Drake Tax - MS: Reject XMS00-093

How to correct or avoid MS reject XMS00-093

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.

• 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.

• 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.