Hurricane Katrina: KETRA

Mississippi's Tax Treatment of Provisions of KATRINA EMERGENCY TAX RELIEF ACT OF 2005 (KETRA)

KETRA extends filing deadlines until February 28, 2006 for income tax returns and payments due on or after August 28, 2005. This also includes estimated payments for individual and corporate income taxpayers. This does not apply to withholding tax deposits. Mississippi will follow federal extensions granted for those directly affected by Hurricane Katrina who cannot meet their filing and/or paying obligations.​​​

KETRA removed the provisions that casualty losses are deductible to the extent they exceed ten percent (10%) of the taxpayer’s Adjusted Gross Income and the $100 floor. Mississippi is following the federal removal of restrictions on the calculation of casualty losses. Any other casualty losses during 2005 will be subject to the stated restrictions.

Early distributions from retirement accounts withdrawn due to Hurricane Katrina are excluded from Mississippi gross income. These are subject to certain limitations imposed by federal law such as amounts and timing of withdrawals.

Mississippi follows the federal provisions for charitable contributions in KETRA which removed the 50% limitation for individuals for cash donations to charitable contributions for the period of August 28, 2005 through December 31, 2005.

KETRA extended the replacement period for non-recognition of gain for damaged property to five years. Mississippi section 27-7-9 (f)(6) provides only a two year replacement period and does not conform with KETRA.

Disaster relief payments received by taxpayers are excluded from gross income for state purposes.

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