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 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

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                         TABLE OF CONTENTS      

  GENERAL INFORMATION                           3 
                                                
  REMINDERS                                     3 
  TAXATION OF ESTATES AND TRUSTS                3 
  DEFINITIONS                                   3 
  TYPE OF ENTITY                                3 
  WHO MUST FILE?                                4 
  BANKRUPTCY ESTATE                             4 
  ELECTRONIC FILING                             4 
  WHEN AND WHERE SHOULD I FILE?                 5 
  TAX PAYMENTS                                  5 
  INTEREST AND PENALTY PROVISIONS               5 

  LINE ITEM INSTRUCTIONS                        5 
                                                
  FORM 81-110 (FIDUCIARY RETURN)                5 
  FORM 81-131 (BENEFICIARIES SHARES OF INCOME)  8 
  FORM 81-132 (MISSISSIPPI SCHEDULE K-1)        9 

  APPENDIX                                      11 
                                                
  COUNTY CODES                                  11 
  SCHEDULE OF TAX COMPUTATION                   11 

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GENERAL INFORMATION

REMINDERS TAXPAYER ACCESS POINT (TAP)

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
 Use black ink when preparing the return. that you pay your taxes on-line and receive certain
correspondence electronically.
 Make sure the estate or trust federal identification number
and the decedent or debtor social security number is TAP e-mail lets you know that you have new correspondence
entered correctly on all returns, schedules, and to view on-line. You then logon to TAP to read the letter or
attachments. 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
 Attach a copy of the federal return behind the state return should always log directly into TAP using your User ID and
including returns filed electronically. Any additional password. TAP does not provide links containing your
schedules and attachments should be stapled to the back transaction or personal information to any external web site.
of the return.
Remember, you can pay your bill on-line through TAP without
 Copies or reproductions of the official tax forms are not registering for a TAP account. For more information on TAP,
acceptable. view the “Electronic Filing” section of this booklet.

 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
TAXATION OF ESTATES AND TRUSTS chapter 7 or chapter 11 bankruptcy proceedings under Title 11
of the United States Code and the estate has gross income for
The income tax imposed upon individuals shall be applicable the tax year of $10,000 or more. The bankruptcy estate is
to the income of estates or of any kind of property held in trust administered by a trustee or a debtor-in-possession.
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 TYPE OF ENTITY
thereto without having made a return, and the net income of
resident insolvent or incompetent individuals where the Decedent’s Estate:
fiduciary has complete charge of such income. The rate of tax,
the statutory provisions respecting gross income, and with An estate of a deceased person is a taxable entity separate
certain exceptions, the deductions, exemptions, and credits from the decedent. It generally continues to exist until the final
allowed to individuals apply also to estates and trusts. 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
DEFINITIONS must be accounted for and reported by the estate.

A resident estate is the estate of a person who was a Simple Trust:
Mississippi resident at the time of death. All other estates are
nonresident estates. A trust may qualify as a simple trust if:

A resident trust is any trust which is administered by the 1. The trust instrument requires that all income must be
trustee in Mississippi. A trust being administered outside of distributed currently;
Mississippi shall not be considered a resident trust merely
because the governing instrument or a law requires that the 2. The trust instrument does not provide that any amounts are
laws of Mississippi be followed with respect to interpretation or to be paid, permanently set aside, or used for charitable
administration of the trust. All other trusts are non-resident purposes; and
trusts.
3. The trust does not distribute amounts allocated to the
corpus of the trust.

