35 Miss. Admin. Code Pt. III, Subpt. 2, Ch. 09 — Prizes, Awards, Stipends, Scholarships and Fellowship Grants

100 Amounts received as prizes and awards are generally included in gross income. Examples
include, but are not limited to, amounts received from radio and television giveaway
shows, door prizes, awards in contests of all types, as well as any prizes and awards from
an employer to an employee in recognition of an employment related achievement.
101 For prizes or awards other than money, the fair market value of the goods or services is the
amount to be included in gross income.
102 Stipends, which are compensation for services (past, present or future), are included in
gross income.
103 Gross income does not include scholarship or fellowship grants when the funds are used for
qualified education expenses. Qualified education expenses include tuition and fees
required for enrollment or attendance at the education institution, or books, fees, supplies,
and equipment required for courses at the educational institution. Scholarship or
fellowship funds used for non -qualifying expenses are taxable. Non -qualifying expenses
include, but are not limited to, living and incidental expenses such as room and board,
travel, clerical help, research, non-required books and optional equipment.
104 The Commissioner will follow federal rules, regulations and revenue procedures regarding
prizes, awards and stipends as are deemed not contrary to the context and intent of
Mississippi Law.
105 See Title 35 Mississippi Administrative Code, Part III, Subpart 3, Chapter 09 Gaming
Winnings and Gaming Income, for the treatment of prizes from a gaming establishment
or gaming activity.
106 (Reserved)
35.III.2.09 revised effective January 1, 2020
Chapter 10 Reserved
35.III.2.10 revised effective June 15, 2019