Mississippi Fiduciary Return Instructions

Fiduciary Return Instructions
Form 81-100
Form 81-100-23-1-1-000 (Rev. 08/23)

FIDUCIARY INCOME
TAX RETURN
(FOR ESTATES AND TRUSTS)

2023

INCOME TAX INSTRUCTIONS

INDIVIDUAL INCOME TAX BUREAU
PO BOX 1033
JACKSON, MS 39215-1033
WWW.DOR.MS.GOV

TABLE OF CONTENTS
GENERAL INFORMATION

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REMINDERS
TAXATION OF ESTATES AND TRUSTS
DEFINITIONS
TYPE OF ENTITY
WHO MUST FILE?
BANKRUPTCY ESTATE
ELECTRONIC FILING
WHEN AND WHERE SHOULD I FILE?
TAX PAYMENTS
INTEREST AND PENALTY PROVISIONS

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LINE ITEM INSTRUCTIONS

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FORM 81-110 (FIDUCIARY RETURN)
FORM 81-131 (BENEFICIARIES SHARES OF INCOME)
FORM 81-132 (MISSISSIPPI SCHEDULE K-1)

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APPENDIX

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COUNTY CODES
SCHEDULE OF TAX COMPUTATION

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GENERAL INFORMATION
TAXPAYER ACCESS POINT (TAP)

REMINDERS

TAP is easy to use, convenient and free.

Important tips to help expedite processing of your return:

With TAP, you have the option to Go Paperless. This means
that you pay your taxes on-line and receive certain
correspondence electronically.

 Use black ink when preparing the return.
 Make sure the estate or trust federal identification number
and the decedent or debtor social security number is
entered correctly on all returns, schedules, and
attachments.

TAP e-mail lets you know that you have new correspondence
to view on-line. 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 your correspondence.

 Sign and date the tax return.

When making payments or updating profile information, you
should always log directly into TAP using your User ID and
password. TAP does not provide links containing your
transaction or personal information to any external web site.

 Attach a copy of the federal return behind the state return
including returns filed electronically. Any additional
schedules and attachments should be stapled to the back
of the return.

Remember, you can pay your bill on-line through TAP without
registering for a TAP account. For more information on TAP,
view the “Electronic Filing” section of this booklet.

 Copies or reproductions of the official tax forms are not
acceptable.
 Do not place a staple in the barcode area of the form.
Visit our website at www.dor.ms.gov to download forms by
tax year and tax type.

A bankruptcy estate is the estate of an individual involved in
chapter 7 or chapter 11 bankruptcy proceedings under Title 11
of the United States Code and the estate has gross income for
the tax year of $10,000 or more. The bankruptcy estate is
administered by a trustee or a debtor-in-possession.

TAXATION OF ESTATES AND TRUSTS
The income tax imposed upon individuals shall be applicable
to the income of estates or of any kind of property held in trust
as well as the net income received during the taxable year by
deceased individuals who, at the time of death, were residents
and who have died during the taxable year or subsequent
thereto without having made a return, and the net income of
resident insolvent or incompetent individuals where the
fiduciary has complete charge of such income. The rate of tax,
the statutory provisions respecting gross income, and with
certain exceptions, the deductions, exemptions, and credits
allowed to individuals apply also to estates and trusts.

TYPE OF ENTITY
Decedent’s Estate:
An estate of a deceased person is a taxable entity separate
from the decedent. It generally continues to exist until the final
distribution of the assets of the estate is made to the heirs and
other beneficiaries. The income earned from the property of
the estate during the period of administration or settlement
must be accounted for and reported by the estate.

DEFINITIONS
A resident estate is the estate of a person who was a
Mississippi resident at the time of death. All other estates are
nonresident estates.

Simple Trust:

A resident trust is any trust which is administered by the
trustee in Mississippi. A trust being administered outside of
Mississippi shall not be considered a resident trust merely
because the governing instrument or a law requires that the
laws of Mississippi be followed with respect to interpretation or
administration of the trust. All other trusts are non-resident
trusts.

