The Mississippi Nonbusiness Income Worksheet is used to separate and calculate nonbusiness income, losses, and related expenses for Mississippi tax reporting. Nonbusiness income generally means income that is not part of the taxpayer’s regular business operations and is usually allocated directly to a specific place instead of being included in the normal apportionment formula. This worksheet helps show the total nonbusiness income or loss from all locations, the part that belongs to Mississippi, the related expenses from all locations, the related expenses connected to Mississippi, and the final net nonbusiness income or loss after subtracting related expenses. In simple terms, the worksheet starts with gross nonbusiness income, removes the expenses tied to that income, and then produces net amounts for both everywhere activity and Mississippi activity. These final totals are important because they flow to Mississippi Form 83-122, which is used in the income and franchise tax filing process. Because the worksheet affects how income is reported to Mississippi, each item should be entered carefully, and each income item should be matched with the expenses that directly relate to it.
How To File The Mississippi Nonbusiness Income Worksheet
Complete the worksheet before finishing Mississippi Form 83-122 if the taxpayer has nonbusiness income or loss that must be allocated.
Start by filling in the tax year information and the FEIN. Then list each directly allocable nonbusiness item on lines 1a through 1i. For each item, enter the gross income or loss and the related expenses in both the everywhere and Mississippi columns.
After all items are entered, calculate the net amount for each row. Add the amounts in Column E to get the everywhere net nonbusiness income or loss. Add the amounts in Column F to get the Mississippi net nonbusiness income or loss.
Enter the Column E total on Form 83-122, line 17. Enter the Column F total on Form 83-122, line 21. Keep schedules, workpapers, and supporting records with the return records in case the amounts need to be explained later.
How To Complete The Mississippi Nonbusiness Income Worksheet
Taxpayer Information
Tax Year Beginning: Enter the first day of the tax year using the month, day, and year format. This should match the beginning date used on the taxpayer’s Mississippi return.
Tax Year Ending: Enter the last day of the tax year using the month, day, and year format. This should match the ending date used on the taxpayer’s Mississippi return.
FEIN: Enter the taxpayer’s Federal Employer Identification Number. Make sure the number matches the FEIN used on the related Mississippi tax return.
Column Instructions
Column A, Everywhere Allocable Gross Income Or Loss: Enter the gross nonbusiness income or loss for each item from all locations, not just Mississippi.
Column B, Mississippi Allocable Gross Income Or Loss: Enter the part of the gross nonbusiness income or loss that is allocated to Mississippi.
Column C, Everywhere Related Expense: Enter the expenses from all locations that directly relate to the income or loss reported in Column A.
Column D, Mississippi Related Expense: Enter the expenses that directly relate to the Mississippi income or loss reported in Column B.
Column E, Everywhere Net Of Related Expense: Subtract Column C from Column A for each row. This gives the net nonbusiness income or loss for everywhere activity.
Column F, Mississippi Net Of Related Expense: Subtract Column D from Column B for each row. This gives the net nonbusiness income or loss allocated to Mississippi.
Line By Line Instructions
Line 1a: Enter the first directly allocable nonbusiness income item. Describe the item in the left column, then complete Columns A through F for that item. Use this line for the first nonbusiness income or loss category that must be reported separately.
Line 1b: Enter the second directly allocable nonbusiness income item, if there is one. Complete the everywhere gross amount, Mississippi gross amount, related expenses, and net amounts in Columns A through F.
Line 1c: Use this line for another directly allocable nonbusiness income or loss item. Enter the item description and calculate the net everywhere and Mississippi amounts after related expenses.
Line 1d: Report the next separate nonbusiness item on this line. Include both the total everywhere amount and the Mississippi amount, then subtract the related expenses in the proper columns.
Line 1e: Enter another directly allocable item that does not belong on a previous row. Complete all columns that apply, even if only the everywhere amount or only the Mississippi amount is relevant.
Line 1f: Use this line for the next nonbusiness income or loss item. Match each income amount with the expenses directly connected to that same item.
Line 1g: Enter another separate nonbusiness item. Do not combine unrelated items unless they belong in the same category and can be clearly supported by your records.
Line 1h: Report the next directly allocable nonbusiness income or loss item. Complete the gross income or loss columns first, then enter the related expense amounts and calculate the net amounts.
Line 1i: Use this final item line for any remaining directly allocable nonbusiness income or loss item. Complete Columns A through F in the same way as the earlier rows.
Line 2: Add the amounts in Column E from lines 1a through 1i and enter the total everywhere net nonbusiness income or loss on Form 83-122, line 17. Then add the amounts in Column F from lines 1a through 1i and enter the total Mississippi net nonbusiness income or loss on Form 83-122, line 21.