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  • Previous Year Forms
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Current Year Forms

Same-sex filers Forms and Instructions - Update
Frequently Asked Questions
 

2014 Individual Income Tax
- 2014 Individual Income Tax Rates

 

2014 Individual Income Tax
Individual Income Tax Payment Voucher - Use this form for current year, estimated tax, extension, or amended return payments.
Interactive 2014 Form 2 (MCA and ARM citations)
Montana Code Annotated - Chapter 30: Individual Income Taxes

2014 Instruction Booklets

2014 Montana Individual Income Tax Form 2EZ Booklet (short form)
- 2014 Montana Individual Income Tax Form 2M Booklet (intermediate form)
- 2014 Montana Individual Income Tax Form 2 Booklet (long form) 

2014 Montana Individual Income Tax Forms
- 2EC - Montana Elderly Homeowner/Renter Credit
- 2EZ - Montana Individual Income Tax Return - short form
- 2M - Montana Individual Income Tax Return - Intermediate
- 2 - Montana Individual Income Tax Return - Long Form

Form 2 Schedules 1-8
- Schedule I - Montana Additions to Federal Adjusted Gross Income
- Schedule II - Montana Subtractions to Federal Adjusted Gross Income
- Schedule III - Montana Itemized Deductions
- Schedule IV - Nonresident/Part-year Resident Tax
- Schedule V - Montana Tax Credits
- Schedule VI - Credit for Income Tax Liability Paid to Another State or Country
- Schedule VIII - Reporting of Special Transactions

 

Form 2M Worksheets II, IV, V, VI, VII, VIII

Form 2 Worksheets

- Worksheet II - Tax Benefit Rule for Federal Income Tax Refund
- Worksheet III and IV - Qualified Capital Gain Exclusion and Partial Pension and Annuity Income Exclusion
- Worksheet V, VI-QMIP, VI-IDL - Standard Deduction, Qualified Mortgage Insurance Premiums Deduction and Itemized Deduction Limitation Worksheets
- Worksheet VII - Calculation of Interest on Underpayment of Estimated Taxes - Short Method
- Worksheet VIII - Taxable Social Security Benefits
- Worksheet IX - Tax Benefit Rule for Recoveries of Itemized Deductions

2014 Montana Individual Income Tax Supplemental Forms and Instructions

MT-R - Reciprocity Exemption from Withholding for North Dakota residents who work in Montana
2441-M - Child and Dependent Care Expense Deduction: 2014 Form
AEPC - Alternative Energy Production Credit: 2014 Form
AFCR - Alternative Fuel Credit: 2014 Form
AMD - Montana Individual Income Tax Amended Return Reconciliation 
BBSC - Biodiesel Blending and Storage Credit: 2014 Form
CC - College Contribution Credit: 2014 Form
DCAC - Dependent Care Assistance Credits: 2014 Form
DS-1 - Disability Income Exemption: 2014 Form
ECC - Elderly Care Credit: 2014 Form
ENRG-A - Geothermal System Credit: 2014 Form
ENRG-B - Alternative Energy System Credit: 2014 Form
ENRG-C - Energy Conservation Installation Credit: 2014 Form
ESA - Estimated Tax Annualization Worksheet
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries: 2014 Form
ESW - Montana Individual Estimated Income Tax Worksheet
ETM - Enrolled Tribal Member: 2014 Form
EXT - Extension Payment Worksheet: 2014 Form
FRM - Farm and Ranch Risk Management Account: 2014 Form
FPC - Film Production Credit: 2014 Form
FPC-AF - Film Production Credit Application Fee 
FPC-PP - Film Production Credit - Submission of Costs - End of Principal Photography
FPC-RD - Film Production Credit Residency Declaration 
FTB - First Time Home Buyer Savings Account: 2014 Form
HI - Health Insurance For Uninsured Montanans Credit: 2014 Form
MHPE - Mobile Home Park Exclusion: 2014 Form
MINE-CRED - Mineral and Coal Exploration Incentive Credit: 2014 Form
MSA - Montana Medical Care Savings Account: 2014 Form
NOL - Montana Net Operating Loss: 2014 Form
NOL-Pre-99 - Net Operating Loss Worksheet: 2014 Form
OSC - Oil Seed Crushing and Biodiesel/Biolubricant Production Facilities Credit: 2014 Form
POA - Power of Attorney: 2014 Form
QEC - Qualified Endowment Credit: 2014 Form
- Single Life Expectancy Table
- Two Life Expectancy Table
RCYL - Recycling Credit/Deduction: 2014 Form
TELC - Temporary Emergency Lodging Credit: 2014 Form
VT - Veterans Program Contribution/Deduction: 2014 Form


Previous Year Forms


2013 Forms

Income Tax Rates

Tax Rates Form for Individual Income Tax Rates:  2013 Form

Instruction Booklets

2EZ Booklet - Montana Individual Income Tax Form Booklet - Short Form: (2011 and later do not include forms) 2013 Booklet
2M Booklet - Montana Individual Income Tax Form Booklet - Intermediate Form: (2011 and later do not include forms) 2013 Booklet
2 Booklet - Montana Individual Income Tax Form Booklet - Long Form: (2011 and later do not include forms) 2013 Booklet

Individual Income Tax Forms

IT Payment Voucher - Individual Income Tax Payment Voucher: (Use this form for estimated tax, extension, or amended return payments)
2EC - Montana Elderly Homeowner/Renter Credit: 2013 Form
2EZ Montana Individual Income Tax Return - Short Form: 2013 Form
2M Montana Individual Income Tax Return - Intermediate Form: 2013 Form
2 Montana Individual Income Tax Return - Long Form: 2013 Form

Schedules

2 SCH I - Montana Additions to Federal Adjusted Gross Income: 2013 Schedule
2 SCH II - Montana Subtractions to Federal Adjusted Gross Income: 2013 Schedule
2 SCH III - Montana Itemized Deductions:  2013 Schedule
2 SCH IV - Non-Resident/Part-Year Resident Tax: 2013 Schedule
2 SCH V - Montana Tax Credits: 2013 Schedule
2 SCH VI and VII - Credit for Income Tax Liability Paid to Another State or County - Full Year/Part Year Resident Only: 2013 Schedule
2 SCH VIII - Reporting of Special Transactions: 2013 Schedule

Worksheets

2M - Worksheets: 2013 Worksheets
2 Worksheet II - Tax Benefit Rule for Federal Income Tax Refund: 2013 Worksheet
2 Worksheet III - IV - Qualified Capital Gain Exclusion and Partial Pension and Annuity Income Exclusion: 2013 Worksheet
2 Worksheet V  and VI - Standard Deduction, Qualified Mortgage Insurance Premiums Deduction and Itemized Deduction Limitation: 2013 Worksheet

2 Worksheet VII - Calculation of Interest on Underpayment of Estimated Taxes - Short Method: 2013 Worksheet
2 Worksheet VIII - Taxable Social Security Benefits: 2013 Worksheet
2 Worksheet IX - Tax Benefit Rule for Recoveries of Itemized Deductions: 2013 Worksheet

Supplemental Forms and Instructions

2101 - W-2 Withholding Declaration: 2012 Form
2441-M - Child and Dependent Care Expense Deduction: 2013 Form
AEPC - Alternative Energy Production Credit: 2013 Form
AFCR - Alternative Fuel Credit: 2013 Form
AMD - Montana Individual Income Tax Amended Return Reconciliation: 2013 Form
BBSC - Biodiesel Blending and Storage Credit: 2013 Form
CC - College Contribution Credit: 2013 Form
DCAC - Dependent Care Assistance Credits: 2013 Form
DS-1 - Disability Income Exemption: 2013 Form
ECC - Elderly Care Credit: 2013 Form
ENRG-A - Geothermal System Credit: 2013 Form
ENRG-B - Alternative Energy System Credit: 2013 Form
ENRG-C - Energy Conservation Installation Credit: 2013 Form
ESA - Estimated Tax Annualization Worksheet: 2013 Form
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries: 2013 Form
ESW - Montana Individual Estimated Income Tax Worksheet: 2013 Form
EXT - Extension Payment Worksheet: 2013 Form
FPC - Film Production Credit: 2013 Form
FPC-AF - Film Production Credit Application Fee: 2013 Form
FPC-PP - Film Production Credit - Submission of Costs - End of Principal Photography: 2013 Form
FPC-RD - Film Production Credit Residency Declaration: 2013 Form
FRM - Farm and Ranch Risk Management Account: 2013 Form
FTB - First Time Home Buyer Savings Account: 2013 Form
HI - Health Insurance for Uninsured Montanans Credit: 2013 Form
IUFC - Infrastructure User Fee Credit: 2013 Form
MHPE - Mobile Home Park Exclusion: 2013 Form
MINE-CRED - Mineral and Coal Exploration Incentive Credit: 2013 Form 
MSA - Montana Medical Care Savings Account: 2013 Form 
NOL - Montana Net Operating Loss: 2013 Form
NOL-Pre-99 - Net Operating Loss Worksheet: 2013 Form
OSC - Oil Seed Crushing and Biodiesel/Biolubricant Production Facilities Credit: 2013 Form
QEC - Qualified Endowment Credit: 2013 Form
RCYL - Recycling Credit/Deduction: 2013 Form
TELC - Temporary Emergency Lodging Credit: 2013 Form
VT - Veterans Program Contribution/Deduction: 2013 Form

2012 Forms

Income Tax Rates

Tax Rates Form for Individual Income Tax Rates:  2012 Form

Instruction Booklets

2EZ Booklet - Montana Individual Income Tax Form Booklet - Short Form: (2011 and later do not include forms) 2012 Booklet
2M Booklet - Montana Individual Income Tax Form Booklet - Intermediate Form: (2011 and later do not include forms) 2012 Booklet
2 Booklet - Montana Individual Income Tax Form Booklet - Long Form: (2011 and later do not include forms) 2012 Booklet

Individual Income Tax Forms

IT Payment Voucher - Individual Income Tax Payment Voucher: (Use this form for estimated tax, extension, or amended return payments)
2EC - Montana Elderly Homeowner/Renter Credit: 2012 Form
2EZ Montana Individual Income Tax Return - Short Form: 2012 Form
2M Montana Individual Income Tax Return - Intermediate Form: 2012 Form
2 Montana Individual Income Tax Return - Long Form: 2012 Form

Schedules

2 SCH I - Montana Additions to Federal Adjusted Gross Income: 2012 Schedule
2 SCH II - Montana Subtractions to Federal Adjusted Gross Income: 2012 Schedule
2 SCH III - Montana Itemized Deductions: 2012 Schedule
2 SCH IV - Non-Resident/Part-Year Resident Tax: 2012 Schedule
2 SCH V - Montana Tax Credits: 2012 Schedule
2 SCH VI and VII - Credit for Income Tax Liability Paid to Another State or County - Full Year/Part Year Resident Only: 2012 Schedule
2 SCH VIII - Reporting of Special Transactions: 2012 Schedule

Worksheets

2M - Worksheets: (Worksheet VI-IDL for 2013 was updated 01/10/14 to reflect a correction on line 8) 2012 Worksheets
2 Worksheet II - Tax Benefit Rule for Federal Income Tax Refund: 2012 Worksheet
2 Worksheet III - IV - Qualified Capital Gain Exclusion and Partial Pension and Annuity Income Exclusion: 2012 Worksheet
2 Worksheet V - Standard Deduction: 2012 Worksheet
2 Worksheet VI - Qualified Mortgage Insurance Premiums Deduction: 2012 Worksheet
2 Worksheet VIII - Taxable Social Security Benefits: 2012 Worksheet
2 Worksheet IX - Tax Benefit Rule for Recoveries of Itemized Deductions: 2012 Worksheet

Supplemental Forms and Instructions

2101 - W-2 Withholding Declaration: 2012 Form
2441-M - Child and Dependent Care Expense Deduction: 2012 Form
AEPC - Alternative Energy Production Credit: 2012 Form
AFCR - Alternative Fuel Credit: 2012 Form
AMD - Montana Individual Income Tax Amended Return Reconciliation: 2012 Form
BBSC - Biodiesel Blending and Storage Credit: 2012 Form
CC - College Contribution Credit: 2012 Form
DCAC - Dependent Care Assistance Credits: 2012 Form
DS-1 - Disability Income Exemption: 2012 Form
ECC - Elderly Care Credit: 2012 Form
ENRG-A - Geothermal System Credit: 2012 Form
ENRG-B - Alternative Energy System Credit: 2012 Form
ENRG-C - Energy Conservation Installation Credit: 2012 Form
ESA - Estimated Tax Annualization Worksheet: 2013 Form
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries: 2012 Form
ESW - Montana Individual Estimated Income Tax Worksheet: 2013 Form
EXT - Extension Payment Worksheet: 2012 Form
FPC - Film Production Credit: 2012 Form
FPC-AF - Film Production Credit Application Fee: 2012 Form
FPC-PP - Film Production Credit - Submission of Costs - End of Principal Photography: 2012 Form
FPC-RD - Film Production Credit Residency Declaration: 2012 Form
FRM - Farm and Ranch Risk Management Account: 2012 Form
FTB - First Time Home Buyer Savings Account: 2012 Form
HI - Health Insurance for Uninsured Montanans Credit: 2012 Form
IND - Tribal Member Certification: 2012 Form
IUFC - Infrastructure User Fee Credit: 2012 Form
MHPE - Mobile Home Park Exclusion: 2012 Form
MINE-CRED - Mineral and Coal Exploration Incentive Credit: 2012 Form 
MSA - Montana Medical Care Savings Account: 2012 Form 
NOL - Montana Net Operating Loss: 2012 Form
NOL-Pre-99 - Net Operating Loss Worksheet: 2012 Form
OSC - Oil Seed Crushing and Biodiesel/Biolubricant Production Facilities Credit: 2012 Form
QEC - Qualified Endowment Credit: 2012 Form
RCYL - Recycling Credit/Deduction: 2012 Form
TELC - Temporary Emergency Lodging Credit: 2012 Form
VT - Veterans Program Contribution/Deduction: 2012 Form

2011 Forms

Income Tax Rates

Tax Rates Form for Individual Income Tax Rates: 2011 Form

Instruction Booklets

2EZ Booklet - Montana Individual Income Tax Form Booklet - Short Form: (2011 and later do not include forms) 2011 Booklet
2M Booklet - Montana Individual Income Tax Form Booklet - Intermediate Form: (2011 and later do not include forms) 2011 Booklet
2 Booklet - Montana Individual Income Tax Form Booklet - Long Form: (2011 and later do not include forms) 2011 Booklet

Individual Income Tax Forms

IT Payment Voucher - Individual Income Tax Payment Voucher: (Use this form for estimated tax, extension, or amended return payments)
2EC - Montana Elderly Homeowner/Renter Credit: 2011 Form
2EZ Montana Individual Income Tax Return - Short Form: 2011 Form
2M Montana Individual Income Tax Return - Intermediate Form: 2011 Form
2 Montana Individual Income Tax Return - Long Form: 2011 Form

Schedules

2 SCH I - Montana Additions to Federal Adjusted Gross Income: 2011 Schedule
2 SCH II - Montana Subtractions to Federal Adjusted Gross Income: 2011 Schedule
2 SCH III - Montana Itemized Deductions: 2011 Schedule
2 SCH IV - Non-Resident/Part-Year Resident Tax: 2011 Schedule
2 SCH V - Montana Tax Credits: 2011 Schedule
2 SCH VI and VII - Credit for Income Tax Liability Paid to Another State or County - Full Year/Part Year Resident Only: 2011 Schedule
2 SCH VIII - Reporting of Special Transactions: 2011 Schedule

Worksheets

2M - Worksheets: (Worksheet VI-IDL for 2013 was updated 01/10/14 to reflect a correction on line 8) 2011 Worksheets
2 Worksheet II - Tax Benefit Rule for Federal Income Tax Refund: 2011 Worksheet
2 Worksheet III - IV - Qualified Capital Gain Exclusion and Partial Pension and Annuity Income Exclusion: 2011 Worksheet
2 Worksheet V - Standard Deduction: 2011 Worksheet
2 Worksheet VI - Qualified Mortgage Insurance Premiums Deduction: 2011 Worksheet
2 Worksheet VIII - Taxable Social Security Benefits: 2011 Worksheet
2 Worksheet IX - Tax Benefit Rule for Recoveries of Itemized Deductions: 2011 Worksheet