1. The trust instrument requires that all income must be
distributed currently;

A trust may qualify as a simple trust if:

2. The trust instrument does not provide that any amounts are
to be paid, permanently set aside, or used for charitable
purposes; and
3. The trust does not distribute amounts allocated to the
corpus of the trust.

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Every fiduciary is required to file a Mississippi Fiduciary
Income Tax Return, Form 81-110, for any resident individual,
trust, or estate for which he acts, or for any nonresident
individual, trust, or estate for which he acts that has taxable
income or gain derived from Mississippi sources.

Complex Trust:
A complex trust is any trust that does not qualify as a simple
trust as explained above.
Grantor Type Trust:

Income from Mississippi sources includes income or gain
from:

A grantor type trust is a legal trust under applicable state law
that is not recognized as a separate taxable entity for income
tax purposes because the grantor or other substantial owners
have not relinquished complete dominion and control over the
trust.

a. Real or tangible personal property located in Mississippi
b. A business, profession or occupation carried on within
Mississippi; or
c. Services performed within Mississippi

Generally, for transfers made in trust after March 1, 1986, the
grantor is treated as the owner of any portion of a trust in which
he or she has a reversionary interest in either the income or
corpus therefrom, if, as of the inception of that portion of the
trust, the value of the reversionary interest is more than 5% of
the value of that portion. Also, the grantor is treated as holding
any power or interest that was held by either the grantor's
spouse at the time that the power or interest was created or
who became the grantor's spouse after the creation of that
power or interest.

For a nonresident estate or trust, income from the following is
not considered to be derived from Mississippi sources:
annuities, interest, dividends, or gains from the sale or
exchange of intangible personal property, unless it is part of
the income from a business, trade, profession, or occupation
that is carried on within Mississippi.

BANKRUPTCY ESTATE
The filing of a bankruptcy petition for an individual debtor
creates a separate taxable entity known as a bankruptcy
estate. Every trustee (or debtor-in-possession) that files a
Federal Income Tax Return for an individual’s bankruptcy
estate that has gross income of $10,000 or more under
chapter 7 or chapter 11 of the United States Bankruptcy Code
must file a Mississippi Fiduciary Income Tax Return and pay
any taxes due. The debtor will remain responsible for filing
returns and paying taxes on any income that does not belong
to the estate.

Qualified Disability Trust:
A qualified disability trust is any nongrantor trust:
1. Described in 42 U.S.C. 1396p(c)(2)(B)(iv) and established
solely for the benefit of an individual under 65 years of age
who is disabled, and
2. All the beneficiaries of which are determined by the
Commissioner of Social Security to have been disabled for
some part of the tax year within the meaning of 42 U.S.C.
1382c(a)(3).

Every bankruptcy estate of an individual required to file a
return must have its own EIN. The SSN of the individual
debtor cannot be used as the EIN for the bankruptcy estate.

A trust will not fail to meet item 2 above just because the trust's
corpus may revert to a person who is not disabled after the
trust ceases to have any disabled beneficiaries.

The filing of a bankruptcy petition for a partnership or a
corporation debtor under chapter 7 or chapter 11 of the United
States Bankruptcy Code does not create a separate legal
entity for tax purposes.

ESBT (S Portion Only):
The S portion of an ESBT is the portion of the trust that
consists of S corporation stock and that is not treated as
owned by the grantor or another person.