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 Complex Trust:                                                         Every fiduciary is required to file a Mississippi Fiduciary 
                                                                        Income Tax Return, Form 81-110, for any resident individual, 
 A complex trust is any trust that does not qualify as a simple         trust, or estate for which he acts, or for any  nonresident 
 trust as explained above.                                              individual, trust, or estate for which he acts that has taxable 
                                                                        income or gain derived from Mississippi sources. 
 Grantor Type Trust:                                                    
                                                                        Income from Mississippi  sources includes income or gain 
 A grantor type trust is a legal trust under applicable state law       from: 
 that is not recognized as a separate taxable entity for income         
 tax purposes because the grantor or other substantial owners           a. Real or tangible personal property located in Mississippi 
 have not relinquished complete dominion and control over the           b. A business, profession or occupation carried on within 
 trust.                                                                    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     For a nonresident estate or trust, income from the following is 
 he or she has a reversionary interest in either the income or          not  considered  to  be  derived  from  Mississippi  sources: 
 corpus therefrom, if, as of the inception of that portion of the       annuities,  interest,  dividends,  or  gains  from  the  sale  or 
 trust, the value of the reversionary interest is more than 5% of       exchange of intangible personal property, unless it is part of 
 the value of that portion. Also, the grantor is treated as holding     the income from a business, trade, profession, or occupation 
 any power or interest  that was  held by  either  the grantor's        that is carried on within Mississippi. 
 spouse at the time that the power or interest was created or           
 who became the grantor's spouse after the creation of that             BANKRUPTCY ESTATE 
 power or interest. 
                                                                        The filing of a bankruptcy petition for an  individual debtor 
 Qualified Disability Trust: 
                                                                        creates a separate taxable  entity known as a bankruptcy 
                                                                        estate.  Every trustee (or  debtor-in-possession)  that files a 
 A qualified disability trust is any nongrantor trust: 
                                                                        Federal Income Tax Return  for an individual’s bankruptcy 
 
                                                                        estate that has gross  income of $10,000 or  more  under 
 1. Described in 42 U.S.C. 1396p(c)(2)(B)(iv) and established 
                                                                        chapter 7 or chapter 11 of the United States Bankruptcy Code 
    solely for the benefit of an individual under 65 years of age 
                                                                        must file a Mississippi Fiduciary Income Tax Return and pay 
    who is disabled, and 
                                                                        any taxes due.  The debtor will remain responsible for filing 
 
                                                                        returns and paying taxes on any income that does not belong 
 2. All the beneficiaries of which are determined by the 
                                                                        to the estate. 
    Commissioner of Social Security to have been disabled for           
    some part of the tax year within the meaning of 42 U.S.C.           Every bankruptcy estate of an individual required to file a 
    1382c(a)(3).                                                        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 
                                                                        The  filing  of  a  bankruptcy  petition  for  a  partnership  or  a 
 trust ceases to have any disabled beneficiaries. 
                                                                        corporation debtor under chapter 7 or chapter 11 of the United 
                                                                        States Bankruptcy Code does not  create a  separate legal 
 ESBT (S Portion Only): 
                                                                        entity for tax purposes. 
                                                                        
 The S  portion  of  an ESBT is the portion of the trust  that 
 consists of S  corporation  stock and that  is not treated as          ELECTRONIC FILING 
 owned by the grantor or another person. 
                                                                        Users of TAP are able to: 
 Pooled Income Fund:                                                    
                                                                        •  make electronic payments 
 A pooled income fund is a split-interest trust with a remainder        •  view recent account activity and history 
 interest for a public charity and a life income interest retained      •  view tax correspondence 
 by the donor or for another person.  The property is held in a         •  make address changes 
 pool with other pooled income fund  property and does  not 
 include any tax-exempt securities.  The income for a retained                                                     Tax practitioners 
                                                                        Third Party Access for Tax Practitioners: 
 life interest is figured using the yearly rate of return earned by     can have TAP access to account information for each of your 
 the trust.  See section 642(c) and the related regulations for         clients  from  one  login.  First, create your  own  TAP account 
 more information.                                                      (only one per FEIN).  Once you are registered in TAP, select 
 
                                                                        "Add Access to Existing Account".  Your client (taxpayer) must 
 Bankruptcy Estate:                                                     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 
 A chapter 7 or 11 bankruptcy estate is a separate and distinct         party access are found under the "Other Taxpayers' Accounts" 
 taxable  entity  from  the  individual  debtor  for  income  tax       tab in TAP.  For more information on TAP, visit our website at 
 purposes.                                                              www.dor.ms.gov. 
 
 WHO MUST FILE? 
                                                                 
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                                                                            Check or Money Order Payments:       To pay by check or 
   WHEN AND WHERE SHOULD I FILE?                                            money  order,  complete  the  payment  voucher  (Form  80- 
  Calendar year returns must be filed no later than April 15th              106), make  the check or  money order payable  to  the 
                                                                            Department of Revenue and mail both to P.O. Box 23075, 
  annually.  Fiscal year returns must be filed no later than the            Jackson, MS 39225-3075. Write your identification number 
  15th day of the 4th month following the end of the fiscal year.           on the check or money order.  DO NOT send cash through 
  A fiduciary’s taxable year and its method of accounting are               the mail. 
  required to be the same for Mississippi income tax purposes            
  as determined for federal income tax purposes.                         
 
