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Montana Free Printable  for 2020 Montana Individual Income Tax Instructional Booklet

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Individual Income Tax Instructional Booklet
Form 2 Instructions

2019 Montana Form 2 Individual Income Tax Instructions M O N TA N A D E PA R T M E N T O F R E V E N U E It’s Easy to File and Pay Electronically! Call us at (406) 444-6900 MTRevenue.gov Check our online services at MTRevenue.gov. Choose e-file and direct deposit for a faster refund! Dear Montana Taxpayer, Thank you for filing your Montana tax return. To make filing your tax return as easy as possible, we have made some changes. Please see the What’s New section for the changes to our 2019 tax forms. It is important for Montanans to know where your tax dollars go. In the graphs below, you can see where tax revenues come from and how they are used to support important services and infrastructure. We are committed to assisting you with any questions you may have about your filing requirements. If you need more information or would like help, please visit MTRevenue.gov or call our help line at (406) 444-6900. Also, we encourage you to file electronically. Last year nearly 90 percent of individual taxpayers filed electronically. Taxpayers find that e-filing is easy, and helps ensure accurate processing. It can also help you get any refund you are owed more quickly. Be sure to visit montanafreefile.org for help with free filing options. Best regards, Your Montana Department of Revenue Your Tax Dollars at Work What are Montana’s Public Revenues? Total Montana State and Local Revenue, Fiscal Year Ending 2016 Motor Fuel Taxes 3% Natural Resource Taxes Utility and Liquor Sales 2% 3% Interest Earnings and Other 8% Other Taxes 8% Federal Revenue 31% Individual and Corporate Income Taxes 13% Tuition and Other Charges for Services 15% Where Do Your Public Dollars Go? Total State and Local Spending in Montana, Fiscal year Ending 2016 Interest on Debt 2% Public Safety 8% Environment, Housing, Natural Resources, Parks 8% Transportation 11% Higher Education 12% Property Taxes 18% Health and Human Services 27% Administration, Judiciary, and Other 12% Public Schools 21% Contents What’s New?................................................................................................................... i General Instructions........................................................................................................1 Filing Requirements.................................................................................................1 When Must You File?...............................................................................................2 How to File...............................................................................................................2 Elderly Homeowner/Renter Credit...........................................................................3 Nonresident Tax ......................................................................................................4 Amending Your 2019 Return....................................................................................4 Interest Rate for 2020..............................................................................................4 Line Instructions..............................................................................................................5 Personal Information................................................................................................5 Filing Status – (mark only one box).............................................................................5 Residency Status.....................................................................................................7 Dependents..............................................................................................................7 Exemptions..............................................................................................................8 Federal Adjusted Gross Income...............................................................................9 Montana Taxable Income........................................................................................10 Tax, Credits and Payments.....................................................................................10 Status 2a Payment Schedule..................................................................................13 Refund Schedule....................................................................................................13 Direct Deposit.........................................................................................................14 Signature, Paid Preparer, and Third-Party Designee..............................................14 Amended Return Information..................................................................................15 Form 2, Schedule 1.................................................................................................15 Net Operating Loss Election for Farming Losses...................................................16 Montana Medical Savings Account (MSA) Schedule..............................................16 Montana Additions Schedule..................................................................................17 Montana Subtractions Schedule.............................................................................20 Partial Pension and Annuity Income Exemption, and Taxable Social Security Benefits Worksheets..................................................26 Standard Deduction Worksheet..............................................................................26 Itemized Deductions Schedule...............................................................................27 Nonresident/Part-Year Resident Ratio Schedule....................................................31 Tax Liability Schedule.............................................................................................36 Nonrefundable Credits Schedule............................................................................38 Credit for Income Tax Paid to Another State or Country Schedule.........................42 Elderly Homeowner/Renter Credit Schedule..........................................................44 Other Payments and Refundable Credits Schedule...............................................46 Contributions, Penalties, and Interest Schedule.....................................................47 Penalties and Interest Worksheet Instructions .......................................................49 Tax Benefit Rule for Recoveries of Itemized Deductions Long Worksheet Instructions...........................................................................50 These instructions are designed to address the laws for most tax filing situations. If you have a unique situation that is not addressed in the booklet, please refer to Title 15 of Montana law found at leg.mt.gov or call us with your questions. What’s New? Updates and items of interest relating to individual income tax. Federal Changes Federal Extenders. The year-end federal budget bill was signed