ELECTRONIC FILING
Users of TAP are able to:

Pooled Income Fund:

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A pooled income fund is a split-interest trust with a remainder
interest for a public charity and a life income interest retained
by the donor or for another person. The property is held in a
pool with other pooled income fund property and does not
include any tax-exempt securities. The income for a retained
life interest is figured using the yearly rate of return earned by
the trust. See section 642(c) and the related regulations for
more information.

make electronic payments
view recent account activity and history
view tax correspondence
make address changes

Third Party Access for Tax Practitioners: Tax practitioners
can have TAP access to account information for each of your
clients from one login. First, create your own TAP account
(only one per FEIN). Once you are registered in TAP, select
"Add Access to Existing Account". Your client (taxpayer) must
provide you the Letter ID and Account ID in order for you to
have access to their accounts. All accounts you set up for third
party access are found under the "Other Taxpayers' Accounts"
tab in TAP. For more information on TAP, visit our website at
www.dor.ms.gov.

Bankruptcy Estate:
A chapter 7 or 11 bankruptcy estate is a separate and distinct
taxable entity from the individual debtor for income tax
purposes.

WHO MUST FILE?
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Check or Money Order Payments: To pay by check or
money order, complete the payment voucher (Form 80106), make the check or money order payable to the
Department of Revenue and mail both to P.O. Box 23075,
Jackson, MS 39225-3075. Write your identification number
on the check or money order. DO NOT send cash through
the mail.

WHEN AND WHERE SHOULD I FILE?
Calendar year returns must be filed no later than April 15th
annually. Fiscal year returns must be filed no later than the
15th day of the 4th month following the end of the fiscal year.
A fiduciary’s taxable year and its method of accounting are
required to be the same for Mississippi income tax purposes
as determined for federal income tax purposes.

INTEREST AND PENALTY PROVISIONS

Need more time to file your return?
If you will receive a refund or will not owe any additional tax,
Mississippi will allow you the same time to file your return as
allowed by federal. However, if you owe additional taxes, you
must remit the tax due with Form 80-106 on or before the due
date of the return.
The authorized extension of time to file does not extend the
time for payment of tax due. Interest and penalty will apply on
any underpayment of tax. See the “Interest and Penalty
Provisions” section of this booklet for more information.

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Late Payment: Interest and penalty are charged on taxes
paid late even if an extension of time to file is granted. The
interest is at the rate1/2% per month from the due date until
paid. The penalty imposed for failure to pay the tax when
due is 1/2% per month not to exceed 25% in the aggregate.
Late payment interest and penalty apply to any unpaid tax
after April 15th.

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Failure to File: The penalty for failure to file a return is
imposed after September 30th. The penalty is 5% per
month not to exceed 25% in the aggregate. The penalty
imposed for failure to file is based on the amount of net tax
(balance due) on the return. Such failure to file a return
penalty shall not be less than $100.

The return should be mailed to:
Additional Tax Due or
No Tax Due:
Department of Revenue
P.O. Box 23050
Jackson, MS 39225-3050

Refund Request:
Department of Revenue
P.O. Box 23058
Jackson, MS 39225-3058

TAX PAYMENTS
The total tax due on the return must be paid in full no later than
the 15th day of the 4th month after the end of the tax year.
Payment options are as followed:
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Online Payments: To pay online, go to
www.dor.ms.gov, click on Taxpayer Access Point
(TAP) and follow the instructions. Users are able to
make estimated payments on-line without a DOR
account or a TAP login.

LINE ITEM INSTRUCTIONS
Bankruptcy Estates

FORM 81-110 (FIDUCIARY RETURN)

If bankruptcy estate is checked, enter the bankruptcy debtor’s
SSN in the “Decedent / Debtor SSN” field. If there is a joint
debtor, a separate Fiduciary Income Tax Return must be filed
using the instructions (Form 80-100) and tax table for a
married person filing separately. The estate of the joint debtor
is a separate taxable entity unless the court has substantively
consolidated the estates of the debtor and joint debtor. A copy
of the U.S. Income Tax Return for Estates and Trusts, Form
1041, filed for the bankruptcy estate must be attached to the
state return.

