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Form 81-100-22-1-1-000 (Rev.10/22) 

                                   FIDUCIARY INCOME 
                                   TAX RETURN 
                                     (FOR ESTATES AND TRUSTS) 

                                   2022 

                                     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. 
                                                                     5

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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: Credit for Tax Paid on an Electing Pass- Through
Mississippi Fiduciary Income Tax Return must be filed. Entity Tax Return
The date of the bankruptcy confirmation and the estate
closure date must be provided. Enter on line 4 the amount of taxes paid on your behalf
by electing pass-through entities, from Form 80-161.
The Mississippi K-1s you received from electing
MISSISSIPPI INCOME TAX pass-through entities must be attached to the
Please provide the information of the estate or trust. Enter the return.
county code corresponding to the estate or trust (see
Appendix for a list of the codes). For an estate, enter the date Line 5: Other Credits
of decedent’s death and for a trust, enter the date the trust was
established. Enter the number of Mississippi Schedule K-1(s) The estate or trust share of allowable credit(s)
included with the return and attach a copy of the K-1(s) to the should be combined, and the total entered on this
return. line. For each type of credit taken, enter the
applicable two digit code on Form 80-401 as
Line 1: Taxable Income or Loss for Mississippi provided in the Appendix. Form 80-401 must be
Purposes attached.

Enter the amount of Mississippi Taxable Income or Line 6: Net Income Tax Due
Loss from page 2, line 26.
Subtract line 3, line 4, and line from line 2 and enter
Line 2: Total Income Tax Due the result here.

Use the tax computation schedule, as provided in
the Appendix to determine the total amount of PAYMENTS
income tax due and enter the results on this line.
Line 7: Mississippi Income Tax Withheld
Line 3: Credit for Tax Paid to Another State
Add the amounts shown as “MS Income Tax”
Individual resident, trust or estate that has taxable withheld on Federal Forms 1099 and/or 1099-R.
income or gain derived from Mississippi sources Enter the total amount withheld on line 7. You must
and is required to pay an income tax to another complete Form 80-107, Income Tax/Withholding
state is allowed to take a credit against its Tax Schedule.
Mississippi tax due in the same year for the amount
of total income tax due to the other state (subject Include readable copies of your Form 1099 with
to certain limitations). Non-residents are not your return. Copies of your Form 1099 are
allowed this credit. available only from your employer. The withholding
credit may be disallowed if 1099s are not attached
In order to be allowed this credit, you MUST file a to the return. These items should be listed on Form
return with the other state and attach a copy of the 80-107, Income/Withholding Tax Schedule, which
return to your Mississippi return. The withholding must be attached to your return.
amounts shown on your W-2 forms are NOT the
same as actual tax paid to the other state. Line 8: Estimated Tax Payments, Overpayment from
Prior Year and Amount Paid with Extension
Form 80-160 must be attached. Copies of
withholding statements are not sufficient to Enter the total estimated tax payments the estate or
establish the credit. trust made before filing the 2022 Mississippi tax
return plus any amount credited from the 2021 tax
Miss. Code Ann. Section 27-7-77 provides for three return. Any amount paid with a request for
limitations which are: extension of time to file should also be included in
this amount.
1) The credit may not exceed the amount of
income tax due the State of Mississippi Line 9: Refund Received and/or Amount Carried
indicated on line 2; Forward From Original Return

2) The credit may not exceed the amount of Enter the amount of refund received and/or carried
income tax actually paid to the other state; forward from the original return. This line only
and applies to amended returns.

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 6, subtract line 6 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 overpayment Line 18a: State Income Tax Adjustment
from line 11 you wish to be credited to your 2023
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 6 is larger than line 10, subtract line 10 from amount of depletion claimed on Form 1041 in
line 6 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 is due at the rate of 1/2% per month. interest on obligations of states and political
subdivisions thereof (other than from Mississippi)
The penalty imposed for failure to pay the tax when received by the fiduciary.
due 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 6 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 
                                                                        Mississippi Purposes 
 DEDUCTIONS 
                                                              
 Line 21a:   Exempt Interest                                            Subtract line 22 from line 20. 
                                                              