Supplemental Forms and Instructions

2101 - W-2 Withholding Declaration: 2011 Form
2441-M - Child and Dependent Care Expense Deduction: 2011 Form
AEPC - Alternative Energy Production Credit: 2011 Form
AFCR - Alternative Fuel Credit: 2011 Form
BBSC - Biodiesel Blending and Storage Credit: 2011 Form
CC - College Contribution Credit: 2011 Form
DCAC - Dependent Care Assistance Credits: 2011 Form
DS-1 - Disability Income Exemption: 2011 Form
ECC - Elderly Care Credit: 2011 Form
ENRG-A - Geothermal System Credit: 2011 Form
ENRG-B - Alternative Energy System Credit: 2011 Form
ENRG-C - Energy Conservation Installation Credit: 2011 Form
ESA - Estimated Tax Annualization Worksheet: 2011 Form
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries: 2011 Form
ESW - Montana Individual Estimated Income Tax Worksheet: 2011 Form
EXT - Extension Payment Worksheet: 2011 Form
FPC - Film Production Credit: 2011 Form
FPC-AF - Film Production Credit Application Fee: 2011 Form
FPC-PP - Film Production Credit - Submission of Costs - End of Principal Photography: 2011 Form
FPC-RD - Film Production Credit Residency Declaration: 2011 Form
FRM - Farm and Ranch Risk Management Account: 2011 Form
FTB - First Time Home Buyer Savings Account: 2011 Form
HI - Health Insurance for Uninsured Montanans Credit: 2011 Form
IND - Tribal Member Certification: 2011 Form
IUFC - Infrastructure User Fee Credit: 2011 Form
MHPE - Mobile Home Park Exclusion: 2011 Form
MINE-CRED - Mineral and Coal Exploration Incentive Credit: 2011 Form
MSA - Montana Medical Care Savings Account: 2011 Form 
NOL - Montana Net Operating Loss: 2011 Form 
NOL-Pre-99 - Net Operating Loss Worksheet: 2011 Form
OSC - Oil Seed Crushing and Biodiesel/Biolubricant Production Facilities Credit: 2011 Form
QEC - Qualified Endowment Credit: 2011 Form
RCYL - Recycling Credit/Deduction: 2011 Form
TELC - Temporary Emergency Lodging Credit: 2011 Form
VT - Veterans Program Contribution/Deduction: 2011 Form

2010 Forms

Income Tax Rates

Tax Rates Form for Individual Income Tax Rates by year: 2010 Form

Instruction Booklets

2EZ Booklet - Montana Individual Income Tax Form Booklet - Short Form: (2011 and later do not include forms) 2010 Booklet
2M Booklet - Montana Individual Income Tax Form Booklet - Intermediate Form: (2011 and later do not include forms) 2010 Booklet
2 Booklet - Montana Individual Income Tax Form Booklet - Long Form: (2011 and later do not include forms) 2010 Booklet

Individual Income Tax Forms

2EC - Montana Elderly Homeowner/Renter Credit: 2010 Form
2EZ Montana Individual Income Tax Return - Short Form: 2010 Form
2M Montana Individual Income Tax Return - Intermediate Form: 2010 Form
2 Montana Individual Income Tax Return - Long Form: 2010 Form

Schedules

2 SCH I - Montana Additions to Federal Adjusted Gross Income: 2010 Schedule
2 SCH II - Montana Subtractions to Federal Adjusted Gross Income: 2010 Schedule
2 SCH III - Montana Itemized Deductions: 2010 Schedule
2 SCH IV - Non-Resident/Part-Year Resident Tax: 2010 Schedule
2 SCH V - Montana Tax Credits: 2010 Schedule
2 SCH VI and VII - Credit for Income Tax Liability Paid to Another State or County - Full Year/Part Year Resident Only: 2010 Schedule
2 SCH VIII - Reporting of Special Transactions: 2010 Schedule

Worksheets

2M - Worksheets: (Worksheet VI-IDL for 2013 was updated 01/10/14 to reflect a correction on line 8) 2010 Worksheets
2 Worksheet II - Tax Benefit Rule for Federal Income Tax Refund: 2010 Worksheet
2 Worksheet III - IV - Qualified Capital Gain Exclusion and Partial Pension and Annuity Income Exclusion: 2010 Worksheet
2 Worksheet V - Standard Deduction: 2010 Worksheet
2 Worksheet VI - Qualified Mortgage Insurance Premiums Deduction: 2010 Worksheet
2 Worksheet VIII - Taxable Social Security Benefits: 2010 Worksheet
2 Worksheet IX - Tax Benefit Rule for Recoveries of Itemized Deductions: 2010 Worksheet

Supplemental Forms and Instructions

2441-M - Child and Dependent Care Expense Deduction: 2010 Form
AEPC - Alternative Energy Production Credit: 2010 Form
AFCR - Alternative Fuel Credit: 2010 Form
BBSC - Biodiesel Blending and Storage Credit: 2010 Form
CC - College Contribution Credit: 2010 Form
DCAC - Dependent Care Assistance Credits: 2010 Form
DS-1 - Disability Income Exemption: 2010 Form
ECC - Elderly Care Credit: 2010 Form
ENRG-A - Geothermal System Credit: 2010 Form
ENRG-B - Alternative Energy System Credit: 2010 Form
ENRG-C - Energy Conservation Installation Credit: 2010 Form
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries: 2010 Form
ESW - Montana Individual Estimated Income Tax Worksheet: 2010 Form
EXT - Extension Payment Worksheet: 2010 Form
FPC - Film Production Credit: 2010 Form
FPC-AF - Film Production Credit Application Fee: 2010 Form
FPC-PP - Film Production Credit - Submission of Costs - End of Principal Photography: 2010 Form
FPC-RD - Film Production Credit Residency Declaration: 2010 Form
FRM - Farm and Ranch Risk Management Account: 2010 Form
FTB - First Time Home Buyer Savings Account: 2010 Form
HI - Health Insurance for Uninsured Montanans Credit: 2010 Form 
IND - Tribal Member Certification: 2010 Form
IUFC - Infrastructure User Fee Credit: 2010 Form
MHPE - Mobile Home Park Exclusion: 2010 Form
MINE-CRED - Mineral and Coal Exploration Incentive Credit: 2010 Form 
MSA - Montana Medical Care Savings Account: 2010 Form 
NOL - Montana Net Operating Loss: 2010 Form 
OSC - Oil Seed Crushing and Biodiesel/Biolubricant Production Facilities Credit: 2010 Form 
QEC - Qualified Endowment Credit: 2010 Form 
RCYL - Recycling Credit/Deduction: 2010 Form 
RSCH - Increase Research and Development Activities Credit: 2010 Form
TELC - Temporary Emergency Lodging Credit: 2010 Form
VT - Veterans Program Contribution/Deduction: 2010 Form

2009 Forms

2009 Individual Income Tax

Individual Income Tax Payment Form - Use this form for current year, estimated tax, extension, or amended return payments.
2009 Individual Income Tax Rates

2009 Instruction Booklets

2009 Montana Individual Income Tax Form 2EZ Booklet (short form)
2009 Montana Individual Income Tax Form 2M Booklet (intermediate form) - Revised 2-17-10
2009 Montana Individual Income Tax Form 2 Booklet (long form) - Revised 2-17-10

2009 Montana Individual Income Tax Forms

2EC - Montana Elderly Homeowner/Renter Credit
2EZ - Montana Individual Income Tax Return - short form 
2M - Montana Individual Income Tax Return - Intermediate
2M - Worksheets 
2 - Montana Individual Income Tax Return - Long Form

2 Schedules 1-8

Schedule I - Montana Additions to Federal Adjusted Gross Income
Schedule II - Montana Subtractions to Federal Adjusted Gross Income 
Schedule III - Montana Itemized Deductions
Schedule IV - Nonresident/Part-year Resident Tax
Schedule V - Montana Tax Credits
Schedule VI and VII - Credit for Income Tax Liability Paid to Another
State or Country 
Schedule VIII - Reporting of Special Transactions

2 Worksheets

Worksheet II - Tax Benefit Rule for Federal Income Tax Refund 
Worksheet III and IV - Qualified Capital Gain Exclusion and Partial Pension and Annuity Income Exclusion 
Worksheet V, VI-A, VI-B - Standard Deduction, Itemized Deduction Worksheet, and Qualified Mortgage Insurance Premium Deduction Worksheet 
Worksheet VI-C, VII - New Vehicle Taxes and Fees Deduction, Calculation of Interest on Underpayment of Estimated Taxes
Worksheet VIII - Taxable Social Security Benefits 
Worksheet IX - Tax Benefit Rule for Recoveries of Itemized Deductions

2009 Montana Individual Income Tax Supplemental Forms and Instructions

2101 - W-2 Withholding Declaration
2441-M - Child and Dependent Care Expense Deduction
AEPC - Alternative Energy Production Credit
AFCR - Alternative Fuel Credit
AMD - Montana Individual Income Tax Amended Return Reconciliation 
BBSC - Biodiesel Blending and Storage Credit
CC - College Contribution Credit
DCAC - Dependent Care Assistance Credits
DS-1 - Disability Income Exemption
ECC - Elderly Care Credit
ENRG-A - Geothermal System Credit
ENRG-B - Alternative Energy System Credit
ENRG-C - Energy Conservation Installation Credit
ESA - 2010 Annualization Worksheet
ESL - Extension of Statute of Limitations
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries
ESW - 2010 Montana Individual Estimated Income Tax Worksheet
ESW-FID - 2010 Montana Fidicuary Estimated Income Tax Worksheet
EXT-09 - Extension Payment Worksheet
EXT-FID - Extension Payment Worksheet
FPC - Film Production Credit
FRM - Farm and Ranch Risk Management Account
FTB - First Time Home Buyer Savings Account
FTB-P - First Time Home Buyers Savings Account - Penalty Calculation
HI - Health Insurance for Uninsured Montanans Credit
IND - Tribal Member Certification
IUFC - Infrastructure Users Fee Credit
MHPE - Mobile Home Park Exclusion
MSA - Montana Medical Care Savings Account
MSA-P - Medical Care Savings Account - Penalty Calculation
NOL - Montana Net Operating Loss Updated April 15, 2010 
NOL-Pre-99 - Net Operating Loss Worksheet
OSC - Oil Seed Crushing and Biodiesel/Biolubricant Production Facilities Credit
QEC - Qualified Endowment Credit
RCYL - Recycling Credit/Deduction
RSCH - Increase Research and Development Activities Credit
Schedule K-1 for FID-3
TELC - Temporary Emergency Lodging Credit
VT - Veterans’ Program Contribution and Deduction

2008 Forms

2008 Instruction Booklets:

2008 Montana Individual Income Tax Form 2EZ Booklet (short form) 
2008 Montana Individual Income Tax Form 2M Booklet (intermediate form) 
2008 Montana Individual Income Tax Form 2 Booklet (long form) 
2008 Fiduciary Booklet - Income Tax Booklet For Estates or Trusts 

2008 Montana Individual Income Tax Forms: 

Income Tax Payment Form 
2EC - Montana Elderly Homeowner/Renter Credit 
2EZ - Montana Individual Income Tax Return - short form 
2M - Montana Individual Income Tax Return - intermediate 
Please note: Schedule II instructions revised 3/09: Corrections to the instructions for line 30 were made on 03/20/09. Details 
2M - Worksheets
Itemized Deduction Worksheet (VI) was significantly revised 1/20/09 Details 
Qualified Mortgage Insurance Premiums Worksheet was revised 1/20/09 Details 
2 - Montana Individual Income Tax Return - long Form 

2 Schedules 1-8:

Schedule I - Montana Additions to Federal Adjusted Gross Income 
Schedule II- Montana Subtractions to Federal Adjusted Gross Income 
Please note: Schedule II instructions revised 3/09: Corrections to the instructions for Schedule II, line 12 were made on 03/20/09. Details 
Schedule III - Montana Itemized Deductions
Schedule IV- Nonresident/Part-year Resident Tax 
Schedule V - Montana Tax Credits 
Schedule VI and VII - Credit for Income Tax Liability Paid to Another State or Country
Schedule VIII - Reporting of Special Transactions

2 Worksheets:

Worksheet II - Tax Benefit Rule for federal Income Tax Refund 
Worksheet III and IV - Qualified Capital Gain Exclusion and Partial Pension and Annuity Income Exclusion 
Worksheet V, VI, and QMIP - Standard Deduction, Itemized Deduction Worksheet, and Qualified Mortgage Insurance Premium Deduction Worksheet 
Itemized Deduction Worksheet (VI) was significantly revised 1/20/09 Details 
Qualified Mortgage Insurance Premiums Worksheet was revised 1/20/09 Details 
Worksheet VII - Calculation of Interest on Underpayment of Estimated Taxes 
Worksheet VIII - Taxable Social Security Benefits 
Worksheet IX - Tax Benefit Rule for Recoveries of Itemized Deductions 

2008 Montana Individual Income Tax Supplemental Forms and Instructions: 

2101 - W-2 Withholding Declaration 
2441-M - Child and Dependent Care Expense Deduction 
AEPC - Alternative Energy Production Credit 
AFCR - Alternative Fuel Credit 
AMD - Montana Individual Income Tax Amended Return Reconciliation 
BBSC - Biodiesel Blending and Storage Credit 
CC - College Contribution Credit 
DCAC - Dependent Care Assistance Credits 
DS-1 - Disability Income Exemption 
ECC - Elderly Care Credit 
ENRG-A - Geothermal System Credit 
ENRG-B - Alternative Energy System Credit 
ENRG-C - Energy Conservation Installation Credit 
ESA - 2008 Annualization Worksheet 
ESL - Extension of Statute of Limitations 
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries 
ESW - 2009 Montana Individual Estimated Income Tax Worksheet 
ESW-FID - 2009 Montana Fiduciary Estimated Income Tax Worksheet 
EXT-08 - Extension Payment Worksheet 
FID-3 - Montana Income Tax Return for Estates and Trusts 
Fiduciary (Estate or Trust) Tax Payment Form 
FPC - Film Production Credit 
FPC-AF - Film Production Credit Application Fee 
FPC-RD - Residency Declaration 
FPC-PP - Film Production Credit - Submission of Costs—End of Principal Photography 
FRM - Farm and Ranch Risk Management Account 
FTB - First Time Home Buyer Savings Account 
FTB-P - First Time Home Buyers Savings Account - Penalty Calculation 
HI - Health Insurance for Uninsured Montanans Credit 
IND - Indian Certification 
MSA - Montana Medical Care Savings Account 
MSA-P - Medical Care Savings Account - Penalty Calculation 
NOL - Montana Net Operating Loss 
NOL-Pre-99 - Net Operating Loss Worksheet 
OSC - Oil Seed Crushing and Biodiesel/Biolubricant Production Facilities Credit 
QEC - Qualified Endowment Credit 
RCYL - Recycling Credit/Deduction 
RSCH - Increase Research and Development Activities Credit 
TELC - 2008 Temporary Emergency Lodging Credit 
VT - Veterans’ Program Contribution and Deduction

2007 Forms

2007 Booklets:

2007 Montana Individual Income Tax Form 2EZ Booklet (short form) 
2007 Montana Individual Income Tax Form 2M Booklet (intermediate form) 
2007 Montana Individual Income Tax Form 2 Booklet (long form) 
2007 Fiduciary Booklet - Income Tax Booklet For Estates or Trusts 
2007 Individual Income Tax Rates 

2007 Forms:

2EC - Montana Elderly Homeowner/Renter Credit 
2EZ - Montana Individual Income Tax Return - short form 
2M - Montana Individual Income Tax Return - intermediate 
2 - Montana Individual Income Tax Return - long form 

2 - Schedules 1 through 8:

