act. Any amount withdrawn that

went to pay ineligible expenses should be reported on Form 80-108, Schedule N.

Agricultural Disaster Program Compensation Deduction

Enter the amount of compensation received from an agricultural disaster program.

ITEMIZED DEDUCTION ITEMS

Every subject listed below is some type of deduction that could be claimed by an individual

taxpayer. This 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. These items must be added back to itemized deductions for state tax purposes. Note:

“D” denotes that the item is “Deductible” and can be included in the itemized deductions. “ND”

denotes that the item is “Not Deductible” 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) ………………………………………….…..

Alcohol treatment expenses …………………………………………………….………

Ambulance expenses …………………………………………………………………..

Anesthetist fees ……………………………………………………………………….….

Artificial limbs & teeth …………………………………………………………………….

Attendant for blind or deaf students ………………………………………….............

Attorney’s fees …………………………………………………………………………….

Automobile upkeep ………………………………………………………………………

-B-

Bank overdraft fees ………………………………………………………………………

Mississippi Individual Income Tax Checklist

Page 11

Beer Taxes ………………………………………………………………………………...

Birth Control Pills ……………………………………………………………………….

Blood donated …………………...…………………………………………………………

Braille books – extra cost of regular cost ….……………………………………….…..

Bribes …………………………………………………………………………………...

Burglar alarm system ……………………………………………………………………...

Burial expenses ……………….………………………………………………………….

-C-

Campaign contributions …………...………………….………………………

Campaign expenses ……………………..……………………………………

Car insurance premiums …………...……………………………………………

Carrying charges – interest ………………………………………………………

Casualty losses – car accident .............................................................................

Casualty losses – car accidents due to willful negligence …………………………….

Casualty losses – earthquakes (If federally declared disaster) ……………………….

Casualty losses – fires, floods (If federally declared disaster)………………………….

Casualty losses – hurricanes, tornadoes (If federally declared disaster) …………..

Casualty losses – pet accidents ………………………………………………...........

Casualty losses – storms, shipwrecks (If federally declared disaster) ……………….

Casualty losses – thefts, vandalism …………………………………………………..

Childbirth class ………………………………………………………………………….

Child care …………………………………………………………………………

Child support ……………………………………………………………………….

Chiropractor fees ………………………….……………………………………..

Cigarette taxes …………………………………………………………………….

Commuting expenses ………………….…………………………………………

Contact lenses ……………………………………………………………………

Contributions – Boy/Girl Scouts, Boys/Girls Clubs ……………………………………

Contributions – Civic leagues, chambers of commerce …………..…………………

Contributions – clubs – social, country, sports ……………………………

Contributions – governments (for public purpose) ………………………………….

Contributions – lodges, fraternal orders ………………………………………...

Contributions – non-profit schools, hospitals, volunteer fire depts. …………………

Contributions – political groups or candidates …………………………………….

Contributions – public parks, recreation facilities …………………………………….

Contributions – religious organizations ………………………………………….

Contributions – Salvation Army, Red Cross, Goodwill, United Way ..........................

Cosmetic surgery – face lifts, hair transplants, liposuction …………………..

Cosmetic surgery to improve deformity ………………………………………...

Credit card interest ……..…………………………………………………………

Crutches ……………………………………………………………………………………

-D-

Mississippi Individual Income Tax Checklist

Page 12

Dance lessons ………………………………………………………………………….

Dental expenses …………………………………………………………………………

Diaper service …………………………………………………………………………....

Doctor fees …………………………………….………………………………………..

Dogs – guide …………………………………….………………………………………..

Donations …………………………………………………………………………………

Driver’s license fees ……………………………………………………………………..

Drugs – over the counter with substantiation ……………………………………...

Drugs – illegal …………………………………………………………………………...

Drugs – prescription ……………………………………………………………………..

Dues to professional societies ………………………………………………………..

