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 Form 84-100-22-1-1-000(Rev.11/22) 
 
                                    PASS-THROUGH ENTITY 
                                   INCOME AND FRANCHISE TAX 
                                    INSTRUCTIONS 
 
                                     2022   

                                   INCOME AND FRANCHISE TAX BUREAU 
                                    PO BOX 1033 
                                   JACKSON, MISSISSIPPI 39215-1033 

                                    WWW.DOR.MS.GOV 

                                                                    December 2022

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                            TABLE OF CONTENTS 

GENERAL INFORMATION AND INSTRUCTIONS                     3 
NEW LEGISLATION                                          3 
WHO MUST FILE                                            4 
DEFINITIONS                                              4 
TERMINATION OF S CORPORATION ELECTION                    4 
TIME AND PLACE FOR FILING                                5 
ELECTRONIC FILING                                        5 
TAXPAYER ACCESS POINT (TAP)                              5 
WHO MUST SIGN                                            5 
REQUIRED FORMS AND SCHEDULES                             5 
TAX PAYMENTS                                             6 
ESTIMATED TAX PAYMENTS                                   6 
INTEREST AND PENALTY PROVISIONS                          7 
ACCOUNTING METHODS                                       7 
ACCOUNTING PERIOD                                        7 
ROUND TO THE NEAREST DOLLAR                              7 
RECORDKEEPING                                            7 
TAX RATES                                                7 
AMENDED RETURN                                           7 
TREATMENT OF DISREGARDED ENTITIES                        8 

 FRANCHISE TAX (S CORPORATIONS)                          8 

INCOME TAX                                               10 
INSTALLMENT SALES                                        10 
INTANGIBLE AND INTEREST EXPENSES                         10 
ARMS-LENGTH TRANSACTIONS                                 10 
LONG TERM CAPITAL GAINS FROM SALES OF STOCK              10 
EXTRATERRITORIAL INCOME                                  10 
APPORTIONMENT/ALLOCATION                                 10 
NET OPERATING LOSS (NOL)                                 11 
PRODUCERS OF MINERAL OR NATURAL RESOURCE PRODUCTS        11 
UNRELATED BUSINESS TAXABLE INCOME – EXEMPT ORGANIZATIONS 11 

INCENTIVE CREDITS AND EXEMPTIONS                         12 

SPECIFIC INSTRUCTIONS                                    17 
FORM 84-105                                              17 
FORM 84-122                                              18 
FORM 84-131                                              20 
FORM 84-132                                              20 
FORM 84-150                                              21 
FORM 84-155                                              21 
FORM 83-305                                              21 

COMPOSITE FILING                                         22 
ELECTING PASS-THROUGH ENTITY                             22 
DISTRICT OFFICES                                         23 
APPENDIX – COUNTY CODES                                  24 

TAX CREDIT CODES                                         25

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 GENERAL INFORMATION AND                                             
 INSTRUCTIONS                                                      House Bill 1162 (2022 Legislative Session) – Miss. Code 
                                                                   Ann. §27-7-22.7 & §27-7-22.9 
 Important tips to help expedite processing of your return:        Reenacted the income tax credit for taxpayers that use port 
                                                                   facilities for the export of cargo and that use airport facilities at 
   Use black ink when preparing the return.                       public airports to export or import cargo. 
                                                                   
   To indicate a loss (negative income), use                      House Bill 1685 (2022 Legislative Session)  
    brackets around the dollar amount.                             Created the “Pregnancy Resource Act” that authorizes  an 
                                                                   income tax  credit, insurance premium tax  credit and ad 
   Attach a copy of the federal return behind the state           valorem tax credit for voluntary cash contributions by certain 
    return including returns filed electronically. Combined        taxpayers  to eligible charitable organizations.  The credit is 
    filers must attach the consolidated Federal Form               available to a business enterprise engaged in  commercial, 
    1120 (pages 1-5), Schedule M-3 and a complete                  industrial  or professional  activities and operating as  a 
    Pro-Forma Federal Return.                                      corporation,  limited  liability  company,  partnership  or  sole 
                                                                   proprietorship.  The credit is limited to 50% of the income tax 
   Additional schedules and attachments should                    due.  Any unused portion of the credit may be carried forward 
    be stapled to the return.                                      for five (5) years.  This bill also authorizes an income tax credit 
                                                                   for an employer of $20 for each verified blood donation made 
 Visit our website at www.dor.ms.gov to download forms by          by an employee as part of a blood drive.   
 tax year and tax type.                                            
                                                                   House Bill 1691 (2022 Legislative Session)  
  TAXPAYER ACCESS POINT (TAP)                                      Allows any partnership, S corporation or similar pass-through 
                                                                   entity to elect to be taxed as an electing pass-through entity 
 
                                                                   and pay the tax imposed at the entity level. 
  Remember, TAP is: 
  • Easy to use                                                     
  • Convenient                                                     Senate Bill 2159 (2022 Legislative Session) 
                                                                   Created the Mississippi Flexible Tax Incentive Act (MFLEX).  
  • Free 
                                                                   The Mississippi Development Authority is authorized to award 
                                                                   tax incentives to qualified economic development projects.     
  Go Paperless!                                                     
  With TAP,  you have the  option to Go Paperless. This                                                            
                                                                   Senate Bill 2770 (2022 Legislative Session)
  means  that  you  can  pay  your  taxes  online  and  receive 
                                                                   Extended the repeal date for the income job tax credit for each 
  certain correspondence electronically. 
                                                                   full-time employee employed by enterprises that are primarily 
 
                                                                   engaged in providing inland water transportation of cargo on 
  TAP  email  lets  you  know  that  you  have  new 
                                                                   lakes, rivers and intercoastal waterways. 
  correspondence to view online. You then logon to TAP to 
  read the letter or message and take appropriate action on         
  your account. Only you or persons you authorize can see          Senate Bill 2773 (2022 Legislative Session) 
  your correspondence.                                             Extended the repeal date for the income tax  credit for 
                                                                   companies that transfer  or relocate its national or regional 
  When  making  payments  or  updating  profile  information,      headquarters to Mississippi.  However, this amendment also 
  you should always log directly into TAP using your User ID       excludes any medical cannabis establishment from being 
  and password. TAP does not provide links containing your         eligible for the tax credit. 
  transaction or personal information to any external website.      
                                                                   Senate Bill 2858 (2016 Legislative Session)  -  Miss. Code 
  Remember, you can pay your bill online through TAP               Ann. §27-7-5 and §27-7-18 
  without registering for a TAP account. For more                  Beginning with tax  year 2018, the 3% tax rate  on corporate 
  information on TAP, view the Electronic Filing Section of        income tax will be phased out over a five-year period ending 
  this booklet.                                                    with tax year 2022 as follows: 
                                                                   
                                                                                                First $1,000 @ 0% and the next 
   NEW LEGISLATION                                                   Tax Year 2018              $4,000 @ 3% 
                                                                                                First $2,000 @ 0% and the next 
  House Bill 1108 (2022 Legislative Session)                         Tax Year 2019              $3,000 @ 3% 
  Authorized an income tax credit for new, reconstruction 
  and replacement  expenditures  made by Class II and                                           First $3,000 @ 0% and the next 
  Class III railroads.  Any credit claimed, but not used in          Tax Year 2020              $2,000 @ 3% 
  any taxable  year  may be  carried forward for five  (5) 
                                                                                                First $4,000 @ 0% and the next 
  consecutive years from the close of the taxable year in            Tax Year 2021              $1,000 @ 3% 
  which the credit was earned.  The total amount of credits 
  that may be claimed by all taxpayers shall not exceed 
  $8,000,000 during  a calendar year.  A taxpayer  may               Tax Year 2022              First $5,000 @ 0% 
  transfer by written agreement any unused tax credit to an         
  eligible transferee at any time during the year in which the     Senate Bill 2858  (2016 Legislative Session)  -  Miss. Code 
  credit is earned and five (5) years following the year in 
                                                                   Ann. §27-13-1, §27-13-5, §27-13-7 and §27-13-67 
  which the credit is earned.                                      Beginning  with  tax  year  2018,  the  franchise  tax  will  be 
                                                                   completely phased out over a nine-year period ending with tax 
                                                                   year 2027 as follows: 
   
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                                                                        having sources of income in this state although not qualified to 
                     $2.50 per $1,000 of capital in excess of           transact business in this state through the Office of  the 
  Tax Year 2018                                                         Secretary of State are subject to the measure of the franchise 
                     $100,000 
                     $2.25 per $1,000 of capital in excess of           tax levy. 
  Tax Year 2019                                                        
                     $100,000 
                     $2.00 per $1,000 of capital in excess of           Partnership 
  Tax Year 2020                                                         Every partnership, LLC, or LLP, domestic or foreign, deriving 
                     $100,000 
                     $1.75 per $1,000 of capital in excess of           income from property owned within the State of Mississippi or 
  Tax Year 2021                                                         business, trade, profession or occupation carried on within the 
                     $100,000 
                     $1.50 per $1,000 of capital in excess of           state must file a return. 
  Tax Year 2022                                                        
                     $100,000 
                     $1.25 per $1,000 of capital in excess of           Exempt Organization 
  Tax Year 2023                                                         Every exempt  corporate organization as  described in Miss. 
                     $100,000 
                     $1.00 per $1,000 of capital in excess of           Code Ann. §27-7-27 or §27-7-29 and not otherwise exempt 
  Tax Year 2024 
                     $100,000                                           from the income tax levy is required to make a corporate tax 
                     $0.75 per $1,000 of capital in excess of           filing if they have Mississippi unrelated  business  taxable 
  Tax Year 2025 
                     $100,000                                           income. Refer to the “Unrelated Business Taxable Income of 
                     $0.50 per $1,000 of capital in excess of 
  Tax Year 2026                                                         Exempt  Organizations”  section  of  this  booklet  for  more 
                     $100,000                                           information. 
                     $0.25 per $1,000 of capital in excess of 
  Tax Year 2027                                                         
                     $100,000 
  Tax Year 2028      Franchise tax repealed effective January 
                     1, 2028                                                                                                               
                                                                       
                                                                        S Corporation 
 Tax Cuts and Jobs Act (TCJA)                                           "S corporation" means a corporation for which a valid election 
 Mississippi will follow the federal TCJA changes listed below: 
                                                                        under section 1372(a) of the Internal Revenue Code is in effect. 
 • Section 179 expensing amounts increased from $500,000                A corporation must file Form 84-105 if (a) it elected to be an S 
   to $1,000,000.                                                       corporation by filing Federal Form 2553, (b) the IRS accepted 
                                                                        the election, and (c) the election remains in effect. Do not file 
 • The change in accounting method allowed for taxpayers                Form 84-105 until the corporation has been notified by the IRS 
   with average gross receipts of less than $25 million for the         that the federal election has been accepted. 
   previous years to elect to  use  the cash method of                 
   accounting. A copy of the federal Form 3115 is required to           An S corporation is not subject to income tax imposed by Miss. 
   be attached to the Mississippi income tax return.                    Code Ann. §27-7-5 but  may be subject to withholding 
                                                                        requirements as explained under the “Tax Payments” section 
 • The deduction for entertainment, amusement and                       of this booklet. Also, every  S corporation domesticated  or 
   recreation expenses when directly related to a taxpayer’s            qualified to do business in Mississippi is subject to the measure 
   trade or business is eliminated. Mississippi will also follow        of the franchise tax levy. 
   the other TCJA provisions related to food and beverage              
   expenses, transportation  fringe benefits, fines, penalties          Partnership 
   and research and experimental expenditures. 
                                                                        The term "partnership" includes a syndicate, group, pool, joint 
 
