TaxEngine - Basic Instructions for Preparing and Filing Mississippi Tax Returns

In preparing the state tax return, most information will carry from the federal return. The income and withholding will carry to the state from entries on the W-2. Be sure the state information has been entered on the W-2 input screen. Other income items will carry from the federal input according to the state designated. If you have additional information to enter, click on the 'Tax Forms' button. Input for all the state forms is available.

If you have additional information to enter, click on the 'Tax Forms' button. Input for all the state forms is available.

Filing Status for Married Persons

Married persons may file tax returns in any of these three methods: (1) joint, (2) combined, or (3) separate. Choose the method which results in the least amount of tax.

(1) A joint return is usually completed when only one spouse has income. Place all income, deductions, exemptions, etc. in Column A (Taxpayer).

(2) A combined return is completed when both spouses have income. Place one spouse's income in Column A (Taxpayer) and the other spouse's income in Column B (Spouse). The exemptions and deductions may be divided in any manner you choose. If only one spouse has income, this income may not be split between husband and wife.

(3) Separate returns (two returns) are filed when each spouse completes his/her own return. Each spouse reports his/her own income and deductions on a separate return. BOTH spouses must file returns even though one spouse may have little or no income. If one spouse elects to itemize deductions, both must itemize. If one spouse elects to use the standard deduction, both must use the standard deduction. Each spouse is entitled to only one-half of the total exemption authorized. Each spouse must list the other spouse on his/her return.

Part-Year Resident

You are considered a part-year resident of Mississippi if, during 2007, you moved your permanent home into or out of Mississippi. You must pay Mississippi income tax on income you earned, received or accrued while living in Mississippi. The website will automatically allocate the income based on the information entered on the federal return. Be sure to enter the state information on the federal W-2 input form.

Nonresident

If you are a resident of another state and worked in Mississippi during 2007, you are required to file a Mississippi income tax return and are required to pay Mississippi income tax on salary wages and other employee compensation for work performed in Mississippi. If you are a Mississippi resident but worked in another state, all of your income is subject to tax, no matter where it is earned, except income earned from out-of-state business activity.