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Line 2c. Interest Adjustment - Interest on obligations of states and political subdivisions thereof outside Mississippi is taxable for

Mississippi purposes. Enter the amount of interest on obligations of states and political subdivisions thereof (other than from Mississippi)

received by the Fiduciary.

Line 2d. Expenses of Earning Exempt Income - Interest received on U. S. Government obligations is not taxable for Mississippi purposes,

and expenses incurred in earning the tax exempt income are not deductible. Enter the amount of expenses directly applicable to earning

interest on U. S. Government obligations claimed on Federal Form 1041.

Line 2e. Adjustment for Itemized Deductions - If you elect to claim the standard deduction on the Mississippi Fiduciary Income Tax

Return (Line 5e below), enter the amount of itemized deductions claimed on the Fiduciary return in arriving at the amount shown on Line 17 of

Federal Form 1041. Attach a schedule of the deductions added back.

Lines 2f – 2i. Other Additions - Add back any other item which is treated differently for Mississippi income tax purposes than was treated

for Federal income tax purposes. Itemize here. Attach schedule if needed. Include any income not included as a part of Federal Form 1041,

Line 17.

Line 3. Total Additions - Add Lines 2a through 2i.

Line 4. Total Income - Enter the total of Lines 1 and 3.

Line 5a. Exempt Interest - Interest received on U. S. Government obligations is not taxable to Mississippi. Enter the amount of such

interest reported as income on Federal Form 1041.

Line 5b. Wages Adjustment - Federal income tax laws allow certain tax credits based on wages paid to employees, and a portion of the

wages on which the credit was based is not allowed as a deduction. Mississippi does not allow these credits. Enter the amount by which

wages on the Form 1041 were reduced by employment tax credits (such as the Targeted Jobs Credit).

Line 5c. Capital Gains Adjustment - Enter the amount of capital gains on the sale of authorized shares in financial institutions domiciled in

Mississippi and domestic corporations, or partnership interests in domestic limited partnerships and domestic limited liability companies

exempt from Mississippi tax by Miss Code Ann. § 27-7-9(f)(10).

Line 5d. Expenses of Earning Interest Income - Enter the amount of expenses directly applicable to earning the interest income shown on

Line 2c above. Such expenses would not have been deductible on Form 1041 since they related to tax-exempt income.

Line 5e. Standard Deduction - A standard deduction of $ 1,700 is allowed to fiduciaries in lieu of itemized fiduciary expenses.

If the standard deduction is claimed, see Line 2e above.

Lines 5f. NONRESIDENT FIDUCIARY RETURNS ONLY - Enter the amount of income from Non-Mississippi sources, net of expenses.

Attach schedule. This adjustment is necessary to determine taxable income or loss for Mississippi purposes.

Lines 5g -5i. Other Deductions - Deduct any other item which is treated differently for Mississippi income tax purposes than was treated for

Federal income tax purposes. Itemize here. Attach schedule if needed.

Line 6. Total Deductions - Enter the total of Lines 5a through 5i.

Line 7. Adjusted Net Income or Loss for Mississippi Purposes - Subtract Line 6 from Line 4.

Line 8. Amount Distributed to Beneficiaries - Complete Schedule K, Form 81-131, and deduct any income of the estate or trust for its

taxable year which is distributable currently by the fiduciary to a beneficiary, whether or not such income is actually distributed OR any

income of the estate or trust for its taxable year which is properly paid or credited during such year to a beneficiary if there was vested in the

fiduciary a discretion either to distribute or to accumulate such income. Income distributed to non-residents of this state from investments in

intangibles (dividends, interest, etc.) having a situs in Mississippi may be excluded from the non-resident's Mississippi taxable income.

Income from other sources distributed or distributable to nonresidents shall be included in gross income and reflected in the return filed by

such non-resident with this state.

Line 9. Estate Tax Deduction - An estate may be entitled to claim the estate tax deduction if the estate must include in gross income for any

tax year an amount of income in respect to a decedent. The estate tax deduction is computed based on the Mississippi estate tax attributable to

the net value of all the items included in the estate that represent income in respect of the decedent less adjustment for distribution of this

income to beneficiaries. Attach a schedule showing computation of deduction.

Line 10. Subtotal - Enter the total of Line 8 plus Line 9.

Line 11. Exemption - Estates and trusts are allowed the same exemptions that are allowed for Federal purposes:

Estates

$ 600

Simple Trust

$ 300

Complex Trust

$ 100

Line 12. Taxable Income or Loss for Mississippi Purposes - Subtract (Line 7 minus Line 10 and Line 11) and enter the result here and on

Page 1, Line 4, of this form. Note: If the amount on this line is a loss, enter a 0 on Page 1, Line 4, of this form.

Instructions for Schedule K - Beneficiaries Shares of Income (Form 81-131)

Column A - Enter the name, complete current address and SSN/FEIN (Social Security Number or Employer Identification Number) of each

beneficiary having a beneficial interest in the Estate or Trust.

Column B - Enter the percentage of beneficial interest owned by each beneficiary. You must account for 100% of the ownership. Also,

enter the State of Residency of each beneficiary.

Columns C and D - Distributions to Beneficiaries - Enter the total amount distributed to each beneficiary based on their respective

percentage of beneficial interest in the Estate or Trust. Column C is used to report to both resident and non-resident beneficiaries the

distributions which are taxable to Mississippi. For resident beneficiaries, the amount of distribution includes income from all sources. For

non-resident beneficiaries, the amount of distribution includes only Mississippi sourced income. Column D is used to report to the

non-resident beneficiary the amount of the distribution from non-Mississippi sourced income (not taxable to the Non-resident beneficiary on a

Instructions For Completing Form 81-110 - Fiduciary Income Tax Return For Estates And Trusts Page 3

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