Form 81-110, Mississippi Fiduciary Income Tax Return for
Estates and Trusts is a reconciliation type return which uses
the income from the U. S. Income Tax Return for Estates and
Trusts, Form 1041, as a starting point. Accordingly, a complete
copy of the federal return must be attached to this return, as
well as a copy of all Mississippi Schedule K-1s.
Generally, federal rules and regulations relating to estates and
trusts will be followed for state purposes to the extent they are
not deemed contrary to the context and intent of Mississippi
law.
If you had income not directly included on your federal income
tax return, such as income as a Qualified Subchapter "S" Trust
(QSST), include such amounts on page 2, lines 18f, 18g, 18h
and 18i as needed along with supporting details.

•

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Amended Return: If a bankruptcy case begins and is
later dismissed by the bankruptcy court, the estate is not
treated as a separate taxable entity. If Mississippi
Fiduciary Income Tax Returns have been filed for the
estate, amended returns must be filed to move income

applicable Mississippi rates to the net taxable
income reported to the other state. Highest
rates are meant to mean the highest rates at
which the net taxable income reported to the
other state is taxable by the State of
Mississippi.

and deductions from the estate returns to the debtor
Mississippi Individual Income Tax Returns. If no
Fiduciary Income Tax Returns have been filed, all
income and deductions must be reported on the debtor
returns.
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Line 4:

Final Return: When the bankruptcy has ended, a final
Mississippi Fiduciary Income Tax Return must be filed.
The date of the bankruptcy confirmation and the estate
closure date must be provided.

The estate or trust share of allowable credit(s)
should be combined, and the total entered on this
line. For each type of credit taken, enter the
applicable two digit code on Form 80-401 as
provided in the Appendix. Form 80-401 must be
attached.

MISSISSIPPI INCOME TAX
Please provide the information of the estate or trust. Enter the
county code corresponding to the estate or trust (see
Appendix for a list of the codes). For an estate, enter the date
of decedent’s death and for a trust, enter the date the trust was
established. Enter the number of Mississippi Schedule K-1(s)
included with the return and attach a copy of the K-1(s) to the
return.
Line 1:

Line 5:

PAYMENTS

Taxable Income or Loss for Mississippi
Purposes

Line 6:

Total Income Tax Due

Include readable copies of your Form 1099 with
your return. Copies of your Form 1099 are
available only from your employer. The withholding
credit may be disallowed if 1099s are not attached
to the return. These items should be listed on Form
80-107, Income/Withholding Tax Schedule, which
must be attached to your return.

Credit for Tax Paid to Another State
Individual resident, trust or estate that has taxable
income or gain derived from Mississippi sources
and is required to pay an income tax to another
state is allowed to take a credit against its
Mississippi tax due in the same year for the amount
of total income tax due to the other state (subject
to certain limitations). Non-residents are not
allowed this credit.

Line 7:

Line 8:

Form 80-160 must be attached. Copies of
withholding statements are not sufficient to
establish the credit.

The credit may not exceed the amount of
income tax due the State of Mississippi
indicated on line 2;
The credit may not exceed the amount of
income tax actually paid to the other state;
and

3)

The credit may not exceed an amount
computed by applying the highest

Credit for Tax Paid on an Electing Pass- Through
Entity Tax Return
Enter on line 8 the amount of taxes paid on your
behalf by electing pass-through entities, from Form
80-161, line 3D. The Mississippi K-1s you received
from electing pass-through entities must be
attached to the return.

Miss. Code Ann. Section 27-7-77 provides for three
limitations which are:

2)

Estimated Tax Payments, Overpayment from
Prior Year and Amount Paid with Extension
Enter the total estimated tax payments the estate
or trust made before filing the 2023 Mississippi
tax return plus any amount credited from the
2022 tax return. Any amount paid with a
request for extension of time to file should also
be included in this amount.

In order to be allowed this credit, you MUST file a
return with the other state and attach a copy of the
return to your Mississippi return. The withholding
amounts shown on your W-2 forms are NOT the
same as actual tax paid to the other state.

