Section 35-3-07-04-105 - Exclusions from Gross Income1.Retirement Income-Armed Forces: a. Retirement allowances received by a retired member of the Armed Forces, including the National Guard and Military Reserve, not based on disability, must be included in gross income to the extent of income from retirement pay, annuities and pensions that exceeds the sum of six thousand dollars ($6,000) for the taxable year. Income from retirement allowances, pensions and annuities up to $6,000 for each taxable year may be excluded from gross income.b. The amount of reduction in retirement pay of a retired member of the Armed Forces representing contributions to a Retired Serviceman's Family Protection Plan ( 10 U.S.C. 1431) or a Survivor Benefit Plan ( 10 U.S.C. 1447) must be included in gross income for the taxable year in which the contribution or reduction is made for Mississippi income tax purposes. The total retirement allowances, annuities or pensions are subject to the $6,000 exclusion. Mississippi Law does not conform with Section 122, IRC, with respect to the exclusion from gross income of the amount by which the retirement or retainer pay of a member or former member of the uniformed services is reduced in order to provide a survivor benefit.c. Upon the death of a member or former member of the uniformed services, where the "consideration for the contract" (cost basis of the annuity) has not been excluded in whole or in part from gross income for Mississippi income tax purposes, the survivor of such member who is receiving an annuity shall exclude from gross income such annuity payments equaling "consideration for the contract" (cost basis of the annuity) not previously excluded from gross income by the member or former member of the uniformed services. The $6,000 retirement income exclusion is also available to the spouse or other beneficiary at the death of the primary retiree.2.National Guard and Reserve Pay: Compensation received by a member of the National Guard or Reserve Forces of the United States for inactive duty training (monthly or special drills or meetings), active duty training (summer camps, special schools, cruises) and for state active duty (emergency duty) must be included in gross income to the extent such pay is in excess of six thousand dollars ($6,000) for the taxable year. National Guard and Reserve pay up to $6,000 for each taxable year may be excluded from gross income. The exclusion does not apply to compensation or wages of full-time uniformed employees of the National Guard or Reserve Forces, nor does the exclusion apply to the wages of other employees such as secretaries, clerks, technicians, laborers, equipment operators or staff personnel.
35 Miss. Code. R. 3-07-04-105