Schedule I - Montana Additions to Federal Adjusted Gross Income 
Schedule II - Montana Subtractions from Federal Adjusted Gross Income
Schedule III - Montana Itemized Deductions - Please note: Taxpayers may deduct BOTH the federal income tax deductions and the general state and local sales tax, if applicable. 
Schedule IV - Non-resident/Part-year Resident Tax 
Schedule V - Montana Tax Credits 
Schedule VI - Full-year resident only. Credit for an Income Tax Liability Paid to Another State or Country 
Schedule VII - Part-year resident only. Credit for an Income Tax Liability Paid to Another State or Country 
Schedule VIII - Reporting of Special Transactions

2 Worksheets:

Worksheet I - IRA Deduction: No longer applicable after tax year 2006 
Worksheet II - self-calculating form - Tax Benefit Rule for Federal Income Tax Refund 
Worksheet III - self-calculating form - Qualified Capital Gain Exclusion 
Worksheet IV - self-calculating form - Partial Pension and Annuity Income Exemption 
Worksheet V - self-calculating form - Standard Deduction 
Worksheet VI - self-calculating form - Itemized Deduction 
Worksheet VII - self-calculating form - Calculation of Interest on Underpayment of Estimated Taxes - Short Method 
Worksheet VIII - self-calculating form - Taxable Social Security Benefits for Form 2 
Worksheet IX - fill-in form - Tax Benefit Rule for Recoveries of Itemized Deductions 

2101 - W-2 Withholding Declaration 
2441-M - Child and Dependent Care Expense Deduction 
PTC - Montana Homeowner Income Tax Credit for Property Taxes 
AEPC - Alternative Energy Production Credit 
AFCR - Alternative Fuel Credit 
AMD - Montana Individual Income Tax Amended Return Reconciliation
BBSC - Biodiesel Blending and Storage Credit 
CC - College Contribution Credit 
DCAC - Dependent Care Assistance Credits
DS-1 - Disability Income Exemption 
ECC - Elderly Care Credit 
ENRG-A - Geothermal System Credit 
ENRG-B - Alternative Energy System Credit 
ENRG-C - Energy Conservation Installation Credit
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries 
ESW - 2008 Montana Individual Estimated Income Tax Worksheet 
EXT-07 - Extension Payment Worksheet 
FID-3 - Montana Income Tax Return for Estates and Trusts 
Fiduciary (Estate or Trust) Tax Payment Form 
FPC - Film Production Credit 
FPC-AF - Film Production Credit Application Fee 
FPC-RD - Residency Declaration 
FPC-PP - Film Production Credit 
FRM - Farm and Ranch Risk Management Account 
FTB - First Time Home Buyer Savings Account 
HI - Health Insurance for Uninsured Montanans Credit 
Income Tax Payment Form 
IND - Indian Certification 
MSA - Montana Medical Care Savings Account 
MSA-P - Medical Care Savings Account - Penalty Calculation 
NOL - Montana Net Operating Loss 
NOL-Pre-99 - Net Operating Loss Worksheet 
OSC - Oil Seed Crushing and Biodiesel/Biolubricant Production Facilities Credit 
PTC - Montana Homeowner Income Tax Credit for Property Taxes 
QEC - Qualified Endowment Credit 
RCYL - Recycling Credit/Deduction 
RSCH - Increase Research and Development Activities Credit 
VT - Veterans’ Program Contribution and Deduction

2006 Forms

2006 Montana Individual Income Tax Forms and Instructions:

Please note: Worksheet II was significantly revised 2/07: Corrections to Worksheet I, line 6 were made on 02/6/07.
Please note: Worksheet VI was revised 3/07: Corrections to Worksheet VI, lines 6 & 7 were made on 03/16/07. 
2006 Individual Income Tax Rates 
2006 Fiduciary Tax Booklet - FID-3 Form Only 
Form 2EZ - 2006 Montana Individual Income Tax Return (Short Form) 
Form 2 - 2006 Montana Individual Income Tax Return (Long Form) 
Form 2EC - 2006 Montana Elderly Homeowner/Renter Credit
Form 2M - 2006 Montana Individual Income Tax Return

Form 2 - Schedules 1 through 8:

Schedule 1 - Montana Additions to Federal Adjusted Gross Income 
Schedule 2 - Montana Subtractions from Federal Adjusted Gross Income 
Schedule 3 - Montana Itemized Deductions 
Schedule 4 - Non-resident/Part-year Resident Tax 
Schedule 5 - Montana Tax Credits 
Schedule 6 - Full-year resident only. Credit for an Income Tax Liability Paid to Another State or Country
Schedule 7 - Part-year resident only. Credit for an Income Tax Liability Paid to Another State or Country 

2101 - W-2 Withholding Declaration 
2441-M - Child and Dependant Care Expense Deduction 
AEPC - Alternative Energy Production Credit 
AFCR - Alternative Fuel Credit 
AMD - Amended Return Reconciliation 
BBSC -Biodiesel Blending and Storage Tank Credit 
CC - College Contribution Credit 
DCAC - Dependant Care Assistance Credits 
DS-1 - Disability Income Exemptions 
ECC - Elderly Care Credit 
ENRG-A - Geothermal System Credit 
ENRG-B - Alternative Energy System Credit 
ENRG-C - Energy Conservation Installations Credit 
ESA - 2006 Annualization Worksheet 
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries 
ESW - 2006 Montana Individual Estimated Income Tax Worksheet 
EXT - Extension and Payment Form 
FID - Estates and Trusts Payment Form 
FPC - Film Production Credit 
FPC-PP - Film Production Credit-Submission of Costs-End of Principal Photography 
FPC-RD - Residency Declaration 
FRM - Farm and Ranch Risk Management Account 
FTB - First-Time Home Buyer Savings Account 
FTB-P - First-Time Home Buyer Savings Account - Penalty Calculation 
HI - Health Insurance For Uninsured Montanans Credit 
IND - Indian Certification 
IT - Payment Form for Individual Income Tax 
MSA - Medical Care Savings Account 
MSA-P - Medical Care Savings Account - Penalty Calculation 
NOL - Net Operating Loss Form and Instructions 
NOL-Pre-99 - Net Operating Loss Worksheet 
OSC - Oil Seed Crushing Facility Credit 
QEC - Qualified Endowment Credit 
RCYL - Recycling Credit/Deduction 
RSCH - Credit for Increasing Research and Development Activities 
VT - Veteran's Program Contribution and Deduction 

Worksheet I - IRA Deduction - Self Calculation Form 
Worksheet II - Revised 2/07 - Tax Benefit Rule for Federal Income Tax Refund - Self Calculation Form 
Worksheet III and IV - Qualified Capital Gain Exclusion and Worksheet 4 - Partial Pension and Annuity Income Exemption - Self Calculation Form 
Worksheet V - Standard Deduction and Worksheet VI - Revised 3/07- Itemized Deduction Worksheet - Self Calculation Form 
Worksheet VII - Calculation of Interest on Underpayment of Estimated Taxes - Short method - Self Calculation Form 
Worksheet VIII - Social Security Benefits - Self Calculation Form 
Worksheet IX - Tax Benefit Rule for Recoveries of Itemized Deductions - Fill-in form

2005 Forms

2005 Fiduciary Tax Booklet 
2005 Individual Income Tax Rates 
2005 Individual Income Tax Booklet - Note: Correction to Schedule VII, line 1 and 3, 11-27-05 and Correction to the instructions of the 2EC, 12-27-2005 
2005 Individual Income Tax Payment Form 
2 - 2005 Individual Income Tax Return 

2A Schedules 1 through 8:

Schedule 1 - Montana Additions to Federal Adjusted Gross Income 
Schedule 2 - Montana Subtractions from Federal Adjusted Gross Income 
Schedule 3 - Montana Itemized Deductions
Schedule 4 - Non-resident/Part-year Resident Tax 
Schedule 5 - Montana Tax Credits 
Schedule 6 - Full-year resident only. Credit for an Income Tax Liability Paid to Another State or Country. 
Schedule 7 - Part-year resident only. Credit for an Income Tax Liability Paid to Another State or Country. 
Schedule 8 - Reporting of Special Transactions

2 S Short Form - 2005 Individual Income Tax Return - Short Form 
2EC - Elderly Homeowner/Renter Credit 
2101 - W-2 Withholding Declaration 
2441-M - Child and Dependant Care Expense Deduction 
AEPC - Alternative Energy Production Credit 
AFCR - Alternative Fuel Credit 
AMD - Amended Return Reconciliation 
BBSC -Biodiesel Blending and Storage Tank Credit 
CC - College Contribution Credit 
DCAC - Dependant Care Assistance Credits 
DS-1 - Disability Income Exemptions 
ECC - Elderly Care Credit 
ENRG-A - Geothermal System Credit 
ENRG-B - Alternative Energy System Credit 
ENRG-C - Energy Conservation Installations Credit 
ESA - 2006 Annualization Worksheet 
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries 
ESW- 2006 Montana Individual Estimated Income Tax Worksheet 
EXT - Extension and Payment Form 
FPC - Film Production Credit 
FID - Fiduciary Payment Form 
FRM - Farm and Ranch Risk Management Account 
FTB - First-Time Home Buyer Savings Account 
FTB-P - First-Time Home Buyer Savings Account - Penalty Calculation 
HI - Health Insurance For Uninsured Montanans Credit 
IND - Indian Certification 
MSA - Medical Care Savings Account 
MSA-P - Medical Care Savings Account - Penalty Calculation 
NOL - Net Operating Loss Form and Instructions 
NOL-Pre-99 - Net Operating Loss Worksheet 
OSC - Oil Seed Crushing Facility Credit 
QEC - Qualified Endowment Credit 
RCYL - Recycling Credit/Deduction 
RSCH - Credit for Increasing Research and Development Activities 
VT - Veteran's Program Contribution and Deduction
 
Worksheet 2 - Tax Benefit Rule for Federal Income Tax Refund
Worksheet 3 - Qualified Capital Gain Exclusion and Worksheet 4 - Partial Pension and Annuity Income Exemption
Worksheet 5 - Standard Deduction and Worksheet 6 - Itemized Deduction Worksheet 
Worksheet 7 - Calculation of Interest on Underpayment of Estimated Taxes - Short method 
Worksheet 8 -Social Security Benefits
Worksheet 9 - Tax Benefit Rule for Recoveries of Itemized Deductions

2004 Forms

2004 Individual Income Tax Rates 
2004 Long Booklet - 2004 Individual Income Tax Booklet 
2 - 2004 Individual Income Tax Return 
2A (page 1) 
2A (page 2) (Schedule III and IV) 
2A (page 3) (Schedule V and VI) 
2EC - Elderly Homeowner/Renter Credit 
2S Short Form - 2004 Individual Income Tax Return - Short Form 

2101 - W-2 Withholding Declaration 
2441-M - Child and Dependent Care Expense Deduction 
AEPC - Alternative Energy Production Credit 
AFCR - Alternative Fuel Credit 
AMD - Amended Return Reconciliation 
CC - College Contribution Credit 
DCAC - Dependent Care Assistance Credit 
DS-1 - Disability Income Exclusion Calculation 
ECC - Elderly Care Credit 
ENRG-B - Alternative Energy Systems Credit 
ENRG-C - Energy Conservation Installations Credit 
ESA - Annualization Worksheet 
EST-I - Underpayment of Estimated Tax by Individuals and Fiduciaries 
ESW - 2005 Montana Individual Estimated Income Tax Worksheet 
EXT - Extension Payment Worksheet 
FID - Fiduciary Payment Form 
FID-3 - Montana Income Tax Return for Estates and Trusts 
FRM - Farm and Ranch Risk Management Account 
FTB - First-Time Home Buyer Savings Account 
FTB-P - First-Time Home Buyer Savings Account - Penalty Calculation 
HI - Health Insurance for Uninsured Montanans Credit 
IND - Indian Certification 
MSA - Medical Care Savings Account 
MSA-P - Medical Care Savings Account - Penalty Calculation 
NOL - Net Operating Loss Form 
NOL - Net Operating Loss Instructions 
NOL-Pre-99 - Net Operating Loss Form from 1998 and Prior Years 
Individual Income Tax Payment Form 
QEC - Qualified Endowment Credit 
RCYL - Recycling Credit/Deduction 
RSCH - Credit for Increasing Research and Development Activities 
VT - Veteran's Program Contribution and Deduction 

2004 Individual Income Tax Worksheets 1, 2 & 3 
2004 Individual Income Tax Worksheets 4 & 5 
2004 Individual Income Tax Worksheets 6 & 7 
2004 Individual Income Tax Worksheets 8

2003 Forms

2 - 2003 Individual Income Tax Return 
2A (page 1) 
2A (page 2) 
2A (page 3) 
2EC - Elderly Homeowner/Renter Credit 
2S (Short Form) - 2003 Individual Income Tax Return - Short Form 
2101 - W-2 Withholding Declaration 
2441-M - Child and Dependent Care Expense Deduction 
AEPC - Alternative Energy Production Credit 
AFCR - Alternative Fuel Credit 
AMD - Amended Return Reconciliation 
CC - College Contribution Credit 
DCAC - Dependent Care Assistance Credit 
DER-1 - Montana Disregarded Entity Information Return 
DS-1 - Disability Income Exclusion Calculation 
ECC - Elderly Care Credit 
ENRG-B - Alternative Energy Systems Credit 
ENRG-C - Energy Conservation Installations Credit 
ESA (page 1) - Annualization Worksheet 
ESA (page 2) - Annualization Worksheet 
EST-P - Underpayment of Estimated Tax by Individuals and Fiduciaries 
ESW - 2004 Montana Individual Estimated Income Tax Worksheet 
FID-3 - Fiduciary Income Tax Return 
FID-3 (Instructions) - Montana Fiduciary Tax Instructions 
FRM - Farm and Ranch Risk Management Account 
FTB - First-Time Home Buyer Savings Account 
FTB-P - First-Time Home Buyer Savings Account - Penalty Calculation 
HI - Health Insurance for Uninsured Montanans Credit 
IND - Indian Certification 
MSA - Medical Care Savings Account 
MSA-P - Medical Care Savings Account - Penalty Calculation 
NOL - Net Operating Loss Worksheet for 1998 and prior years 
NOL-99 - Net Operating Loss Worksheet 
QEC - Qualified Endowment Credit 
QEC-One Life - Life Expectancy Table Based on 90 CM 
QEC-Two Lives - Life Expectancy Table Based on 90 CM 
RCYL - Recycling Credit/Deduction 
RIC - Recapture of Investment Credit 
RSCH - Credit for Increasing Research and Development Activities 

W - 2003 Individual Income Tax Worksheets 1, 2 & 3 
W - 2003 Individual Income Tax Worksheets 4 & 5 
W - 2003 Individual Income Tax Worksheets 6 & 7 
W - 2003 Individual Income Tax Worksheet 8

2002 Forms

2002 Long Booklet - 2002 Individual Income Tax Booklet
2002 Package X Part I - Individual Income Tax Booklet Forms and Instructions
2002 Package X Part II - Miscellaneous Income Tax Forms and Credits

2 - 2002 Individual Income Tax Return 
2A (page 1)
2A (page 2)
2A (page 3)
2EC - Elderly Homeowner/Renter Credit
2S (Short Form) - Individual Income Tax Return - Short Form 
2101 - W-2 Withholding Declaration
2441-M - Child and Dependent Care Expense Deduction
AEPC - Alternative Energy Production Credit
AFCR - Alternative Fuel Credit
AMD - Amended Return Reconciliation 
CC - College Contribution Credit
DCAC - Dependent Care Assistance Credit
DS-1 - Disability Income Exclusion Calculation
ECC - Elderly Care Credit
ENRG-B - Alternative Energy Systems Credit
ENRG-C - Energy Conservation Installations Credit
ESA (page 1) - Annualization Worksheet
ESA (page 2) - Standard Deduction Worksheet
EST-P - Underpayment of Estimated Tax by Individuals and Fiduciaries
FID-3 - Fiduciary Income Tax Return
FID-3 (Instructions) - Montana Fiduciary Tax Instructions
FRM - Farm and Ranch Risk Management Account
FTB - First-Time Home Buyer Savings Account
FTB-P - First-Time Home Buyer Savings Account - Penalty Calculation
HI - Disability Insurance for Uninsured Montanans Credit
MSA - Medical Care Savings Account
MSA-P - Medical Care Savings Account - Penalty Calculation
NOL - Net Operating Loss Worksheet for 1998 and prior years
QEC - Qualified Endowment Credit
RCYL - Recycling Credit/Deduction
RIC - Recapture of Investment Credit
RSCH - Credit for Increasing Research and Development Activities

W - 2002 Individual Income Tax Worksheets 1, 2 & 3 
W - 2002 Individual Income Tax Worksheets 4 & 5 
W - 2002 Individual Income Tax Worksheets 6 & 7 
W - 2002 Individual Income Tax Worksheet 8


Frequently Asked Questions

Field Audit Guide  Montana Income Tax Returns
Working in the Oilfields – How it impacts your Montana Income Tax  
Receiving an Extension to File
Business Expenses Claimed by Employees
Income Tax Incentives
Medical Marijuana Act and Montana Income Taxes
Transfering Montana Real Estate Information
Adoption of Single Life and Two Life Expectancy Tables for the Qualifed Endowment Credit (QEC)


Amended Returns

Q. When am I required to amend my Montana income tax return?

A. You are required to file an amended Montana tax return when information on your original return was reported incorrectly or to report changes made to your federal income tax return, including changes made by the Internal Revenue Service. If the Internal Revenue Service changes your federal taxable income or if you voluntarily change your federal taxable income, you are required to file an amended Montana income tax return within 90 days of receiving notification of the change from the IRS or after filing your amended federal income tax return.