1)

Mississippi Income Tax Withheld
Add the amounts shown as “MS Income Tax”
withheld on Federal Forms 1099 and/or 1099R. Enter the total amount withheld on line 7. You
must complete Form 80-107, Income Tax/
Withholding Tax Schedule.

Use the tax computation schedule, as provided in
the Appendix to determine the total amount of
income tax due and enter the results on this line.
Line 3:

Net Income Tax Due
Subtract line 3 and line 4 from line 2 and enter the
result here.

Enter the amount of Mississippi Taxable Income or
Loss from page 2, line 26.
Line 2:

Other Credits

Line 9: Refund Received and/or Amount Carried
Forward From Original Return
Enter the amount of refund received and/or carried
forward from the original return. This line only
applies to amended returns.

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REFUND OR BALANCE DUE

COMPUTATION OF TAXABLE INCOME

Line 11:

Overpayment

Line 17:

If line 10 is larger than line 5, subtract line 5 from
line 10 and enter the overpayment of tax on line 11.

Enter the amount of federal adjusted total income or (loss)
from federal Form 1041, page 1, line 17.

Amount of Overpayment to be Applied to Next
Year Tax Account

ADDITIONS

Line 12:

Line 18a: State Income Tax Adjustment

Enter on this line the amount of your
overpayment from line 11 you wish to be
credited to your 2024 estimated tax account.
Line 13:

Taxes based on income are not deductible. Enter
the amount of state, local and foreign government
income taxes claimed as a deduction on Form
1041.

Amount of Overpayment to be Refunded
Subtract line 12 from line 11 and enter the amount
to be refunded on this line.

Line 14:

Line 18b: Depletion Adjustment

Balance Due

No deduction is allowed for depletion in excess of
the cost basis of the depletable asset. Enter the
amount of depletion claimed on Form 1041 in
excess of the cost basis of the asset on which the
depletion is claimed.

If line 5 is larger than line 10, subtract line 10
from line 5 and enter the balance due on this line.
Line 15:

Interest and Penalty

Line 18c: Interest Adjustment

• Late Payment Interest and Penalty: An
extension of time only extends the time for filing a
return, not payment of the tax. If the income tax is
not paid by the original due date of the return, then
interest is due at the rate of 1/2% per month. The
penalty imposed for failure to pay the tax when due
is 1/2% per month not to exceed 25% in the
aggregate. The penalty is based on the balance
due (line 5 minus line 10). Interest and penalty
for late payment is not charged on late file
penalty.

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 18d: 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.

• Late Filing Penalty: The penalty imposed for
failure to file a return is 5% per month not to exceed
25% in the aggregate. The failure to file penalty is
based on the amount of net tax (balance due, page
1, line 14). Such failure to file penalty shall not
be less than $100 and will be applied to all
returns filed after the due date as well as any
extensions.
Line 16:

Federal Adjusted Total Income or (Loss)

Line 18e: Itemized Deductions Adjustment
If you elect to claim the standard deduction on the
Mississippi Fiduciary Income Tax Return (Form 81110, page 2, line 21e), 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.

Total Due
Add lines 14 and 15 and enter the amount on this
line. The amount due must be paid in full when you
file your return (or before the due date). Payments
can be made by check or money order payable to
the Department of Revenue. Do not send cash by
mail. BE SURE TO ENCLOSE PAYMENT
VOUCHER, FORM 80-106, WITH YOUR
PAYMENT. You may pay your tax in person at any
of the Department of Revenue District Service
Offices or through Taxpayer Access Point (TAP)
on our website. Balances due of less than $1.00
need not be paid.

Line 18f – 18i: 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 and attach a schedule if needed. Include any
income not included as a part of Federal Form
1041, line 17.
Line 19:

Total Additions
Add lines 18a through 18i.

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Line 20:

Total Income
TAXABLE INCOME

Enter the total of lines 17 and 19.