                                                                        venture or other unincorporated organization through or by 
 • IRC Section 1031 like-kind exchange of property will apply 
   to real property not held primarily for sale and Mississippi         means of which any business, financial operation or venture is 
   personal property per Miss. Code Ann. §27-7- 9(f)(1)(A).             carried on, and which is not within the meaning of a corporation, 
                                                                        trust or estate. 
 • Contractors with average gross receipts less than $25               
   million for the previous three (3) tax years are exempt from         A domestic or foreign  limited  liability company (LLC)  is 
   the requirement to use the percentage of completion for              classified as an entity for purposes of Mississippi income tax 
   contracts to be completed within two (2) years. Taxpayer             laws in the same manner as the entity is classified for federal 
   will be allowed to use the completed contract method.                income tax purposes. If an LLC is treated as a partnership for 
                                                                        federal income tax purposes, it will file  as a  partnership for 
                                                                        Mississippi purposes. If an LLC is treated as a corporation for 
                                                                        federal income tax purposes, it will file  as a  corporation for 
                                                                        Mississippi income and franchise tax purposes. 
                                                                       
 S Corporation                                                          In this booklet, all three entities (partnership, LLC, and LLP) 
 Every S corporation domesticated or qualified to do business in        may,  at  times,  be  referred  to  as  "partnerships"  and 
 Mississippi, and every S corporation engaged in business in            partners/members referred to as "partners". 
 Mississippi or having sources of income from Mississippi must         
 file a return even if the corporation is inactive or not otherwise 
 engaged in business. Such corporation will remain subject to 
 the filing requirements  until the corporation is officially 
 dissolved or withdrawn through the Office of the Mississippi          
                                                                        Once the election is made to be treated as an S corporation, it 
 Secretary of State. 
                                                                        stays in effect until it is terminated. Mississippi considers the 
                                                                        election  to  be  terminated  at  such  time as the election is 
 Foreign S corporations engaged in business in Mississippi or 
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 considered terminated for federal purposes.                             Users of TAP are able to: 
                                                                         • make electronic payments of returns and assessments; 
                                                                         • view previously filed returns and amended returns; 
   TIME AND PLACE FOR FILING                                             • make address changes and view tax correspondence; 
                                                                         • view recent account activity, and; 
                                                                         • register a new business or add accounts to the business; 
 S Corporation                                                           
 The Mississippi Pass-Through Entity Tax Return must be                  Third Party Access for Tax Practitioners 
 filed on or before the 15th day of the 3rd month following the          Tax practitioners can have TAP access to account information 
 close of  the  accounting year. If the  due  date  falls on a           for each of your clients - from one login. First, create your own 
 Saturday, Sunday or legal holiday, the return is due the next           TAP account (only one per FEIN). Once you are registered in 
 business day. A business  day  is  any  day that is not a               TAP, select "Add Access to  Existing Account." Your  client 
 Saturday, Sunday or legal holiday.                                      (taxpayer) must provide you the Letter ID and Account ID in 
                                                                         order for you to have access to their accounts. All accounts 
 If the S election was terminated during the tax year, the due           you set up for third party access are found under the "Other 
 date of Form 84-105 is on or before the 15th day of the 3rd             Taxpayers' Accounts" tab in  TAP. For more  information on 
 month following the date of termination.                                TAP, visit our website at www.dor.ms.gov. 
                                                                         
 Partnership                                                             Users  cannot  file  Pass-Through  Entity  Tax  Returns  in  TAP. 
 Calendar year partnerships, LLCs and LLPs must file no later            However, tax preparers have the ability to file the tax   returns 
 than March 15th annually.  Fiscal year partnerships, LLCs               electronically through an authorized software provider. A copy 
 and  LLPs  must  file  no  later  than  the  15th  day  of  the  3rd    of the complete federal return must be submitted electronically. 
 month following the end of the fiscal year.                             Please  visit our website at  www.dor.ms.gov  for additional 
                                                                         information on how to file Mississippi returns on-line and how 
 Extension of Time to File Return                                        to access approved on-line software providers. 
 Mississippi will follow federal return filing and extended due           
 dates. Taxpayers requesting an extension of time to file the 
 return must remit the tax due with Form 83-180, on or before 
 the due date of the return. The authorized extension of time 
 to file does not extend the time for payment of the income or            
 franchise tax  due. Interest and penalty will apply on any              S Corporation 
 underpayment of tax.                                                    The return must be signed by the president, vice president or 
                                                                         other officer of the corporation. A receiver, trustee or assignee 
 The return should be mailed to:                                         must sign any return which he/she is required to file on behalf 
                                                                         of a corporation. 
 Department of Revenue Street Address:                                   
 P.O. Box 23191        500 Clinton  Center  Drive                        Partnership 
 Jackson, MS 39225-3191          Clinton, MS 39056                       The return must be signed by one general partner or limited 
                                                                         liability company member. If a receiver, trustee in bankruptcy, 
                                                                         or assignee controls the organization's property or business, 
                                                                         that person must sign the return. 
                                                                         
 Pursuant  to  the  authority  granted  to  the  Department  of          Anyone who prepares the return but does not charge the 
 Revenue in Miss Code Ann Section 27-3-83 and Title 35, Part             company should not complete the paid preparer section. 
 I, Chapter 4 of the Mississippi Administrative Procedures and           Generally, anyone who is paid to prepare the return  must 
 Procedures Code, the Department of Revenue will mandate                 legibly sign it and must also furnish the preparer tax 
 all Corporations, S corporations, and Partnerships with assets          identification number (PTIN) issued by the Internal Revenue 
 of  $250,000  or  more  to  file  electronically  for  tax  years       Service (IRS). 
 beginning on or after January 1, 2019 and all subsequent tax             
 years. 
  
 Failure to file returns electronically may subject taxpayers to a        
 penalty of twenty-five dollars ($25.00) for the first instance of       To be a complete return,  the return should contain all the 
 noncompliance and five hundred dollars ($500.00) for each               requisite  general information, as well as, all summary tax 
 additional instance of noncompliance.                                   information and the basic back up schedules. Examples of the 
                                                                         required  general information  are complete name, current 
 Please contact the Department of Revenue at (601) 972-7700              address, FEIN,  officer  information and signature and other 
 if you are unable to comply with this mandate.                          information relating to the filing entity as requested on page 2 
                                                                         of Form 84-105. 
                                                                          
                                                                         Examples of the summary tax information are the front page of 
   TAXPAYER ACCESS POINT (TAP) 
                                                                         the  return,  the  franchise  tax  schedule,  the computation  of  net 
                                                                         income, the computation of the apportionment factor (if 
 TAP provides online access to your tax account   information            applicable), the balance sheet, nonbusiness income schedule (if 
 24 hours a day, 7 days a week.  TAP is free and convenient!             applicable),  the direct accounting income statement  (if 
                                                                         applicable),  schedules  showing  the  computation  of  any  tax                                 

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 credit taken (such as jobs credit) and the Schedule K reflecting         required to execute an agreement (a) to file a return and to 
 information pertaining to shareholders' distributive shares of          make timely payment of all taxes imposed on the shareholder 
 income and deductions.                                                  by the state of Mississippi with respect to the income of the S 
                                                                         corporation, and (b) to be subject to personal jurisdiction in this 
 Examples of the basic backup schedules are details of other             state for purposes of the collection of income taxes, together 
 additions or other deductions as requested on the computation           with related interest and penalties, imposed on the shareholder 
 of net income schedule, details of other  additions  or other           by this state with respect to the income of the S corporation. 
 deductions as requested on other statements made a part of              Form  84-380  should  be  filed  with  the  S  corporation  and 
 the return, details of other current assets and other assets, and       maintained by the S corporation as a part of its permanent tax 
 details  of other current  liabilities  and other liabilities on the    files. This form should not be sent with the pass-through entity 
 balance sheet as are normally included with the federal return.         return. 
                                                                         
                                                                         In the event the S corporation fails to obtain the agreement of 
                                                                         a non-resident shareholder indicated above or in the event a 
                                                                         non-resident shareholder fails to file a return and to make timely 
                                                                         payments of all taxes imposed on the shareholder by this state, 
 The total tax due on the return must be paid in full no later than 
 the 15thday of the 3rd month after the end of the tax year (S           the  S  corporation  shall  make  a  payment  to  the  state  in  an 
                                                                         amount equal to the highest marginal tax rate in effect   under 
 Corporation and Partnership). 
                                                                         Miss. Code Ann. §27-7-5 (5%) multiplied by the shareholder's 
                                                                         pro rata share of the income attributable to the state reflected 
 Payment Options:                                                        on the corporation's return for the taxable period. 
 •   Online Payments: To pay online, go to www.dor.ms.gov,               
     click on Taxpayer Access Point (TAP) and  follow  the               Partnership 
     instructions. Without  a  MARS  account  or a TAP login,            In the event the individual partners fail to report and pay the 
     users are able to make estimate payments online.                    taxes imposed according to Miss. Code Ann. § 27-7-25, the 
                                                                         partnership and the general partners shall be jointly and 
 •   Check or Money Order Payments:         To pay by check or           severally liable for said tax  liability and  shall  be assessed 
     money  order,  complete  the  payment  voucher  (Form               accordingly. However, the partnership and/or general partners 
     84300), make the check or money order payable to the                shall not be liable if the partnership withholds 5% of the net gain 
     Department of Revenue and mail both to P.O. Box 23192 
     Jackson, MS 39225-3192.                                             or profit of the partnership for the tax year and remits the same 
                                                                         to the Commissioner. 
 Pass-Through  Entities  do  not  pay  tax  on  its  income  but         
 "passes     through"   any    profits      (losses)   to    its         In a sale of real property and associated tangible personal 
                                                                         property which is not considered an exchange or trade of such 
 shareholders/partners (owners). Owners  must include  pass              property  and  which  results  in  gross  proceed  greater  than 
 through items on their income tax returns. Individual owners            $100,000.00 paid by the buyer to the seller and owned by an 
 are subject to tax upon their distributive share of pass-through        non-resident,  the  seller,  rather  than  the  buyer,  shall  be 
 entity net income, whether it is distributed to them or not. A          responsible for paying over to the Department of Revenue an 
 non-resident individual, who is a member of a pass-through              amount equal to 5% of the amount realized by the seller. 
 entity  owning property  or  doing  business in the State of            
 Mississippi, is subject to tax on his share of the pass-through         Partnerships electing to report tax on partnership net income in 
 entity net income, whether distributed or not.                          this manner should request Form 84-387. Partners with tax 
                                                                         remitted to the Department of Revenue through partnership 
 If the pass-through  entity does business both within and               withholding should claim the amount as estimated tax on his or 
 without the state, it will be necessary to compute the income           her individual income tax return. Form 84-387 should be 
 (loss) of the pass-through entity from sources within the state         provided to the partner by the partnership showing the correct 
 in order to determine the amount of income taxable to, or the           amount withheld. 
 amount of the loss deductible by, the non-resident owners. 
                                                                         
 The non-resident shareholder/partner is subject to tax only on          A partnership that has income from sources within and without 
 such share of his income, whether or not distributed, as is             Mississippi  should  withhold  from  Mississippi  source  income 
 assignable to Mississippi.                                              only. The Commissioner may allow a composite return filing by 
                                                                         a  partnership.  See  the  “Composite  Filing”  section  of  this 
 S Corporation                                                           booklet for additional information.  A partnership may also elect 
 An S corporation  may elect to file a composite  or electing            to file as an electing pass-through entity.  See the “Electing 
 pass-through entity return and make payments of tax on behalf           Pass-Through Entity”  section of this  booklet  for additional 
 of its non-resident shareholders. For more information on filing        information.   
 composite, see the “Composite Filing” section of this booklet.           
 If a non-resident is going to file a Mississippi non-resident 
 individual tax return he or she must not be included in a 
 composite  return,  but  should  separately  pay  estimated             
 taxes as an individual using Form  80-106.  For more                    Every taxpayer, filing a composite return or electing pass-through 
 information on filing as an electing pass-through entity, see           entity return, with an annual income tax liability in excess of $200 
 the “Electing Pass-Through Entity” section of this booklet.             must make estimated tax payments.  At least 90% of the current 
                                                                         income  tax liability  of  the S  Corporation filing a  composite  or 
 Non-Resident Income Tax Agreement                                       electing pass-through entity  return must be paid  by submitting 
 All non-resident shareholders of Mississippi S corporations are         quarterly payments. The remaining of the balance is due by the 
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 due date of the return. Partnerships filing composite or electing          Returns should be filed on the basis of the 12-month accounting 
 pass-through entity returns must follow the Individual tax rules           period established by the corporation. A corporation on a fiscal 
 on estimated tax payments. The due dates for estimated tax                 year basis must enter the beginning and ending dates of the 
 payments are:                                                              taxable  year  in  the  appropriate  spaces  on  the  return.  No 
 •  15 dayth of the 4 monthth after year end;                               accounting period, other than calendar year, will be recognized, 
                                                                            unless  before its  close it was definitely  established as an 
 •  15 dayth of the 6 monthth after year end;  
                                                                            accounting period by the taxpayer and the books of such 
 •  15 dayth of the 9 monthth after year end, and;                          taxpayer were kept in accordance therewith. 
 •  15 dayth of the 12 monthth after year end.                               
                                                                             