  Need more time to file your return?                                      INTEREST AND PENALTY PROVISIONS 
                                                                         
  If you will receive a refund or will not owe any additional tax,       •  Late Payment:     Interest and penalty are charged on taxes 
  Mississippi will allow you the same time to file your return as           paid late even if an extension of time to file is granted. The 
  allowed by federal.  However, if you owe additional taxes, you            interest is at the rate1/2% per month from the due date until 
  must remit the tax due with Form 80-106 on or before the due              paid. The penalty imposed for failure to pay the tax when 
  date of the return.                                                       due is 1/2% per month not to exceed 25% in the aggregate. 
                                                                            Late payment interest and penalty apply to any unpaid tax 
  The authorized extension of time to file does not extend the              after April 15th. 
  time for payment of tax due. Interest and penalty will apply on        
  any  underpayment  of  tax.  See  the  “Interest  and  Penalty         •  Failure  to File: The penalty for failure to file a return is 
  Provisions” section of this booklet for more information.                 imposed after  September 30th.  The penalty is  5%  per 
                                                                            month not to exceed 25% in the aggregate. The penalty 
  The return should be mailed to:                                           imposed for failure to file is based on the amount of net tax 
                                                                            (balance due) on the return. Such failure to file a return 
   Additional Tax Due or                                                    penalty shall not be less than $100. 
   No Tax Due:                Refund Request:                
   Department of Revenue      Department of Revenue 
   P.O. Box 23050             P.O. Box 23058 
   Jackson, MS 39225-3050     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: 
 
 • 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 
  Form  81-110,  Mississippi  Fiduciary  Income  Tax  Return  for        SSN in the “Decedent / Debtor SSN” field. If there is a joint 
  Estates and Trusts is a reconciliation type return which uses          debtor, a separate Fiduciary Income Tax Return must be filed 
  the income from the U. S. Income Tax Return for Estates and            using the instructions (Form 80-100) and tax table for  a 
  Trusts, Form 1041, as a starting point. Accordingly, a complete        married person filing separately.  The estate of the joint debtor 
  copy of the federal return must be attached to this return, as         is a separate taxable entity unless the court has substantively 
  well as a copy of all Mississippi Schedule K-1s.                       consolidated the estates of the debtor and joint debtor. A copy 
                                                                         of the U.S. Income Tax Return for Estates and Trusts, Form 
  Generally, federal rules and regulations relating to estates and       1041, filed for the bankruptcy estate must be attached to the 
  trusts will be followed for state purposes to the extent they are      state return. 
  not deemed contrary to the context and intent of Mississippi          
  law.                                                                     • Amended Return:  If a bankruptcy case begins and is 
                                                                             later dismissed by the bankruptcy court, the estate is not 
  If you had income not directly included on your federal income             treated as  a separate taxable entity. If  Mississippi 
 tax return, such as income as a Qualified Subchapter "S" Trust              Fiduciary Income Tax Returns have been filed for the 
 (QSST), include such amounts on page 2, lines 18f, 18g, 18h                 estate, amended returns must be filed to move income 
 and 18i as needed along with supporting details. 
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and deductions from the estate returns to the debtor applicable Mississippi rates to the net taxable
Mississippi Individual Income Tax Returns. If no income reported to the other state. Highest
Fiduciary Income Tax Returns have been filed, all rates are meant to mean the highest rates at
income and deductions must be reported on the debtor which the net taxable income reported to the
returns. other state is taxable by the State of
Mississippi.

• Final Return: When the bankruptcy has ended, a final Line 4: Other Credits
Mississippi Fiduciary Income Tax Return must be filed.
The date of the bankruptcy confirmation and the estate The estate or trust share of allowable credit(s)
closure date must be provided. 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
MISSISSIPPI INCOME TAX provided in the Appendix. Form 80-401 must be
attached.
Please provide the information of the estate or trust. Enter the
county code corresponding to the estate or trust (see Line 5: Net Income Tax Due
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 Subtract line 3 and line 4 from line 2 and enter the
established. Enter the number of Mississippi Schedule K-1(s) result here.
included with the return and attach a copy of the K-1(s) to the
return.
PAYMENTS
Line 1: Taxable Income or Loss for Mississippi
Purposes Line 6: Mississippi Income Tax Withheld