Line 23:
DEDUCTIONS

Subtract line 22 from line 20.

Line 21a: Exempt Interest
Line 24:

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.

Amount Distributed to Beneficiaries
Complete Schedule K, Form 81-131, and deduct
(1) 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 (2) 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 non-residents shall be included in
gross income and reflected in the return filed by
such non-resident with this state.

Line 21b: 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 21c: 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. Section 27-7-9(f)(10).

Line 25:

Exemption
Estates and trusts are allowed the same
exemptions that are allowed for federal purposes.

Line 21d: Expenses of Earning Interest Income
Enter the amount of expenses directly applicable
to earning the interest income shown on Form 81110, page 2, line 18c. Such expenses would not
have been deductible on Form 1041 since they
relate to tax-exempt income.

Line 26:

Estates……………………………………

$600

Trusts required to distribute all income
currently…………………………………..

$300

Trusts permitted to accumulate income

$100

Taxable Income or Loss for Mississippi
Purposes
Subtract line 24 and line 25 from line 23 and enter
the result here and on page 1, line 1 of this form.

Line 21e: Standard Deduction
A standard deduction of $2,300 is allowed to
fiduciaries in lieu of itemized fiduciary expenses.
If the standard deduction is claimed, see Form 81110, page 2, line 18e.

FORM 81-131 (BENEFICIARIES SHARES OF INCOME)
Column A: Enter the name, complete current address, and
Employer Identification Number (FEIN) or Social
Security Number (SSN) of each beneficiary
having a beneficial interest in the estate or trust.

Line 21f: Non-resident Fiduciary Returns Only
Enter the amount of income from Non-Mississippi
sources, net of expenses and attach a schedule.
This adjustment is necessary to determine taxable
income or loss for Mississippi purposes.

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.

Line 21g – 20i: 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 and attach schedule if needed.
Line 22:

Adjusted Net Income or (Loss) For
Mississippi Purposes

Total Deductions
Enter the total of lines 21a through 21i.

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Column C: Enter the total amount distributed to each
beneficiary based on their respective
and
Column D: 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 nonresident beneficiary the amount of the
distribution from non-Mississippi sourced
income (not taxable to the Non-resident
beneficiary on a Mississippi return).

Box 4a:

Amount Allocated to Beneficiaries (bottom of page 1):
Enter the combined totals of Columns C and D. This
represents the deduction allowed to the estate or trust for
distributions to beneficiaries. The total should be transferred
to Form 81-110, page 2, line 24.

Box 4b:

Enter the beneficiary's share of net long-term
capital gain minus allocable deductions. Do not
enter a loss on this line.

FORM 81-132 (MISSISSIPPI SCHEDULE K-1)

Box 4c:

Form 81-132, Mississippi Schedule K-1, is used to report the
beneficiary's share of income, deductions, and credits from a
trust or a decedent's estate. The fiduciary (or one of the joint
fiduciaries) must prepare Schedule K-1 for each beneficiary
having a beneficial interest in the trust or estate at any time
during the taxable year. Copies of the Schedule K-1 are
required to be filed with Form 81-110.

Box 5:

Mississippi law conforms to the Internal Revenue Code with
respect to passive activity and rental real estate activity
limitations. The amounts shown on the Schedule K-1 reflect
Mississippi income or loss and related expenses.

Box 6:

Ordinary Business Income
Enter the beneficiary's share of ordinary business
income minus allocable deductions (other than
directly apportionable deductions).

Box 7:

Net Rental Real Estate Income
Enter the beneficiary's share of rental real estate
income minus allocable deductions (other than
directly apportionable deductions).

Box 8:

Other Rental Income
Enter the beneficiary's share of other rental income
minus allocable deductions (other than directly
apportionable deductions).