 The payment is due on the next business day if the date falls                ROUND TO THE NEAREST DOLLAR 
 on a Saturday, Sunday or legal holiday. Penalties may apply if 
 the corporation does  not make  the  required estimated  tax                
 payments by the due date. Use Form 83-305 to determine the                 All  dollar  amounts  should be rounded to the  nearest whole 
 amount of interest and penalty on underestimate. See detailed              dollar (no pennies).   Round  down  to  the  next  lower dollar 
 instructions  for  the  form  under  the  “Specific  Instructions”  for    amounts under $.50 and round up to the next higher  dollar 
 Form 83-305 section of this  booklet.                                      amounts of $.50 and over. For example: $2.15 becomes $2.00; 
                                                                            $4.75 becomes $5.00; and $3.50 becomes $4.00. 
                                                                            
 •  Late Payment: Interest and penalty are charged on taxes                  
    paid late even if an extension of time to file is granted. The          Taxpayers are required to maintain an accurate and complete 
    interest is assessed from  the due date until paid and is               set  of  records  and  other  information  necessary  for  the 
    computed at 1/2 of 1% per month.                                        Department to determine the correct amount of tax due. The 
                                                                            records and other information must be available for inspection 
    The penalty imposed for failure to pay the tax when due is              by the Department upon request at a reasonable time and 
    1/2% per month not to exceed 25% in the aggregate.                      location. Refusal or delay by the  taxpayer  to provide 
                                                                            documentation upon the Department’s request will result in an 
 •  Late or Non-Filer:    Penalties are imposed for failure to file         assessment being made from any information available, which 
    a return when due on the total amount of the tax deficiency             shall be prima facie correct. 
    or delinquency. The penalty is 5% per month not to exceed                
    25% in the aggregate. The penalty shall not be less than 
    $100 for income tax for failure to file a return. 

 •  Incomplete Returns:        A company that does not file a                
    complete return or does not file a return within  the                   Franchise Tax (S Corporation): $1.50 per $1,000 of capital, 
    prescribed time may be  subject to a penalty of  $25 per                or fractional part thereof, of capital, surplus, undivided profits 
    required attachment or schedule up to a maximum o f $500                and true reserves   employed  in Mississippi  in excess of 
    per return.                                                             $100,000 (Minimum tax of $25). 
  
 The purpose of this penalty provision is to ensure that sufficient         Income Tax (Composite  and  Electing  Pass-Through 
 information is disclosed on the return. If major schedules (such           Entity): 0% on the first $5,000 of taxable income, 4% on the 
 as the balance sheet) are omitted or incomplete, or if schedules           next $5,000 of taxable income and 5% on all taxable income 
 are consistently omitted or incomplete, then the penalty will be           in excess of $10,000. 
 imposed. The more severe or consistent the omission, the more               
 likely it is that the penalty will be imposed. Refer to the “Required 
 Forms and Schedules” section of this booklet  for  additional 
 information on what constitute a complete return.                           
                                                                            File an amended return to: 
                                                                             • make adjustments to tax; 
                                                                             •  claim a refund due to an adjustment to tax; 
                                                                             •  claim a net operating loss (NOL) carryback deduction; 
 Direct or Separate Accounting Method: Producers of mineral 
                                                                             •
 or natural resource products and construction contractors are                 report federal adjustments (1120X), and; 
 required  to  use  direct  accounting  in  computing  their  taxable          report IRS audit adjustments (RAR). 
                                                                             •
 income  to this state. For  more details,  see Title 35,  Part III, 
 Subpart 08, Chapter 06 of the Miss Administrative Code. Other              When to File: A taxpayer may apply to the Department for revision 
 taxpayers  may  not  employ  a  direct  accounting  or  separate           of any return filed at any time within 3 years of the due date; or, if 
 accounting method unless they have obtained written authority              an extension was granted, 3 years from the date the return was 
 from  the Commissioner to do so.  Refer  to  the Producers of              filed. The 3 year period is not applicable to an IRS audit; however, 
 Mineral or Natural Resource Products Section of this booklet for           no additional assessment or refund will be made more than 3 years 
 additional information.                                                    after the date the IRS disposes of the tax liability in question.  
                                                                            
                                                                            Net Operating Loss (NOL):     Form 84-155 must be filed with an 
                                                                            amended return in order to claim a net operating loss deduction. 
                                                                            Form 84-155 is used to make an irrevocable election to carryback 
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 or  carryforward  the  current  year  NOL.  For  more  information         shall include the activity of the QSSS when making income and 
 concerning net operating losses, see the “Net Operating Loss               franchise tax return filings to this state. The QSSS will not 
 (NOL)” section of this booklet.                                            make  separate  return  filings.  Attach  a  copy  of  the 
                                                                            approved federal QSSS election when filing the parent S 
 Internal  Revenue  Service  Audit  (RAR): To  document                     corporation return. 
 adjustments  made as  a result of an IRS  audit, the Revenue                
 Agent Report should be attached to the Mississippi amended                 S corporations that do not have a QSSS election in effect will 
 return.                                                                    make return filings in  the  same  manner  as  any  other  S 
                                                                            corporation. An S corporation is subject to the franchise tax and 
 Amended Federal: To document adjustments made as a result                  must  compute  its  Mississippi  income.  Unless  a  composite 
 of an amended federal return, a copy of the amended federal                return election is in effect, each shareholder will make a filing 
 (Form 1120X) should be attached to the amended Mississippi                 to this state reporting its Mississippi taxable income and, if a 
 return.                                                                    corporation,  will  make  at  least  the  minimum  franchise  tax 
                                                                            payment. 
 Any  other documentation supporting the adjustments  made                   
 should also be included with the amended Mississippi return.               Treatment of  a SMLLC and Its Owner:         A Single Member 
 Attach a copy of the original filed return. Overpayments that are          Limited  Liability Company (SMLLC) that is disregarded for 
 not  refunded  will  be  applied  to  the  next  period  for  which  the   federal reporting  purposes will, likewise, be disregarded for 
 corporation makes a filing.                                                state reporting purposes. 
                                                                             
                                                                            The SMLLC’s activity in this state will be reported by the owner 
                                                                            of the SMLLC when making its return filings. A corporate owner 
                                                                            of an SMLLC will make income and franchise tax return filings 
                                                                            based on its  activities  and the activities of any disregarded 
 Treatment of A QSSS and Its Owner: A federal election to be                entities. If the owner of the SMLLC is itself an SMLLC or other 
 treated  as  a  Qualified  Subchapter  S  Subsidiary  (QSSS)  is           type of disregarded entity, then such amounts will be reported 
 considered an election for state purposes and as such the QSSS             by the ultimate owners which are not disregarded entities.   
 will  be  treated  the  same  for  state  income  and  franchise  tax        
 purposes. Thus the QSSS’s activity is treated as a division of its           
 parent S corporation for federal income tax purposes and                     
 will  be  treated in  the same manner  for state  income and                 
 franchise tax purposes.                                                      
                                                                              
 A parent S corporation that is required to file and report for               
 federal  income  tax  purposes  on  the  activity  conducted  in             
 Mississippi  by  its  QSSS  is  considered  doing  business  in              
 Mississippi for both income and franchise tax purposes and                   
                                                                              
 FRANCHISE TAX (S CORPORATIONS)                                               
 
 The franchise tax is measured by the value of capital used,                 on demand. Sums representing debts, notes, bonds, mortgages 
 invested or employed in the exercise of any power, privilege or             due and payable, depreciation reserves, bad debt reserves, or 
 right enjoyed by the corporation within Mississippi. The mode               reserves  representing  valuation  accounts  may  be  excluded 
 of measurement is the amount of capital of the corporation                  (unless between affiliated companies or shareholders). 
 employed or so situated as to be privileged to be employed in                
 this state. In determining the amount of capital, the net book              Holding Corporation: A holding corporation, as defined in Miss. 
 value as regularly employed in conducting the affairs of the                Ann.  Code §27-13-1(i), is (1) any corporation owning at  least 
 corporation should be accepted as prima facie correct as to                 eighty percent (80%) of the value of capital stock and at least 
 the true  capital of the corporation, except where the                      eighty percent (80%) of the combined voting power of all classes 
 Commissioner determines that the book value does not                        of capital stock of another corporation and (2) deriving  at  least 
 properly  reflect  capital  employed  in  this  state  and  in  that        ninety-five percent (95%) of its  gross receipts from dividends, 
 situation the Commissioner's determination of capital should                interest, royalties, rents, services provided to members of an 
 be prima facie correct.                                                     affiliated group (as defined in Section 27-7- 37(2)(d)) to the extent 
                                                                             of the cost of providing such services.     
 Form 84-110 must be completed by all corporations to indicate 
 the amount of capital of the corporation. All reserves that do              Per Miss.  Ann. Code §27-13-1(i), in the case  of a holding 
 not  represent  definitely  known  and  fixed  liabilities  must  be        corporation, the value of the capital used, invested or employed 
 considered as elements of capital of the corporation. Amounts               in this state shall exclude that portion of the book value of the 
 designated  for  payment  of  dividends  may  not  be  excluded             holding corporation’s  investment in stock or securities of its 
 unless such  amounts have been definitely and irrevocably                   subsidiary  corporation using the ratio between (1) the holding 
 placed to the credit of the stockholder, subject to withdrawal              corporation’s  investment in stock  or securities of  its subsidiary 
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 corporation and (2) the holding  corporation’s total assets.  
 Such ratio  shall then  be  applied to  the  total capital stock, 
 surplus, undivided profits and true reserves of the holding 
 corporation in order to arrive at the amount of the exclusion.  
 The holding company exclusion is computed on line 7 of Form 
 84-110 and a schedule of computation must be attached to the 
 return for the exclusion.   

 Multistate Taxpayers:  Lines 9 through 12 of Form 84-110 
 must be completed by multistate corporations doing business 
 both within and without Mississippi.  Total capital of a multistate 
 corporation is apportioned to Mississippi in the ratio that real 
 and tangible personal property owned in Mississippi and gross 
 receipts from business carried on in Mississippi bears to the 
 total real and tangible personal  property  owned by the 
 corporation and gross receipts wherever located and from 
 wherever received.   

 The amount of capital apportioned to Mississippi is computed 
 on line 13 of  Form 84-110.  The section of Form 84-110 
 concerning the assessed value of all real and personal property 
 in Mississippi must be completed by  all corporations.   Miss. 
 Code Ann. §27-13-9 and §27-13-13, provide that the amount of 
 the determined capital in Mississippi should in no case be less 
 than the assessed  value of  the Mississippi property of the 
 corporation for the year preceding the year in which the return 
 is due.   

 Taxable capital is calculated on lines 15 through 18 of Form 84-
 110.  The amount of taxable capital shown on line 18 should be 
 entered on line 1, Form 84-105.   

 For tax years ending on or  after December 31, 2001, the 
 property and receipts of flow-through entities must be included 
 in  a  multistate corporate partner’s  computation of the 
 apportionment ratio applied to the capital base.  The assessed 
 value of property of flow-through entities must be included in a 
 multistate corporate partner’s assessed value of property when 
 determining the alternate capital base.    
  
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INCOME TAX
Generally, all domestic and foreign pass-through entities having
income from sources within Mississippi must complete Form 84-
The state definition of "arms-length" is not tied to that of the
122, which makes adjustments for additions to and deductions
federal definition. See Miss. Code Ann. § 27-7-9(j)(6). The
from federal ordinary income due to differences in federal and
Commissioner can adjust a transaction when income has been
Mississippi laws, to arrive at net income (loss) for state
shifted between related parties and/or taxes have been
purposes.
avoided in this state.