Enter the amount of Mississippi Taxable Income or Add the amounts shown as “MS Income Tax”
Loss from page 2, line 26. withheld on Federal Forms 1099 and/or 1099-
R. Enter the total amount withheld on line 7. You
Line 2: Total Income Tax Due 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 Include readable copies of your Form 1099 with
income tax due and enter the results on this line. your return. Copies of your Form 1099 are
available only from your employer. The withholding
Line 3: Credit for Tax Paid to Another State credit may be disallowed if 1099s are not attached
to the return. These items should be listed on Form
Individual resident, trust or estate that has taxable 80-107, Income/Withholding Tax Schedule, which
income or gain derived from Mississippi sources must be attached to your return.
and is required to pay an income tax to another
state is allowed to take a credit against its Line 7: Estimated Tax Payments, Overpayment from
Mississippi tax due in the same year for the amount Prior Year and Amount Paid with Extension
of total income tax due to the other state (subject
to certain limitations). Non-residents are not Enter the total estimated tax payments the estate
allowed this credit. or trust made before filing the 2023 Mississippi
tax return plus any amount credited from the
In order to be allowed this credit, you MUST file a 2022 tax return. Any amount paid with a
return with the other state and attach a copy of the request for extension of time to file should also
return to your Mississippi return. The withholding be included in this amount.
amounts shown on your W-2 forms are NOT the
same as actual tax paid to the other state.
Line 8: Credit for Tax Paid on an Electing Pass- Through
Form 80-160 must be attached. Copies of Entity Tax Return
withholding statements are not sufficient to
Enter on line 8 the amount of taxes paid on your
establish the credit.
behalf by electing pass-through entities, from Form
80-161, line 3D. The Mississippi K-1s you received
Miss. Code Ann. Section 27-7-77 provides for three
limitations which are: from electing pass-through entities must be
attached to the return.
1) The credit may not exceed the amount of Line 9: Refund Received and/or Amount Carried
income tax due the State of Mississippi Forward From Original Return
indicated on line 2;
Enter the amount of refund received and/or carried
2) The credit may not exceed the amount of forward from the original return. This line only
income tax actually paid to the other state; applies to amended returns.
and

3) The credit may not exceed an amount
computed by applying the highest 6

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  REFUND OR BALANCE DUE                                                     COMPUTATION OF TAXABLE INCOME 
 
  Line 11: Overpayment                                                      Line 17:  Federal Adjusted Total Income or (Loss) 
                                                                            
           If line 10 is larger than line 5, subtract line 5 from           Enter the amount of federal adjusted total income or (loss) 
           line 10 and enter the overpayment of tax on line 11.             from federal Form 1041, page 1, line 17. 
                                                                            
  Line 12:  Amount of Overpayment to be Applied to Next 
           Year Tax Account                                                 ADDITIONS 
                                                                            
           Enter on this line the amount of your                            Line 18a: State Income Tax Adjustment 
           overpayment  from  line  11  you  wish  to  be                   
           credited to your 2024 estimated tax account.                               Taxes based on income are not deductible.  Enter 
                                                                                      the amount of state, local and foreign government 
  Line 13:  Amount of Overpayment to be Refunded                                      income taxes claimed  as a  deduction on Form 
                                                                                      1041. 
           Subtract line 12 from line 11 and enter the amount               
           to be refunded on this line.                                     Line 18b: Depletion Adjustment 
                                                                            