into law on December 20, 2019, which extended certain expired provisions (Federal Extenders) that were eliminated in the 2017 Tax Cut and Jobs Act. The 2019 Form 2, schedules, and worksheets conform to these Federal Extenders. Legislative Changes Earned Income Tax Credit. Beginning with Tax Year 2019, Montana has enacted a state version of the Earned Income Tax Credit (EITC). The Montana EITC is offered at 3 percent of the federal credit and is fully refundable. For example, if your federal EITC is $1,000, your Montana EITC will be $30. If you are a part-year resident, a member of a 501(d) organization, or a tribal member, you may be entitled to a partial credit. This credit is not available for non-residents. See page 11 for more information about the Montana EITC. Deposits to 529 Accounts. You can now direct part or all your overpayment to a Family Education Savings account (IRC 529) or an Achieve a Better Life Experience account (IRC 529A). Use the MT- 529 Schedule to indicate which account you want your overpayment to be deposited. This deposit is considered a refund to you and will be included on federal Form 1099-G. For more information, see Form 2, page 12. Allowable deductions for contributions to an ABLE account expanded. Beginning with Tax Year 2019, the list of family members eligible for a tax deduction for contributions to an Achieving a Better Life Experience (ABLE) account has been expanded to include grandparents, siblings or children related to an account owner by blood, marriage, or legal adoption. In addition contributions are eligible for deduction regardless of the designated beneficiary’s residency, or state in which the account is held or administered. Business deduction when a federal credit is claimed. Beginning with Tax Year 2019, businesses that claim a federal credit are allowed the corresponding business expense as a deduction for Montana tax purposes when this deduction is disallowed for federal tax purposes. For example, employers receiving the federal credit for Social Security and Medicare taxes paid on certain employee tips are now allowed to take the related expense as a deduction. This deduction is limited to business expenses and does not impact expenditures that must be capitalized. For more information about this income tax deduction, see the instructions for Montana Subtractions Schedule, line 24, on page 24. Changes to Form 2 Revisions related to the federal Form 1040. The Montana Form 2 was updated to reflect the changes made to the 2019 federal Form 1040. These changes include moving the capital gains line from federal Schedule 1 to the first page as well as the addition of a separate line for pensions and annuities. Payment schedule for married taxpayers filing separately on the same form. Married taxpayers filing separately on the same form, with one spouse owing while the other has an overpayment, must use the Status 2a Payment Schedule on page 2 to determine whether they have a net amount owed or a net overpayment. If you are the spouse with the overpayment, you may be able to claim a partial refund after applying your overpayment to the amount owed by your spouse. Schedule 1 (federal Form 1040 or 1040-SR) Additional Income and Adjustment to Income. We added a checkbox allowing you to indicate write-ins adjustments were included on line 22 of federal Schedule 1, page 3. Montana Schedule K-1. Montana Schedule K-1 was revised to simplify both the reporting of Montana adjustments and the reporting of Montana source income by nonresidents. See the instructions for the Montana Additions Schedule, line 12, and Montana Subtractions Schedule, line 32, for additional information on how to report these adjustments. 2019 Montana Form 2 Instructions Page i General Instructions Filing Requirements Do You have to File? In general, if during the tax year you were a resident or part-year resident of Montana, or if you were a nonresident who received Montana source income; and, if your federal gross income, excluding unemployment compensation, is equal to or greater than the threshold for your filing status as listed in the chart below, then you must file a Montana income tax return. IF your filing status is… Single, or married filing separately Head of household Married filing jointly with your spouse AND at the end of 2019 you were… THEN you must file a tax return if your federal gross income, excluding unemployment compensation was at least… Under 65 $4,710 65 or older $7,220 Under 65 $9,420 65 or older $11,930 Both under 65 $9,420 One spouse 65 or older $11,930 Both spouses 65 or older $14,440 You are entitled to an additional exemption if you are blind or your spouse is blind. Increase your federal gross income in the last column by $2,510 to determine if you must file. If you are not sure about your filing status, see page 5. You may qualify for the Elderly Homeowner/ Renter Credit even if you do not have a Montana filing requirement. See page 3 for instructions on how to claim this credit. To claim the Earned Income Tax Credit, you must still complete Form 2, pages 1 and 2, even if you do not meet the filing thresholds shown above. For more information about the Earned Income Tax Credit, see page 11. Filing requirement for taxpayers with losses. If you incurred or reported losses (including passive losses and net operating losses), you must file a Montana tax return to track the sourcing of the losses and to use those losses in calculating your tax liability. Unreported losses may lead to the disallowance of their use in future years. Nonresident Military Servicemembers and Spouses In general, if you are a military service member, or the spouse of a military service member, located in Montana solely in compliance with military orders, you do not acquire residency status in Montana. Under the Servicemembers Civil Relief Act, if you are a service member located in Montana solely in compliance with military orders, you retain residency in the state you were a resident before moving to Montana. Your military compensation is not Montana source income. Spouse of Active Duty Servicemember You qualify for relief under the Military Spouse Residency Relief Act if: ● You are the spouse of a nonresident military servicemember; and ● You are in Montana solely to be with your military spouse who is serving in compliance with military orders; and ● Both spouses are residents of the same state. If you meet all three of these conditions, your compensation for personal services earned in Montana cannot be sourced to Montana, but remains taxable in your state of residency. If you or your spouse have Montana source income, such as rental income from real property located in Montana, you must file as nonresidents. You must exempt the military compensation on the Montana Subtractions Schedule, line 13, if you included this compensation in your Federal Adjusted Gross Income. The compensation for services rendered in Montana and received by the nonresident nonmilitary spouse are not Montana source income and are not included on your Nonresident/Part-Year Resident Ratio Schedule, line 1. If you meet the requirements of either situation described above and you do not have any Montana source income, you do not have a filing requirement in Montana. 