Mississippi does not follow federal rules concerning installment Gains from the sale of certain stocks in domestic entities are
sales. Gains from the sale of casual property will be recognized not recognized as a part of income. However, the gain must be
in the year of the sale. However, the tax on the gain may be reduced by losses from the sale of certain stocks in domestic
deferred. Deferred taxes are generally paid as the proceeds entities if the losses were incurred in the year of the gain or
from the sale are received. However, the following will result in within the two years preceding or subsequent to the gain. See
acceleration of payments: Miss. Code Ann. § 27-7-9(f)(10).

• Transfer, disposition, sale or disposal of the note in any
manner will result in deferred tax payments becoming
immediately due and payable.

• Liquidation, dissolution, withdrawal from this state and Mississippi has not adopted federal provisions related to
certain merger transactions will result in deferred tax Extraterritorial Income Exclusion. The amount related to this
payments becoming immediately due and payable. exclusion of income on the federal return must be added back
• Failure to comply with the necessary filing requirements. to the Mississippi income tax return prior to the apportionment
of income. The proper placement for this Mississippi
Taxpayers who elect the installment method for federal income adjustment to federal income is on Form 84-122, line 9 titled
tax purposes should include as a part of their return both a "Other Additions Required by Law". A copy of Federal Form
Federal Form 6252 and a schedule of any differences between 8873 should be attached to the Mississippi return when this
the federal and Mississippi amounts. adjustment is being made for federal purposes.
In addition, a FSC (Foreign Sales Corporation) that is
organized under the laws of a U.S. territory is treated as a
domestic corporation and, thus, dividends received from it are
considered apportionable business income.
Taxpayers are required to add back the following to its
computation of net income:
• Intangible expenses and costs and interest expenses and
costs in relation to or in connection with the direct or indirect
maintenance or management, ownership, sale, exchange, Total Assignment of Income: If the business activity in
or other disposition of intangible property. respect to any trade or business of the pass-through entity
• Royalty, patent, technical and copyright fees, licensing fees occurs within this state, and if by reason of such business
and other similar expenses. activity the pass-through entity is not taxable in another state,
the total net income (loss) of the pass-through is assigned to
• Expenses and costs associated directly or indirectly with Mississippi.
factoring transactions or discounting transactions.
Apportionment of Business Income: If the business activity
Intangible property includes patents, patent applications, in respect to any trade or business of a taxpayer occurs both
trade names, trademarks, service marks and similar types within and without this state, and if by reason of such business
of intangible assets. activity the taxpayer is taxable in another state, the portion of

Limitations: The adjustment will not apply to such portion of the net income (loss) arising from such trade or business which
intangible expenses, interest expenses and costs which are not is derived from sources within this state, should be determined
with a related member; or the related member is not primarily by apportionment in accordance with the formulas prescribed
engaged in the acquisition, use, maintenance, management, by Title 35, Part III, Subpart 08, Chapter 06 of the Miss. Admin.
ownership, sale, exchange or other disposition of intangible Code unless prescribed otherwise. In such case, the taxpayer
property; and the transaction(s) were done for a valid business must complete Form 84-125. Multistate contractors use Form
purpose. 84-124.

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 Allocation of Nonbusiness Income:        Non-business income 
 (loss) shall be allocated by multistate corporations within and 
 without this state in accordance with the provisions of Title 35,                                                                               
 Part III, Subpart 08, Chapter 06 of the Miss. Admin. Code.  Form         
 84-150 should be used only if the corporation has activities in          For  tax  years  beginning  on  or  after  January  1,  2002,  every 
 another state and has income, losses, expenses, or deductions            exempt organization, as described in Miss. Code Ann. § 27-7- 
 which are to be allocated ("non-business") rather than                   27  or  §  27-7-29  and  not  exempt  from  the  income  tax  levy 
 apportioned. For a definition of what constitutes "non-business"         (federal & state agencies, etc.), is required to file an income tax 
 income, losses,  expenses,  and deductions and rules  for                return with this state if the organization: 
 allocating these items, See Miss. Code Ann. §27-7-23. 
                                                                          1.  Earns or receives unrelated business taxable income as 
                                                                              determined under IRC Section 512 or is an ESOP with an 
                                                                              interest in an "S" corporation, and 
                                                                          
                                                                          2.  Is a resident of this state, doing business in this state, or 
 Net Operating Loss: For  any taxable  year ending after 
                                                                              receiving income from sources within this state. 
 December 31, 2001, the period for net operating loss carrybacks 
 and net  operating loss carryovers is two  periods back and              
                                                                          Exempt corporate organizations file Form 84-105 and any 
 twenty periods forward. This is NOT in accordance with federal 
                                                                          necessary supplemental schedules. These organizations are 
 carryback and carryover provisions that provide for a five-year 
                                                                          not subject to the franchise tax levy and should leave lines 1 
 carryback period. 
                                                                          through 4 blank. 
 
 A short taxable year counts as a taxable year. A taxpayer may            
                                                                          In computing taxable income, enter on line 1 of Form 84-122 
 elect to forgo the carryback on Form 84-155. Once this election 
                                                                          (line  1,  page  2  of  Form  81-110  for  trust  organizations)  the 
 is made, it cannot be changed. 
                                                                          amount of unrelated business taxable income before any net 
                                                                          operating loss and specific deduction as reported on Federal 
 Form 84-155  must  be  completed  and  attached  or  an  NOL 
                                                                          Form 990-T. A complete and signed copy of Federal Form 990-
 deduction  will  not  be  allowed.  Taxpayers  must  indicate  the 
                                                                          T must be attached to the Mississippi schedules as a part of 
 income year the NOL was applied (Column C of Form 84-155). 
                                                                          the return.    Make any necessary           adjustments      for
                                                                          income/expenses  otherwise included/excluded under the 
 PRODUCERS OF MINERAL OR NATURAL                                          income  tax  laws  of  this  state  such  as  income  from  sources 
 RESOURCE PRODUCTS                                                        without this state, add-back of nondeductible income taxes, etc. 
                                                                          
 Taxpayers engaged in the trade or business of producing oil,             Corporate  organizations with unrelated  business taxable 
 gas, other liquid hydrocarbons, sulfur, coal, sand, gravel and           income are  subject to the same estimated payment 
 other mineral or natural resource products, except timber,               requirements  as  other  corporate  taxpayers.  Corporate 
 should determine Mississippi net business income from such               organizations must make all required tax payments by the 15th 
 activity on a direct or separate accounting basis.                       day of the fourth month following the close of the tax year. 
 The Mississippi gross business income from the production of             
                                                                          While the filing deadline is also the 15th day of the fourth month 
 mineral or natural resources shall include: (a) sales of natural or 
                                                                          following the close of the tax year, an automatic filing extension 
 mineral resources produced in Mississippi and sold in this state; 
                                                                          is granted. If a  taxpayer files an extension for  federal tax 
 (b) the market value, at the time of transfer, of all natural or 
                                                                          purposes, the Mississippi  filing deadline will  be  extended 
 mineral resources produced in this state and transferred by the 
                                                                          through the date of the federal extension as well. 
 taxpayer to another state for sale, refining,  processing or 
 manufacturing, provided that if the natural or mineral resources         
                                                                          Employee Stock Ownership  Plans that receive  Mississippi 
 are sold by means  of an  "arms-length" transaction prior  to 
                                                                          income as a shareholder in an "S" corporation must include 
 refining,  processing or manufacturing, the market value 
                                                                          such income as a part of  Mississippi  taxable income. The 
 prescribed herein shall not exceed the selling price; and (c) the 
                                                                          source of the income is determined by the "S" corporation's 
 market value at the time of transfer, of all natural or mineral 
                                                                          activities  and is reported on Form 84-132 to the ESOP 
 resources produced by the taxpayer in Mississippi and 
                                                                          shareholder. 
 transferred to a refinery, processing  plant  or  manufacturing 
 facility of the taxpayer in Mississippi.                                 
                                                                          Trust organizations must make all required tax payments by 
 A natural resource product  shall  be deemed to  be  sold in             the 15th day of the fourth month following the close of the tax 
 Mississippi if it is located in this state at the time title thereto     year. Generally, if a filing extension is granted for federal tax 
 passes to the purchaser. In the absence of specific proof of             purposes, it will be granted for state purposes as well. A copy 
 value of natural resources at the time of transfer from the state,       of the federally approved extension must be attached with the 
 the value of natural resources at the time of production should          return filing. 
 be determined in accordance with the methods prescribed for 
 the determination of "gross income from the property" for 
 purposes  of  percentage  depletion  for  federal  income  tax 
 purposes. 
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the Jobs Tax Credit is limited to 50% of the income tax liability
INCENTIVE CREDITS AND EXEMPTIONS
attributable to the income derived from operations in this state
for that year. Any credit claimed but not used in a taxable year
Incentive credits arising at the S corporation, partnership, LLC
or LLP level are passed through to the shareholders, may be carried forward for 5 years.
partners/interest owners based on their percentage of
The credit is based on the percentage of payroll for new full-
ownership in the entity earning the credit.
time jobs.:
As a general rule, the credit passed through to the shareholder,
partner/interest owner can be applied only to the income tax Average
attributable to the shareholder’s, partner/interest owner's County Ranking Minimum Percentage
income derived from the entity earning the credit. Increase of Jobs of Payroll
Tier One
In the case of a Mississippi resident who is a partner in a (Developed) 20 or More 2.5%
multistate S corporation or partnership, credits passed through Tier Two
from the S corporation or partnership may be used to offset only (Moderately Developed) 15 or More 5%
the amount of income tax attributable to the owner’s share of
pass-through entity income assigned to Mississippi. For any of Tier Three
these credits to be allowed, schedules must be attached (Less Developed) 10 or More 10%
showing the computations.
The number of jobs must be created within 1 year and is
Form 84-401 must be filed by the S corporation or partnership measured at the end of the fiscal year. They cannot be
to claim the credits earned before they are passed through to accumulated over several years. The credit is available for
shareholders. If more than three income tax credits are claimed, each net new full-time job created as long as the minimum
attach a supplemental schedule and enter the total on line 3 of number has been achieved and maintained. The credit is for
Form 84-401. Non-composite members of the group should full-time positions only and is based on the current year gross
complete Form 80-401 and attach as a part of their Mississippi payroll. The credit allowed shall be adjusted in the event of
Individual Income Tax Return. payroll fluctuations during the additional five (5) years of the
credit. You cannot combine part-time jobs to add up to a full-
The following is a brief description of the major credits allowed time job. The credit is based on filled positions and the
under state statutes: employees must be employed in this state and subject to
Mississippi Withholding Tax. Form 83-450 must be completed
Premium Retaliatory Tax Credit (02) and attached to the return. Please attach to this form, a
An income tax credit is available to insurance companies that schedule listing the new full-time jobs created (titles/pins, date
paid additional retaliatory premium taxes to other states. The created and payroll amount for the year).
credit can offset 100% of income tax due. No carryover is A jobs tax credit is authorized for each full-time employee
allowed for this credit. employed in a new cut and sew job by enterprises that own or
operate an upholstered household furniture manufacturing
Finance Company Privilege Credit (03) facility. The repeal date on this provision is extended to January
An income tax credit is provided to finance companies that paid 1, 2026.
privilege taxes. The credit can offset 100% of income tax due.
No carryover is allowed for this credit. A jobs tax credit is authorized for each full-time employee of
businesses primarily engaged in providing inland water
Jobs Tax Credit (05) transportation of cargo on lakes, rivers and intracoastal
A credit is allowed for increasing employment levels in certain waterways. This credit is effective from and after January 1,
types of business. The business must be primarily engaged in 2019.
manufacturing, processing, warehousing, distribution,
wholesaling, or research and development; or designated by National or Regional Headquarters Tax Credit (06)
rule and regulation by the Mississippi Development Authority as (Repealed effective July 1, 2022)
air transportation and maintenance facilities, final destination or An income tax credit is available for a 5-year period for each
resort hotels having a minimum of 150 guest rooms, recreational position assigned to the national or regional headquarters of a
facilities that impact tourism, movie industry studios, business created in or transferred to Mississippi. The credit is
telecommunications enterprises, data or information processing $500 for each new full-time employee, $1,000 for each new
enterprises or computer software development enterprises or fulltime employee whose salary is 125% of the average annual
any technology intensive facility or enterprises. state wage, or $2,000 for each new full-time employee whose
salary is 200% of the average state wage. A minimum number
The amount of the credit is based on the number of new jobs of 20 new headquarters jobs must be created to receive the
created and the county where the jobs are created. The credit credit. A taxpayer claiming a refund on this credit must file
is good for a period of 5 years. This credit may be used in a separate return; it cannot be included in a combined
combination with any of the other credits. However, the total of return.