  Line 14: Balance Due                                                                No deduction is allowed for depletion in excess of 
                                                                                      the cost basis of the depletable asset. Enter the 
           If  line  5  is  larger  than  line  10,  subtract  line  10               amount of depletion claimed on Form  1041 in 
           from line 5 and enter the balance due on this line.                        excess of the cost basis of the asset on which the 
                                                                                      depletion is claimed. 
  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                       Interest  on  obligations  of  states  and  political 
           return, not payment of the tax.  If the income tax is                      subdivisions thereof outside Mississippi is taxable 
           not paid by the original due date of the return, then                      for  Mississippi  purposes.  Enter  the  amount  of 
                                                                                      interest  on obligations of  states and political 
           interest is due at the rate of 1/2% per month. The 
                                                                                      subdivisions thereof (other than from Mississippi) 
           penalty imposed for failure to pay the tax when due                        received by the fiduciary. 
           is 1/2% per month not to exceed 25% in the                       
           aggregate.   The penalty is based on the balance                 Line 18d: Expenses of Earning Exempt Income 
           due (line 5 minus line 10).  Interest and penalty                
           for  late  payment  is  not  charged  on  late  file                       Interest received on U.S. Government obligations 
           penalty.                                                                   is  not  taxable  for  Mississippi  purposes  and 
                                                                                      expenses  incurred  in  earning  the  tax  exempt 
  •        Late Filing Penalty:   The penalty imposed for                             income are not deductible. Enter the amount of 
           failure to file a return is 5% per month not to exceed                     expenses directly applicable to earning interest on 
           25% in the aggregate. The failure to file penalty is                       U.S.  Government  obligations claimed on federal 
           based on the amount of net tax (balance due, page                          Form 1041. 
           1, line 14). Such failure to file penalty shall not              
           be less than $100 and  will be applied to all                    Line 18e: Itemized Deductions Adjustment 
           returns filed after the due date as well as any                  
           extensions.                                                                If you elect to claim the standard deduction on the 
                                                                                      Mississippi Fiduciary Income Tax Return (Form 81- 
  Line 16:  Total Due                                                                 110,  page  2,  line  21e),  enter  the  amount  of 
                                                                                      itemized deductions claimed on the fiduciary return 
           Add lines 14 and 15 and enter the amount on this                           in  arriving  at  the  amount  shown  on  line  17  of 
           line. The amount due must be paid in full when you                         federal Form 1041.  Attach  a schedule of the 
           file your return (or before the due date).  Payments                       deductions added back. 
           can be made by check or money order payable to                   
           the Department of Revenue.  Do not send cash by                  Line 18f – 18i:  Other Additions 
           mail. BE  SURE  TO  ENCLOSE  PAYMENT                             
           VOUCHER,   FORM   80-106,   WITH   YOUR                                    Add back any other item which is treated differently 
           PAYMENT.     You may pay your tax in person at any                         for Mississippi income tax  purposes  than was 
           of the Department of Revenue District Service                              treated  for  federal  income  tax  purposes.  Itemize 
           Offices or through Taxpayer Access Point (TAP)                             here and attach a schedule if needed. Include any 
           on our website.  Balances due of less than $1.00                           income not included as  a part of Federal Form 
           need not be paid.                                                          1041, line 17. 
                                                                            
                                                                            Line 19:  Total Additions 
                                                                            
                                                                                      Add lines 18a through 18i. 
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 Line 20:  Total Income                                                                                                                 
 
           Enter the total of lines 17 and 19.                        TAXABLE INCOME 
                                                                     
                                                                      Line 23:   Adjusted Net Income or (Loss) For 
 DEDUCTIONS                                                                    Mississippi Purposes 
                                                                     
                                                                               Subtract line 22 from line 20. 
 Line 21a: Exempt Interest                                           
                                                                      Line 24: Amount Distributed to Beneficiaries 
           Interest received on U.S. Government obligations 
           is not taxable to Mississippi. Enter the amount of        
                                                                               Complete Schedule K, Form 81-131, and deduct 
           such interest reported as income on federal Form 
                                                                               (1) any income of the estate or trust for its taxable 
           1041. 
                                                                               year which is distributable currently by the fiduciary 
                                                                               to a beneficiary, whether or  not such  income is 
 Line 21b: Wages Adjustment 
                                                                               actually distributed, or (2) any income of the estate 
                                                                               or trust for its taxable year which is properly paid or 
           Federal income tax laws allow certain tax credits 
                                                                               credited during such year to a beneficiary if there 
           based on wages paid to employees, and a portion 
                                                                               was vested in the fiduciary a discretion either to 
           of the wages on which the credit was based is not 
                                                                               distribute or to accumulate such income.  Income 
           allowed as  a deduction.  Mississippi does  not 
                                                                               distributed  to  non-residents  of  this  state  from 
           allow  these  credits.  Enter  the  amount  by  which 
                                                                               investments  in  intangibles  (dividends,  interest, 
           wages  on  the Form 1041 were reduced by 
                                                                               etc.) having a situs in Mississippi may be excluded 
           employment  tax  credits (such as the Targeted 
                                                                               from  the  non-resident's Mississippi taxable 
           Jobs Credit). 
                                                                               income.  Income from other sources distributed or 
 Line 21c: Capital Gains Adjustment                                            distributable to non-residents shall be included in 
                                                                               gross income and reflected in the return filed by 
                                                                               such non-resident with this state. 
           Enter the amount of capital gains on the sale of          
           authorized shares in financial institutions domiciled 
           in  Mississippi  and  domestic  corporations,  or          Line 25: Exemption 
           partnership   interests in   domestic       limited       
           partnerships and domestic           limited liability               Estates and trusts are allowed    the  same 
           companies exempt from Mississippi tax by Miss.                      exemptions that are allowed for federal purposes. 
           Code Ann. Section 27-7-9(f)(10).                          
                                                                               Estates……………………………………                       $600 
 
