How to apply for Mississippi income tax: retirement income and Social Security exemption, plus the age 65 or blind exemption

Who it's for

Mississippi does not tax Social Security benefits, Railroad Retirement benefits, or Veterans Administration payments. Retirement income from federal, state, and private retirement systems is also exempt in total if you met the retirement plan's requirements. Early distributions that are taxed as early or excess distributions under federal law are not exempt. In addition, each taxpayer or spouse who is 65 or older, or blind, can claim an extra $1,500 exemption on the return. You claim these on your Mississippi income tax return (Form 80-105 for full-year residents). For help, call DOR Taxpayer Assistance at 1-601-923-7700.

What you'll need

• Form 1099-R for each pension or retirement payment
• Mississippi Form 80-105 (resident return)

Where to apply

What to say when you call

"Hello, I'm calling to ask about Mississippi income tax: retirement income and Social Security exemption, plus the age 65 or blind exemption. I'd like to know whether I may qualify, what documents I need, and whether I can apply online, by mail, by phone, or in person. I understand I may need form 1099-R for each pension or retirement payment, mississippi Form 80-105 (resident return) — is anything else required? What is the best next step?"

Tip: have a pen ready, ask for the person's name, and write down any case or reference number they give you.

Step by step

1. Gather your Mississippi Form 80-105 and each Form 1099-R for pension or retirement payments.
2. Review your retirement income records. Social Security benefits, Railroad Retirement benefits, Veterans Administration payments, and qualifying retirement income can be exempt on your Mississippi return.
3. Check whether any payment was taken early before you met the plan's rules. Early or excess distributions, IRA money taken early, and deferred compensation paid before retirement age or service requirements are taxed.
4. Complete your Mississippi income tax return and claim the retirement income exemptions that apply. If you are 65 or older, or blind, claim the extra $1,500 exemption for yourself or your spouse if eligible.
5. Apply online, or call DOR Taxpayer Assistance at 1-601-923-7700 if you need help completing the return.
6. Submit your Mississippi return with the required information from your Form 1099-R forms.

What to expect: After you submit your return, the Mississippi Department of Revenue reviews it and makes the final decision. If the agency needs more information, it may contact you. To keep getting these tax breaks, claim them again each year on your Mississippi income tax return. The extra $1,500 exemption cannot be claimed for dependents.

Renewals

annual (claim on each year's tax return)