Itemized Deductions for Individuals

Federal law allows taxpayers the option to deduct either state income tax OR general sales tax as an itemized deduction.   This is NOT an allowable deduction for Mississippi purposes.   Miss. Code Ann § 27-7-17(3) (a) (i) does not allow an itemized deduction for state income tax paid.   This also disallows any deduction allowed in lieu of state income tax paid. Emergency Income Tax Regulation 1 was issued to specifically address this subject.   If state income taxes or sales taxes are deducted on federal form Schedule A, an adjustment must be made for state purposes.