2019 Montana Form 2 Instructions Page 1 Enrolled Member of a Tribe If you are an enrolled member of a tribe and you live on the reservation governed by your tribe, you can subtract your income sourced to your reservation from your Federal Adjusted Gross Income. Other items of income are taxable and must be reported on Form 2. Income that can be sourced to the reservation governed by your tribe includes: ● wages earned within the exterior boundaries of your reservation; ● all interest, dividends, pensions, annuities, and any income received from the use of intangible properties; ● income, including farming, from real properties located within the exterior boundaries of your reservation; ● business income from activities carried on within the exterior boundaries of your reservation. Income sourced elsewhere includes: ● wages earned outside the exterior boundaries of the reservation governed by your tribe; ● any income linked to real estate properties located outside the exterior boundaries of the reservation governed by your tribe; ● any business income stemming from activities carried on outside the exterior boundaries of the reservation governed by your tribe. You may source business income from a passthrough entity to your reservation using a reasonable method suited to the nature of the business. Income already sourced to a state other than Montana can never be sourced to your reservation. If all your income can be subtracted from Montana income tax as a tribal member, you do not have to file a Montana income tax return, Form 2. Instead, you must file Form ETM. If only part of your income can be subtracted from Montana income tax, and your nonexempt income exceeds the filing thresholds, you must file Form 2 with Form ETM. When you are required to file a Form 2, use the Montana Subtractions Schedule, line 8. If you live outside the boundaries of the reservation governed by your tribe, or if you live on another reservation that is not governed by your tribe, none of the income can be sourced to the reservation governed by your tribe. Income derived directly from allotted or restricted lands that are held in trust by the United States and exempt from federal income tax is also exempt from Montana income tax. When Must You File? File Form 2 and pay the tax due by April 15, 2020. An automatic extension of six months applies for filing your return, but this extension does not apply to payments. If you file after the extended due date, you may have to pay a penalty for late filing. See instructions about interest and penalties on page 47. If you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone or contingency operation, the extension of time to file your Montana tax return is the same as the extension you receive for your federal tax return. See the IRS Publication 3 for more information. How to File Electronic Filing Filing electronically is recommended for faster, more accurate, and more secure service. If receiving a refund, you will receive it more quickly by filing electronically than if you file on paper. You may be eligible for free tax software from Free File Alliance. Find Free File Alliance offers at MTRevenue.gov. Paper Filing If you are filing your return on paper, you must include any applicable federal forms and schedules we requested on the return. You do not need to provide us with your entire federal return when you file your Montana return unless you are a nonresident or part-year resident. However, you should retain your federal return in your tax records and be able to provide it to us upon request. Include only the pages of Form 2 on which you entered information. For example, if you are a resident and you only had to complete the Form 2, Schedule 1, the Montana Subtractions Schedule, and you chose the standard deduction, you will only need to send pages 1, 2, 3, and 5. If you choose to file a paper return, you must complete your federal Form 1040 first. Use blue or black ink to complete Montana Form 2. You must sign and mail page 1 and 2 to us. Include all pages with a completed schedule. 2019 Montana Form 2 Instructions Page 2 TIP: You will need to send only pages 1 and 2 of Form 2 if: ● You only received wages, dividends, or taxable interest, and ● You have fewer than four dependents, and ● You do not report any adjustment to income (see page 3), and ● You do not have any Montana additions or subtractions (see pages 4 and 5), and ● You chose the standard deduction for 2019, and ● You are not claiming any credit in 2019. If you wish to contribute to a check-off program, you will have to use the Contributions, Penalties, and Interest Schedule, and include page 11 with the return you are mailing. Easy Steps to Assemble Your Return as Shown Below – Do Not Staple From Top to Bottom 1. Payment Voucher, if you are making a payment 2. Forms W-2 and 1099 reporting Montana Withholding 3. Montana Form 2, pages 1 and 2 4. Montana Form 2, other pages with completed schedules 5. Copy of your federal tax return: Nonresident/part-year residents must include a copy of their entire federal return. 6. Copy of your federal schedules: Nonresident/part-year residents must include a copy of their completed federal schedules. We have two different mailing addresses for your paper return, if you choose not to file electronically. 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 do not owe taxes or are expecting a refund, mail your tax return to: Montana Department of Revenue PO Box 6577 Helena, MT 59604-6577 If you are making a payment with your tax return, mail your tax return and check to: Montana Department of Revenue PO Box 6308 Helena, MT 59604-6308 Elderly Homeowner/Renter Credit Before you begin, gather all the information about the income of all the members of your household. You will need this information to verify eligibility and calculate the credit. If you are required to file a return, you can calculate the credit on page 10 of Form 2 and claim it on the Other Payments and Refundable Credits Schedule on page 11. If you are not required to file a return, and you wish to claim the Elderly Homeowner/Renter Credit, you can do so on the TransAction Portal (TAP) https://tap.dor.mt.gov or on paper by completing just Form 2, pages 1, 2, 10, and 11, in the following order: ● Page 10: ○ First, complete the Elderly Homeowner/ Renter Credit Schedule (and, if applicable, the Long-Term Care Facility Rent Calculation Worksheet) to determine eligibility and calculate the amount of credit. ● Page 11: ○ Enter the amount of credit on the Other Payments and Refundable Credits Schedule, page 11, line 6. 