80-160: Credit for Tax Paid Another State (2024)
Mississippi · Mississippi DOR · Used for tax years 2024
Mississippi Form 80-160 calculates the allowable credit for income tax paid to one or more other states. It reports income, deductions, exemptions, and taxes used to determine the credit against Mississippi income tax.
Who files this form
Use Form 80-160 to claim a credit if you are a legal resident of Mississippi who pays income tax to another state on income earned there that is also taxed by Mississippi.
To claim the credit, you must file an income tax return with the other state and attach Form 80-160 and the required supporting documents to your Mississippi return. The credit applies against Mississippi income tax due for the same year and is subject to limits.
What you'll need
- Your Mississippi income tax return, including the income, deductions, exemptions, and tax due used to complete Form 80-160.
- A copy of the income tax return filed with each other state for which you claim a credit. Attach these copies to your Mississippi return.
- Proof of payment of tax to the other state. Attach this proof as well.
A Wage and Tax Statement showing withholding is not accepted as proof that you paid the other state's tax liability.
How to file
Attach the completed Form 80-160, copies of the other state returns, and proof of payment to your Mississippi income tax return.
To complete Form 80-160:
- Enter income earned everywhere in columns 1 and 2, as applicable. Report income earned in each other state separately in columns 3 through 5, with the state names above those columns.
- Enter deductions and exemptions from the respective state returns. Allocate them between taxpayer and spouse in the same manner as those returns.
- Follow lines 4 through 10 to calculate taxable income, each state's share, and the limited credit.
- On line 11, enter the Mississippi income tax due from Form 80-105, page 1, line 17, or Form 81-110, page 1, line 2.
- On line 12, enter the smaller of line 10, column 6, or line 11. Also enter that credit on Form 80-105, page 1, line 18, or Form 81-110, page 1, line 3.
Common mistakes
- Using W-2 withholding as proof of payment. Withholding amounts are not the same as actual tax paid to the other state, and withholding statements are not sufficient to establish the credit.
- Leaving out the other state's return or proof of payment. Both must be attached to your Mississippi return along with Form 80-160.
- Claiming more than the allowed credit. The credit cannot exceed Mississippi income tax due, income tax actually paid to the other state, or the limit computed using the highest applicable Mississippi rates on net taxable income reported to the other state.
- Using an unacceptable form format. Form 80-160 states that duplex copies and photocopies are not acceptable.
Questions people ask
Can I claim a credit for taxes paid to more than one state?
Yes. The form provides separate columns 3, 4, and 5 for income earned in other states. Enter each state's name above its column and attach copies of the other state returns.
Is my W-2 enough to prove that I paid the other state's tax?
No. A Wage and Tax Statement showing withholding is not considered proof of payment of the other state's tax liability. You must attach the other state's return and proof of payment.
Will the credit always equal the tax I paid to the other state?
No. The credit is limited by Mississippi income tax due, tax actually paid to the other state, and the amount computed by applying the highest applicable Mississippi rates to net taxable income reported to the other state.
What rates does the 2024 form use to calculate the credit?
The line instructions apply 0% to the first $10,000 of total out-of-state taxable income and 4.7% to the remaining balance. The resulting tax is allocated among the other states using the ratios on line 5.