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2000 Resident or Non-Resident/Part-Year Resident Income Tax Instructions

Line 24 - Estimated 2000 Tax Payments and/or Amount Paid

through from the entity or the income off the Schedule C by the

effective tax rate/rates (starting at your highest effective tax rate

with Extension (Line 24 on NR Return)

then work down if some of the business income is taxed at 4%

Enter the total estimated tax payments you made before filing your

and/or 3%). Unused credit may not be carried forward. Any

2000 Mississippi tax return plus any amount credited from your

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

1999 tax return. Any amount paid with a request for extension of

taxable income.

time to file

should also be included in this amount.

Jobs Tax Credit, National or Regional Headquarters Credit,

Research and Development Skills Credit - These credits

Line 25 - Credit for Income Tax Paid to Another State (Not

combined are limited to 50% of the income tax that is attributable

Applicable on NR Return)

to income derived from operations in the state for a year. The

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

allowable credit is calculated as follows: Multiply the net income

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

passing through from the entity by the effective tax rate/rates

are allowed to take a credit against your Mississippi income tax due

(starting at your highest effective tax rate then work down if some

in the same year for the total income tax due to the other state

of the business income is taxed at 4% and/or 3%); then multiply by

(subject to certain limitations).

the 50% limitation. Any unused credit may be carried over for 5

years.

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

return with the other state, and attach a copy of this return to your

Job Development Assessment Fee - Employees whose wages

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

have been assessed to help pay for Business Finance Corporation

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

issued bonds which created their jobs, may claim a credit against

Copies of withholding statements are not sufficient to

their income taxes. Job Development Assessment Fee amounts

establish the credit.

are shown in the city or local income tax withholding block on the

W-2 form, with the word RED for the city or local name. Credit

Section 27-7-77 provides for three limitations which are:

amounts which exceed the tax due are not refundable and may not

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

be carried forward to another tax year.

State of Mississippi, indicated on Line 22;

Reforestation Tax Credit - This credit, based on the costs

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

incurred for certain approved reforestation practices, is an amount

paid

equal to the lesser of fifty percent (50%) of the actual cost of

to the other state; and

approved practices or fifty percent (50%) of the average cost of

approved practices as established by the Mississippi Forestry

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

Commission. In any taxable year, the credit shall not exceed the

the

highest applicable Mississippi rates to the net taxable

lesser of $10,000 or the amount of income tax imposed upon the

income

reported to the other state. Highest rates are

eligible owner for the taxable year reduced by the sum of all other

meant to mean the

highest rates at which the net taxable

credits allowable to the eligible owner (except for withholding

income reported to the other

state is taxable by the State of

credits, estimated tax payments, and/or credit for tax paid to

Mississippi.

another state). The maximum reforestation tax credit that an

eligible owner may utilize during his lifetime is $10,000 in the

Line 26 - Other Credit(s) (Line 25 on NR Return)

aggregate. Any unused portion of the credit may be carried

All other allowable credits should be combined and the total

forward to succeeding years. Generally, reforested acreage on

entered on this line. Form 80-135, Page 2, Part 1, Schedule of

which the eligible owner receives any state or federal cost share

Credits, should be completed and attached to the return. Enter the

assistance funds to defray the cost of an approved reforestation

amount from Part 1, Line H, on this line.

practice is not eligible for the credit, unless the eligible owner's

adjusted gross income is less than the federal earned income credit

General restrictions on the use of income tax credits on a

level ($ 31,152 in 2000).

Mississippi individual income tax return. Most often these

credits will be passed through from an entity filing a Mississippi

Gambling License Fee Credit -This credit is calculated as follows:

Partnership or S Corporation tax return.

Multiply the net income passing through from the gaming entity by

the effective tax rate/rates (starting at your highest effective tax rate

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

then work down if some of the business income is taxed at 4%

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

and/or 3%). Unused credit may not be carried forward. Any

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

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

portion to be carried forward for a period of time. If a taxpayer has

taxable income.

more than one credit and/or more than one type of credit, he may

use the credits in any sequence so as to obtain the greatest tax

You may visit our web site at for

savings.

information on other credits and their limitations. Other credits are

Enterprise Zone Credit, Business Child/Dependent Care Credit,

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

Basic Skills or Training Credit, Finance Company Privilege Tax

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

Credit, Mississippi Business Finance Corporation Revenue Bond

the location paying the Ad Valorem tax.

This credit can be

Service Credit, Export Port Charges, Temporary Assistance for

acquired in two ways, the first would be from a pass through entity

Needy

Families

(TANF)

Credit.

NOTE:

The

Business

and the second from a business whose income is being reported

Child/Dependent Care Credit referred to above IS NOT the

using a Schedule C in the individual tax return (if the credit is from

same credit that is allowed for Federal income tax purposes.

a Schedule C then attach a copy of the Ad Valorem tax bills). This

The credit referred to here is allowable to employers who

credit is calculated as follows: Multiply the net income passing

Page 10

Form 80-100 Instructions - Mississippi Resident And Non-Resident/part-Year Resident Income Tax Forms - 2000 Page 10

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