2019 Montana Form 2 Instructions Page 3 ● Page 1: ○ Provide your identification and filing status used to determine your filing requirement; ○ Check “Resident full-year” or “Resident part-year.” (To claim the credit, you must be a resident of Montana and have resided in the state for at least nine months of 2019); ○ List dependents, if any; ○ Mark the box “65 or older” in the exemption section if applicable; ○ Complete lines 1, 4a, 4c, and 5a when applicable. (Use any Forms W-2 and SSA-1099 or 1099-R you may have received to complete those sections); ○ Report the amount of credit on lines 19 and 24. ● Page 2: ○ Complete the direct deposit section; ○ Sign at the bottom. Nonresident Tax Nonresidents are taxed on their Montana source income. This tax is first calculated based on taxable income determined as if the taxpayer was a resident, and then apportioned to the amount of Montana source income included in Montana Adjusted Gross Income. This apportionment is determined using the Nonresident/Part-Year Resident Ratio Schedule. Do not exempt non-Montana source income on Montana Subtractions Schedule. Example: Marla is a nonresident. Her Federal Adjusted Gross Income is $50,500 and includes $10,000 of rental income from a real property she owns in Montana. The rental income is Montana source income. Marla must first calculate her taxable income as if she were a resident and calculate her resident tax. Her Federal Adjusted Gross Income includes $500 of interest that is exempt in Montana. Since she reports the same additions and subtractions as a resident, she reports this interest on her Montana Subtractions Schedule. After additions and subtractions, Marla’s Montana Adjusted Gross Income is $50,000. Marla must first calculate her taxable income as a resident. After claiming her itemized deductions and her personal and dependent exemptions, her taxable income is $30,000. Marla then calculates her nonresident ratio using the Nonresident Ratio Schedule on Form 2, page 8. She reports $10,000 of rental income on line 10 so her nonresident ratio is 20 percent ($10,000/$50,000). Marla calculates her tax on the Tax Liability Schedule, line 1, which is $1,483. Her nonresident tax is $297 ($1,483 x 0.20). She reports $297 on her Tax Liability Schedule, line 3a, and on Form 2, page1, line 15. Part-year residents calculate their tax like nonresidents. However, a part-year resident must include in the numerator of their ratio all their income received while they were a resident. See instructions for the residency line on page 7 to determine your residency status. Amending Your 2019 Return If you are amending your 2019 return, you must complete a new Form 2 with all the schedules, even if none of the amounts previously reported on them have changed, and do the following: 1. Mark the box on the top left of page 1. 2. Make sure you sign and date your return. 3. Complete the Amended Return Information section on page 2. 4. Include any payments made with or after filing the original return on line 7 of the Other Payments and Refundable Credits Schedule on page 11. 5. If you requested a refund or if you carried over all or part of the overpayment reported on your original return to 2020, make sure that you completed line 2 of the Contributions, Penalties, and Interest Schedule on page 11. If you file an amended tax return that reflects an increased tax liability, you may have the late payment penalty waived. To receive the waiver, simply mark the “Amended Return” box on the top left-hand corner of the tax return and pay the tax and applicable interest in full when you file the amended return. By marking this box and paying all tax and interest, you are treated as having requested a waiver of the late payment penalty. Interest Rate for 2020 Effective January 1, 2020, the annual interest rate assessed on outstanding balances is 5 percent. This rate also applies to underpayment of estimated taxes. Interest is calculated daily. 2019 Montana Form 2 Instructions Page 4 Line Instructions Personal Information Enter your name, address, and Social Security Number (SSN) or Individual Tax Identification Number (ITIN). An incorrect number may delay your refund. Enter the address where you receive your mail. We will use this address to send correspondence and your refund (if applicable). If either the primary taxpayer or the spouse died prior to filing this return, enter the date of death in the field next to his or her name. Include a copy of the federal Form 1310 unless you use filing Status 2a (married filing separately on the same form) or Status 4 (married filing jointly) on this return. Filing Status – (mark only one box) Montana law does not require you to claim the same filing status that you claimed on your federal tax return. For example, if you are married and you filed your federal income tax return jointly, you and your spouse have the option to file your Montana tax return either jointly or separately. TIP: If you are married, and both spouses report income, filing separately may result in less tax due. Filing Separately When Married. If you and your spouse chose to file separately, you and your spouse will each need to report your own adjusted gross income. You cannot arbitrarily assign income or deductions between the two of you. When filing separately, you must select whether you and your spouse are filing on the same form (Status 2a), on separate forms (Status 2b), or separately with your spouse not filing (Status 2c). When you choose to file separately, you are filing a separate return from your spouse, even if you file on the same form. How to allocate income and deductions when filing separately. Apply the following general rules as you allocate income and deductions between you and your spouse. When filing separately on the same form this allocation is done between Columns A and B, with each column being a return. Allocation of income. If you filed your federal tax return separately, report the items of income the same way you reported them on your federal Form 1040. Allocate income as follows: ● Income from wages, salaries, bonuses, commissions, and other income that is earned from providing personal services as an employee or as an independent contractor should be reported by the spouse who earned it. ● Income such as capital gains or losses, rents, royalties, dividends, and interest should be reported by the spouse who owns the property from which the income is derived. If you and your spouse jointly hold the property, you must split the income equally between both spouses unless you and your spouse can show a different proportional ownership. ● Income from your or your spouse’s ownership in a sole proprietorship (federal Schedules C or F), partnership, S Corporation, or trust must be reported by the spouse who is the owner. An allocation for services rendered by a spouse can also be made (see instructions for Montana Additions and Montana Subtractions Schedules.) Allocation of deductions. In general, if you filed your federal return separately, report the items of deduction the same way you reported them on your federal Form 1040. ● Spouses must either both claim the standard deduction, or both itemize their deductions. You are not allowed to claim one method for one spouse and another method for the other spouse. ● Deductions that are attributable to only one spouse must be claimed by that spouse. This includes, for example, federal income tax withheld from your wages and the Student Loan Interest Deduction. ● Payments made from accounts owned by both spouses and that pertain to expenses that are not attributable specifically to one spouse can be allocated to either spouse in any proportional amount. Review the following before choosing Status 2a (Married Filing Separately on the Same Form). 