MS - Reject XMS00-093 for Missing Federal Schedule D

The Mississippi DOR issues the following reject for all individual returns with capital gain income or loss that do not include Federal Schedule D:

XMS00-093 - If Taxpayer Capital Gain/Loss is entered (Must include XML Fed Sch D)

If a tax return has capital gains income/loss and no Federal Schedule D is required, the state DOR has indicated that the capital gains/losses should be reported as other income and not reported as capital gains. The steps to make this change are listed below.

1. On MS screen INC, enter an override of 0 (zero) on the line for Capital gain (loss), in Mississippi Source Income columns for the Taxpayer and Spouse.
2. On MS screen OTHI, enter Capital Gains as a description and enter the appropriate amount of capital gains/losses on the return in Mississippi Source Income columns for the Taxpayer and Spouse.