Q. How do I amend my Montana return?

Instructions:

- You need to complete a new Montana individual income tax return that reflects the corrections that you are making to your previously filed return. For example, if you are amending 2010 tax year, use the 2010 income tax forms and complete a new tax return using the corrected information. Mark the “Amended Return” box found in the upper left hand corner of the form. Include copies of all schedules submitted with the original filing, even if none of the amounts previously reported have changed, and all new schedules that you are submitting for the first time.

- Montana AMD Worksheet is available to assist you in reconciling the adjustments on your Montana amended tax return with your original tax return, regardless of whether the original return was filed electronically or on paper. Although not required, we suggest that you complete and include the AMD Worksheet, or a similar reconciliation form outlining the changes, with your corrected tax return.

- When filing multiple tax returns, please file each amended return separately from other returns.

- You will receive a statement of account if you owe any additional tax, penalties or interest.

- Late payment penalty and interest are assessed on any unpaid tax from the prescribed due date of the original return until the tax is paid.

- If your amended return results in a refund, a check will be mailed to you at the address included on the tax return.

- Please mark the “NOL” box in the upper left hand corner of Form 2 if you are amending your tax return to carry back a net operating loss.

Other Notes:

- If you are amending a return for married individuals who filed “married filing separately on the same form,” complete a separate AMD Worksheet for each spouse.

- If you itemized deductions, you should recalculate to see if your income changes affect the limitations for medical expenses and miscellaneous itemized deductions.

- An adjustment to income could also change the amount of your taxable social security benefits, partial pension and annuity income exemption, or standard deduction.

- If amending to change your filing status from joint to married filing separately on the same form or on separate forms, include a detailed breakdown showing the allocation of income and deductions between spouses.

Q. How long do I have to amend my Montana income tax return?

A. You have 5 years from the original due date of the tax return to file an amended Montana income tax return and to correct any errors on your previous return.

Q. The Internal Revenue Service (IRS) has adjusted my federal income tax return. What should I do for Montana?

A. If the Internal Revenue Service changes your federal taxable income or if you voluntarily change your federal taxable income, you are required to file an amended Montana income tax return within 90 days of receiving notification of the change from the IRS or after filing your amended federal income tax return.

If you do not notify us within 90 days of the change to your federal taxable income, we have five years from the date that the changes become final on your federal return to adjust your Montana income tax return to reflect the changes made on your federal income tax return.

Q. I am amending my Montana income tax return to report additional income. Should I pay the additional tax with the amended return?

A. Yes, you should pay the tax. Interest is calculated from the original due date of the return being amended to the date of payment. Effective January 1, 2007, the annual interest rate for all unpaid individual income taxes changed from 12% to 8%. If you do not pay the full amount due with your amended return, we will send you a statement of account with penalties and interest due.

If you file an amended return that reflects an increased tax liability, you may have the late payment penalty waived provided that you pay the tax and applicable interest in full. Simply mark the “Amended Return” box on the tax return. By doing so, you are requesting a waiver of the late payment penalty.

Q. I am amending my Montana income tax return to increase/reduce my income. Are there any other changes that I need to make on my amended return?

A. If you itemized deductions, you should recalculate to see if the income changes affect the limitations for medical expenses and miscellaneous itemized deductions. An adjustment to income could also change the amount of your taxable social security benefits, partial pension and annuity income exemption, or standard deduction.

Q. I am filing an amended return and expect a refund. Will I receive interest on the tax refunded to me?

A. Interest is attached to overpayments of tax at the same rate as charged on delinquent taxes.

Interest is not paid on a refund which results from a net operating loss carry back or carry forward, or a credit such as the elderly homeowner/renter credit (Form 2EC).

Income Tax Liability
Information Changes

Q. How can I notify the Department of Revenue of a change to my name, address, or social security number?

A. You can send your change of name, address, or social security number in a letter signed by you that provides both your old and new information and the date the new information takes effect. Please mail your letter to our office at the following address:

Montana Department of Revenue
PO Box 5805
Helena, MT 59604-5805

You can also change your address by logging in to your Taxpayer Access Point (TAP) account.

Energy Related Credits

Energy Related Tax Relief - Frequently Asked Questions (FAQs)

Estimated Tax Payments

Q. Am I required to make estimated tax payments?

A. If you estimate that you will owe more than $500 in tax for 2015 (after subtracting your estimated withholding and credits), then you should make quarterly estimated payments.

Common examples of income sources that make quarterly estimated payments necessary are self-employment income, pensions, commissions, lump sum payments, capital gains, dividends, interest, alimony or other sources of income not subject to withholding.

Completing the Montana Individual Estimated Income Tax Worksheet will help you determine if you need to pay estimated tax payments.

Q. Am I required to allocate estimated tax payments?

A. If you are filing married separately on the same form and have made estimated payments, you might consider allocating the payments claimed by each spouse so that one spouse does not owe tax and the other is due a refund. You may wish to contact the department before filing your tax return to verify that estimated payments are applied to the intended spouse. Only estimated payments can be allocated.

Q. I did not make estimated tax payments in 2014 and my income tax due is more than $500. Am I subject to any penalties and interest on my underpayment?

A. Yes, you are. You are required to pay your income tax liability throughout the year. You can make your payments through employer withholding, installment payments of estimated taxes, or a combination of employer withholding and estimated tax payments.
If you did not pay in advance at least 90% of your 2014 income tax liability (after applying your credits) or 100% of your 2013 income tax liability (after applying your credits), you may have to pay interest on the underpayment of your estimated tax.
For more information about underpayment interest, see either Worksheet VII or Form EST-I.

Q. Where do I find the form to pay my estimated tax payments?

A. The individual income tax payment voucher is available on our website.
You may also make your estimated tax payments online using Taxpayer Access Point (TAP).

Or contact us at:

Montana Department of Revenue Citizens Services
PO Box 5805
Helena, MT 59604-5805
Phone: (866) 859-2254 (toll free) or 444-6900 in Helena area

Q. When are my estimated tax payments due?

A. When you file your return on a calendar year basis, you may prepay all of your estimated taxes for 2015 by April 15, 2015, or you may pay them in four equal amounts that are due on the dates listed below.

First payment - due April 15, 2015
Second payment - due June 15, 2015
Third payment - due Sept. 15, 2015
Fourth payment - due Jan. 15, 2016

If any of these installment dates fall on a weekend or a holiday, your payment is due on the next business day. If you file your return on a fiscal year basis, your payment dates are the 15th day of the fourth, sixth, and ninth months of the fiscal year and the first month of the following fiscal year.

Extensions

Q. How can I get an extension of time to file my Montana income tax return?

A. You are granted an automatic, six-month extension of time for filing your Montana income tax return if:

- Your 2014 tax liability is $200 or less.
- You paid 100% of your 2013 Montana income tax liability through your estimated tax payments, your withholding tax, or a combination of both your estimated and withholding tax payments by April 15, 2015.
- You paid 90% of your 2014 Montana income tax liability through your estimated tax payments, your withholding tax, or a combination of both your estimated and withholding tax payments by April 15, 2015.
- You are a first time filer.
- You had zero or negative taxable income for 2013.

You do not need to apply for a federal extension in order to receive a Montana extension.

Please use the Montana Form EXT-I, 2014 Extension Payment Worksheet, to determine if you have to make an extension payment by April 15, 2015, to qualify for the automatic filing extension. If you are required to make an extension payment, please use the tax payment voucher found on this worksheet or sign up to make your payment online by visiting our website at revenue.mt.gov.

Important: Unless you qualify for an extension because your tax liability is $200 or less, an extension of time to file your Montana income tax return is not an extension of time to pay your income tax liability. If your tax liability is more than $200 and you have a valid Montana extension but you have not paid your entire 2014 income tax liability by April 15, 2015, you are relieved of late file penalties but you are not relieved of late pay penalties and interest on your outstanding Montana income tax liability.

Q. If I have an extension, will this extend the time to pay any tax due?

A. If you qualify for an extension because your 2014 tax liability is $200 or less, you also qualify for an extension to pay your 2014 income tax liability by the extended due date of the return.

If you qualify for an extension for any other reason, your extension of time to file your Montana income tax return is NOT an extension of time to pay your income tax liability.

Q. I am on active duty in the regular armed forces and currently serving in an area designated as a "combat zone" or "contingency operations." I am unable to file my 2014 Montana income tax return by April 15, 2015. Can I (and my spouse) obtain an extension to file?

A. Yes, you can. Montana law follows federal law with respect to the time allowed for filing a return. Therefore, the extension of time to file your Montana tax return is the same for filing your federal tax return. If you are serving in a combat zone or in a contingency operation, you (and/or your spouse) can extend the filing of your Montana tax return for up to 180 days after your last day in a combat zone.

If you are filing your tax return under this provision, clearly write on the top of Montana Form 2, using red ink, “combat zone or contingency operations extension,” and file your tax return within 180 days after your last day in a combat zone. If you file within the 180 days, you are not assessed any penalties or interest.

Q. I am unable to file and pay the tax owed by the due date. Can I get a payment plan?

A. If you need to establish a payment plan with us, call us toll-free at 1 (866) 859-2254 (in Helena, 444-6900) as soon as possible to discuss your options and make payment arrangements. You can also refer to Requesting a Payment Plan for Your Delinquent Tax Liability for more information.

Filing Deadlines and Due Dates

Q. When do I have to file my Montana tax return?

A. The deadline for Montana individual income tax returns is Tuesday, April 15, 2014.

If you operate on a fiscal year, your return has to be filed by the 15th day of the 4th month following the close of your fiscal year. If you file after this date, you may have to pay penalties and interest.

 

Elderly Homeowners/Renter Credit (Form 2EC) - Filed annually - Due date is April 15th
Individual Income Tax Return (Short Form 2EZ) - Filed annually - Due date is April 15th
Individual Income Tax Return (Medium Form 2M) - Filed annually - Due date is April 15th
Individual Income Tax Return (Long Form 2) - Filed annually - Due date is April 15th
Individual Income Tax Return with Extension - Filed annually - Due date is October 15th

Filing Requirements

 

Q. Do I have to file a Montana individual income tax return?

A. If you are a resident, non-resident, or part-year resident, you have to file a Montana individual income tax return when you have Montana source income and your federal gross income, excluding unemployment compensation, is equal to or greater than the corresponding amounts that are identified in the chart below:
 

If your filing status is... AND at the end of 2013 you were... THEN you should file a return if your federal gross income, excluding unemployment compensation was at least.
Single, or married filing separately Under 65 $4,370
65 or older $6,700
Head of Household Under 65 $4,370
65 or older $6,700
Married filing jointly with your spouse Both under 65 $8,740
One spouse 65 or older $11,070
Both spouses 65 or older $13,400

If you or your spouse is blind, you are entitled to an additional exemption. Increase your federal gross income by $2,330 to determine if you are required to file.

Q. Do I have to file my state return when I don't have to file a federal return?

A. If you had Montana income tax withheld from your wages or you paid estimated tax, you should file a Montana return since this is the only way to get a refund.

Q. How do I determine whether I am a full-year resident, nonresident, or a part-year resident of Montana for individual income tax purposes?

A. You are a resident of Montana for individual income tax purposes if you live in Montana or if you maintain a permanent home in Montana. A permanent home in Montana means a dwelling place you habitually use as your home, whether or not you own it and whether or not you may someday leave. You do not lose your Montana residency if you leave the state temporarily with the intention of returning. Your Montana residency is lost when you establish a permanent residence outside of Montana with no intention of returning. Unless there is a specific exception under Montana law, if you establish Montana residency for any other purpose, you are considered a Montana resident for income tax purposes. You are a nonresident of Montana if you were not a resident during any part of the tax year.

You are a part-year resident of Montana if you moved to or from Montana during the tax year with the intention of establishing a permanent residence in your new state.
A nonresident or part-year resident who is required to file a Montana tax return needs to use Form 2.

Q. How do I determine my legal residence for Montana income tax purposes?

A. Your legal residence is generally the place where you maintain your most important family, social, economic, political and religious ties. It is a place where you remain when you are not elsewhere for work or for other temporary purposes. Your do not change residency by being away from home temporarily or for a prolonged period of time. You change residency when you leave your home and do not intend to return, but instead, establish a new home elsewhere.

Q. How do I file for a deceased person?

A. If you are responsible for the financial affairs of a deceased person, you'll have to file a tax return for that person if his or her income exceeds the minimum filing requirements. If you and the deceased person were married, you can file a joint tax return. If you are filing a joint return and you are the surviving spouse, that is all that is required. All other filers requesting the deceased taxpayer's refund must file the return and include a federal Form 1310 as well as any court documents appointing you as the personal representative.
This tax return has to include the income of that deceased spouse from the beginning of the year to the date of death in addition to the income of the surviving spouse for the entire year. Income of the deceased person received after the date of death should not be included on an individual tax return. Post-death income is reported on a fiduciary income tax return for a trust or estate, Montana Form FID-3.

Q. Can dependent children claim themselves on their Montana individual income tax return even though they are claimed as a dependent on their parents' federal and state income tax return?

A. Yes. Montana law differs from federal law. Montana law permits a dependent that is claimed on his or her parent’s tax return to claim themselves on his or her own tax return.

Q. Where do I file my Montana individual income tax return?

A. If you choose not to file electronically, Montana has two different addresses for individual income tax returns. We do this so that if you are asking for a refund, we can get your refund processed and to you more quickly and efficiently.

If you are filing a return that includes no payment or if you are due a refund, mail your return to:

Montana Department of Revenue
PO Box 6577
Helena, MT 59604-6577

If you are filing a return that includes a payment, mail your return and check to:

Montana Department of Revenue
P O Box 6308
Helena, MT 59604-6308

Q. A mental or physical disability prevents me from completing and submitting a tax return. What can I do?

A. If you have a filing obligation but are unable to complete and file a tax return because of a mental or physical disability, the return can be prepared by your authorized agent, guardian, or person responsible for your care and property.

Filing Status

Q. What are Montana's filing status options, and which one should I use?

A. Below are the Montana filing status options. If more than one filing status applies to you, choose the one that will give you the lowest tax.

Single:

You are considered single if on December 31 of the tax year:

- You were never married;

- You were legally separated according to your state law under a final decree of divorce or separate maintenance; or

- You were widowed before January 1 of the tax year and you did not remarry during the tax year.

 

Married filing joint return:

You and your spouse may file a joint return if:

- You were married as of December 31 of the tax year, even if you did not live with your spouse at the end of the tax year;

- Your spouse died during the tax year and you did not remarry during the tax year; or

- You were married as of December 31 of the tax year and your spouse died in the following tax year before filing a tax return.

You and your spouse may file a joint return even if only one had income and/or deductions, or if you did not live together all year. However, both spouses must sign the return, and both are responsible for any tax due on the joint return. This means that if one spouse does not pay the tax due, the other may have to.