Interest Income
Box 9:

Ordinary Dividends

Directly Apportioned Deductions
Depreciation: Enter the beneficiary's share of the
depreciation deductions attributable to each
activity reported in Boxes 5 through 8. Follow
federal instructions for apportioning depreciation
deductions between the beneficiaries and the trust
or estate.

Enter the beneficiary's share of Mississippi
ordinary dividend income minus allocable
deductions.
Qualified Dividends

Depletion: Enter the beneficiary's share of the
depletion deduction under IRC Section 611
attributable to each activity reported in Boxes 5
through 8. Follow federal instructions for
apportioning depletion deductions between the
beneficiaries and the trust or estate.

Enter the beneficiary's share of Mississippi
qualified dividend income minus allocable
deductions.
Box 3:

Other Portfolio and Nonbusiness Income
Enter the beneficiary's share of annuities, royalties,
or any other income, minus allocable deductions
(other than directly apportionable deductions).

Enter the beneficiary's share of the taxable interest
income minus allocable deductions.

Box 2b:

Unrecaptured Section 1250 Gain
Enter the beneficiary's share of Mississippi Section
1250 Gain.

Mississippi will also follow federal rules relating to character of
income and allocation of deductions as shown in the
instructions for preparing Schedules K-1 which are included in
the federal Form 1041 instructions. Each Schedule K-1 (Form
81-132) must be completed to show (1) the beneficiary's SSN
or FEIN; (2) the trust or estate's FEIN; (3) the name of the trust
or decedent's estate; (4) the name and address of the
beneficiary; (5) the name and address of the fiduciary; and (6)
the beneficiary's percentage of interest in the entity for the tax
year.

Box 2a:

28% Rate Gain
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 income.

If additional space is needed, use another Form 81-131.

Box 1:

Net Long-Term Capital Gain

Net Short-Term Capital Gain

Amortization: Itemize the beneficiary's share of
the amortization deductions attributable to each
activity reported in Boxes 5 through 8. Apportion
the amortization deductions between the trust or

Enter the beneficiary's share of net short-term
capital gain minus allocable deductions. Do not
enter a loss on this line.

9

estate and the beneficiaries in the same way the
depreciation and depletion deductions are divided.
Box 10:

Final Year Deductions
Excess Deduction on Termination: Mississippi
will follow the federal treatment as it relates to
excess deductions on termination (see Federal
Schedule K-1 instructions).
Short-Term Capital Loss Carryover and LongTerm Capital Loss Carryover: Upon termination
of the trust or decedent's estate, the beneficiary
succeeding to the property is allowed to deduct any
unused capital loss carryover under IRC Section
1212.
Net Operating Loss (NOL) Carryover: Upon
termination of a trust or decedent's estate, a
beneficiary succeeding to its property is allowed to
deduct any unused NOL carryover if the carryover
would be allowable to the estate or trust in a later
tax year but for thetermination.

Part IV:

Mississippi Tax Credits
On the appropriate lines, enter the beneficiary's
share of Ad Valorem Tax Credit or other credits
earned by the trust or estate. Enter the code
number, type of credit and credit amount as
reflected on Form 80-401.

Part V:

Partner's Pass-Through Entity Tax Credit
Enter the amount of electing pass-through entity
credit being passed from the fiduciary to the
beneficiary on the beneficiary's share of income.
The Mississippi K-1 received by the fiduciary from
an electing pass-through entity must be attached to
the return.

10

APPENDIX
COUNTY CODES
COUNTY

CODE

COUNTY

CODE

COUNTY

CODE

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

Non-Resident

83

Issaquena

28

Perry

56

Resident Living Out
of State

90

Adams

01

Itawamba

29

SCHEDULE OF TAX COMPUTATION
TAX RATE(S)

TAXABLE INCOME

TAX RATE

a. First $10,000

x 0% =

b. Remaining balance

x 5% =

INCOME TAX

Total Income Tax – Add lines “a” through “b”. Enter on page 1, line 2.

11

Pike

57