35 Miss. Admin. Code Pt. III, Subpt. 4, Ch. 01 — Adjustments to Gross Income

100 Payments to an IRA, SEP, Keogh Retirement Plan (Retirement Plans)
A deduction is allowed for contributions to various retirement plans to the extent that such
payments are deductible for federal income tax purposes. For details, see Regulation 402.
101 Interest Penalty on Early Withdrawal of Savings
Amounts forfeited to a financial institution, such as a penalty for premature withdrawal of
funds form a time savings account, certificate of deposit, or similar class of deposit, are
allowed as a deduction from gross income. The 1099 form furnished by the financial
institution will show the amount of any interest penalty charge for early withdrawal. This
amount is deductible form gross income.
102 Alimony and Separate Maintenance Payments

# 1.

A deduction from gross income in determining adjusted gross income is allowable
with respect to payments in the nature of, or in lieu of alimony or an allowance for
spousal, not child, actually paid by the taxpayer during the taxable year. This same
amount must be included in the income of the spouse receiving the payment.

# 2.

Unless otherwise instructed in writing, the Commissioner will follow the Federal
Rules, Regulations and Revenue Procedures relating to alimony and separate
maintenance payments as are deemed not to be contrary to the context and/or intent
of Mississippi Law.
103 Moving Expenses
Moving expenses are deductible as an adjustment to gross income as allowed for federal
income tax purposes. Attach a copy of the federal form to the Mississippi return. Unless
otherwise instructed in writing, the Commissioner will follow Federal Rules, Regulations
and Revenue Procedures relating to the deduction of un -reimbursed allowable moving
expenses as are deemed not to be contrary to the context and/or intent of Mississippi Law.
104 National Guard or Reserve Pay
A taxpayer is allowed a deduction to gross income for compensation received as a member
of the National Guard or Reserve Forces of the United State not to exceed the sum of Five
Thousand Dollars ($5,000.00) for any taxable year. Only compensation received as
payment for inactive duty training (monthly or special drills or meetings), active duty
training (summer camps, special schools, cruises) and state active duty (emergency duty)
qualifies for this deduction to gross income. Full-time National Guard pay is not allowed as
a deduction. Report this income as regular wages or salaries.
105 MPACT or MACS Program Payments
1. Taxpayers who make payments to a prepaid tuition contract or a college savings
account under the MPACT (Mississippi Prepaid Affordable College Tuition) or the
MACS (Mississippi Affordable College Savings) programs are allowed a deduction
for the actual amounts paid during the taxable year as an adjustment to gross
income. Each program shall provide to the taxpayer an annual statement of account
to identify the amount paid and therefore, eligible for the adjustment.
2. Unqualified distributions of previously deducted MPACT or MACS payments must
be included in gross income in the year they are received. Payments to other
prepaid tuition programs are not eligible for this deduction.
106 Self-Employed Health Insurance Deduction
Amounts paid by a self -employed individual for insurance which constitute medical care
for the taxpayer, his spouse and dependents, are deductible as an adjustment to gross
income. Unless otherwise instructed in writing, the Commissioner will follow Federal
Rules, Regulations and Revenue Procedures relating to the deduction of self -employed
health insurance as are deemed not to be contrary to the context and/or intent of
Mississippi Law.
107 (Reserved)
108 (Reserved)