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The items listed below are those which are required in the production of crops and are to be allowed after verification is received of the gross proceeds. 1. Seed, fertilizer, and chemicals for insect control and/or soil treatment. 2. Hired labor not to exceed the average local wages for farm day labor. 3. Machinery hire not to exceed the average local rate for such rental. 4. Feed and veterinary expense for work stock used in the production of the crop. Such expense is not allowable for animals not used in the crop. 5. Gas and oil for machinery used in the production of the crop. 6. The purchase and/or repair of small tools and equipment such as rakes, hoes, plow, etc. Repair of large machinery, such as a tractor, can be included in this item, but the purchase of expensive farm machinery cannot be deducted. 7. The interest paid on the crop loan or credit account for the current year. 8. The cash rental paid for the use of the land or the value of the percentage of the crop given in lieu of a cash payment. 9. The net loss on the crop for the previous year. It will have to be repaid from the proceeds of the completed crop if the same farming arrangements have continued. If the farmer has moved, did not repay the loss on the previous crop and his source of credit suffered the loss, then the loss was not his and no deduction can be made.
4110 Volume III | Chapter 4
MISSISSIPPI [INCOME: EARNED INCOME] Revised 05-01-06
EARNED INCOME TAX CREDIT The Earned Income Tax Credit (EITC) is a refundable tax credit for families and dependent children. EITC payments are received either monthly, as advance payments through the employer, annually (as a refund from IRS), or both. EITC payments are disregarded as income in the determination of eligibility and the amount of TANF benefits. EARNED INCOME OF STUDENTS UNDER AGE 18 The earned income of children who are members of the assistance unit, who are students at least half-time, and who have not attained their eighteenth birthday, will be totally disregarded. The dependent child may be a full-time student or a part-time student but not a full-time employee who