MS SB2134

Allows resident taxpayers with employment-related childcare expenses for dependents under age 5 to defer payment of state income tax liability by up to $2,000 per year.

Deferred tax amounts become due in equal installments over 10 years once the taxpayer is no longer eligible for the deferral.

If a taxpayer takes the deferral in multiple years, repayment of older deferrals (5+ years prior) is reduced to one-tenth annually until repaid, with no interest charged.

Taxpayers may repay deferred amounts early without penalty or pay less than the maximum allowable deferral in any given year.

Taxpayers who relocate to states without tax reciprocity with Mississippi must pay the entire deferred amount in the year of relocation, though the Department of Revenue may approve a payment plan.