2019 Montana Form 2 Instructions Page 5 The Status 2a election includes: ● An authorization to direct the department to automatically apply the tax overpaid reported by one spouse to the tax due by the other spouse, including when the return is revised. For example, if we discover a math or other computational error when processing the form, the correction may result in our applying one spouse’s refund to the other spouse’s increased tax automatically, even when neither of the spouses were expecting a refund. ○ If you file separately on the same form, before requesting any refund, you must apply your overpayment on line 24 to the amount owed by your spouse, if any, on line 23. See Status 2a Payment Schedule on Form 2, page 2. ● An authorization to allow department employees to discuss all information on the form with either spouse, as permitted by Montana law. The department may also discuss any subsequent adjustments with either spouse. ○ The law, however, does not allow you to make decisions for your spouse or to receive information about an amount your spouse may owe. ● The opportunity to qualify for the Household and Dependent Care Services itemized deduction, if you are married and you do not file jointly. ● The requirement to calculate your interest on underpayment of estimated tax on a combined basis. If none of the above provisions apply to your tax situation and you still want to file separately, you must file on separate forms and choose Status 2b. Status 1 – Single You can claim this filing status if on December 31, 2019, you: ● were single; ● were legally separated according to your state law under a decree of divorce or separate maintenance; or ● were widowed before January 1, 2019, and you did not remarry in 2019. If your filing status is Single, report your income and deductions in only column A. Status 2a – Married Filing Separately on the Same Form You can use Status 2a if both spouses are residents or both spouses are nonresidents receiving Montana source income. Although submitted on the same form, married taxpayers electing to file using this status are submitting two tax returns, so each spouse must complete their own column. Penalties and interest are calculated separately. Do not forget to reallocate estimated tax payments to your spouse, on your Other Payments and Refundable Credits Schedule, page 11, if you determine that all or part of these payments should be applied to your spouse’s account. Status 2b – Married Filing Separately on Separate Forms You can choose Status 2b if you are both residents, and choose not to file on the same form. You and your spouse must use filing Status 2b if one spouse is a resident of Montana and the other spouse is a nonresident who has Montana source income. When you select this filing status, you must include your spouse’s Social Security Number. Status 2c – Married Filing Separately and Spouse Not Filing You can use filing Status 2c 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 must include your spouse’s Social Security Number. Note: When you use this filing status, you cannot claim your spouse as an exemption on your return. Status 3 – Head of Household You qualify to file as Head of Household on your Montana tax return if you qualify as Head of Household for federal income tax purposes. When you use this filing status, include your federal Form 1040, page 1, with your Montana tax return. Generally, when your filing status on your federal Form 1040 is Qualifying Widow(er), you can use Head of Household status. Verify that you qualify using the instructions for federal Form 1040 or IRS Publication 17. 2019 Montana Form 2 Instructions Page 6 Status 4 – Married Filing Jointly You can claim this filing status if you were married as of December 31, 2019, even if: ● You did not live with your spouse at the end of 2019; or ● Your spouse died in 2019 and you did not remarry in 2019; or ● You were married as of December 31, 2019, and your spouse died in 2020 before filing a 2019 return. Residency Status In general, 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 you own it or not, even if you may someday leave. You do not lose your Montana residency if you leave the state temporarily for work or other purposes with the intention of returning. In general, your Montana residency is lost when you move and establish residency in another state. Unless there is a specific exception under Montana law, if you establish Montana residency for any purpose, you are considered a Montana resident for income tax purposes. You are a full-year nonresident of Montana if you were not a resident for whole 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. Note: If you are married and one of you is a resident of Montana and the other is a nonresident of Montana, you cannot claim two residency statuses on the same return. You must file separate Montana tax returns and file using Status 2b or 2c described above. Beginning in 2019, a nonresident spouse of a service member who is a resident of Montana may choose to become a resident of Montana. This change is irrevocable until such time residency is established in another state. North Dakota Reciprocity Montana has an income tax reciprocity agreement with the state of North Dakota that allows a resident of one state to be exempt from wage withholding and individual income tax on compensation received for work performed in the other state. If you are a resident of North Dakota, wages you received in 2019 for work performed in Montana are not taxable in Montana. The following instructions are for residents of North Dakota whose income from Montana is only wages. If your employer withheld Montana income tax you must complete Form 2, pages 1 and 2, to request the refund as follows: 1. Complete the personal information section at the top of page 1, as instructed. 2. File this form as a nonresident. 3. Mark the box for “North Dakota Reciprocity.” 4. Leave the dependents and exemptions sections blank. 5. Enter the Federal Adjusted Gross Income shown on your federal Form 1040, line 8b. 6. Fill in the amount of the Montana income tax withheld from your wages on line 18, and also include this amount on lines 22 and 24. 