                                                               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 
 of the wages on which the credit was based is not                      was vested in the fiduciary a discretion either to 
                                                                        distribute or to accumulate such income.  Income 
 allowed as a deduction. Mississippi does not allow 
                                                                        distributed to non-residents  of  this  state from 
 these credits.  Enter the amount by which wages on 
                                                                        investments  in  intangibles  (dividends,  interest, 
 the Form 1041 were reduced by employment tax 
 credits (such as the Targeted Jobs Credit).                            etc.) having a situs in Mississippi may be excluded 
                                                                        from the non-resident's Mississippi taxable 
 Line 21c:   Capital Gains Adjustment                                   income.  Income from other sources distributed or 
                                                                        distributable to non-residents shall be included in 
 
 Enter the amount of capital gains on the sale of                       gross income and reflected in the return filed by 
 authorized shares in financial institutions domiciled                  such non-resident with this state. 
                                                              
 in Mississippi  and domestic corporations,  or 
 partnership            interests  in domestic   limited       Line 25:     Exemption 
 partnerships  and domestic limited liability                 
 companies exempt from Mississippi tax by Miss.                         Estates  and  trusts  are  allowed  the  same 
 Code Ann. Section 27-7-9(f)(10).                                       exemptions that are allowed for federal purposes. 
                                                              
                                                                        Estates……………………………………  $600 
 Line 21d:   Expenses of Earning Interest Income 
                                                                         Trusts required to distribute all income     
 Enter the amount of expenses directly applicable                        currently…………………………………..                     $300 
 to earning the interest income shown on Form 81-                         Trusts permitted to accumulate income       $100 
 110, page 2, line 18c. Such expenses would not 
 have been deductible  on Form 1041  since they               
 relate to tax-exempt income.                                  Line 26:    Taxable Income or Loss for Mississippi 
                                                                        Purposes 
 Line 21e:   Standard Deduction                               
                                                                        Subtract line 24 and line 25 from line 23 and enter 
 A standard  deduction  of $2,300  is allowed to                        the result here and on page 1, line 1 of this form. 
                                                              
 fiduciaries in lieu of       itemized fiduciary expenses.    
 If the standard deduction is claimed, see Form 81-
 110, page 2, line 18e.                                        FORM 81-131 (BENEFICIARIES SHARES OF INCOME) 
 
 Line 21f:   Non-resident Fiduciary Returns Only               Column A:  Enter the name, complete current address, and 
                                                                            Employer Identification Number (FEIN) or Social 
 Enter the amount of income from Non-Mississippi                            Security  Number (SSN)  of each beneficiary 
 sources, net of expenses and attach a schedule.                            having a beneficial interest in the estate or trust. 
 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% 
 Line 21g – 20i:  Other Deductions                                          of the ownership. Also, enter the state of 
                                                                            residency of each beneficiary.   
 Deduct any other item which is treated differently 
 for Mississippi income tax purposes than was                  Column C:    Enter the total amount distributed to each 
 treated  for  federal  income  tax  purposes.  Itemize        and          beneficiary based on       their    respective
 here and attach schedule if needed.                           Column D:    percentage of beneficial interest in the estate or 
                                                                            trust. Column C is  used  to  report  to both 
 Line 22:    Total Deductions                                               resident and non-resident beneficiaries, the 
                                                                            distributions which are taxable to Mississippi. 
 Enter the total of lines 21a through 21i.                                  For resident beneficiaries, the amount of 
                                                                            distribution includes income from  all sources. 
                                                                            For non-resident beneficiaries, the  amount of 
                                                           8                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 

                                                                      9

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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 the termination. 
 
 Box 11:  Alternative Minimum Tax Adjustment 
 
          This box is not applicable to the state; therefore, it 
          will  be reported on this  form as  an  item of 
          information. 
 
 Box 12:  Credits and Credit Recapture 
 
          This box is not applicable to the state; therefore, it 
          will  be reported on this  form as  an  item of 
          information. 
 
 Box 13:  Other Information 
 
          Report any other information as required by federal 
          (see federal Schedule K-1 for details). 
 
 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. 

                                                                 10

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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 $5,000                        x   0%   =                      
 b.   Next $5,000 or part                 x   4%   =                      
 c.   Remaining balance                   x   5%   =                      
 Total Income Tax – Add lines “a” through “c”.  Enter on page 1, line 2.  
 
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