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Research and Development Skills Credit (07) tax imposed upon the eligible owner for the taxable year
This credit provides an incentive to locate full-time positions reduced by the sum of all other credits allowable to the eligible
requiring research and development skills in the state. These owner. The lifetime maximum reforestation tax credit that an
positions have to be engaged in a research and development eligible owner may utilize is $10,000 in the aggregate.
activity.Qualification of jobs for this credit would require at a
minimum, a Bachelor’s degree in a scientific or technical field of Effective January 1, 2007, the lifetime maximum RTC that an
study from an accredited 4 year college or university, eligible owner may utilize is $75,000.00. Any unused portion of
employment in the employee’s area of expertise and the RTC may be carried forward to succeeding years.
compensation at a professional level with 2 years of related job Reforested acreage on which the eligible owner receives any
experience. Examples are chemist and engineers. state or federal cost share assistance funds to defray the cost of
an approved reforestation practice is not eligible for the RTC.
A credit of $1,000 for each full-time position requiring research The RTC is not available to private corporations which
and/or development skills is available for a 5-year period. There is manufacture products or provide public utility services of any
no minimum number of positions that must be created to qualify type or any subsidiary of such corporations.
for this credit. The credit is for full-time positions only. Part-time
jobs cannot be combined to add up to a full-time job. The credit Gambling License Fee Credit (11)
is based on filled positions and the employees must be employed An income tax credit provided to the licensee that paid a license
in this state and subject to Mississippi Withholding Tax. The credit fee which is based on gross revenues of the licensee. The credit
for employees employed for less than 12 months will be allowed can offset 100% of income tax due. No carryover is allowed for
based on a pro-rated portion in the first and last years. The this credit.
amount of the credit is pro-rated based on the number of months
the employee is employed in this state divided by 12. Mississippi Business Finance Corporation Revenue Bond
Service Credit (13)
The total of the Research and Development Skills Credit is
limited to 50% of the income tax liability attributable to the income Only debt service paid on revenue bonds issued by the
derived from operations in this state for that year. Any excess Mississippi Business Finance Corporation to finance economic
credit amount can be carried forward for up to 5 years from the development projects to induce the location of manufacturing
original year in which the excess credit could not be used. facilities within this state can be taken as a credit. This credit can
be used against the taxes due from the income generated by or
Employer Child/Dependent Care Credit (08) arising out of the economic development project. Effective
The Child/Dependent Care Tax Credit is an incentive to any January 1, 2014, Senate Bill 2376 amends Miss. Code Ann. §57-
business providing dependent day care (both children and adult) 10-401 to revise the term “Economic Development Project” to
for its employees during the employee's working hours or include the economic development project of a related approved
assisting community-provided day care. The expenses must be company that is merged into or consolidated with another
incurred in the operation of a program certified by the Mississippi approved company where the approved companies are engaged
Department of Health. The net cost of any contract executed by in a vertically integrated manufacturing or warehouse operation.
the employer for a third party to provide dependent care is a The bill also amends Miss. Code Section Ann. §57-10-449, to
qualified expense. If the employer elects to provide dependent extend the repeal date until October 1, 2022 the authority for the
care directly, then the qualified expenses are expenses for staff, Mississippi Business Finance Corporation to issue bonds to
learning and recreational materials and equipment, and cost finance economic development projects. For more information on
associated with the construction and maintenance of a facility. the benefits of this program contact: Mississippi Development
Additional eligible expenses include costs assumed by the Authority, P.O. Box 849, Jackson, MS 39205-0849.
employer which increases the quality, availability and
affordability of dependent care in the community used by Ad Valorem Inventory Tax Credit (14)
employees during the employee's work hours. For facilities and This is an income tax credit for manufacturers, distributors and
equipment, the eligible expense is the amount of depreciation wholesale or retail merchants for a certain amount of ad valorem
expense allowable in computing taxable income. These taxes paid on commodities, goods, wares and merchandise held
expenses are net of any reimbursement. for resale. The ad valorem credit may be claimed for each
The Child/Dependent Care Tax Credit may be used in location where such commodities, products, goods, wares and
combination with any other credit. The credit is equal to 50% of merchandise are found and upon which the ad valorem taxes
the qualified day care expenses. It is not refundable. It can be have been paid. The tax credit for each location on which ad
used to offset 100% of the income tax liability. Any excess credit valorem taxes have been paid should not exceed the lesser of
amount can be carried forward for up to 5 years from the original $15,000 or the amount of income taxes attributable to such
year in which the excess credit could not be used. location. Previously, the credit may be claimed only in the year in
which the ad valorem taxes are paid; however, Senate Bill 2934
Reforestation Tax Credit (RTC) (10) amended Miss. Code Ann. §27-7-22.5 increasing the income tax
This credit, based on the costs incurred for certain approved credit for ad valorem taxes paid on certain inventory and
reforestation practices, is an amount equal to the lesser of 50% of authorizes any unused tax credit claimed to be carried forward
the actual cost of approved practices or 50% of the average cost for five (5) consecutive years effective July 1, 2012.
of approved practices as established by the Mississippi Forestry Effective January 1, 2014, House Bill 787 amends Miss. Code
Commission. In any taxable year, the maximum amount of RTC Ann. §27-7-22.5 to provide an income tax credit for ad valorem
shall not exceed the lesser of $10,000 or the amount of income
13

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taxes paid on rental equipment. Rental equipment is defined as 1, 2025 the ad valorem tax exemption for equipment used in the
any rental equipment or other rental items which are held for short- deployment of broadband technologies by telecommunications
term rental to the public under rental agreements that are not enterprises.
subject to privilege taxes. The bill also provides for the amount of
credit to increase each year until the 2016 taxable year in which Manufacturing Investment Tax Credit (23)
the amount of the credit will be limited to the lesser of the amount A manufacturing enterprise who falls within the definition of the
of ad valorem taxes paid or the amount of income taxes due for term “manufacturer” in Miss. Code Ann. § 27-65-11 and has
each location. Any ad valorem taxes paid by a taxpayer that is operated in the state for at least 2 years is allowed a
applied toward the tax credit may not be used as a deduction by manufacturing investment tax credit for income tax equal to 5%
the taxpayer for state income tax purposes. of the eligible investments made by the manufacturing
enterprise. "Eligible investment" means an investment of at least
A copy of the tax receipt from the county that shows the $1,000,000.00 in buildings and/or equipment for the
inventory valuation and a schedule showing the calculation manufacturing enterprise.
of the ad valorem tax paid based on the valuation must be
attached to the return. The maximum credit that may be claimed by a taxpayer on any
project shall be limited to $1,000,000. The Manufacturing
Export Port Charges Credit (15) Investment Tax Credit should not exceed 50% of the taxpayer's
An income tax credit is authorized for taxpayers that utilize the port state income tax liability in any 1 tax year net of all other credits.
facilities at state, county, or municipal ports. The income tax credit Any Manufacturing Investment Tax Credit claimed but not used
is equal to the total export cargo charges paid by the taxpayer for: may be carried forward for 5 years from the close of the tax year
(a) receiving in the port; (b) handling to a vessel; and (c) wharfage. in which the eligible investment was made. For more details on
The credit provided should not exceed 50% of the amount of tax eligibility, computation of the credit, qualifying expenditures,
imposed upon the taxpayer for the taxable year reduced by the limitations, carryovers, as well as any necessary forms or work
sum of all other credits. Any unused portion of the credit may be sheets, please contact the Corporate Tax Division at (601) 923-
carried forward for the succeeding 5 years. 7700.

Import Port Charges Credit (17) Historic Structure Rehabilitation Credit (26)
An income tax credit is authorized for taxpayers that utilize the port An income tax credit is allowed for certain costs and expenses
facilities at state, county, or municipal ports for the import of cargo. in rehabilitating eligible property certified as a historic structure
To be eligible, a taxpayer must locate its United States or structure in a certified historic district. The taxpayer may elect
headquarters in Mississippi on or after January 1, 2005, employ at to receive a 75% rebate on the total amount of excess historic
least 5 permanent full-time employees who actually work at such rehabilitation credit in lieu of a ten-year carryforward.
headquarters and have a minimum capital investment of
$5,000,000 in Mississippi. The income tax credit is equal to the New Markets Credit (28)
charges paid by the taxpayer for: (a) receiving in the port; (b) The New Markets Credit allows a credit for income, insurance
handling to a vessel; and (c) wharfage. The credit provided shall premium, or premium retaliatory taxes to investors in eligible
not exceed 50% of the amount of tax imposed upon the taxpayer equity securities issued by a Qualified Community
for the taxable year reduced by the sum of all other credits. Any Development Entity that has entered into an allocation
unused portion of the credit may be carried forward for the agreement with the Community Development Financial
succeeding 5 years. The maximum cumulative credit that may be Institutions Fund of the U.S. Treasury Department (CDFI) with
claimed ranges between $1,000,000 and $4,000,000 depending respect to federal income tax credits authorized by the Federal
on the number of permanent full-time employees of the taxpayer. NMTC Law, which includes the State of Mississippi in the
service area outlined in such agreement. This Qualified
Broadband Technology Credit (BTC) (19) Community Development Entity is commonly referred to as a
A tax credit is provided for telecommunications enterprises making “CDE”.
investments in equipment used in the deployment of broadband
technologies. The credit applies to both income and franchise The CDE must use 85% or more of the proceeds of the issuance
taxes. The credit is a percentage of the cost of the investments of the equity security to make investments that are Mississippi
incurred after June 30, 2003 and before July 1, 2013. The Qualified Low-Income Community Investments (MQLICIs), and
percentage applied is 5%, 10%, and 15% for Tier 1, Tier 2, and those investments must be maintained for a minimum of 7 years.
Tier 3 counties respectively. For more details on eligibility, A MQLICI is an investment in Mississippi in a business that
computation of the credit, qualifying expenditures, limitations, meets the requirements of a Qualified Active Low-Income
carryovers, as well as any necessary forms or work sheets, please Community Business (QALICB) or an investment in Mississippi
contact the Corporate Tax Division at (601) 923-7700. Enterprises approved as a Qualified Low Income Community Investment
qualifying for this credit are able to receive certain sales tax under the Federal New Markets Tax Credit law. A security
exemptions as well. For more information please contact the meeting these requirements is commonly referred to as a “QEI”.
Sales Tax Bureau at (601) 923-7015. MDA will review the QEI to determine if it qualifies for the
Mississippi New Markets Credit. If the QEI does qualify, MDA
House Bill 1729 amended Miss. Code Ann. §57-87-5 to extend will issue a certification of credits allowed. The total Mississippi
until July 1, 2025, the franchise tax credit authorized for New Markets Credit for all Mississippi taxpayers is capped at
telecommunications enterprises for the cost of equipment used in $15,000,000 per year.
the deployment of broadband technologies and to extend until July
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Wildlife Land Use Credit (30)                                              Pregnancy Resource Charitable Contribution Credit (39) 
Effective January 1, 2010, a state income tax credit is allowed that       A credit is available for voluntary cash contributions by certain 
provides a $5.50 per acre tax credit for certain taxpayers that allow      taxpayers to eligible charitable organizations, which is defined 
land to be used as a natural area preserve, wildlife refuge, wildlife      as an organization that is exempt from federal income taxation 
management area or public outdoor recreation area. Land must               under Section 501(c)(3) of the Internal Revenue Code and is a 
first be approved to be suitable for the uses listed above by the          pregnancy resource center or crisis pregnancy center eligible 
                                                                           to receive funding  disbursed by the Choose Life Advisory 
Mississippi  Commission  on Wildlife, Fisheries and Parks.  Any 
                                                                           Committee. The credit is available to a business enterprise 
unused credit amount may be carried forward for five (5) years from        engaged in commercial,  industrial, or professional activities 
the close of the taxable year in which the land was approved for           and  operating  as  a  corporation,  limited  liability  company, 
such a use.                                                                partnership, or sole proprietorship. The credit is limited to 50% 
                                                                           of the income tax due. Any unused portion of the credit may be 
Headquarters Relocation Credit (32)                                        carried forward for five (5) years. This credit is in lieu of the 
Effective January 1, 2014, an income tax credit is authorized under        charitable contribution deduction.  
House Bill 785  for any company that  transfers or relocates its            
national or regional headquarters to Mississippi. The amount of the        Railroad Infrastructure Tax Credit (40) 
credit is equal to the actual relocation costs paid by the company in      A  credit  is  available  for  certain  new,  reconstruction  and 
the taxable year.                                                          replacement expenditures  made by Class II and Class  III 
                                                                           railroads. The credit is limited to  the  income tax  due. Any 
Relocation costs shall include those non-depreciable expenses that         unused portion of the credit may be carried forward for five (5) 
are necessary to relocate headquarters’ employees to the national          years. The total amount of credits that may be claimed by all 
or regional headquarters, including, but not limited to, costs such        taxpayers shall not exceed $8,000,000 during a calendar year. 
as travel expenses for  employees and members of  their                    A taxpayer may transfer by written agreement any unused tax 
households to and from Mississippi in search of homes and moving           credit to an eligible transferee at any time during the year in 
expenses to relocate furnishings, household goods and personal             which the credit is earned and five (5) years follow the year in 
property of the employees and members of their households.                 which the credit is earned.  
                                                                            