 Line 21d: Expenses of Earning Interest Income                                 Trusts required to distribute all income   
                                                                               currently…………………………………..                    $300 
           Enter the amount of expenses directly applicable                    Trusts permitted to accumulate income       $100 
           to earning the interest income shown on Form 81- 
           110, page 2, line 18c. Such expenses would not            
           have been deductible on Form 1041  since they              Line 26:  Taxable Income or Loss for Mississippi 
           relate to tax-exempt income.                                        Purposes 
                                                                     
 Line 21e: Standard Deduction                                                  Subtract line 24 and line 25 from line 23 and enter 
                                                                               the result here and on page 1, line 1 of this form. 
           A standard deduction of $2,300 is allowed to              
                                                                     
           fiduciaries in lieu of itemized fiduciary expenses. 
           If the standard deduction is claimed, see Form 81-         FORM 81-131 (BENEFICIARIES SHARES OF INCOME) 
           110, page 2, line 18e. 
                                                                      Column A: Enter the name, complete current address, and 
 Line 21f: Non-resident Fiduciary Returns Only                                  Employer Identification Number (FEIN) or Social 
                                                                                Security Number  (SSN) of  each beneficiary 
           Enter the amount of income from Non-Mississippi                      having a beneficial interest in the estate or trust. 
           sources, net of expenses and attach a schedule.           
           This adjustment is necessary to determine taxable          Column B: Enter the percentage of beneficial interest owned 
           income or loss for Mississippi purposes.                             by each beneficiary. You must account for 100% 
                                                                                of the  ownership. Also, enter the  state  of 
 Line 21g – 20i:  Other Deductions                                              residency of each beneficiary. 
 
           Deduct any other item which is treated differently         Column C: Enter the total amount distributed to each 
           for Mississippi  income tax  purposes than was             and       beneficiary     based    on      their  respective
           treated  for  federal  income  tax  purposes.  Itemize     Column D: percentage of beneficial interest in the estate or 
           here and attach schedule if needed.                                  trust. Column  C    is  used  to  report  to  both 
                                                                                resident and non-resident beneficiaries, the 
 Line 22:  Total Deductions                                                     distributions which are taxable to Mississippi. 
                                                                                For resident beneficiaries, the amount of 
           Enter the total of lines 21a through 21i.                            distribution includes income from all sources. 
                                                                  8             For  non-resident  beneficiaries,  the  amount  of 
                                                                                distribution  includes  only  Mississippi sourced

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       income. Column D is used to report to the non-                    Box 4a: Net Long-Term Capital Gain 
       resident beneficiary the  amount of the                           
       distribution       from    non-Mississippi sourced                        Enter  the  beneficiary's  share  of  net  long-term 
       income  (not  taxable  to  the  Non-resident                              capital gain minus allocable  deductions. Do  not 
       beneficiary on a Mississippi return).                                     enter a loss on this line. 
                                                                         
 Amount Allocated to Beneficiaries (bottom of page 1):                   Box 4b: 28% Rate Gain 
 Enter the combined totals  of Columns C and D. This                     
 represents  the  deduction  allowed  to  the  estate  or  trust  for            A collectible gain (loss) is any long-term gain or 
 distributions to beneficiaries. The total should be transferred                 deductible long-term loss from the  sale or 
 to Form 81-110, page 2, line 24.                                                exchange of a collectible that is a capital  loss. 
                                                                                 Mississippi Law does not conform to federal with 
 If additional space is needed, use another Form 81-131.                         respect to the  tax treatment of capital gains; 
                                                                                 therefore, the gain is taxed as ordinary income. 
                                                                         