A joint return cannot be filed if you and your spouse have different tax years.

 

Married filing separately on the same form:

If both you and your spouse have income, you can file your Montana income tax returns separately, even if you filed your federal income tax return jointly. But, if you and your spouse file separately, you will each need to report your own adjusted gross income. You cannot arbitrarily assign income between the two of you.

Your income from salaries, wages, bonuses, commissions and other income from providing personal services either as an employee or an independent contractor should be reported by the spouse who earned it. Any other income that you earned from rents, royalties, dividends, etc. from property that is owned by only one spouse has to be reported by that spouse. If any income is earned from property that is jointly owned by both spouses, that income should be split equally unless you and your spouse can show a different proportional ownership. When you file separately, both spouses must either claim the standard deduction or itemize their deductions. You cannot file separately on the same form when one spouse is a resident and the other spouse is a nonresident.

Please note: Although submitted on the same form, married taxpayers electing to file using this status are submitting two tax returns. If both taxpayers are entitled to refunds, two separate checks or direct deposits will be issued. In the event both spouses owe additional tax, penalties or interest, we will mail separate Statements of Account. However, if you are entitled to a refund and your spouse owes, and you file separate returns on the same form, we treat your election to file separately on the same form as your direction to us to apply your refund to the amount owed by your spouse. If you do not want your refund to be offset against any tax due from your spouse, you and your spouse must file on separate forms. If we discover a math or other computational error when processing the form, we will adjust it to correct the error and this may result in our applying one spouse’s refund to the other spouse’s increased tax. If you do not wish for this to occur, you will need to file your own separate return.

Married filing separately on separate forms:

You should select this filing status if:

- Both of you have Montana source income and one spouse is a resident of Montana and the other spouse is a nonresident; or

- You want to receive your own refund or pay your own tax.

Married filing separately and spouse not filing:

You can use this filing status when:

- Both you and your spouse are nonresidents and one spouse has no Montana source income,

- You are a resident and your spouse is a nonresident who has no Montana source income, or

- Another taxpayer claims your spouse as a dependent.

When you select this filing status, you cannot claim your spouse as an exemption on your return.

Head of Household:

To use this filing status, you must qualify to file your federal income tax return using head of household.

 

 

Form 1099-G and Form 1099-INT

Form 1099-G and Form 1099-INT

Q. What is a Form 1099-G?

A. Form 1099-G (or Substitute Form 1099-G) is issued by the Department of Revenue as an informational statement for your records. It reports all income tax refunds the department issued to you in 2014. If we issued refunds for more than one tax year, they are reported on separate Forms 1099-G.

Q. I received a document called Form 1099-G and Form 1099-INT from the Montana Department of Revenue. Why did I receive this?

A. The Internal Revenue Service (IRS) requires government agencies to report certain payments made during the year because these payments may be taxable income for the recipients. The Department of Revenue reports on Form 1099-G and Form 1099-INT any refund or overpayment credit amount issued and any interest paid or credited to you during 2014.

Q. Why would I have to report my refund as income?

A. In computing itemized deductions on your federal income tax return, you are allowed to deduct state income taxes paid during the year. Most people deduct the amount of state income tax withheld, as shown on Form W-2, plus any Montana estimated tax payments made during the year. Since this deduction reduces federal taxable income, if any part of the state tax deducted on the federal return is later refunded, that amount has to be reported as taxable income for the year in which the refund is issued. The Federal Form 1040 instruction booklet or the Federal Publication 525 has a worksheet to help you determine the amount of your overpayment that will be taxable.

Q. My spouse and I filed our 2013 returns using the filing status “married filing separately on the same form.” My spouse had tax due while I was due a refund. When I received a 1099-G this year from the Department of Revenue, the amount shown in Box 1 was different from the refund I actually received. Why is this?

A. When married taxpayers file separately on the same form, and one spouse is entitled to a refund and the other spouse owes, the refund of one spouse is applied to the amount owed by the other spouse. This results in the actual refund received being different from what is shown on the return. When the taxpayer receives their Form 1099-G in the following year, it will show the amount of the refund as calculated on the return, not necessarily what was received.

The amount shown on Form 1099-G, not the amount of refund you actually received, should be reported on the current year return and used in any calculations, if applicable.

Q. I did show an overpayment on my 2013 Montana return, but I had the money applied as a credit to 2014. Since I didn't receive a refund check, do I still have to report this amount as income?

A. Yes, you will have to report this amount as income. A refund and a credit are different types of overpayments. We issued the refund to you, and based on your instructions, we applied the money to your estimated tax account. This does not change the fact that a refund was issued to you, so we are required to report the refund on Form 1099-G.

Q. I claimed a Montana tax refund for 2013, but the Department of Revenue applied the money to a bill for another year. Do I still have to report this as income?

A. Yes, you will have to report this amount as income. Montana law requires the department to apply refunds or credits to outstanding bills. The application of funds doesn't change the fact that you claimed an overpayment for the year on your Montana return. Even though it was applied to an outstanding account, we are required to report it as a refund you were entitled to receive. If your refund was applied to income tax for another year, you should follow instructions for federal Schedule A, line 5, or call the Internal Revenue Service for assistance.

Q. Why did I receive a Form 1099-INT from the Department of Revenue?

A. The Department of Revenue issues this form to inform you of interest the department paid to you in 2014.

Injured Spouse

Q. My spouse has a past child support obligation and I don't want my refund to be applied to this obligation. What can I do?

A. If you do not want your refund to be applied toward your spouse’s child support obligation, you can file your Montana tax return using Form 2 and filing status 3b, which is "married filing separate tax returns on separate forms." When using this filing status, each spouse claims his or her own income, losses, deductions, expenses, exemptions, and credits, and your Montana refund is not offset by your spouse's child support debt.

If you filed a joint return with your spouse and your refund was applied to your spouse’s child support debt, you may be considered an “injured spouse” and we can help you resolve the matter. You need to contact us within 30 days after receiving notice that your refund was applied to your spouse’s child support debt. If necessary, we can help you file the correct tax return(s).

Innocent Spouse Relief

Q. Who is an "innocent spouse"?

A. Generally, when a joint tax return is filed, each spouse is equally liable for all the tax, penalties, and interest for the particular joint tax year. This means the entire amount of tax, penalties, and interest may be collected from either spouse, even if only one spouse earned all the income. An innocent spouse is a taxpayer who has filed joint federal and Montana tax returns for the same tax year, has obtained relief from a joint and several federal income tax liability under section 6015 of the IRC, and is requesting relief from a joint and several Montana income tax liability.

Q. What is a joint and several liability?

A. When you file a joint income tax return, the law makes both you and your spouse responsible for the entire tax liability. This is called joint and several liability. Joint and several liability applies not only to the tax liability you show on the return but also to any additional tax liability that may be determined to be due, even if the additional tax is due to the income, deductions, or credits of your spouse or former spouse. You remain jointly and severally liable for taxes, and the department still can collect from you, even if you later divorce and the divorce decree states that your former spouse will be solely responsible for the tax.

Q. I received innocent spouse relief from the IRS (Internal Revenue Service). Does Montana grant me the same relief?

A. If the Internal Revenue Service granted you innocent spouse relief from a joint federal tax liability for tax years beginning on or after January 1, 2003, you may be eligible for similar relief if you filed a joint Montana tax return for the same year.

To apply for innocent spouse relief, you must provide the department with the following in writing:

- The tax years for which relief is sought;

- The reasons for which relief is sought;

- Complete copies of all correspondence sent to and received from the IRS, including documentation that relief has been granted for the periods applying;

- Any court order stating that the taxpayer’s spouse or former spouse is responsible for paying the Montana individual income tax liability; and

- Other information that demonstrates why relief should be granted, as required in 15-30-2646, MCA

If the department determines, after consideration of the facts and circumstances you presented, that it would be unfair to hold you responsible for some or all of the tax, penalty, and interest, you will be granted relief. However, the relief granted by the department must be based on the same circumstance for which relief was granted by the IRS and the relief cannot exceed the relief granted by the IRS.

If you disagree with the decision made by the department, you will have the option to appeal. Please see the Tax Appeal Process section to learn more about the appeal process.

Itemized Deductions

Q. How do I report state and local general sales tax deduction?

- 2012, 2011 and 2009 Montana Form 2, Schedule III "Montana Itemized Deductions": If you claimed a deduction for state and local sales taxes on your federal Schedule A, you may claim a deduction in addition to the federal income tax deduction. Please report this deduction on line 8, General State and Local Sales Tax Paid. If you were not required to file a federal return or claimed the standard deduction on your federal return and you saved your receipts throughout the year, you can add up the total amount of sales taxes you actually paid and claim that amount. If you didn't save your receipts, you can fill out the worksheet and use the optional general sales tax tables in the instructions for federal Schedules A and B (Form 1040) or use the Sales Tax Deduction Calculator available on the Internal Revenue Service website at apps.irs.gov/app/stdc. If you claimed your state income taxes as an itemized deduction on your federal return, you cannot claim the deduction for sales taxes on your Montana return.

- 2010, 2008 and 2007 Montana Form 2, Schedule III “Montana Itemized Deductions”: Any general and local sales tax paid in 2008 or 2007 may be deducted in addition to the federal income tax deduction. Please report this deduction on Line 11 “Other Deductible Taxes” instead of including it with the federal income tax deduction on line 7f (2008) or line 7e (2007). Please keep a copy of all supporting documents regarding the general or local sales tax paid.

- None of the resort, accommodations or similar taxes collected in Montana qualifies as a general sales tax under the federal definitions and are not deductible.

Q. How do I report qualified mortgage insurance premiums?

A. Individuals who entered into a contract issued after December 31, 2006 for qualified mortgage insurance are allowed to claim the premiums paid during the year as an itemized deduction. Qualified mortgage insurance means insurance provided by the Veterans Administration, the Federal Housing Administration, the Rural Housing Administration or private mortgage insurance.

In order to be eligible, the loan must have been issued after 2006 for you to buy or build your primary residence and the loan must be secured by that residence. Insurance on a loan not used to build or buy a residence such as an equity loan used to consolidate debt is not eligible even if the loan is secured by your residence. Mortgage insurance premiums you paid or accrued after December 31, 2006, or that are properly allocable to any period after December 31, 2006 are deductible as home mortgage interest.

The deduction amount you can claim on your Montana tax return is the same amount you can claim on your federal tax return. If you did not itemize your deductions on your federal return, complete Worksheet VI, Qualified Mortgage Insurance Premiums Deduction, to determine the amount you can deduct. Married taxpayers filing separately in Montana may allocate the total allowable amount between both spouses.

Keeping Records

Q. What records should I keep for Montana tax purposes, and how long should I keep them?

A. You must keep accurate records to verify items of income, deductions, and credits claimed on your income tax return or credit claim. You should maintain records in a manner that will allow the department to determine your correct tax liability if requested during an audit.

You should keep copies of your tax returns and credit claims as part of your tax records. A list of some of the tax records you should keep is as follows:

- Income: Form(s) W-2 (wage statements), Form(s) 1099, financial statements, bank statements, contracts, and other documents to verify income reported on your returns.

- Deductions and credits: Canceled checks, bank statements, paid invoices, sales receipts, Form(s) 1098 (mortgage interest), loan documents, financial and legal documents, mileage logs, appointment books, credit card statements, and other documents to verify expenses and credits claimed on your returns.

Generally, you must keep your tax records at least until the statute of limitations expires for the tax return on which any of those items of income, deductions, or credits appear. Usually this is five years from the due date of the Montana return or the date filed, whichever is later. The statute of limitations for federal income tax purposes is generally three years.

If you underreport your income on your return by 25% or more, the statute of limitations is six years from the due date of the return or the date filed, whichever is later. If the return is false or fraudulent, or if no return is filed, there is no statute of limitations and departmental action can generally be brought at any time. There are times you should keep records longer:

- You should keep records relating to property you own as long as they are needed to figure the basis of the original or replacement property and for five years after a return is filed on which you report any sale or other disposition of the property.

- Net operating losses may be carried forward up to 20 years. Taxable years which are otherwise closed to adjustment may be audited for purposes of determining the correctness of a net operating loss which is claimed as an offset against income in an open year. If you are claiming a net operating loss, you should keep your records for the year of the loss and all subsequent years in which you are claiming a net operating loss carry forward. These records should be kept until five years after the unextended due date or the date filed, whichever is later, of the return on which the last of the net operating loss carry forward was claimed.

Late Filed Returns

Q. What happens if I'm late in filing my Montana individual income tax return?

If you file your income tax return late and your tax liability is more than $200, you are subject to the following penalties and interest:

- Late File Penalty: If you file your return after April 15, 2015, or October 15, 2015 if you have a valid extension, a late file penalty will be assessed if your combined total tax due is greater than your combined payments and offsets. The penalty is equal to the lesser of $50 or the amount of tax you owe.

- Late Pay Penalty: If you have not paid 100% of your income tax liability by April 15, 2015, the late pay penalty is equal to 1.2% per month or fraction of a calendar month on the unpaid balance from April 15, 2015 until it is paid.

- Interest: If you have not paid 100% of your income tax liability by April 15, 2015, you will have to pay 8% per year accrued daily on your unpaid balance. To calculate your interest, multiply the unpaid balance by .0002192 (.02192%) times the number of days after April 15, 2015 your payment is received.

Reminder! Beginning with the 2013 tax year, if your tax liability is $200 or less, you will receive an automatic, six-month extension to file your return and pay your tax liability as long as payment is received and the return is filed by the extended due date of the return. This is October 15, 2014 for most people. However, if the return is not filed and the tax is not paid on or before the extended due date, late payment penalty and interest will be calculated from the original due date of the return.

Q. Will I be penalized if I am due a refund, but my return is filed late?

A. If you file a late return for which you are receiving a refund, you will not be charged a late fee.

Mailing Addresses

If you are filing an individual income tax return that includes no payment or if you are due a refund, mail your return to:

Montana Department of Revenue
PO Box 6577
Helena, MT 59604-6577

If you are filing an individual income tax return that includes a payment, mail your return and check to:

Montana Department of Revenue
PO Box 6308
Helena, MT 59604-6308

If you are paying an estimated individual income tax payment, mail your voucher and payment to:

Montana Department of Revenue
PO Box 6309
Helena, MT 59604-6309

Military Personnel

Military Personnel (Active Duty, Federal Reserve Components, Montana National Guard and Retired)

Q. If I am a resident of Montana serving in the U.S. armed forces, the federal reserve components, or the Montana National Guard, am I required to file a Montana income tax return? Does it make any difference if I am stationed within or outside of Montana?

A. All Montana residents, including those serving in the US armed forces, the federal reserve components, or the Montana National Guard, are required to file a Montana income tax return if they have federal gross income, excluding unemployment compensation, that is equal to or greater than the threshold for their filing status. The requirement to file a Montana income tax return applies regardless of whether the military member is stationed within or outside of the State. For tax year 2013 the thresholds are:

If your filing status is...

AND at the end of 2014 you were...

THEN you should file a return if your federal gross income, excluding unemployment compensation was at least.

Single, or married filing separately

Under 65

65 or older

$4,370

$6,700

Head of Household

Under 65

65 or older

$4,370

$6,700

Married filing jointly with your spouse

Both under 65

One spouse 65 or older

Both spouses 65 or older

$8,740

$11,070

$13,400

 

 

If you or your spouse is blind, you are entitled to an additional exemption. Increase your federal gross income by $2,280 to determine if you are required to file.

Q. I am a resident of Montana serving in the U.S. armed forces. My spouse is a nonresident of Montana. We file a joint federal return. How do we file our Montana income tax return?

A. Married couples filing a joint federal return, where one is a Montana resident and one is a non-resident, must file the Montana income tax return as "married filing separately on separate forms." If both spouses have income reportable to Montana, then a return for each spouse must be filed. Otherwise, just the Montana resident must file a Montana return. Montana residents report their income from all sources to Montana regardless of what state or country the income is sourced from. This includes Montana military personnel stationed outside Montana.