The company must create twenty (20) jobs to qualify and the credit         Blood Donation (41) 
shall be applied to the taxable year in which the relocation costs         A credit is available for an employer of $20 for each verified 
are paid.  The credit is limited to a $1,000,000 cap each fiscal year.     blood donation made by an employee as part of a blood drive. 
                                                                           The credit is limited to the income tax due. No carry forward is 
Veteran Employee Credit (33)                                               allowed for any unused portion. 
This is an income tax credit for taxpayers that employ persons who          
are honorably discharged veterans who served on active duty in             Bank Share Credit (50) 
the Armed Forces of the United States on or after September 11,            The Bank Share Credit is a franchise tax credit that equals the 
2001, and who have been unemployed for six consecutive months              amount of all ad valorem taxes paid  by  banks on  personal 
immediately prior to being employed by such taxpayers. Likewise,           property and on the assessed value of its intangibles to any 
this bill  authorizes any tax credit claimed  but not  used in  any        county, district or municipality. The credit can offset 100% of 
taxable year to be carried forward for five (5) consecutive years and      franchise tax due.  No carryover is allowed for this credit. 
the aggregate amount of tax credits that may be awarded shall not          
exceed $1,000,000.00.  This bill is effective January 1, 2016.             General Restrictions on Incentive Credits 
                                                                           The only credits whose usage is dependent on another credit 
Business Contributions to Eligible Charitable Organizations                are the Export Port Charges Credit, Import Port Charges Credit 
(36)                                                                       and the Reforestation Tax Credit (RTC). The RTC should be 
Effective from and after January 1,  2019, the Children’s Act 
                                                                           used last. 
authorized an income tax  credit for business enterprises that 
donate cash to eligible charitable organizations. The  credit is           
                                                                           The total of the Jobs Tax Credit, the Headquarters Credit and 
limited to fifty percent (50%) of the total tax liability and may be 
                                                                           the R & D Skills Credit cannot exceed 50% of the total income 
carried forward for five (5) years.  
                                                                           tax due.  The other credits are not limited in such a manner and 
 
                                                                           their  usage  will  be  independent  of  one  another.  When  one 
House Bill 1729 amended Miss. Code Ann. §27-7-22.41 was to 
                                                                           credit is limited to 50% of the income tax due and another one 
increase the aggregate amount of credits that may be awarded 
                                                                           is also limited to 50%, when combined they may offset 100% 
during a calendar year for voluntary cash contributions by business 
                                                                           of the income tax due.  
enterprises to eligible charitable organizations and to revise certain 
                                                                            
provisions relating to the allocation of such credits. 
                                                                           It will be up to the taxpayer to list which credits are to be used 
                                                                           on the tax return. Please keep in mind that a number of the 
Endowment Fund Charitable Credit (37)                                      credits do not have carryforward provisions. When a deduction 
Provides an income tax credit for  donations made to endowed               on the Mississippi tax return also gives rise to a tax credit, the 
funds held by community foundations. The tax credit shall be 25% 
of the qualified contribution made to the endowed fund with the            amount of that credit which is being used on the current return 
minimum amount being $1,000 and the maximum amount being                   must  be  added  back  to  Mississippi  income  (loss)  after  any 
$200,000. If the amount of allowable credit exceeds the amount of          apportionment of income. 
tax due, the excess may be carried forward for five (5) years. This         
credit can be utilized by both individual and corporate taxpayers          The adding back of the credit to taxable income will increase 
and is effective from and after January 1, 2019.                           the tax liability, which may increase the amount of credit that 
 
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  may be taken.  When this is the case, continue to increase the          The GAP Area Exemption is authorized under Miss. Code Ann. 
  amount of credit being used and add back to income until there          §  27-7-21,  §  27-13-5  and  §  57-80-1  through  § 57-80-11. For 
  is a difference of $1,000 or less between the two. Therefore,           more information on the GAP Areas, please contact: 
  the credit added back may be, at most, $1,000 less than the              
  credit being used.                                                      Mississippi Development Authority 
                                                                          Financial Resources Division – GAP Program 
  Some credits are based on a percentage of an expense, and               P.O. Box 849 Jackson, MS 39205 
  in this case only the credit used should be added back.  Those           
  credits which are affected are: Finance Company Privilege,               
  Child/Dependent Care, Skills Training, Gaming, Rural 
  Economic Development (RED), Export Port Charges, Import                  
  Port Charges, Reforestation, and Ad Valorem tax credits. 
                                                                           
  The credits allowed  should  not be used  by any business                
  enterprise or corporation other than the business enterprise             
  actually qualifying for the credit.  As a general rule, all credits 
  generated  by  the  S  corporation  or partnership are passed            
  through  to  the  shareholders  based  on  their respective 
  ownership percentages. In the event that a composite return is           
  filed on behalf of some or all of the nonresident shareholders,          
  or in the event that a liability for taxes arises due to the failure 
  to  secure an agreement from  a  resident shareholder or a               
  nonresident shareholder fails to file a return and to make timely 
  payment  of taxes due, any credit which would otherwise be               
  passed through to the shareholder(s) involved may be utilized            
  against the tax liability. 
                                                                           
  Growth and Prosperity (GAP) Areas Tax Exemption                          
  The Growth and Prosperity (GAP) Areas Tax Exemption was 
  created to encourage businesses to locate facilities and hire            
  individuals  in  areas  that  have  a  certain  percentage  of  the      
  population  below  the  federal  poverty  level  or  have  an 
  unemployment rate that is 200% of the state’s average                    
  unemployment rate. 
                                                                           
  The  income  and  franchise  tax  exemption  is  available  for  a       
  period  of  10  years  for  certain  businesses  locating  in  a 
  designated GAP area. The eligible businesses include ones                
  that  manufacture,  process,  assemble,  store,  warehouse,              
  service, distribute,  sell  any  products or goods including 
  products  of  agriculture,  research  and  development,  and             
  others as determined by MDA which will create at least 10 
  jobs.                                                                    
                                                                           
  Businesses that  cannot  claim  the exemption are retail 
  establishments, gaming businesses or casinos and electrical              
  generation facilities. An eligible business that constructs a 
  new facility or expands an existing facility located in one of the       
  designated GAP areas can apply to MDA to be exempted from                
  state  and  local  taxes  for  a  period  of  10  years  or  until 
  December 31, 2022, whichever occurs first.                               
   
  A business that relocates from a county in Mississippi to a 
  GAP area is not eligible for the exemption. When filing the              
  state income and franchise tax return claiming the exemption, 
  attach  a  schedule  showing  the  calculation  of  how  the             
  exemption was calculated, a copy of the certification from the           
  MDA and  the  completed  application, and the Income and 
  Franchise Tax Credit Summary (Form 84-401) showing all                   
  credits taken.                                                            
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 SPECIFIC INSTRUCTIONS                                                       
                                                                             
                                                                            would be due under the rates in effect for the calendar year in 
                                                                            which the fiscal  year ends; and (c) Applying to the  tax 
                                                                            computed under paragraph (a) the ratio which the number of 
   
 TAXPAYER INFORMATION                                                       months falling within the earlier calendar year bears to the total 
                                                                            number of months in the fiscal year; and (d) Applying to the tax 
 Please provide all information requested. Enter the county code            computed under paragraph (b) the ratio which the number of 
 corresponding to your principal business location (see Appendix            month falling within the later calendar year bears to the total 
 for a list of the codes).                                                  number of months within the fiscal year; and  (e) Adding to the 
                                                                            tax determined under paragraph (c) the tax determined under 
 Partnerships, LLCs, and LLCs filing an informational return                paragraph (d) the sum of which shall be the amount of tax due 
 should start on page 2, line 1.                                            for the fiscal year. 
                                                                         
 FRANCHISE TAX (S CORPORATIONS ONLY)                                        Line 7: Enter the total amount of taxes paid on your behalf by 
                                                                             electing pass-through entities, from MS Schedule K-1 
 Line 1:   Enter the amount of taxable capital from Form 84-110,             Form 84-132, Part V. The K-1(s) you received must 
           line 18.                                                          be attached to the return. 
                                                                          
 Line 2:   Enter the amount of franchise tax due. For tax year 2022,        Line 8:  Enter the total amount of credit claimed from Form 84- 
           the franchise tax rate is $1.50 per $1,000 of capital in          401, line 3. For limitations, see the “General 
           excess of $100,000 (minimum tax of $25).                          Restrictions  on Incentive Credits” section  of this 
                                                                             booklet. 
                                                                         
 Line 3: Enter the total amount of credit claimed from Form 84-             Line 9:  Enter the net income tax due (line 6 minus line 7 and 
        401, line 1.                                                                 line 8). If line 8 equals or exceeds the amount shown 
                                                                                     on line 6, enter a zero. 
 Line 4: Enter the net franchise tax due (line 2 minus line 3). If line   
        3 equals or exceeds the amount shown on line 2, enter a             PAYMENTS AND TAX DUE 
        zero. 
                                                             
                                                                            Line 10:  Enter the total franchise and income tax due (add line 
 COMPOSITE AND ELECTING PASS-THROUGH ENTITY                                           4 plus line 9). S corporations, enter the amount on line 
 INCOME TAX ONLY                                                                      4;  composite  and  electing  pass-through  entity  S 
                                                                                      corporations, enter the amounts on line 4 plus line 9; 
 Line 5:  Enter zero unless the taxpayer is filing a composite or 
                                                                                      and  composite  and electing pass-through entity 
           electing pass-through entity return or is required to make 
                                                                                      partnerships, enter the amount on line 9. 
           a payment of tax  because it failed  to obtain an 
           agreement from a non-resident shareholder required by 
                                                                            Line 11: Enter the amount of overpayment from the previous 
           subsection (3)(a)  of section  10 of the Mississippi S 
                                                                                      filed return.    The overpayment from the prior year 
           Corporation Income Tax Act. In either of these situations, 
                                                                                      should be the amount shown on the previous return 
           enter the total of the non-resident shareholders' 
                                                                                      as an overpayment to be credited to the next year. 
           distributions included in the composite return from Line 
           32, Form 84-122 or the total of the electing pass-through 
           entity income from Line 35, Form 84-122.  If applicable,         Line 12: Enter the total amount of estimated tax payments and 
                                                                                     payment with extension. This amount should equal the 
           enter the income on which payment of tax is required by 
                                                                                     total of quarterly estimated income tax payments and 
           the S Corporation for failure to secure the above 
                                                                                     the amount paid with the request for an automatic 
           mentioned agreement. 
                                                                                     extension of time to file. 
    
