1999 Resident Or Non-Resident/part-Year Resident Income Tax Instructions

1999 Resident or Non-resident/Part-Year Resident Income Tax Instructions

NOTE: The following Schedule is used to compute income tax due for both Resident and Non-resident/Part-year returns.

Schedule of Tax Computation

Use taxable income from Page 1, Line 22 to complete Schedule below:

Taxpayer (Column A)

Spouse (Column B) taxable

Total

Tax Rate(s)

(Column A +B)

Rates

Income Tax

taxable income

income

1. First $5,000 or Part

x 3%

2. Next $5,000 or Part

x 4%

3. Remaining Balance

x 5%

4. Subtotal

5. Total Income Tax - Enter on Page 1, Line 23

! Line 1 - Enter the first $5,000 of taxable income or part ($0-$5,000)

! Line 3 - Enter the remaining taxable income ($10,001 and over) in

in Column A, and Column B if applicable. Multiply the total of

Column A, and Column B if applicable. Multiply the total of these

these two columns by 3% and enter the resulting tax in the far right

two columns by 5% and enter the resulting tax in the far right

column labeled "income tax."

! Line 2 - Enter the next $5,000 of taxable income or part

! Line 4 - Enter the total of Lines 1-3 for Column A, and Column B

($5,001-$10,000) in Column A, and Column B if applicable.

if applicable.

Multiply the total of these two columns by 4% and enter the

! Line 5 - Enter the total of the amounts entered under "income tax"

resulting tax in the far right column labeled "income tax."

from lines 1, 2 & 3. Transfer this amount to Page 1, Line 23 of your

return.

(3) The credit may not exceed an amount computed by applying the

highest applicable Mississippi rate to the net taxable income

Credits

reported to the other state (5%).

Line 24 - Mississippi Income Tax Withheld(Line 24 on NR Return)

Add the amounts shown as "MS Income Tax" withheld on your

Line 27 - Other Credit(s) (Line 26 on NR Return)

Forms W-2, Forms W-2G, and Federal Forms 1099 and/or 1099-R.

Enter the total amount withheld on Line 24.

All other allowable credits should be combined and the total entered on

this line.

Staple readable copies of your Forms W-2 to the back of the return.

Copies of your Forms W-2 are available only from your employer. Also

General restrictions on the use of income tax credits on a Mississippi

attach any other forms (1099, W-2G, etc.) which have Mississippi

individual income tax return. Most often these credits will be passed

withholding to the back of the return.

through from an entity filing a Mississippi Partnership or S Corporation

tax return.

Line 25 - Estimated 1999 Tax Payments and/or Amount Paid with

The following will show the maximum credit allowed. There are no

Extension (Line 25 on NR Return)

provisions for refunding any excess credit if the credit is more than the

Enter the total estimated tax payments you made before filing your

income tax liability. Some of the credits do allow the unused portion to

1999 Mississippi tax return plus any amount credited from your 1998

be carried forward for a period of time. If a taxpayer has more than one

tax return. Any amount paid with a request for extension of time to file

credit and/or more than one type of credit he may use the credits in any

should also be included in this amount.

sequence so as to obtain the greatest tax savings.

Line 26 - Credit for Income Tax Paid to Another State (Not

Ad Valorem Inventory Tax Credit -This credit is limited to the lesser

Applicable on NR Return)

If you are a resident of Mississippi who earns income in another state

of $5,000.00 per location or the income tax attributable to the location

and are required to pay an income tax to that other state, you are allowed

paying the Ad Valorem tax. This credit can be acquired in two ways,

to take a credit against your Mississippi income tax due in the same year

the first would be from a pass through entity and the second from a

for the total income tax due to the other state (subject to certain

business whose income is being reported using a Schedule C in the

limitations).

individual tax return (if the credit is from a Schedule C then attach a

copy of the Ad Valorem tax bills). This credit is calculated as follows:

In order to be allowed this credit, you MUST file an income tax return

Multiply the net income passing through from the entity or the income

with the other state, and attach a copy of this return and Form 80-160

off the Schedule C by the effective tax rate/rates (starting at your highest

- Tax Credit for Income Tax Paid to One or More Other States - to

effective tax rate then work down if some of the business income is

your Mississippi return. The withholding amounts shown on your W-2

taxed at 4% and/or 3%). Unused credit may not be carried forward.

forms are NOT the same as actual tax paid to the other state. Copies of

Any expenses on which the credit is calculated must be added back to

withholding statements are not sufficient to establish the credit.

taxable income.

The law provides for three limitations which are:

Jobs Tax Credit, National or Regional Headquarters Credit,

(1) The credit may not exceed the amount of income tax due the State

Research and Development Skills Credit - These credits combined are

of Mississippi, indicated on Line 23;

limited to 50% of the income tax that is attributable to income derived

(2) The credit may not exceed the amount of income tax actually paid

from operations in the state for a year. The allowable credit is calculated

to the other state; and

as follows: Multiply the net income passing through from the entity by

Page 9

1999 Resident Or Non-Resident/part-Year Resident Income Tax Instructions - Office Of Revenue Page 8

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