Mississippi Administrative Code
Title 35 - Department of Revenue
Part 3 - Income and Franchise
Subpart 03 - Exclusions from Gross Income
Chapter 03 - Employee Benefits
Section 35-3-03-03-105

Nontaxable benefits under Section 125 of the Internal Revenue Code referred to as "cafeteria plans" are also excludable for Mississippi Income Tax purposes to the extent allowed by the IRC. Mississippi also recognizes Section 129 of the Internal Revenue Code pertaining to dependent care assistance programs and Section 127 of the Internal Revenue Code pertaining to employer provided educational assistance plans. The benefits mentioned above under IRC Sections 125, 127 and 129 are not subject to Mississippi withholding.