Q. I am in the military and I am temporarily stationed in Montana. My spouse and I are not Montana residents. My spouse earned wages working in Montana. Is my spouse required to file a Montana return and pay Montana taxes on that income?

A. Probably not. The Military Spouses Residency Relief Act (MSRRA) is effective for tax years 2009 and later and generally requires a nonresident nonmilitary spouse to pay income tax on compensation only in the state of residency. Please visit our website for further information.

For years before 2009, if your spouse had Montana wages in excess of the standard deduction and one exemption, your spouse is required to file a tax return as a resident or as a nonresident, as applicable.

Q. I am a nonresident of Montana serving in the U.S. armed forces and stationed in Montana. Do I need to file a Montana income tax return?

A. You do not need to file a Montana income tax return unless you receive income from wages or salaries for civilian work (including work for the Federal Government, whether on or off of a military base), rents, royalties, ordinary and capital gains, Montana source income from a partnership or S corporation, or net income from a trade or business from Montana sources. The income that you receive would then be taxable and you would be required to file a return with Montana.

Q. I am a nonresident of Montana, on active service in the military and stationed temporarily in Montana. If I apply for a resident hunting license, will I be considered a Montana resident for tax purposes?

A. No. Usually if you claim the benefits of Montana residency for any purpose, you are considered a resident for tax purposes too. But Montana currently allows nonresident active servicemembers in the state on orders (and dependents in the household) to be treated as a resident to obtain resident hunting, fishing, and trapping licenses without actually becoming a resident (§87-2-102, MCA).

Q. I am a nonresident of Montana, on active service in the military and stationed temporarily in Montana. If I get a Montana driver’s license will I be considered a Montana resident for tax purposes?

A. No. Montana law allows nonresident servicemembers to drive in Montana without a Montana driver’s license in a number of circumstances (§61-5-104, MCA), but if you do get a Montana driver’s license, that alone will not make you a Montana resident for tax purposes.

Q. Does Montana provide any exemptions for military personnel, either on active duty or retired from the military?

A. If you are a Montana resident receiving military compensation and if this compensation is included in your federal adjusted gross income, you can subtract from your federal adjusted gross income your basic, special and incentive pay that you receive from serving on active duty as a member of the regular armed forces.

- You are serving on active duty as a member of the regular armed forces when you are a member of a reserve component of the armed forces or a member of the National Guard serving on active duty in a "contingent operation" as it is defined in 10 USC 101.

- You are serving on active duty as a member of the regular armed forces when you are a member of the National Guard who is assigned to active service authorized by the President of the United States or the Secretary of Defense for a period of more than 30 consecutive days for the purpose of responding to a national emergency declared by the president and supported by federal funds.

If you receive wages under the combat zone exclusion that are not included in your Form W-2, Box 1, it will not be included in your federal adjusted gross income, so you should not subtract that pay again. However, if you are a commissioned officer who could not exclude all of your wages received under the combat zone exclusion because it exceeded the highest rate of enlisted pay for each part of the month you served in a combat zone or were hospitalized as a result of your service there, you may exclude the additional combat pay that was included in your federal adjusted gross income.

Please Note: The following military compensation cannot be subtracted from your federal adjusted gross income:

- Salaries that you received for annual training and weekend duty;
- Salaries that you have received for being a member of a reserve component of the armed forces that is not received under 10 USC 101;
- Salaries that you have received for performing full-time National Guard duty pursuant to Title 32 of the United States Code (for example, Active Guard and Reserve, Active Duty for Operational Support, or Active Duty for Counter Drug that is not received under 10 USC 101); and
- Retirement, retainer, equivalent pay, or allowances.
When you claim this exemption, you will need to include verification of your military status (such as your military orders) with your income tax return.

Q. Are my civilian wages or income I earn from my business exempted from tax?

A. No, only the specific items of military compensation already described are exempt from Montana income tax.

Q. I am a member of the National Guard. My salary is received under Title 32, not Title 10, of the United States Code, so it is not exempt from Montana tax. I am unable to get my employer to withhold Montana taxes from my wages. I have been assessed interest on underpayment of estimated taxes by the Department of Revenue. What can I do to stop this from happening again?

A. If you have service-related income that is not exempt and you are unable to have Montana tax automatically withheld from your wages, you will probably be required to pay interest for underpaying your Montana taxes during the year unless you make quarterly estimated tax payments. The department has a worksheet (Form ESW) to help you determine how much you should pay each quarter to avoid the interest.

The instructions with Form ESW explain more fully the procedure for making estimated tax payments, but basically, you estimate the amount of tax you will owe for the year, divide that amount by four, and send in that amount on April 15, June 17, September 16 and January 15. We encourage you to use TAP, our free electronic service, to make the estimated payments and monitor your account. If you choose not to pay electronically, you can contact us to send you instructions and a payment voucher to send in with your first estimated payments. Call toll free (866) 859-2254 (in Helena, 444-6900) or TDD (406) 444-2830 for hearing impaired.

Q. As long as I’m in the military, doesn’t the Servicemember’s Civil Relief Act prevent you from taking any action against me or my spouse if we don’t file an income tax return or pay the tax?

A. Not always. The Act sometimes prevents us from collecting tax until after your service is finished; it does not extend the time you are allowed to file a tax return (but see the next paragraph for a special rule that allows the time for filing a return to be extended when you are serving in a combat zone.)

Under some circumstances, the Act prevents us from collecting individual income tax from you while you are on active duty as a member of the armed forces. When you have not been called to active duty in the armed forces, it does not prevent us from collecting the tax while you are in the National Guard, even if you are on full-time National Guard duty, or while you are serving in the reserves.

Even if you are on active duty as a member of the armed forces, the Act does not automatically protect you from tax collection actions. The Act prevents us from collecting tax from you on income falling due before or during your military service (and 180 days after termination or release from service) only if your ability to pay the income tax is materially affected by military service.

Q. I am on active duty in the regular armed forces, the federal reserve components, or the National Guard of the United States and currently serving in an area designated as a "combat zone" or "contingency operations." I am unable to file my 2013 Montana income tax return by April 15, 2014. Can I (and my spouse) obtain an extension to file?

A. Yes, you can. Montana law follows federal law with respect to the time allowed for filing a return. Therefore, the extension of time to file your Montana tax return is the same as provided for your federal income tax return. If you are serving in a combat zone or in a contingency operation, you (and/or your spouse) can extend the filing of your Montana income tax return for up to 180 days after your last day in a combat zone.
If you are filing your tax return late under this provision, clearly write on the top of Montana Form 2, using red ink, "combat zone or contingency operations extension," and file your return within 180 days after your last day in a combat zone. If you file within the 180 days, you are not assessed any penalties or interest.

Q. I am a nonresident of Montana who recently retired from the U.S. armed forces. I was stationed in Montana. Now I receive pension income from the federal government. Am I required to file a Montana income tax return?

A. Generally, if you retire from the U.S. armed forces and remain in the state that you were stationed in, you will become a resident of that state because you are no longer covered by the Federal Servicemembers Civil Relief Act. If you are considered a full-year or part-year resident of Montana, you will need to pay tax on the income you receive while you are a Montana resident.

Q. I am a resident of Montana who retired from the U.S. armed forces during the current tax year. I was stationed outside of Montana. Is the pension income I receive taxable by Montana?

A. Generally, if you retire from the U.S. armed forces and remain in the state that you were stationed in, you will become a resident of that state because you are no longer covered by the Federal Servicemembers Civil Relief Act. The pension income that you receive is not taxable to Montana because you are no longer a resident of Montana. However, if you maintain your Montana residency, any income you receive while a resident is taxable to Montana.

Q. I'm in the National Guard and I hear that there is deduction for travel expenses. Is this true?

A. Yes. For tax years 2003 and later, the federal government passed a law allowing you to deduct travel expenses if you travel more than 100 miles from home to perform services as a National Guard or reserve member. Because Montana follows the federal law for this deduction, you are entitled to an itemized deduction for travel expenses, subject to the 2% limitation of Montana adjusted gross income, but you do have to include your federal Form 2106 or 2106-EZ with your Montana return.

Q. I am a member of the National Guard. While I was serving on active duty in a contingency operation, the U.S. Department of Defense reimbursed my life insurance premiums. Do I have to add in this amount as taxable income when I prepare my Montana income tax return?

A. No, you do not. To the extent that the reimbursement was taxable for federal or Montana purposes, it has already been added into your federal adjusted gross income so you should not add it in again when you prepare your Montana income tax return.

Q. I am a member of the National Guard who received reimbursement from the Montana Department of Military Affairs, not from the Department of Defense, for premiums I paid under the servicemember’s group life insurance program. How do I report this reimbursement on my tax returns?

A. Because the Montana Department of Military Affairs reimbursement is not tax exempt for federal income tax purposes but is exempt for Montana income tax purposes, it should have been included in your federal adjusted gross income. You can deduct these reimbursements from your federal adjusted gross income in arriving at your Montana adjusted gross income.

Native American Filers

Native American Income Tax Filers FAQs

New! You no longer have to file a Montana income tax return (Form 2) if you are a tribal member and all of your income is exempt from Montana income tax. Form IND, Tribal Member Certification, has been replaced with Form ETM which will serve as your return. If only part of your income is exempt from Montana income tax, you will need to include this form with Montana Form 2.

Q. I live on an Indian reservation. Am I required to file a Montana income tax return? 

A. Possibly. If you are a Native American and your federal gross income meets the state filing requirements, you must file a Montana individual income tax return.  You will need to complete Form ETM and possibly Form 2.

If you believe your income is exempt, the form you need to complete is Form ETM.  Your income would be exempt from Montana income tax if all of the following applies:

- You are enrolled as a member of a federally-recognized American Indian tribe, and 
- You live on the Indian reservation where enrolled, and 
- You derive all of you income from sources on the Indian reservation where enrolled.

If part of your income for the year is exempt from Montana income tax, but you have other non-exempt income that exceeds the Montana filing threshold, the Montana Form 2 is required.

Q. Do I have to file a Montana income tax return if I live on the Indian reservation where I am enrolled and all of my income is earned on my enrolled reservation?

A.  A. You no longer have to file a Montana income tax return (Form 2) if you are a tribal member and all of your income is exempt from Montana income tax. You can simply complete the Montana Form EMT which will serve as your return.

If only part of your income is exempt from Montana income tax, you will need to include this form with Montana Form 2.

Q. I live on the Indian reservation where I am enrolled, but earned some income from another Indian reservation or from another city in Montana. Is my income from the other reservation and location subject to Montana income tax?

A. Yes. The income earned on the other Indian reservation and off the reservation is subject to Montana income tax because the income is not from sources on the Indian reservation where you are an enrolled member.

Q. I am married and live on my spouse's reservation. I heard that the courts ruled the income earned from my tribe is exempt from tax. Is this correct?

A. No. You must live on your tribe's reservation and be an enrolled member for your income to be exempt from Montana taxation.

In the case of Jay R. and Twila Daniels vs. Department of Revenue, the State Tax Appeal Board (STAB) did rule that Mr. Daniels income was exempt. However, the District Court reversed STAB’s decision, and concluded that "the State of Montana Department of Revenue's authority to impose income tax on Mr. Daniels and similarly situated individuals is Upheld." The Taxpayer appealed to the Montana Supreme Court, but the case was dismissed after the parties entered into a settlement agreement.

Q. I live and work on an Indian reservation and am a descendant of the tribe. Am I exempt from filing a Montana income tax return?

A. No. You must be an enrolled member of the Indian tribe in addition to living and working on the Indian reservation. 

Q. What documents should I keep to support my income exclusion for income I earned on my tribe's reservation?

A. Keep documents that establish your tribal source of income and documents that establish your place of physical residence. You need the information if we examine the income inclusion for earned income from tribal reservation sources. If we contact you and request this information, you must respond in a timely manner even if you believe your income is exempt and/or you did not file a Montana income tax return. 

Q. I live on the reservation in a very rural area. I receive all of my mail at a post office box in the nearest town. Why can't I use my mailing address?

A. You may use your post office box address as the mailing address. However, to qualify for the exemption you must provide a physical address on your reservation.

Tribal Member Income Tax Filers - Settlement Payments - Frequently Asked Questions

Q. I will receive a payment under The Claims Resettlement Act of 2010 (Cobell). Will these payments be taxable to Montana?

A. No, these payments will not be taxable in Montana. Amounts received as either a lump sum payment or periodic payments will not be taxable in Montana and should not be included in your Montana gross income.

Q. I am an enrolled member of a tribe that received funds from the federal government under the Tribal Trust Accounting and Management Settlement*. The tribe used part of those funds to make payments to all its members including me. Do I have to pay Montana income tax on this payment?

A. Generally no, you will not have to pay Montana income tax on this payment. The Internal Revenue Service published guidance (Notice 2012-60) about the federal treatment of these payments. The IRS information outlines that an individual’s per capita share of the distributed settlement funds is not included when determining their federal gross income for tax purposes. Under certain circumstances, interest could be federally taxable. Because Montana’s income tax laws closely follow the federal laws, generally any amounts excluded from an individual’s federal taxable income would also be excluded from their Montana taxable income. If a portion of the payment is federally taxable, whether it is exempt from Montana income tax depends on a large number of factors (e.g. statutes, rules, court decisions). The department suggests consulting a tax professional to help determine whether the federally taxable portion is taxable in Montana given your particular situation.

Please note - This is not the Cobell settlement.

Q. A portion of my minor child's share of the settlement is being held in trust until he/she turns 18 at which point my child will receive another payment. Will the settlement funds still be exempt from Montana income tax at that point?

A. It depends. Currently, under the federal regulations, the portion of the funds that represents the share of the settlement would be exempt from tax, but any interest or other income earned on the funds may be taxable. If a portion of the payment is federally taxable, whether it is exempt from Montana income tax depends on a large number of factors (e.g. statutes, rules, court decisions), some of which could change over time. Because of this, the department suggests consulting a tax professional to help determine whether the payment is taxable given your particular situation.

Q. I filed a claim and received a payment under the Keepseagle v Vilsack settlement. Is this federal taxable income?

A. Yes. The amount you received plus any amount which may have been sent to the federal government on your behalf for taxes is taxable income.

Q. I filed a claim under the Keepseagle settlement but received debt relief instead of a payment. Is this federal taxable income?

A. It depends. As a general rule, forgiveness of debt is taxable income under the federal regulations unless certain conditions are met. The department suggests that you consult a tax professional to determine whether you meet the conditions for excluding the debt relief from your federally taxable income.

Q. If the type of payment or relief I received is included in my federal taxable income, can I subtract it as Exempt Tribal Income when completing my Montana income tax return?

A. It depends. A large number of factors affect whether the relief can be considered "Exempt Tribal Income" and each individual's situation may be unique. Because of this, the department suggests consulting a tax professional to help determine if the relief is exempt from Montana income tax.

Because the Keepseagle payments can be considered lost farming income that resulted from alleged discrimination, a tax professional should analyze the location of the individual's farm at the time of the alleged discrimination as one of the steps in determining whether the payments may or may not be exempt from income tax.

Generally, farming income is exempt from Montana individual income tax when the individual earning the income is an enrolled tribal member of the governing tribe of the reservation on which the enrolled tribal member works and resides and the farming income is derived from reservation resources or from allotted or restricted trust lands. See ARM 42.15.220. Farming income is not exempt, however, when the individual resides outside the boundaries of the individual's reservation, even when the individual resides on another reservation. Id.

If an individual files a Federal Schedule F and reports the Keepseagle settlement payments as other farming income, the department will assume that the farm generating the Schedule F income is the same farm where the alleged discrimination occurred. Accordingly, if an individual files a Schedule F and reports the Keepseagle settlement payments as other farming income, the Schedule F income is exempt from income tax when the individual is an enrolled tribal member of the governing tribe of the reservation on which the enrolled tribal member works and resides and the farming income is derived from reservation resources or from allotted or restricted trust lands on the reservation of the individual's governing tribe. See ARM 42.15.220.

If, however, an individual reports the Keepseagle settlement payments as other income elsewhere on Federal Form 1040, the department will not assume that the individual is generating income on the original farm, and it is therefore necessary to provide additional information demonstrating the location of the farming activity when the alleged discrimination occurred. Accordingly, the individual should seek advice from a tax professional to analyze factors related to the location of the farm and submit this additional information to the department if the individual believes the income is exempt.