7. File this form with a copy of your federal return and Form(s) W-2 showing Montana income tax withholding. If you received wages and other types of income from Montana, you must complete Form 2 following the instructions. See the Nonresident/Part-Year Resident Ratio instructions for the treatment of your wages. If you do not want your employer to withhold Montana income tax from your wages, you must claim the North Dakota reciprocity exemption on Montana Form MW-4 and give that form to your employer. Dependents List each dependent’s first name, last name, Social Security Number, and his or her relationship to you. If you have more than three dependents, you need to include a separate list of these additional dependents. A person who meets all the following requirements is considered your dependent for Montana income tax purposes. Some of Montana’s dependency requirements are different from the federal dependency requirements. Your dependent is an individual: ● for whom you have provided more than half his or her support during the tax year; and ● who does not have gross income of more than $2,510, unless the dependent is a “qualifying child” according to the federal rules; and ● who is not filing a joint tax return with his or her spouse during the same tax year. 2019 Montana Form 2 Instructions Page 7 In addition to the requirements mentioned previously, your dependent must be: ● a relative to you (or your spouse if you are filing a joint return) in one of the following ways: Child Mother Aunt Stepchild Grandparent Son-in-law Grandchild Stepfather Daughter-in-law Brother Stepmother Father-in-law Sister Nephew Mother-in-law Stepbrother Niece Brother-in-law Stepsister Uncle Sister-in-law Father or ● an individual who for the tax year has shared your home as his or her principal home, and has been considered a member of your household; or ● a cousin (or other descendant of your uncle or aunt) who is receiving institutional care because of a physical or mental disability and was a member of your household before receiving the institutional care. Note: When the terms nephew, niece, uncle, or aunt are used, they mean a direct relative of yours. You can claim your uncle as a dependent, but you cannot claim your uncle’s spouse. Similarly, you cannot claim your spouse’s uncle as a dependent, only your spouse can. A child who is under age 19 at the end of the year (or under age 24 and a full-time student) and lived with you for more than half the year can be considered a dependent even if they have more income than is otherwise allowed. Disabled Child In addition to the dependent exemption, you are entitled to another exemption for a child who is disabled. If your child is disabled and you qualify for this additional exemption, place an “X” in the “Mark if Disabled” column in the same row you listed your disabled child. You are allowed this disabled child exemption if you meet all the following requirements: ● You provide more than half the disabled child’s support. ● Your home is the disabled child’s principal home. ● The disabled child has a permanent disability constituting a disability to 50 percent or more of the body. Deafness and blindness do not meet this requirement. ● A licensed physician has certified the child’s disability. If this is the first year that you are claiming the additional exemption for this child, you must include a physician’s certification of this qualifying disability with your tax return. This physician’s certification filed with us during the first year of eligibility remains in effect in subsequent years. We do not require you to file it again until the circumstances of your disabled child change. Exemptions You and your spouse are entitled to an additional exemption if you are age 65 or older at the end of the tax year, and an additional exemption if you are blind. a – Yourself. You are always allowed one exemption for yourself. We placed an “X” in your box for you. Even if you are claimed as a dependent on another person’s tax return, you are still entitled to your one personal exemption. b – Spouse. Mark the box only if you are married and filing jointly with your spouse, or if you file separately on the same form. No exemption for the spouse is allowed on this form if you and your spouse chose Status 2b or 2c. c – Exemptions for Dependents. You can claim a dependent exemption for each person who qualifies as your dependent. If you are filing separately, and the same individual is the dependent of both, you must allocate this dependent to one or the other spouse. The same dependent cannot be claimed twice. When adding your exemptions for dependents, add two exemptions, instead of one, for each dependent who is a disabled child in the column or on the form of the spouse claiming the dependent. 2019 Montana Form 2 Instructions Page 8 Federal Adjusted Gross Income Your income on your Montana tax return begins with your Federal Adjusted Gross Income. You need to refer to your federal income tax instructions for detailed information about how to complete lines 1 through 8b and Form 2, Schedule 1, on page 3. Selected lines have been identified in these instructions to provide additional information about specific Montana tax details. If you were required to complete and include a federal schedule for any of the items on these lines, also include those schedules when you submit your Montana tax return. Lines 1 through 8b On lines 1 through 8b, enter the amounts corresponding to your federal tax return Form 1040. Complete the Form 2, Schedule 1 on page 3, if needed. Line 3b – Ordinary Dividends. Enter the total ordinary dividends that you reported on your federal Form 1040, line 3b. Montana taxes all dividends as ordinary dividends and does not have a specific qualified dividend tax rate. Lines 4a-4d – IRA Distributions, Pensions and Annuities. IRA distributions, pensions, and annuities may entitle you to a partial exemption. See the Montana Subtractions Schedule, line 35, and related instructions. Line 5a and 5b – Taxable Social Security Benefits. Your Montana taxable amount of Social Security benefits may be different than your federal taxable amount if your Montana Adjusted Gross Income differs from your Federal Adjusted Gross Income. First, Montana grants a partial exemption for pension and annuity income to some taxpayers. Second, the state uses the adjusted gross income after Montana additions and subtractions, including the exemption amount, to determine the taxable and excludable portion of your benefits. These adjustments to your taxable amount of benefit must be reported on the Montana Additions Schedule on page 4 or the Montana Subtractions Schedule on page 5. Line 6 – Capital Gain or (Loss). Enter the same amount of your capital gain or loss that you reported on your federal income tax return. Treatment of losses. Married taxpayers who are filing jointly for federal tax purposes, but separate for Montana tax purposes, may allocate the amount of losses shown on the federal joint return between the spouses. If you and your spouse jointly held the property, you must split the income equally between both spouses unless you and your spouse can show a different proportional ownership. Example: Jack and June are married and file jointly for federal tax purposes and separately for Montana. They sold a property they jointly owned. They realized a loss and reported $3,000 of capital losses directly related to that sale on their federal Form 1040. Jack and June can claim $1,500 loss each. If June had owned the property, June could have reported $3,000 of capital loss and Jack $0. If you are married and are both residents, and you filed a joint return for federal tax purposes, you can also report your gains or losses individually and separately. You must follow the federal rules for filing separately, including the limitation on losses in IRC 1211. In addition, reporting your gains and losses individually and separately may result in short-term gain or losses for one of the spouses. When using this method, we recommend each spouse recompute their own net gain or loss using the federal Schedule D. Caution: If each spouse has capital gains and losses, this method can result in additional Montana tax being imposed on some of the gains and/or a different amount of carryover losses for Montana tax purposes than for federal tax purposes. TIP: If you are a resident, reporting capital gains on this line entitles you to a tax credit of 2 percent of the amount reported. See the Nonrefundable Credits Schedule, line 1, and related instructions. Nonresident and part-year residents calculate their capital gains credit based on the Nonresident/ Part-Year Resident Ratio Schedule, line 7. Line 8b – Federal Adjusted Gross Income. If you are filing Single, Married Filing Jointly, or Head of Household, this amount should correspond to the amount of your Federal Adjusted Gross Income you reported on your federal Form 1040. If you file separately, in most cases, the sum of both columns equals the Federal Adjusted Gross Income reported on your federal Form 1040. 