Mississippi Adjustments

The Following (applicable) adjustments need to be taken on your tax return. 

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 your deduction for payments to an IRA. See Note above concerning proration.

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. See Note above concerning proration.

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 and Separate Maintenance Paid 
Alimony payments you made are deductible to the extent allowable for federal income tax purposes. You must complete Schedule P, Page 2 of your return. Include the name, social security number and state of residency of the individual to whom the alimony was paid. See Note above concerning proration.

Moving Expense 
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. If your move was interstate, then a prorated amount of moving expense is deductible on the non-resident/part-year return form.

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.

National Guard and 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 15.

MPACT - MS Prepaid Affordable College Tuition Program and/or  MACS -MS Affordable College Savings
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.

Note: 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 Deduction

Enter the amount of the Self-Employed Health Insurance Deduction you claimed on your Federal income tax return. See Note above concerning proration.

Health Savings Account Deductions

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 Deductions

Enter the amount deposited into a catastrophe savings account plus any accrued interest as defined in the Catastrophe Savings Account Act. Any contributions made and withdrawn during the tax year 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.

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.

First-Time Home Buyers Savings Account

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-

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

Mississippi Achieving a Better Life Experience (ABLE) Act Deduction 

Enter the amount deposited into an ABLE savings account. Any amounts withdrawn other than for the purpose of paying qualified disability-related expenses shall be included in gross income in the year of withdrawal. Additional information regarding ABLE accounts may be obtained by visiting the Mississippi Department of Rehabilitation website at www.mdrs.ms.gov/Pages/able-act.aspx.