Q. I have determined that the settlement payment or debt relief I received is nontaxable income. Do I need to include any of that income if I file a Form 2EC for the Montana Elderly Homeowner/Renter Credit?

A. Yes, to receive the Montana Elderly Homeowner/Renter credit, you must determine your "gross household income." This income includes both federal adjusted gross income and all nontaxable income. Although the payments or debt relief may not be taxable either federally or in Montana, these payments or debt relief must be included in your "gross household income" if you file Form 2EC for the Montana Elderly Homeowner/Renter credit.

Q. I have determined that my Montana taxable income will increase because I received a taxable settlement payment or debt relief. Do I need to make any payment to the state now?

A. It depends. The department suggests that you consult your tax preparer or complete the Montana Individual Estimated Income Tax Worksheet (ESW) to determine if you need to make an estimated payment or adjust the amount of estimated payments you are currently paying. Even if you don't need to adjust the amount of your estimated payments or if you aren't required to make estimated payments, you may still want to make a payment now to account for the additional tax you will owe when you file your Montana return later.

Nonfilers

Q. What is a nonfiler?

A. A nonfiler is someone who missed filing a prior year tax return, when it appears that he or she was required to file for Montana.

Q. How does the Department of Revenue identify nonfilers?

A. We have many ways to identify nonfilers. We receive federal information, information from other state agencies, anonymous tips, and information from other areas of our department. We also perform periodic checks of our own taxpayer information to identify nonfilers.

Q. Is there a time limit on how far back the department can go to find years when I did not file?

A. There is no time limit on how far back the department can go to request a tax return.

Q. I haven't filed income tax returns for several years. What should I do?

A. Obtain forms and file all late returns as soon as you can. If you have questions, write to us at:

Montana Department of Revenue
PO Box 5805
Helena, MT 59604-5805

You may also e-mail us or call us toll-free at (866) 859-2254 (in Helena, 444-6900).

Q. I received a letter stating I didn't file income tax returns for one or more years. What should I do?

A. Respond to the letter. If you did file the returns, send copies of them with your reply. If you didn't file, explain why not. If you have questions, write to us at:

Montana Department of Revenue
PO Box 5805
Helena, MT 59604-5805

You may also e-mail us or call us toll-free at (866) 859-2254 (in Helena, 444-6900).

Q. I received letters from the Department of Revenue about not filing income tax returns. I didn't respond to these letters. Now the department has attached my wages, other income, or taken my tax refunds. What can I do?

A. The department issued an estimated assessment against you because you did not respond to our request to file your tax returns, and the assessment is now delinquent. You need to resolve the issue of your missing returns. You should contact the department by calling us toll-free at (866) 859-2254 (in Helena, 444-6900).

Part Year/Nonresidents

Q. I am from a foreign country working in Montana. Do I have to file a Montana income tax return?

A. Yes. If you are a resident, your worldwide income is subject to tax. If you are a nonresident, you complete your return in the same way a resident does, but the tax a resident would pay is multiplied by the ratio of Montana source income to income from all sources to determine your Montana tax liability. This ratio is calculated on Form 2, Schedule IV.

Q. I am a nonresident of Montana and a partner in an entity that has a business interest in Montana. Am I required to file a Montana income tax return?

A. If an individual derives any gross income from Montana sources, and is required to file a federal income tax return, that individual also has a Montana filing requirement. However, even if you are not required to file a federal income tax return, you may still have a Montana filing requirement (see Filing Requirements). This includes partners, limited liability company members and small business corporation shareholders of any business that has derived gross income from Montana sources, regardless of whether that income is distributed from the business.

Q. I am a nonresident of Montana. I sold real estate located in Montana. Do I have to report the sale of this property to Montana?

A. Yes, any gain or loss from the sale of real estate located in Montana must be reported to Montana regardless of the owner's state of residence. For more information, see our publication Transferring Real Estate.

Penalties and Interest

Q. Am I subject to interest or penalties if I don't file my Montana income tax return by the due date?

You may be. If you file your income tax return late and your tax liability is more than $200, you are subject to the following penalties and interest:

- Late File Penalty: If you file your return after April 15, 2015, or October 15, 2015, if you have a valid extension, a late file penalty will be assessed if your combined total tax due is greater than your combined payments and offsets. The penalty is equal to the lesser of $50 or the amount of tax you owe.

- Late Pay Penalty: If you have not paid 100% of your income tax liability by April 15, 2015, the late pay penalty is equal to 1.2% per month or fraction of a calendar month on the unpaid balance from April 15, 2015 until it is paid.

- Interest: If you have not paid 100% of your income tax liability by April 15, 2015, you will have to pay 8% per year accrued daily on your unpaid balance. To calculate your interest, multiply the unpaid balance by .0002192 (.02192%) times the number of days after April 15, 2015, your payment is received.

Reminder! Beginning with the 2012 tax year, if your tax liability is $200 or less, you will receive an automatic, six-month extension to file your return and pay your tax liability as long as payment is received and the return is filed by the extended due date of the return. However, if the return is not filed and the tax is not paid on or before the extended due date, late payment penalty and interest will be calculated from the original due date of the return.

Q. When is underpayment interest assessed?

A. You may be assessed underpayment interest if you did not pay in advance at least 90% of your current year income tax liability (after applying your credits) or 100% of your prior year income tax liability (after applying your credits).

For more information about underpayment interest, see either Worksheet VII or Form EST-I.

Retirement Income

 

Pensions, Annuities, and Retirement Income

Q. I moved to Montana after retiring in another state. Is my pension from that state taxable in Montana?

A. Montana taxes all pension and retirement income received while residing in Montana to the extent it is taxable on the federal return. Tier I and Tier II Railroad Retirement benefits are 100% exempt from Montana income tax.

Q. How is my pension taxed?

A. Montana allows a pension and annuity income exemption of up to $3,830 per individual, if certain income limitations are met. Early distributions from an IRA do not qualify for this exemption. Complete Worksheet IV, Partial Pension and Annuity Income Exemption, to determine your exclusion.

The 2009 Montana Legislature enacted a law impacting the pension and annuity income exemption. An inflation factor will be applied to both the pension and annuity income exemption and to the federal adjusted gross income threshold, which will increase the amount of the exemption and slow its phase-out.

Q. How much of my social security benefits are taxable by Montana?

A. Your social security benefits taxable to Montana may be different from what is taxable federally. You will need to complete Worksheet VIII, Taxable Social Security Benefits, to determine your Montana taxable social security.

Power of Attorney

 

Power of Attorney

Q. My return is prepared by a tax professional. If the has any questions concerning my return, can I give you authorization to talk to my tax professional about my tax return?

A. If you mark the “Yes” box on the bottom of your return, we can discuss any concerns that we might have, but only with tax return for the current year —for example, a missing W-2—with a third party designee. If you mark the “No” box or do not mark a box, we cannot discuss your return with anyone but you or someone to whom you have given a power of attorney that allows us to discuss the return with them.

If you are filing a joint return, you are automatically authorizing us to discuss the joint return with either spouse, but you will still need to complete the third party designee section if you wish to allow another person, such as a tax preparer, to discuss your return.

If you and your spouse are filing separately on the same form, and the “Yes” box is marked, each of you is authorizing us to call the third party designee to answer any questions that arise while we are processing your tax return for the current year.

By marking “Yes” in the third party designee section of the return, you are also authorizing us to:

- Request that the third party designee give us any information that is missing from your return.

- Respond to the third party designee's call to us for information about the processing of your return or the status of your refund or current year payment(s).

- Discuss certain notices from us about math errors, offsets and return preparation. However, the department will only send notices directly to you, not to the third party designee.

You are not authorizing the third party designee to receive any refund check, bind you to anything (including any additional tax liability), receive any information about any other tax year or tax matter, or otherwise represent you before the department.

Please be aware that this authorization cannot be revoked. The authorization will, however, automatically end no later than the due date, without regard to extensions, for filing your next year’s tax return.

If you want to expand or change the third party designee's authorization (for example, to verify any estimated payments you’ll be making in the future), you can use Form POA, Power of Attorney, Authorization to Disclose Tax Information. You also can grant your third party designee access to your tax account information through Taxpayer Access Point (TAP).

Q. My return is being audited and I want my tax professional to handle the audit. How can I give you authorization to talk to my tax professional about my tax return?

A. Power of Attorney (Form POA), Authorization to Disclose Tax Information, is used by taxpayers to either change a Power of Attorney status or provide written authorization to a representative. A disclosure authorized by this form may take place by telephone, letter, facsimile, e-mail or a personal visit.

If tax matters and tax periods are not specified, the form will not be in effect.

Reciprocity

Q. What is reciprocity? Which states have reciprocity with Montana?

A. Montana currently has a reciprocity agreement with North Dakota. The agreement states, in general, that residents of these states will be taxed on personal service income (salaries, wages, commissions, and fees earned by an employee) by their home state. This agreement does not extend to other types of income earned in these states.

Q. How do I file if I have earned wages in North Dakota and I am a Montana resident?

A. Montana has a reciprocity agreement with North Dakota that exempts a Montana resident who earns wages in North Dakota from paying North Dakota income tax on these wages. However, this agreement does not extend to other types of income earned in North Dakota, and you may have to file an income tax return and pay an income tax to North Dakota on this other income.

If you are earning wages in North Dakota and you are a Montana resident, you can be exempt from North Dakota withholding tax on these wages. Complete North Dakota Form NDW-R and submit it to your North Dakota employer to be exempt from North Dakota withholding. You can get this form from your employer, from the Office of State Tax Commissioner, State Capitol, Bismarck, ND 58505, or visit their website.

Q. I am a North Dakota resident earning wages in Montana. How do I file a Montana income tax return?

A. Montana has a reciprocity agreement with North Dakota that exempts a North Dakota resident who earns wages in Montana from paying Montana income tax on these wages. However, this agreement does not extend to other types of income earned in Montana and you may have to file an income tax return and pay an income tax to the State of Montana on this other income.

If you are earning wages in Montana and you are a North Dakota resident, you can be exempt from Montana withholding on these wages. To be exempt from Montana withholding, complete Montana Form MT-R annually and submit it to your employer February 28 of the calendar year for which you want it to apply. You can get this form from your employer or from the Montana Department of Revenue, PO Box 5805, Helena, MT 59604-5805.

 If you received wages covered by reciprocity, and your employer withheld Montana income tax from them, you must file a Montana individual income tax return at the end of the tax year to obtain a refund of the amount withheld. If this applies to you and you do not have any other gross income from Montana sources, complete Form 2 as provided in the Form instructions.

Refund Information

Q. How can I check on my refund?

A. If you are expecting a refund, you can check the status of your refund online. Visit our Online Services page.

You can also check the status of your refund by calling us toll free at (866) 859-2254 (in Helena, 444-6900). We will be glad to tell you the status of your refund once we have entered it into our computer system.

To check the status of your refund either by telephone or online, you will need to provide the following information:

- A social security number.

- If you filed your return as single, head of household, or married filing separately, you will need your social security number; or

- If you filed a joint return, you will need the social security number of the first taxpayer listed on your tax return.

- The amount of the refund requested as shown on your tax return.

Senior Citizens

Q. What is the Montana elderly homeowner/renter credit (Form 2EC) and how can I determine if the credit is available to me?

A. The Montana elderly homeowner/renter credit is a property tax relief program that provides you with a refundable credit if you are age 62 or older, have resided in Montana for more than nine months during the tax year, occupied a Montana residence for a total of six months or more during the year, and your gross household income is less than $45,000.

Q. What are my options for filing Form 2EC?

A. You can file Form 2EC with your Form 2 or 2M, or alone if you are not required to file a Montana tax return, at revenue.mt.gov. If you choose not to file electronically and you are not required to file Montana Form 2 or 2M, please mail your Form 2EC to:

Montana Department of Revenue
PO Box 6577
Helena, MT 59604-6577

Q. Is all of my interest income taxable to Montana?

A. There is a partial interest exemption for taxpayers age 65 or older.

The administrative rule addressing this exemption was revised in 2008 to retroactively clarify that you can exempt up to $800 of the interest income that you included in your Montana adjusted gross income when determining your Montana taxable income. The rule previously referred to federal adjusted gross income.

If you are single and age 65 or older at the end of the calendar year, you can exempt up to $800 of the interest income that you reported in your Montana adjusted gross income.

If you are married and filing a joint return with your spouse and at least one of you is age 65 or older at the end of the calendar year, you can exempt up to $1,600 of the interest income that you reported in your Montana adjusted gross income.

If you are married and filing your return separately and are age 65 or older at the end of the calendar year, you can exempt up to $800 of the interest income that you reported in your Montana adjusted gross income. Please note, however, that you are not allowed to exclude interest income earned by and reported by your spouse.

For the purpose of this exclusion, when you determine the amount of your interest income, you should consider distributions commonly called dividends on deposits or share accounts as interest. Under no circumstances can you exclude more interest income than what you have reported in your Montana adjusted gross income.

Interest income from state, county, or municipal bonds from other states is not eligible for this exclusion.

Q. Are my retirement benefits taxable?

A. If you have reported taxable retirement income on the federal income tax return, you may be entitled to a partial exemption of this income.

Tier I and Tier II Railroad Retirement benefits are 100% exempt from Montana taxation.

Early distributions which required payment of the federal 5% or 10% additional tax do not qualify for the retirement income exclusion.

Also, if you have received a disability pension, which is identified as a distribution code 3 on your 1099-R, you should use the disability pension worksheet Montana Form DS-1 to determine your deduction instead of the retirement income exclusion.

If you have received retirement income other than Tier II Railroad benefits, you should complete Worksheet IV Partial Pension and Annuity Income Exemption, in order to determine the amount of your exclusion. Your retirement exclusion is limited to the lesser of your taxable retirement income that you received or $3,900, as long as your federal adjusted gross income is $32,480 or less and you are filing a single return, filing jointly with your spouse and only one of you have taxable retirement income, or you are filing as head of household.

If both you and your spouse have received retirement income and you are filing jointly with your spouse, and your federal adjusted gross income is $32,480 or less, you both can exclude the lesser of your taxable retirement income that you receive personally or $3,900 each for a maximum of $7,800. If you are filing your income tax return separately on the same form, or on separate forms, the lesser of your retirement income or $3,900 applies separately to both spouses as long as your separately stated federal adjusted gross income is $32,480 or less.

The 2009 Montana Legislature enacted a law impacting the pension and annuity income exemption. An inflation factor will be applied to both the pension and annuity income exemption and to the federal adjusted gross income threshold, which will increase the amount of the exemption and slow its phase-out. The figures provided incorporate this inflation factor and are up to date for the 2013 tax year.

Q. How much of my social security benefits are considered taxable by Montana?

A. Your social security benefits taxable to Montana may be different from the amount of taxable benefits that you reported for federal income tax purposes. You should determine your Montana taxable social security benefits by completing Worksheet VIII Taxable Social Security Benefits.

After you have completed your social security worksheet and you find that your social security benefits taxable to Montana are greater than those you reported on the federal return, enter the difference as an addition on the Montana income tax return.

If your social security benefits taxable to Montana are less than those that you reported on the federal return, enter the difference as a subtraction to federal adjusted gross income on the Montana income tax return.

Q. I receive railroad retirement benefits. Are my benefits taxable to Montana?

A. If your railroad retirement benefits are from Tier I or Tier II benefits, they are 100% exempt from Montana taxation.

Q. Are the Medicare premiums deducted from my social security deductible on the Montana individual income tax return?

A. If you are receiving social security and if you have Medicare premiums deducted from your benefits, these premiums are described as "Medicare premium payments made in 2014" in the description box on Federal Form SSA-1099. The supplemental part of Medicare insurance (Medicare B) and the premiums you pay for Medicare D insurance from your social security benefits are 100% deductible as an itemized deduction on Schedule III, Montana itemized deductions, line 5. The basic monthly premium in 2014 was $104.90.

Tax Form Info

 

Which Form Should I File?