 FORM 81-132 (MISSISSIPPI SCHEDULE K-1)                                  Box 4c: Unrecaptured Section 1250 Gain 
                                                                         
 Form 81-132, Mississippi Schedule K-1, is used to report the                    Enter the beneficiary's share of Mississippi Section 
 beneficiary's share of income, deductions, and credits from a                   1250 Gain. 
 trust or a decedent's estate.  The fiduciary (or one of the joint       
 fiduciaries) must prepare Schedule K-1 for each beneficiary             Box 5:  Other Portfolio and Nonbusiness Income 
 having a beneficial interest in the trust or estate at any time         
 during the taxable year. Copies of the Schedule K-1 are                         Enter the beneficiary's share of annuities, royalties, 
 required to be filed with Form 81-110.                                          or any other income, minus allocable deductions 
                                                                                 (other than directly apportionable deductions). 
 Mississippi law conforms to the Internal Revenue Code with              
 respect to passive activity and rental real estate activity             Box 6:  Ordinary Business Income 
 limitations.  The amounts shown on the Schedule K-1 reflect             
 Mississippi income or loss and related expenses.                                Enter the beneficiary's share of ordinary business 
                                                                                 income  minus allocable deductions (other than 
 Mississippi will also follow federal rules relating to character of             directly apportionable deductions). 
 income and allocation of  deductions as shown in the                    
 instructions for preparing Schedules K-1 which are included in          Box 7:  Net Rental Real Estate Income 
 the federal Form 1041 instructions.  Each Schedule K-1 (Form            
 81-132) must be completed to show (1) the beneficiary's SSN                     Enter the beneficiary's share of rental real estate 
 or FEIN; (2) the trust or estate's FEIN; (3) the name of the trust              income minus allocable deductions (other than 
 or decedent's estate; (4)  the name  and address of the                         directly apportionable deductions). 
 beneficiary; (5) the name and address of the fiduciary; and (6)         
 the beneficiary's percentage of interest in the entity for the tax      Box 8:  Other Rental Income 
 year.                                                                   
                                                                                 Enter the beneficiary's share of other rental income 
 Box 1:    Interest Income                                                       minus  allocable  deductions  (other  than  directly 
                                                                                 apportionable deductions). 
       Enter the beneficiary's share of the taxable interest             
       income minus allocable deductions.                                Box 9:  Directly Apportioned Deductions 
                                                                         
 Box 2a:   Ordinary Dividends                                                    Depreciation: Enter the beneficiary's share of the 
                                                                                 depreciation deductions attributable  to  each 
       Enter the beneficiary's share of  Mississippi                             activity reported in Boxes 5 through 8. Follow 
       ordinary  dividend  income  minus  allocable                              federal instructions for apportioning  depreciation 
       deductions.                                                               deductions between the beneficiaries and the trust 
                                                                                 or estate. 
 Box 2b:   Qualified Dividends                                           
                                                                                 Depletion: Enter the beneficiary's  share of the 
       Enter the beneficiary's  share of  Mississippi                            depletion deduction  under IRC Section  611 
       qualified dividend income minus allocable                                 attributable to each activity  reported in  Boxes 5 
       deductions.                                                               through  8.  Follow  federal  instructions  for 
                                                                                 apportioning depletion deductions between the 
 Box 3:      Net Short-Term Capital Gain                                         beneficiaries and the trust or estate. 
                                                                         
       Enter the beneficiary's share of net short-term                           Amortization: Itemize the beneficiary's share  of 
       capital  gain  minus  allocable  deductions. Do  not                      the amortization deductions  attributable to each 
       enter a loss on this line.                                                activity reported in Boxes 5 through 8.  Apportion 
                                                                                 the amortization deductions between the trust or 

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          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 Long- 
          Term 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. 

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 APPENDIX 

 COUNTY CODES 

 COUNTY               CODE COUNTY                                         CODE          COUNTY              CODE 
 Adams                01   Itawamba                                       29            Pike                57 
 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 90 
                                                                                        of State 
 
 SCHEDULE OF TAX COMPUTATION 
 
    TAX RATE(S)        TAXABLE INCOME TAX RATE                               INCOME TAX 
 a. First $10,000                     x 0% =                              
 b. Remaining balance                 x 5% =                              
 Total Income Tax – Add lines “a” through “b”.  Enter on page 1, line 2.  
 
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