The Mississippi Net Taxable Income Schedule serves as the key worksheet for corporations to determine their Mississippi net taxable income for state corporate income tax purposes. It starts with federal taxable income from Form 1120 and makes specific state additions and deductions to reach an adjusted base, then handles multistate apportionment or allocation as needed to assign the correct amount of income to Mississippi. This schedule matters for both companies operating entirely within Mississippi and those with multistate operations, because it directly affects the taxable income reported on Form 83-105 or combined filings. Businesses must round all amounts to the nearest dollar, and certain multistate filers may need related forms like Form 83-125 for apportionment ratios, Form 83-150 for nonbusiness income adjustments, or Form 83-155 for loss carryovers. It includes sections for state additions like interest on U.S. obligations or excess depletion, deductions such as federal special depreciation or wages adjusted for credits, and final steps to calculate apportioned income before applying net operating losses or exemptions. In short, this schedule bridges federal and Mississippi tax bases while ensuring proper sourcing of income to the state.
How To File Mississippi Net Taxable Income Schedule
Complete the schedule and attach it to your Mississippi corporate income tax return, such as Form 83-105 for standard filers or Form 83-310 for combined returns. Enter your Federal Employer Identification Number at the top of both pages. If you operate 100 percent in Mississippi, stop after line 16 and move to line 20 on page 2. For multistate operations, continue through apportionment on page 1 and allocation on page 2. Check any applicable election boxes like R&D Expense Election or Bonus Depreciation Election at the bottom of page 1. Attach supporting schedules for items like other additions, deductions, or adjustments as noted on specific lines.
How To Complete Mississippi Net Taxable Income Schedule
Begin with federal taxable income on line 1 unless using multistate direct accounting, in which case enter zero there and skip ahead. Work through state additions on lines 2 through 8, deductions on lines 9 through 15, and adjusted income on line 16. For multistate filers, adjust for nonbusiness income on line 17, compute apportionable income on line 18, apply the ratio from Form 83-125 on line 19, and continue to page 2 for further allocation items before reaching net taxable income on line 30. Use page 1 for the core computation and page 2 to refine Mississippi-specific income.
Page 1
Federal Employer Identification Number (FEIN): Enter your FEIN at the top.
Line 1: Enter federal taxable income or loss before net operating loss deductions and special deductions from federal Form 1120, page 1, line 28. If using multistate direct accounting, enter zero and skip to line 23 on page 2.
Line 2: Enter state, local, or foreign government taxes based on income that were deducted on the federal return.
Line 3: Enter interest on obligations of other states or political subdivisions, net of related expenses.
Line 4: Enter depletion expense in excess of cost depletion allowed for federal purposes.
Line 5: Enter federal capital loss carryover deduction used on the federal return.
Line 6: Enter federal special depreciation allowance claimed federally.
Line 7: Enter other additions required by Mississippi law and attach a schedule explaining them.
Line 8: Add lines 2 through 7 to get total state additions to federal taxable income.
Line 9: Enter interest on obligations of the United States, net of related expenses.
Line 10: Enter wages that were reduced on the federal return due to federal employment tax credits.
Line 11: Enter income or loss from partnerships, S corporations, or trusts as reported federally.
Line 12: Enter income or loss from construction contracting or production of natural mineral resource products, net of expenses.
Line 13: Enter additional depreciation due to differences in depreciable base between federal and state purposes and attach a schedule.
Line 14: Enter other deductions and attach a schedule listing them.
Line 15: Add lines 9 through 14 to get total state deductions from federal taxable income.
Line 16: Subtract line 15 from the sum of line 1 plus line 8 to get adjusted federal income or loss. If 100 percent Mississippi operations, enter this amount on page 2, line 20, and skip other page 1 multistate lines.
Line 17 (Multistate Only): Enter adjustment for nonbusiness income or loss net of expenses from Form 83-150, column E, line 2.
Line 18 (Multistate Only): Subtract line 17 from line 16 to get apportionable business income or loss.
Line 19 (Multistate Only): Enter the apportionment ratio from Form 83-125, Part II, and check the appropriate box for the type such as sales retail, manufacturers retail, manufacturers wholesale, financial institutions, pipelines, or special formula. For pharmaceutical suppliers, see separate instructions.
Page 2
Federal Employer Identification Number (FEIN): Enter your FEIN at the top of page 2.
Line 20: For 100 percent Mississippi filers, enter the amount from line 16. Otherwise, multiply line 18 by line 19 to get Mississippi apportioned income or loss.
Line 21: Enter nonbusiness income or loss allocated to Mississippi from Form 83-150, column F, line 2.
Line 22: Enter Mississippi income or loss from partnerships, S corporations, or trusts and attach Mississippi K-1s, Form 84-132.
Line 23: Enter Mississippi income or loss from construction contracting or production of natural mineral resource products from Form 83-124, page 2, line 31, and or page 3, line 46.
Line 24: Enter adjustments related to Mississippi tax credits claimed.
Line 25: Enter Mississippi capital loss carryover or carryback deduction from Form 83-155, Part II, line 2.
Line 26: Enter other adjustments and attach a schedule explaining them.
Line 27: Add lines 20 through 26 to get income or loss apportioned and allocated to Mississippi.
Line 28: Enter Mississippi net operating loss deduction from Form 83-155, Part I, line 2.
Line 29: Enter income exemption amount and attach a schedule, or enter zero if not applicable.
Line 30: Subtract line 28 and line 29 from line 27 to get Mississippi net taxable income or loss. Enter this on Form 83-105, line 5, or for combined filers on Form 83-310. If negative, enter zero on Form 83-105, line 5.
Key Notes For Completion
Round every entry to the nearest dollar as required. Multistate filers must complete Form 83-125 for the line 19 ratio and related forms for supporting data. Check election boxes on page 1 if claiming R&D expense or bonus depreciation treatments. Attach all required schedules to avoid processing delays. Transfer the line 30 result directly to the appropriate return line.