 Line 6:   Enter the amount of income tax due.  For tax year                Line 13: Enter the total amount of previous payments made for 
           2022, the income tax rates are: 0% on the first $5,000                    the tax year (line 11 plus line 12). 
           of taxable income; 4% on the next $5,000 of taxable               
           income;  and  5%  on  taxable  income in  excess of              Line 14:  Enter the net total franchise and income tax due.  This 
           $10,000.                                                                  is the amount of total tax due less previous payments 
                                                                                     (line 10 minus line 13). 
 In the case of taxpayers having a fiscal year beginning  in a            
 calendar year with a rate in effect that is different than the rate 
                                                                            Line 15:  If the current Mississippi income tax liability (line 9) is 
 in  effect  for  the  next  calendar  year  and  ending  in  the  next              $200 or less,  then  estimated income tax  payments 
 calendar year, the tax due  for that taxable year shall be                          were  not  required  for  this  year.  If  the  current  year 
 determined by: (a) Computing for the full fiscal year the amount                    Mississippi income tax liability exceeds $200, Form 83-
 of tax that would be  due under the rates  in  effect for the                       305 (S corporations) and Form 80-320 (partnerships) 
 calendar year in which the fiscal year begins;  and (b)                             should be completed and attached to the return if   filing 
 Computing for the full fiscal year the amount of tax that                           a composite or electing pass-through entity return.  S 
                                                                         17

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corporations enter the amount from Form 83-305, Line 1: Enter the amount of taxable income (loss) (before net
line 19. Partnerships enter the amount from Form operating loss and special deductions) per federal
80- 320, line 11. Form 1120S (S corporations) and federal Form 1065
(partnerships).
Line 16: Enter the amount of interest due on late payment of tax.
An extension of time only extends the time for filing a Line 2: Enter the combined amount of the pass-through
return, not payment of the tax. If the income and income items shown on federal Form 1120S/1065
franchise tax is not paid by the original due date of the Schedule K. Long term and short term capital losses
return, then interest is due at the rate of ½ of 1% per are included only to the extent of current year capital
month on or after 01/01/19. gains.

Line 17: Enter the amount of penalty due on late payment of tax. Line 3: Enter the combined amount of pass-through deductions
An extension of time only extends the time for filing a shown on federal Form 1120S/1065, Schedule K.
return, not the payment of tax. The penalty imposed for
failure to pay the tax when due is 1/2% per month, not Line 4: Enter the total of lines 1 plus 2 less line 3. This amount
to exceed 25% in the aggregate. represents federal net income.

Line 18: Enter the amount of penalty due for failure to file a Line 5: Enter the amount of state, local and foreign government
return by the due date of the return. The penalty for income taxes claimed as a deduction on Form
failure to file a return is 5% per month not to exceed 1120S/1065.
25% in the aggregate. The penalty imposed for
failure to file is based on the additional amount of tax Line 6: Enter the amount of interest on obligations of states and
due. Such failure to file penalty shall not be less than political subdivisions thereof (other than Mississippi)
$100 for income tax. received by the corporation, net of expenses.

Line 19: Enter the balance of tax due (if line 10 is larger than Line 7: Enter the amount of depletion claimed on Form
line 13). This is the amount of total tax due less 1120S/1065 in excess of the cost basis of the asset on
previous payments plus interest and penalties (add which the depletion is claimed.
line 14 through line 18).
Line 8: Enter the amount of special depreciation allowance
Line 20: Enter the amount of overpayment, if any (if line 13 is claimed for federal tax purposes. Federal Form 4562
larger than line 10 plus line 15, subtract line 10 and must be completed twice and attached immediately after
line 15 from line 13). Form 84-122.

Line 21: Enter the portion of line 20 that you wish to carry The first submission reflects the deductions taken for
forward and credit against your next year’s tax federal income tax purposes. The second submission
liability. This credit will be considered for estimated should be labeled “Mississippi” at the top of the form and
income tax purposes as a first quarter payment. will compute the apportionable and/or allocable
depreciation deduction without taking into account any
Line 22: Enter the portion of line 20 that you wish to be
special depreciation allowance (generally line 14 of
refunded. The total of line 21 and line 22 should federal Form 4562).
equal line 20.

Any difference between the two submissions resulting
from the special depreciation allowance is reported as
an increase on this line. Any additional depreciation
expense, for purposes of this state, due to the basis

adjustment not being made is reported on line 15 of this
Generally, all domestic and foreign pass-through entities having
form.
income from sources within Mississippi must complete Form 84-

122 which makes adjustments for additions to and deductions
Line 9: Enter any other additions required by law. Other additions
from federal ordinary income due to differences in Federal and
include but are not limited to 1) charitable contribution
Mississippi laws, in arriving at the net income (loss) for state
carryovers, 2) unrecognized installment sale gains, and
purposes. This schedule highlights some of the differences but is
3) add back of intangible expenses and costs and interest
not an all-inclusive list. The Mississippi Administrative Code and
expenses and costs incurred with certain related
Regulations are available on our website at www.dor.ms.gov.
members.

Multistate construction contractors and producers of mineral or
For more information on treatment of installment sales,
natural resource products are required to use direct accounting and
as well as the years effected, see Miss. Code Ann. § 27-
file Form 84-124. In this situation, lines 1 through 24 of this form
7-9. Intangible expenses and costs and interest
are not completed unless the taxpayer also has income
expenses and costs incurred with certain related
apportionable to this state from another line of business.
members must be added back to income. For additional
details, see Miss. Code Ann. § 27-7-17(2).
Lines 19, 20, 21 of this form do not apply to taxpayers doing
business only in Mississippi.
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Line 11: Exempt interest received on direct U.S. Government Line 23: Enter the amount of nonbusiness income (loss)
obligations (see Title 35, Part III, Subpart 02, allocated to this state shown on the Nonbusiness
Chapter 04 of the Miss Admin Code on what Income Worksheet, Form 84-150, column F, line 2.
constitutes a direct obligation) is not taxable to
Mississippi. Enter the amount of such interest Line 24: Enter the amount of Mississippi sourced income (loss)
reported as income on Form 1120S/1065, net of received from flow-through entities (attach Mississippi
expenses. K-1s).

Line 12: Enter the amount of wage expense that was not Line 25: Enter the amount reported on Form 84-124, page 2,
deducted on Form 1120S/1065 because a federal line 31 and/or page 3, line 46.
tax credit was taken in lieu of an expense.
Line 26: Enter other adjustments required by law. Attach a
Line 13: Enter the income/loss from a partnership or other schedule of computations.
flow-through entity. Flow-through entity income is
allocated based on the source as determined in the Line 27: Enter the amount of income exemption. When filing the
hands of the flow-through entity rather than the state tax return claiming an exemption, attach a
owner. schedule showing the calculation of how the exemption
was calculated, a copy of the certification from the
Line 14: Multistate construction contractors and producers of Mississippi Development Authority MDA) ( and the
mineral or natural resource products must use direct completed application.
accounting (Form 84-124) to report the income from
these lines of business. Enter the income (net of Line 28: Income apportioned and directly allocated to
expenses) from these lines of business as reported Mississippi (sum lines 22 through 27). Unless you are
on federal Form 1120S/1065. filing a composite return on behalf of some or all of the
nonresident shareholders, stop here and enter zero on
For further information concerning accounting Form 84-105, line 5. If you are filing as an electing
pass-through entity, skip to line 33 and enter the
methods for contractors and mineral producers see
amount from line 28 on line 33.
Title 35, Part III, Subpart 08, Chapter 06 of the Miss.
Admin. Code for details. If this is your only line of Line 30: Enter the amount of composite filing adjustment. For
business in Mississippi, skip lines 1 through 24 and details of how to compute the adjustment, view the
start with line 25. “Composite Filing” section of this booklet.
Line 15: When a special depreciation allowance is taken for
federal tax purposes, the depreciable base must be Line 31: Deduct any available separate company composite
reduced by the amount of the allowance. Enter the Mississippi net operating loss carryover or carryback to
additional depreciation expense for purposes of this the extent of composite income. Attach a completed
state due to the basis adjustment not being made for Form 84-155. Mississippi does not conform to federal
state purposes. Attach supporting computations for net operating loss rules.
any amounts claimed.
Line 32: Mississippi composite income subject to tax (lines 29
Line 16: Enter any other deductions authorized by law. For less line 30 and line 31). If positive, report this amount
each adjustment, provide an explanation of the basis on Form 84-105, line 5. Only income of qualified non-
for exclusion and a schedule showing how the resident partners electing to be in a composite filing
amount is computed. In particular, gain from the sale is included on this line. All other partners' income is
of an interest in certain types of domestic entities reported on their respective Mississippi K-1's and as a
may not be recognized for state purposes. If this is part of their respective Mississippi individual income tax
applicable, provide a schedule showing the filings.
computation of the non-recognized gain. For more
details on what qualifies for this exclusion, see Miss. Line 34: Deduct any available electing pass-through entity
Code Ann. §27-7-9(f)(10). Mississippi net operating loss carryover or carryback to
the extent of electing pass-through entity income.
Attach a completed Form 84-155. Mississippi does not
Line 18: Adjusted federal Form 1120S/1065 income (loss) conform to federal net operating loss rules.
subject to apportionment (line 4 plus line 10 minus
line 17). If this corporation is not doing business in Line 35: Mississippi electing pass-through entity income subject
other states (as opposed to multiple states) skip to tax (line 33 less line 34). If positive, report this amount
lines 19 through 21 and enter the amount of this line on Form 84-105, line 5. If negative, enter zero on Form
on line 22. 84-105, line 5.

Line 19: Enter the amount of non-business income (loss)
shown on the Non-business Income Worksheet, Form
84-150, column E, line 2.

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Box 1: Enter the amount of ordinary business income (loss)
per federal Form 1120S, page 1, line 21 (S
corporations) and federal Form 1065, page 1, line 22
Schedule K is a summary schedule of all shareholders' shares (partnerships).
of the corporation's income (loss), credits, etc. All corporations
must complete this form.
Box 2: Enter the owner’s share of rental real estate income
Column A: Enter the name, FEIN or SSN of each owner(s) or (loss), net of expenses.
partner(s) of the entity.
Box 3: Enter the owner’s share of Mississippi other rental
Column B: Enter the owner(s) or partner(s) ownership income (loss), net of expenses.
percentage and state of residence. Enter the
percentage in decimal form. For example, 25% Box 4: Guaranteed payments represent a division of the
should be entered as 25.0000. Check the box if partner’s profit. Therefore, enter the amount of
filing composite. See the “Composite Filing” payments made by the partnership to the partner for
section of this booklet for additional information on services rendered and/or or interest on capital
composite filers. contributions. Applicable to partnerships only.

Column C: Enter each owner or partner share of Mississippi Box 5: Enter the total owner’s share of Mississippi interest
income (loss) on line a. Enter the credit code and income received by or credited to the entity. As a
the amount of the credit on line b and line c general rule, interest income constitutes gross
respectively. income and is fully taxable, unless specifically
exempt or excluded by statute.
Column D: If an electing pass-through entity, enter the amount
of tax paid by the electing pass-through entity for Box 6a: Enter the owner’s share of Mississippi ordinary
each partner or shareholder. dividends income.

Line 2: Enter the totals from Column B through Column D. Box 6b: Enter the owner’s share of Mississippi qualified
dividends income.
Line 3: If applicable, enter the totals from page 2 of this
form, Column B through Column D. Box 7: Enter the owner’s share of Mississippi royalties.

Line 4: Enter the sum of line 2 and line 3 from Column B Box 8: Enter the owner’s share of Mississippi net short-term
(must total 100%). Enter the totals from line 2a capital gain (loss) from federal Schedule D, Form
and line 3a from Column C here; composite filers 1120S (S corporations) and federal Schedule D, Form
enter total composite income from Column C, line 1065 (partnerships).
4a on Form 84-122, page 2, line 29.
Box 9a: Enter the owner’s share of Mississippi net long-term
Line 5: Enter the amount of total tax paid by the electing capital gain (loss) from federal Schedule D, Form
pass-through entity from Column D, line 2 plus line 1120S (S corporations) and federal Schedule D, Form
3. 1065 (partnerships).