Dues to social clubs …………………………………………………………………… ND

-E-

Educational expenses ……………………………………………………………. ND

Employment agency fees ……………………………………………………………….. ND

Employment related education …………………………….………………………… ND

Estate taxes ……………………………………………………………………………. ND

Exchange student – limit of $50 per school month ……………………………………. D

Eyeglasses expenses …………………………………………………………………… D

Eye surgery ………………………………………………………………… D

-F-

Face lift …………………………………………………………………………………. ND

False teeth ……………………………………………………………… D

Federal income taxes ……………………………………………………… ND

FICA taxes ………………………………………………….………… ND

Fertility enhancements ……………………………………………………………… D

Finance charges – home mortgage ………………….………………………………… D

Fines for law violation ……………………………………………………. ND

Fire damage ……………………………………………………………… ND

Food ……………………………………………………….………………………… ND

Funeral expenses ……………………………………………………… ND

-G-

Gaming losses (Mississippi casinos) …………………………………………… ND

Gaming losses (non-Mississippi casinos) to the extent of gaming income…………. D

Gasoline taxes …………………………………………… ND

Gift taxes …………………………………………………………………………… ND

Guide Dogs …………………………………………………………………………… D

Gynecologist fees ………………………………………………………………... D

Mississippi Individual Income Tax Checklist

Page 13

-H-

Health club dues ………………………………………………………………………….. ND

Health insurance premiums ……………………………………………………………… D

Hearing aids ……………………………………………………………………………… D

Hobby losses to extent of hobby income ……………………………………………….. D

Home insurance …………………………………………………………………………… ND

Home owners fees ………………………………………………………………………. ND

Home repairs ……………………………………………………………………………… ND

Hospital expenses ………………………………………………………………………... D

Hospitalization insurance premiums …………………………………………...……….. D

House rent …………………………………………………………………………………. ND

-I-

Illegal drugs ……………………………………………………………………….………. ND

Illegal operation, treatment, surgery ……………………………………………………. ND

Income tax - federal ……………………………………………………………………… ND

Income tax - state ……………………………………….……………………………….. ND

Inheritance taxes ………………………………………………………………………... ND

Insurance premiums for medical (only if paid after tax) ……………………………………… D

Interest on business loans – only on Schedule C …………………………………….. *

Interest on credit cards …………………………………………………………………… ND

Interest on investments – to the extent of net investment income …………………………….. D

Interest on mortgage …………………………………………………………………… D

Interest on personal loan …………………………………………………………………. ND

Investment expenses ……………………………………………………………………… D

IRA fees …………………………………………………………………………. D

-J-

-K-

Kickbacks ………………………………………………………………………………... ND

-L-

Labor union dues …………………………………………………………………. ND

Laboratory fees …………………………………………………………………………… D

Legal expenses, personal ………………………………………………….……………. ND

Licenses, business – subject to limitations ………………………………... ND

Life insurance premiums ……………………………………………………………….. ND

Liquor taxes …………………………………………………………………………… ND

Lobbying expenses …………………………………………………………………… ND

Long Term Care expenses (with limits) …………………… D

Loss, casualty– limited by insurance reimbursement (If federally declared disaster)….. D

Lost cash or property …………………………………………………………………… ND

Mississippi Individual Income Tax Checklist

Page 14

-M-

Marriage licenses ……………………………………………………….……………….. ND

Maternity clothes …………………………………………….…………………………… ND

Medical aids ……………………………………………………………………………… D

Medical expenses ……………………………………………………………………….. D

Medical insurance premiums (only if paid after tax) …………………………………. D

Mortgage insurance premiums ….……………………………………………………… ND

Mortgage interest and points ................................................................................ D

Mortgage prepayment penalty …………………………………………………………. D

-N-

National Guard Reservist’s uniform ………………………………………………... ND

Nurse’s uniforms …………………………………………………………………………. ND

Nursemaid for children of employed parents ………………………………………... ND

Nursing Home – for medical reasons only …………………………………………… D

-O-

Optometrist fees ………………………………………………………………………….. D

-P-

Penalty payment on taxes ……………………………………………………………... ND

Physician fees ……………………………………………………………………………. D

Political contributions …………………………………………………………………… ND

Privilege tax ………………………………………………………………………………. ND

Property tax ………………………………………………………………………………... D

Prosthetic limbs …………………………………………………………………………… D

Psychiatric care …………………………………………….…………………………….. D

-Q-

-R-

Railroad Retirement taxes ……………………………………………………….……… ND

Real property tax ………………………………………………………………………… D

Remedial reading …………………………………………………………… D

Rent, home or apartment ………………………………………………………………. ND

Repairs to personal residence ………………………………………………………. ND

Ring lost from owner’s finger (casualty loss) ………………………………………… ND

-S-

Safe deposit box rental (for income producing property) ………………………….

Safe deposit box rental (for personal property) ……………………………………

Sales tax …………………………………………………………………………………..

Self-employment tax …………………………………………………………………….

Shifting soil damage ………………………………………………………………...

Small tools & supplies used in work …………………………………………………

Mississippi Individual Income Tax Checklist

Page 15

Social activities (personal) ………………………………………………………………

Social Security taxes ……………………………………………………………………

Sterilization- legal ………………………………………………………………….

Stop smoking programs ………………………………………………………………….

Subscription to professional journals – subject to limitation ………………………...

-T-

Tax penalty payments ……………………………………………………………………

Tax return preparation fee …………………………………………….………………..

Taxes – custom duties ………………………………………………………………….

Taxes – estate ……………………………………………………………………………

Taxes – federal excise ……………………………………………………………………

Taxes - foreign ………………………………………………………………………….

Taxes – gift ………………………………………………………………………….

Taxes – income – federal ……………………………………………………………….

Taxes – income – state ………………………………………………………………….

Taxes – Medicare ………………………………………………………………………...

Taxes – property ………………………………………………………………………….

Taxes – Railroad Retirement …………………………………………………………….

Taxes – sales …………………………………………………………………………….

Taxes – social security …………………………………………………………………..

Taxes – tobacco …………………………………………………………………………..

Teeth Whitening …………………………………………………………

Termite damage or treatment ……………………………………………………………

Theft loss …………………………………………...……………………………………...

Tools required in work ……………………………………………………………………

Tornado damage (casualty loss) – subject to insurance (If federally declared disaster) .

Transplants ……………………………………………………

Transportation for medical care ………………………………………………………...

Travel (commuting expenses) …………………………………………………………..

Tuition ……………………………………………………………………………………... ND

-U-

Union dues & expenses ………..………………………………………………………… ND

Uniforms, work clothes ………………………………………………………….……….. ND

Utilities …………………………...…………………………………………………………. ND

-V-

Vacation ……………………………………………………………………………….. ND

Vitamins ………………………………..…………………………………………………... ND

Vitamins prescribed by doctor ……….………………………………………………….. D

-W-

Weight Loss Program …………………………………………………………………. ND

Wheelchair ………………………………………………………………………… D

Mississippi Individual Income Tax Checklist

Page 16

Work Clothes, uniforms …………………………………………………………………. ND

Work Shoes ……………………………………………………………………………... ND

-X-

X rays ……………………………………………………………………………... D

-Y-

-Z-