Mississippi State Return

[Donanita]

Have a Mississippi State return with a pension of $3267.Checked the website and said qualified pension is not taxable. This is a private pension of a deceased taxpayer.Would this be taxable to MS State

[Snaggletooth]

Resident or Non-Resident

Resident or Non-Resident?

If non-resident, the answer is simple. NO. not taxable.

If resident, the pension may or may not be taxable, depending
on who its coming from.

[Donanita]

MS Return

Client was a resident. Died 02-04-06. Doing a final return. Pension was from Metropolitan Life.Don't usually do MS returns and couldn't find if this is taxable or not from their website. Some state let you exclude a amt of your pension from income. Did know if MS does or not. Pension income was only $3267

[Snaggletooth]

Probably

Donation, the 1099-R from Metropolitan Life probably means that his pension was privately funded from a commercial (rather than public) company.

The Mississippi website is down right now, so I can't look and see. Most states tax residents on private pensions (like this guy) and exempt governmental pensions (which means the guys who write the laws get to exempt themselves). But without looking at their website I can't tell you.

[wv112]

It's not taxable.

Pensions and annuities that are taxable as early or excess distributions under the IRS code do no qualify for exemption from Mississippi income tax.

Code 1 on 1099-R are taxed by the state.

[ChEAr$]

Okay then

It's not taxable.

Pensions and annuities that are taxable as early or excess distributions under the IRS code do no qualify for exemption from Mississippi income tax.

Code 1 on 1099-R are taxed by the state.

I had to look to see if you are in MS and would know.

anyway, is MS saying like Alabama, that payments from defined benefit plans
are what's not taxable?

[wv112]

Code 1 is always taxable.

Regular pensions are not.

[Snaggletooth]

Further Review

I went back when their website was functional.

Apparently, a "regular" pension payment such as someone would receive after retirement is non-taxable, even if coming from a commercial source.

Appears also that a single withdrawal from a plan is taxable. This would include the invasion of an IRA or 401k before age 59 1/2. The way I read it, a withdrawal from such a plan would be taxable even after age 59 1/2. This would include distribution codes 1,2, and possibly others, even a 7 if the above applies.