2019 Montana Form 2 Instructions Page 9 Montana Taxable Income 2019 Montana Individual Income Tax Table Line 9 – Montana Additions. Montana additions are all items of income that are not included in Federal Adjusted Gross Income and that must be added to determine Montana Adjusted Gross Income. To figure the amount of additions you must report on this line, see the instructions for the Montana Additions Schedule on page 17. If you report one or more additions, you must include page 4 of Form 2 with your return. Line 10 – Montana Subtractions. Montana subtractions are all items of income that are included in Federal Adjusted Gross Income and that must be deducted to determine Montana Adjusted Gross Income. To figure the amount of subtractions you must report on this line, see the instructions for the Montana Subtractions Schedule on page 20. If you report one or more subtractions, you must include page 5 of Form 2 with your return. Line 12 – Standard or Itemized Deductions. You must choose between the standard deduction or itemized deductions. To figure which is more beneficial (generally the larger of the two) complete the Standard Deduction Worksheet and the Itemized Deductions Schedule on page 7. When you and your spouse file, you must both use the standard deduction or itemize your deductions. You cannot use two different methods. If one spouse itemizes, the other one will be deemed to be itemizing as well. When you elect to itemize your deductions, you must mark the box and include page 7 of Form 2 with your return. If you do not mark the box or do not include page 7, the processing of your return may be delayed, or your return may be adjusted using the standard deduction. Line 13 – Exemptions. Multiply $2,510 times the number of exemptions that you calculated on the Exemptions Section, line d. Tax, Credits and Payments Line 15 – Tax Liability Before Credits. Residents: If you are a full-year resident, and you do not owe any recapture tax (see page 36), nor any taxes on lump-sum distributions (see page 37), compute your tax using the following table and report the result on line 15. If Your Taxable Income Is More Than But Not More Than $0 $3,100 1% (0.010) $0 $3,100 $5,400 2% (0.020) $31 $5,400 $8,200 3% (0.030) $85 $8,200 $11,100 4% (0.040) $167 $11,100 $14,300 5% (0.050) $278 $14,300 18,400 6% (0.060) $421 6.9% (0.069) $587 More Than $18,400 Multiply Your Taxable Income By And Subtract This Is Your Tax If you owe recapture taxes or the tax on lump-sum distributions, see the instructions on page 36 to complete the Tax Liability Schedule on Form 2, page 8, to figure the amount you need to report on line 15. Nonresidents and part-year residents: See the instructions on pages 31 through 36 to complete the Tax Liability and the Nonresident/Part-Year Resident Ratio Schedules and report the amount of tax liability on line 15. Include Form 2, page 8, with your return. Line 16 – Nonrefundable Credits. For information about nonrefundable credits, including the capital gains credit and credit for taxes paid to another state, see the instructions on page 38. If you are claiming a nonrefundable credit you must include Form 2, page 9, with your return. Line 18 – Montana Tax Withheld on Forms W-2 and 1099. Enter the sum of all the Montana income tax withheld from any Forms W-2 or 1099 you received. This includes, for example, Forms W-2 and any 1099 received related to wages, pensions, selfemployment, or royalties (including mineral royalties): ● If you received wages, the Montana tax withheld is reported in Box 17 of your federal Form W-2. ● If you received pensions, the Montana tax withheld is reported in Box 12 of your federal Form 1099-R. ● If you received Montana mineral royalties, the tax withheld is generally reported in Box 16 of your federal Form 1099-MISC. Royalty payments made to owners of Montana mineral rights are subject to state tax withholding if certain thresholds are met. This amount is no more than 6 percent of your Montana royalty payments and should not be confused with the production taxes that are also subtracted from your royalty payments. 2019 Montana Form 2 Instructions Page 10 When you claim Montana income tax withheld, you are required to include a copy of your withholding statements (federal Forms W-2 or 1099-R) with your return. Line 19 – Other Payments and Refundable Credits. This line consists of all other refundable credits, including the Elderly Homeowner/Renter Credit. See the instructions on page 46 to complete the Other Payments and Refundable Credits Schedule. Include page 11 of Form 2 with your return. If you or an entity made estimated tax payments on your behalf, pass-through entity withholding payments on a Montana Schedule K-1, or any other payments not reported on Forms W-2 and 1099, you must complete the Other Payments and Refundable Credits Schedule. Line 20 – Earned Income Tax Credit. You are allowed a Montana Earned Income Tax Credit (EITC) of 3 percent of the federal EITC claimed on your federal return. Your Montana EITC is refundable. This means that if the credit is more than your Montana tax liability after applying withholding taxes and credits, the difference will be refunded to you. Nonresidents and married taxpayers filing separately on separate forms do not qualify for the Montana EITC. If you are a nonresident or married filing separately on separate forms, enter 0 (zero) on line 20a and line 20b. Line 20a. Enter the federal earned income credit amount from your federal Form 1040, page 2, line 18a on line 20a. Line 20b. If you are a full-year resident and you are not: ● an enrolled tribal member living on the reservation of your tribe, or ● a member of an agricultural organization provided for in section 501(d) of the Internal Revenue Code, multiply line 20a by 3 percent (0.03) and enter the result on line 20b. (Example 1). If your filing status is 2a (Married and Filing Separately on Same Form), the amount of the credit maybe allocated between spouses. See Example 2. Example 1: Filing status is Single, Head of Household, or Married Filing Jointly. Example 2: Filing status is Married Filing Separately on the Same Form (Status 2a). Your EITC claimed on your