Q. Who may file Form 2EZ?

A. To use Montana Form 2EZ, you should be able to answer yes to ALL of the following:

 -   I was a Montana resident for all of this tax year.
 -   I am filing as a single person or as a married person filing a joint tax return.
 -   I (and my spouse, if married) was not over 65 or blind at the end of the year.
 -   I am claiming no dependents.
 -   My only income is from wages, interest, dividends, or unemployment.
 -   I am claiming the standard deduction rather than itemizing deductions.
 -   I have not made estimated income tax payments.
 -   I am not claiming any credits.
 -   I did not receive a taxable federal refund in this tax year.
 -   I did not have any military or tribal income that is exempt from income tax.


Q. Who may file Form 2M?

A. To use Montana Form 2M, you should be able to answer yes to ALL of the following:

 -  I was a Montana resident for all of this tax year.
 -  I am filing as a single person, head of household, or as a married person filing a joint tax return.
 -  My only income is from wages, interest, dividends, capital gains, IRA distributions, pension, annuities, unemployment, social security benifits or taxable refunds.
 -  The only tax credit that I may be claiming is one (or more) of the following:

    - Adoption Credit

    - Elderly Homeowner/Renter Credit (Form 2EC)

    - College Contribution Credit (Form CC)

    - Energy Conservation Credit (Form ENRG-C)

    - Elderly Care Credit (Form ECC)

    - Alternative Energy System Credit (Form ENRG-B)

 -  I did not have any military or tribal income that is exempt from income tax.


Q. Who may file Form 2?

A.  Form 2 is available for all taxpayers. Form 2 is required if you answer yes to any of the following:

 -  I was a resident of Montana for only part of this tax year.
 -  I am a nonresident of Montana with Montana source income.
 -  I am married filing a separate Montana income tax return.
 -  I am claiming alimony paid or a penalty on early withdrawal of savings.
 -  My income includes income from a business or profession, farm or ranch, rents, royalties, partnerships, S corporations, estates, trusts, military or tribal income that is exempt from income tax.
 -  My tax year ended on a date other than December 31.
 -  I am claiming the tax withheld from my Montana mineral royalty payments.
 -  I am claiming the tax withheld by a pass-through entity from a Montana Schedule K-1.


Q. Who may file Form 2EC?

A. The Montana elderly homeowner/renter credit is a property tax relief program that provides the taxpayer with a refundable credit, or direct refund, even if they are not required to file a Montana income tax return.

To qualify for this credit you will have to answer yes to all four of the following statements:
 -   I was age 62 or older as of December 31 of this tax year.
 -   I occupied a Montana residence as an owner or renter for a total of six months or more during the year.
 -   I resided in Montana for nine months or more during the year.
 -   My gross household income was less than $45,000.

If you think you may have been eligible for the tax credit in prior years and did not take advantage of it, you are still allowed to file for the credit for up to five years from the original due date of the Form 2EC.
 

Q. What is Form ETM?


A.  Form ETM is available for Enrolled Tribal Members who are claiming exempt tribal income. You no longer have to file a Montana income tax return (Form 2) if you are a tribal member and all of your income is exempt from Montana income tax. Form IND Tribal Member Certification has been replaced by the ETM form which will serve as your return.


Form ETM is required if you are exempting income as an enrolled member and all of the following apply to you:


 -  You are an enrolled tribal member of the governing tribe of a reservation.
 -  You resided and worked on that reservation.
 -  You earned the income by working on that reservation.


If only part of your income is exempt from Montana income tax, you will need to file the ETM form as well as the Montana Form 2.

Tax Rates

Q. What is my tax rate?

A. 2014 Montana Individual Income Tax Table - If your taxable income on Form 2, line 45 is:
 

If your taxable income on Form 2, line 45 is:

More than But not more than Then your tax is Less:
$0 $2,800 1% of your taxable income $0
$2,800 $5,000 2% of your taxable income ($28)
$5,000 $7,600 3% of your taxable income ($78)
$7,600 $10,300 4% of your taxable income ($154)
$10,300 $13,300 5% of your taxable income ($257)
$13,300 $17,100 6% of your taxable income ($390)
$17,100 or more 6.9% of your taxable income ($544)
For example: Taxable Income $6,800 X 3%(0.030) = $204. $204 minus $78 = $126 Tax

 

Tip Income

Q: Can my employer require me to turn in my tips and then pay them back through my paycheck?

A: If the employees do not have a tip pool, no. Tip income must be reported to the employer but the tips are the property of the employee. If the tipped employees do have a tip pool, then the tips are given to the pool and divided among the employees that receive tips.

The employees and the employer have tip-reporting rules which must be followed for income tax and social security tax purposes. For more information, see publications 1244, 3144, and 3148 at www.irs.gov. If you believe your employer is violating labor standards, please contact the Department of Labor at (406) 444-5600.

Treasury Offset Program

Q. I received a notice that my federal refund had been taken to pay a past-due state tax debt. How can you take my federal refund?

A. The Treasury Offset Program (TOP) is a debt collection program administrated by Financial Management Services (FMS), a bureau of the U.S. Department of the Treasury. This program allows state agencies to submit past-due, legally enforceable state income tax obligations to FMS for offset of the debtor's individual federal income tax refund.

Q. What is an offset?

A. An offset is when the federal refund you would have received is used to pay all or a portion of a state income tax debt. If the full amount is not collected in one year, future offsets may be done to satisfy your tax debt.

Q. Can an offset be avoided?

A. Yes. You must pay the balance of all tax liabilities listed in the notice, including ongoing interest, within the 60-day time frame provided in the Notice of Intent to Offset letter. If the debt is not resolved within 60 days, the department will send our request to FMS to offset any federal income tax refund you may be entitled to receive.

Q. Why can the U.S. government collect money to pay debts owed to a state?

A. Under the federal Debt Collection Improvement Act (DCIA), an administrative offset such as the Treasury Offset Program (TOP) may be used to collect debts, including funds or property, owed by a person to a state (including any past-due support being enforced by the state).

The Secretary of the Treasury has the discretion to collect debts owed to states by offset; it is not mandatory. A reciprocal agreement must be made with the state and the appropriate state official must request the offset. Montana has signed an agreement with the Treasury Department to participate in TOP.

Q. Are there any fees I have to pay related to this debt collection program?

A. The debt collection program is administrated by Financial Management Services (FMS), a bureau of the U.S. Department of the Treasury. FMS charges an administrative fee of $22 to administer the program.

Wage/Tax Statements

 

Wage and Tax Statements (Form W-2)

Q. What should I do if I did not receive a Form W-2, wage and tax statement, from my employer or I misplaced it?

A. Your employer is required to issue a Form W-2 by January 31 if you earned wages during the previous calendar year. If you haven’t received your W-2 by that date or you misplaced it, request your employer to reissue it. You may also obtain this information by completing a Request for Copies of Tax Information (Form RTI) and submitting it to us in person, by fax or by mail. You can obtain this form by visiting revenue.mt.gov or by calling us toll free at (866) 859-2254 (in Helena, 444-6900).

You still must file your tax return on time even if you do not receive your Form W-2. If you do not receive the missing information in time to file, you may complete federal Form 4852, Substitute for Form W-2, Wage and Tax Statement. Include Form 4852 with the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified. Keep a copy of the completed Form 4852 for your records.

If you receive a Form W-2 or W-2C (corrected form) after you have filed your return using Form 4852 and the information differs from what you reported on your return, you must amend your Montana individual income tax return.

Q. I forgot to include my W-2s with the income tax return I filed. I reported the wages and Montana income tax withheld from those W-2s on my tax return. What should I do?

A. If you reported on your income tax return the wages and Montana tax withheld from those W-2s, please keep them until we ask for them. If we need the W-2s to process your tax return, we will request them from you.

Q. After I filed my income tax return I received another W-2. I did not report the wages and Montana withholding tax from this W-2 on my tax return. What should I do?

A. If you did not report the wages or Montana withholding tax from the W-2 on the tax return you filed, you'll need to file an amended Montana income tax return and include copies of all your W-2s with the amended return you file.

Online Services


Visit our Online Services page to view all electronic options.


Information Disclosure

Frequently Asked Questions - Disclosure Office: Confidentiality and Sharing of Tax Information FAQs


Authorization to Disclose Tax Information - For Taxpayers

If you would like your tax preparer to have access to information about your taxes. You can choose from the two options below:

Option #1 - Power of Attorney

You can give your tax preparer authorization to discuss with us the current year’s filed return during our processing of it by checking the box on the bottom of the return. You can also complete and submit a Power of Attorney (POA) form giving your tax preparer access to specified account information for past and current years and up to three years in the future. That will give your preparer access to specified account information for past and current years and up to three years in the future. Under this option, you will also need to complete and submit a POA form, necessary for allowing your preparer access to information about your estimated payments as he or she prepares your return. (See Frequently Asked Questions on confidentiality.)

Keep in mind:

-We generally process completed POA forms within one day of receipt.
-Incomplete or inaccurately completed POA forms will increase our process time as we will need to consult with you to complete or correct the POA.
-If you are filing a Montana tax return for the first time, some delay will occur because we first must process your return before we can create an account to which the POA can be attached.

To complete option #1:

-you or your tax preparer needs to:
 

(a) Use the check-the-box authorization on the current return.
(b) Fax an accurate and complete Power of Attorney (Form POA) to (406) 444-4375 or
(c) send an electronic Power of Attorney.

-We will accept Federal Form 2848 in place of Form POA, if Section 3, Tax matters, identifies “Montana” and the type of tax, tax form number, and the applicable year(s). Fax to (406) 444-4375.

-Your tax preparer can then call the department’s Call Center toll-free at (866) 859-2254 or in Helena at 444-6900. The Call Center will provide the appropriate information — as authorized by either the check-the-box or the POA. Again, please understand that the check-the-box and the POA provide different access to your information.

-To discuss your estimated payments with your tax preparer, we would require a POA because the payments are for a tax return not yet filed.


Option #2 - Authorization through Taxpayer Access Point

You can authorize your tax preparer access to specific account information through Taxpayer Access Point (TAP).

To complete option #2:

1. You and your tax preparer need to establish TAP accounts.

-Your tax preparer needs to establish an account only once, but the account must have been established before you can grant the preparer access to your account.
-Similarly, you must establish an account before you can grant specified access to your tax preparer.

2. Your tax preparer needs to request from his or her account permission to access to your account.

3. You immediately receive notification by e-mail of your tax preparer’s request. The notification contains a link to your account from which you can grant the tax preparer access. The different levels of access that can be granted are "view," "view and file," or "full access" (view, file and pay).

4. Your tax preparer immediately receives an e-mail that access has been granted.

5. Your tax preparer can then access your information at the level you have specifically authorized.

Authorizing access for a tax preparer requires the following:

You will need:

-access to the internet
-an established account in Taxpayer Access Point (TAP)
-access to an e-mail account or a cell phone with text messaging
-your social security number and/or Montana Account ID
-for individual income tax, your federal adjusted gross income for the previous year

Your preparer will need:

-access to the internet
-an established account in Taxpayer Access Point (TAP)
-your last name
-your social security number and/or Montana Account ID
-for individual income tax, your federal adjusted gross income for the previous year

View detailed instructions of how to access this information at Taxpayer Access Point (TAP) or, call us toll free at (866) 859-2254 or (in Helena at, 444-6900).
 

Authorization to Disclose Tax Information - For Tax Preparers

If you need to access information about your client's tax returns, choose from one of the two options below:

Option #1 - Power of Attorney

Your client can give you authorization to discuss with us his or her current year’s filed return during our processing of it by checking the Power of Attorney box on the return. Your client can also complete and submit a Power of Attorney form giving you access to specified account information for past and current years and up to three years in the future. Under this option, the POA is necessary if you need to access information about your client’s estimated payments as you prepare his or her return. (See Frequently Asked Questions on confidentiality.)


Keep in mind:

-We generally process accurately completed POA forms within one day of receipt.
-Incomplete or inaccurately completed POA forms will increase our process time since we will need to consult with the taxpayer to complete or correct the POA.
-If your client has filed a Montana tax return for the first time, some delay will occur because the department must process the return before we can create an account to which the POA can be attached.

2. To complete option #1:

1. Use the check-the-box authorization on the current return.
2. Fax an accurate and complete Power of Attorney (Form POA) to (406) 444-4375, or
3. Send an electronic Power of Attorney

We will accept Federal Form 2848 in place of Form POA, if Section 3, Tax matters, identifies “Montana” and the type of tax, tax form number, and the applicable year(s). Fax the form to the same number, (406) 444-4375.

You can then call the department’s Call Center toll-free at (866) 859-2254 or in Helena at 444-6900. The Call Center will provide the appropriate information — as authorized by either the check-the-box or the POA. Again, please understand that the check-the-box and the POA provide authority to access different information concerning the taxpayer.

-To discuss your client’s estimated payments, we would require a POA because the payments are for a tax return not yet filed.

Option #2 - Authorization through Taxpayer Access Point (TAP)

Your client can give you access to specific account information through Taxpayer Access Point (TAP).

To do this:

1. Both you and your client need to establish TAP accounts.

-You need to establish an account only once, but your account must be established before your clients can grant you access to their accounts.
-Each client must establish an account to which he or she grants specified access to you.

2. You need to request from your account access to your client’s account.

3. Your client immediately receives notification by e-mail of your request. The notification contains a link to his or her own account from which he or she can grant you access. The different levels of access that can be granted are "view", "view and file," or "full access" (view, file, and pay).

4. If the client does so, you will immediately receive notification that access has been granted.

5. You can then access the account information at the level your client has specifically authorized.

Authorizing access to your client’s account requires the following:

Your client will need:

-Access to the internet
-An established account in Taxpayer Access Point (TAP)
-Access to an e-mail account
-His or her social security number and/or Montana Account ID
-For individual income tax, his or her federal adjusted gross income for last year

You will need:

-Access to the internet
-An established account in Taxpayer Access Point (TAP)
-Your client’s last name
-Your client’s social security number and/or Montana Account ID
-For individual income tax, your client’s federal adjusted gross income for last year

View detailed instructions of how to access this information at Taxpayer Access Point (TAP) or, call us toll free at (866) 859-2254 or (in Helena at 444-6900).


Tax Appeal Process

Tax Appeal Process - Department of Revenue's Tax Appeal Process Information


Other Information


Sales Tax and State Fees 
Tax Assistance
Tax Fraud
Taxpayer Delinquent List
Tribal/State Agreements
Voluntary Disclosure

General Individual Income Tax Information

Income tax revenues are collected primarily through employer withholding, periodic estimated tax payments, and payments made when the return is filed. Income tax revenues are distributed 100% to the general fund.

Electronic filing of the Montana income tax return along with the federal return is available. Direct deposit of refunds is available to all filers along with direct deposit to automatically pay your tax liability when you electronically file your return.

Montana residents are taxed on all income, regardless of source, except that income which is statutorily exempted from taxation. Part-year residents and nonresidents are taxed on all Montana source income that is derived from or connected to Montana sources. Additionally, part-year residents are taxed on all non-Montana source income generated during or attributable to the period of the tax year in which they resided in Montana.


Montana's individual income tax was enacted in 1933 and continues to this day to be the largest source of state tax revenue. The state's income tax is viewed as a "progressive" tax system because of the distribution of tax burden and because income is taxed according to a graduated rate structure with rates ranging from 1% to 6.9% of taxable income.

Taxable income is derived from gross income by making certain adjustments and taking a variety of allowable deductions and exclusions. This tax generally applies to the net income of Montana residents and nonresidents.

"Tie to Federal" Alignment

Probably the most significant feature of Montana's income tax is the substantial reliance on the federal tax code. Often described as a "tie to federal" alignment, this reliance allows the state to establish the essential elements of this tax system by direct reference to federal definitions of income and deductions, and federal reporting procedures and protocol.

This reliance is common among the 43 other states imposing individual income taxes. Most importantly, this approach allows both the state and its taxpayers to realize significant operating efficiencies. Without this parallel structure, Montanans would face increased complexity and substantially higher compliance costs.

The income tax statutes do, however, reflect Montana-specific tax policy as determined by previous legislative assemblies. These policy directives are found in the areas of additions and subtractions to federal adjusted gross income, unique itemized deductions, and tax credits.