Box 9b: A collectible gain (loss) is any long-term gain or
deductible long-term loss from the sale or exchange of
a collectible that is a capital loss. Mississippi Law does
not conform to federal with respect to the tax treatment
of capital gains; therefore, the gain is taxed as ordinary
The amounts to be shown on the Mississippi Schedule K-1 income.
should represent Mississippi income and/or deductions. Due Box 9c: Enter the owner’s share of Mississippi Section 1250
to the differences in treatment of various elements of gain.
income, expenses and/or credits for federal and state
purposes, the amounts shown on the Mississippi K-1 will not Box 10: Enter the owner’s share of Mississippi Section 1231
necessarily be the same amounts as shown on the Federal gain (loss). Attach a copy of the federal Form 4797.
K-1. Determination of the amounts to be reported on the
Mississippi K-1 should be made using the owner’s share of Box 11: Enter the owner’s share of Mississippi income, gain, or
income and deductions including Mississippi apportionment. loss not included in boxes 1 through 9. Provide a
description and the amount for each item.
For informational items that cannot be reported as a single
dollar amount, enter “STMT” in the dollar amount entry
space to indicate the information is provided on an attached
statement.

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Box 12: Enter the owner’s share of Mississippi charitable Column D: Enter the amount of net operating loss deduction
contributions made by the entity (limited to 20% of the actually used to offset income.
entity’s current year taxable income). Mississippi does
not allow a carryover of any unused contributions Column E: Enter the remaining of unused net operating loss, if
deduction. any (column B minus column D and enter the result
as a positive number).
Box 13: Enter the owner’s share of Mississippi Section 179

deduction. Attach a copy of the federal Form 4562. Line 1: Enter the total amount available from column B.

Box 14: Enter the owner’s share of Mississippi other deductions
authorized by law. For each adjustment, provide an Line 2: Enter the amount of net operating loss deduction currently
explanation of the basis for exclusion and a schedule used. Enter this amount on Form 84-122, line 31
showing how the amount is computed. (composite) or line 34 (electing pass-through entity).

Line 3: Subtract line 2 from line 1 to compute the net operating
loss available for carryforward.

This schedule is to be completed only if the corporation has
activities in another state and has income, losses, expenses,
or deductions which are to be allocated ("non-business") rather
than apportioned.
Every taxpayer, filing a composite or electing pass-through entity
On lines 1a through 1i, enter any non-business income or return, with an annual income tax liability in excess of two hundred
losses, including gains (losses) from the disposition of non- dollars ($200) must make estimated tax payments. These
business assets. Enter any expenses associated with such estimated tax payments must not be less than ninety percent
income (loss) including indirect expenses (such as interest 21 (90%) of the annual income tax liability of S Corporation filing a
expense pro-rated to "non-business" assets). composite or electing pass-through entity return and must be paid
by submitting quarterly payments. The remaining of the balance
Enter in Column A each item of non-business income or loss is due by the due date of the return.
allocated to any state, including Mississippi, and the related
expenses in Column C. The S Corporation that fails to file an estimated tax return and pay
the tax within the time prescribed or underestimates the required
Enter in Column B items allocated to Mississippi and the related amount shall be liable for penalty of ten percent (10%) plus
expenses in Column D. interest of ½ of 1 % per month on the underpayment of tax from
the date the payment is due until paid or the next payment due

Enter the net of Columns A and C in Column E, and the net of date, whichever is earlier. Partnerships filing a composite or
Columns B and D in Column F. electing pass-through entity return must follow the Individual
Income Tax rules on estimated tax payments.

Line 1: Enter the amount of current year income tax due from
Form 84-105, line 9 (composite S Corporations and
electing pass-through entities).

PART I: NET OPERATING LOSS Line 2: Multiply line 1 by 90% for S Corporation (not
applicable if using the prior year income tax liability).
A net operating loss (NOL) is to be carried by the corporation to Composite Partnerships must follow the Individual
each of the two (2) taxable years preceding the year of the NOL, Income Tax rules.
starting with the earliest, and then to each of the twenty (20) tax
years following the year of the NOL, until the NOL is exhausted, Line 3: Enter the amount of prior year income tax due.
or the carryforward period expires. An exception is when, on the
original return filing, the corporation elects to forgo the carryback Line 4: Enter the lesser of line 2 or line 3 (except large
by checking the check box at the top of the form. In this case the corporations).
NOL generated is carried forward for 20 years.
Line 5: Enter the amount of required estimated payment per
Column A: Enter the year end the net operating loss was quarter by dividing line 4 by four.
generated.
Line 6: Enter the appropriate months of the S Corporation’s
Column B: Enter the amount of the net operating loss (this or electing pass-through entity’s tax year in column
amount should be entered as a positive number). (a) through column (d).

Column C: Enter the year end in which the net operating loss Line 7: Enter the amount from Part 1, line 5 in each column.
deduction is taken. A net operating loss deduction The cumulative total should not be less than 90% of
can be carried back 2 years or carried forward the income tax due for the year (S Corporations or
20 years. electing pass-through entities).
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Line 8: Enter the actual amount of estimated tax paid each
quarter. ELECTING PASS-THROUGH ENTITY

Line 9: Enter in column (a) any overpayment from the previous For calendar year 2022 and each calendar year thereafter, any
year. Enter any excess from the previous quarter(s), partnership, S corporation or similar pass-through entity desiring
line 9, in column (b) through column (d). to be taxed as an electing pass-through entity must have a22vote
by or written consent of the members of the governing body of
Line 10: Total line 8 plus line 9 minus line 10 and enter the the entity, as well as a vote by or written consent of the owners,
amount in column (a). If the result is negative members, partners or shareholders holding greater than fifty
(overpayment), enter zero and carry the overpayment percent (50%) of the voting control of the entity in order to make
amount (as a positive amount) to the next quarter(s), the election. Fiduciaries are not eligible to make a pass-through
line 9, column (b) through column (d). entity election.

Line 11: Multiply line 10 by 10%. If negative, enter zero. Both the election to become an electing pass-through entity
(“electing PTE”) and the revocation of that election is made by

Line 12: Enter the cumulative amount from line 7. submitting the Pass-Through Entity Election Form, form 84-381,
to the Department of Revenue on or before the fifteenth day of

Line 13: Enter the cumulative amount of estimated taxes paid the third month following the close of the taxable year for which
plus any overpayment from the prior year (line 8 plus the entity elects to be taxed as an electing pass-through entity, or
line 9). for which the entity elects to no longer be taxed as an electing
pass-through entity. The election shall be binding for the taxable
Line 14: Subtract line 12 from line 13. If the result is negative, year and all subsequent taxable years unless the election is
enter zero. revoked by the electing pass-through entity. Both the election and
revocation of the election shall be accomplished by vote or written
Line 15: Enter the interest rate in column (a) through column (d). consent.
Compute interest at the rate of ½ of 1% per month from
the payment due date until paid or until the next An electing PTE will file the Pass-Through Entity Tax Return, form
payment due date, whichever is earlier. 84-105, and check the “Electing Pass-Through Entity” check box
in order to be taxed at the entity level. A copy of the Pass-

Line 16: Multiply line 14 by line 15. Through Entity Election Form, form 84-381, should also be
attached to the return. The Mississippi Schedule K-1s, form 84-
132, for each owner, member, partner or shareholder of the
Line 17: Enter the amount of penalty from line 11, column (a) electing PTE are also required to be attached to the return.
through column (d).
The K-1s should have the “Electing Pass-Through Entity” check
Line 18: Enter the amount of interest from line 16, column (a) box checked with the amount of tax paid by the electing PTE for
through column (d). each partner provided on the K-1s. The amount of tax credit paid
by the electing PTE is calculated using the corporate tax rates.
Line 19: Enter the total amount of underestimated interest and The Pass-Through Entity Tax Return is due on or before the
penalty due (line 17 plus line 18) on this line and on Form fifteenth day of the third day month following the close of the
84-105, page 1, line 15 (composite S Corporations and taxable year.
electing pass-through entities).
Each owner, member, partner or shareholder of an electing PTE
shall report their pro rata or distributive share of the income of the
electing PTE on their separate income tax returns. The amount
COMPOSITE FILING of credit for taxes paid on the electing PTE will be calculated by
the entity and provided to the partner on the Mississippi K-1. A
Nonresident individuals/partners without any activity in Mississippi copy of the K1(s) received from the electing PTE must be
other than that from the pass-through entity may elect to be attached to the partner’s separate return. The amount of credit
included in a composite filing. Once an individual elects to be allowed will be limited to the partner’s income tax due and any
included in a composite filing, they must continue to file in this excess credit cannot be refunded or carried forward.
manner. Underestimate, late payment, and any other interest and
penalties will be determined on the composite income. For more information on electing pass-through entities, see the
“Guidance on Pass-Through Entity Election”, Notice 80-22-001
The net income for each electing member included in a composite under “Recent News” on our website.
filing will generally be computed in the same manner as in a
separate individual filing except that a deduction of $5,000.00
or 10% of the composite net income, whichever is less, is
authorized in lieu of any individual exemption and deduction.
Likewise, the tax liability is computed on the combined income of
all electing members on the composite taxable income.

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 DISTRICT OFFICES 
                                               Jackson District Service Office 
 Gulf Coast District Service Office            P.O. Box 1033, Jackson, MS 39215-1033 
 1141 Bayview Ave., Ste. 400                   500 Clinton Center Drive, Clinton, MS 39056 
 Biloxi, MS 39530-1601                         Ph:  (601) 923-7300 Fax: (601) 923-7318 
 Ph: (228) 436-0554  Fax: (228) 436-0964     
                                               Meridian District Service Office 
 Hattiesburg District Service Office           P.O. Box 5794, Meridian, MS 39302  
 P.O. Box 1709, Hattiesburg, MS 39403-1709     900A Hwy. 19 South Meridian, MS  39301 
 17 JM Tatum Industrial Dr, Ste. 2             Ph: (601) 483-2273  Fax: (601) 693-2473 
 Hattiesburg, MS 39401                       
 Ph:  (601) 545-1261   Fax: (601)  584-4051    Hernando District Service Office 
                                               2631 McIngvale Road, Ste. 116 
                                               Hernando, MS 38632 
                                               Ph: (662) 449-5150  Fax: (662) 449-5163 
 
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 APPENDIX 

 COUNTY CODES 

  COUNTY      CODE COUNTY            CODE  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    Out-of-State  83 
  Issaquena   28   Perry             56                  
  
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 TAX CREDIT CODES 
 
 CODE CREDIT                                    CODE  CREDIT 
 02*  Premium Retaliatory                       24    Alternative Energy Jobs 
 03*  Finance Company Privilege                 25    Child Adoption 
 05   Jobs Tax                                  26    Historic Structure Rehabilitation (Attach Statement) 
 06   National or Regional Headquarters         27*   Long Term Care 
 07   Research and Development Skills           28    New Markets 
 08   Employer Child / Dependent Care           29    Biomass Energy Investment 
 09   Basic Skills Training (repealed 07/01/16) 30    Wildlife Land Use 
 10   Reforestation                             31    Prekindergarten Credit 
 11*  Gambling License Fee                      32    Headquarters Relocation Credit 
 12*  Financial Institution Jobs                34    Qualifying Charitable Contribution Credit Approved by DOR 
 13   Mississippi Revenue Bond Service          35    Foster Care Charitable Credit 
 14   Ad Valorem Inventory                      36    Business Contributions to Eligible Charitable Organizations 
 15   Export Port Charges                       37    Endowment Fund Charitable Credit 
 16   Insurance Guaranty                         38   Inland Water Transportation 
 17   Import Credit                             39    Pregnancy Resource Charitable Contribution Credit 
 18   Land Donation                             40    Railroad Infrastructure Tax Credit 
 19   Broadband Technology                      41*   Blood Donation 
 21   Brownfield Credit                         50*   Bank Share 
 22   Airport Cargo Charges                            
 23   Manufacturing Investment Tax Credit              

 *Carryover not available 
 
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