federal tax return is $2,000. Enter $2,000 on line 20a. Your Montana EITC is $60 (3 percent of your federal EITC). You may choose to enter any portion of $60 in any column of line 20b, and the remainder on the other column. For example, you may enter $20 on line 20b, column A and $40 on line 20b, column B, for a total of $60. If you are a part-year resident, an enrolled tribal member living on the reservation of your tribe, a member of an agricultural organization provided for in section 501(d) of the Internal Revenue Code, or a servicemember of the armed forces, you are allowed the Montana EITC in the proportion of your Montana earned income over your total earned income. Use the Montana EITC Reduction Worksheet on page 12 to calculate the amount you can claim on line 20b. On this worksheet, Montana earned income means the following: ● If you are a part-year resident, earned income used for the calculation of the federal EITC that was earned in Montana while you were a resident. In general, Montana earned income is the addition of all income reported on the Part-Year Resident Ratio Schedule, lines 1,6, and 11. Earned income sourced to Montana while you were not a resident is not Montana earned income. See example 3. ● If you are an enrolled tribal member living on the reservation of your tribe, the amount of earned income received for services performed outside the reservation. See Form ETM to calculate your Montana earned income. ● If you are a member of an agricultural organization provided for in section 501(d) of the Internal Revenue Code, your Montana earned income is your federal earned income minus any dividends received from the agricultural organization that are included in the federal earned income used to calculate the federal EITC. ● If you are a servicemember with the armed forces, the amount of earned income that is not exempt from individual income tax in Montana. See Example 6. Your EITC claimed on your federal return is $2,000. Enter $2,000 on line 20a. Your Montana EITC is $60 (3 percent of your federal EITC). Enter $60 on line 20b. 2019 Montana Form 2 Instructions Page 11 Montana EITC Reduction Worksheet Enter the federal EITC reported on page 1, 1 line 20a 2 Multiply line 1 by 3% (0.03) 3 Enter your federal earned income used for the calculation of the credit 4 Enter your Montana earned income 5 Divide line 4 by line 3, 6 Multiply line 2 by line 5. This is your Montana EITC. Report the result on Form 2, page 1, line 20b. Example 3: Part-year Resident. You are Married Filing Jointly (Status 4) as part-year residents who received $30,000 of earned income including $15,000 of wages in Montana while being residents, $5,000 of wages earned in Montana while being nonresidents, and another $10,000 of wages in another state. Your Montana earned income is $15,000. Assume your federal EITC is $2,000. Your Montana EITC before reduction is $60 (3 percent of your federal EITC). Your Montana EITC after reduction is $30 ($60 x $15,000 / $30,000). Example 4: Enrolled Tribal Member. You are single and an enrolled member of a tribe living on the reservation of your tribe in Montana. You received $30,000 of earned income including: $10,000 of wages earned while working outside the reservation, and another $20,000 earned on your reservation. Your Montana earned income is $10,000. Assume your federal EITC is $2,000. Your Montana EITC before reduction is $60 (3 percent of your federal EITC). Your Montana EITC after reduction is $20 ($60 x $10,000 / $30,000). Example 5: Member of a 501(d) Organization. You are Married Filing Jointly (Status 4), and a member of an agricultural organization provided for in section 501(d) of the Internal Revenue Code, and you received $30,000 of earned income. On your federal Form 1040, you included $10,000 of dividends received from the agricultural organization as earned income for the purpose of determining your federal earned income. Your Montana earned income is $20,000. Assume your federal EITC is $2,000. Your Montana EITC before reduction is $60 (3 percent of your federal EITC). You Montana EITC after reduction is $40 ($60 x $20,000/$30,000). Example 6: Member of the Armed Forces. You are a resident member of the armed forces Married Filing Jointly (Status 4), who is also a resident of Montana. Your federal earned income is $30,000, including wages of $5,000 earned by your spouse. Your military compensation is exempt from taxation in Montana. Assume your federal EITC is $2,000. Your Montana EITC before reduction is $60 (3 percent of your federal EITC). Your Montana EITC after reduction would be $10 ($60 x $5,000/$30,000) Line 21 – Contributions, Penalties and Interest. Complete this schedule if you are: ● Making one or more contributions to a voluntary check-off program (see page 47) ○ Nongame Wildlife Program ○ Child Abuse Prevention Program ○ Agriculture Literacy in Montana Schools Program ○ Montana Military Family Relief Funds Program ● Filing an amended return and your initial return showed an overpayment, (see page 47), or ● Reporting interest or penalties related to savings and management accounts (see page 49), or Line 23 – Tax Due. If line 22 is less than line 17, subtract line 22 from line 17 and enter the result on line 23. This is the amount you owe. Note: If line 22 is zero or less, add lines 17 and 21, then subtract the total of lines 18, 19, and 20b, and enter the result on line 23. If your status is 2a (Married Filing Separately on the Same Form) and your spouse has an amount overpaid on line 24, go to Status 2a Payment Schedule before making a payment. If you both have an amount owed on line 23, you may make two payments. 2019 Montana Form 2 Instructions Page 12 You can pay the amount you owe by: ● Electronic funds withdrawal when e-filing return. You can schedule your withdrawal for a later date. ● E-check or credit/debit card. Visit MTRevenue.gov and click on “Filing and Payment Options” and choose either TransAction Portal (TAP) or Income Tax Express, (ITE) e-payment services. There is a small fee when paying with a credit or debit card. ● Personal check, money order, or cashier’s check. Include the payment voucher available at MTRevenue.gov. Make your check payable to the Montana Department of Revenue, sign your check, and write your Social Security Number and “Tax Year 2019” on the memo line. Note: If the payment is not in U.S. funds, the bank will convert the payment to U.S. funds based on the exchange rate, potentially reducing the amount credited to your tax account. Interest and late payment penalties will be assessed on any amount not paid when due. If you cannot pay the entire amount that you owe with your tax return, we encourage you to file your return on time and pay as much as possible. By filing and paying as much as you can by April 15, 2020, you may not have to pay a late file penalty and you can reduce the amount of your late payment penalty and interest. If you need to establish a payment plan, visit our TransAction Portal at https://tap.dor.mt.gov or call us at (406) 444-6964, option 1, as soon as possible to discuss your payment options and make arrangements. Taxpayers filing separately on the same form may make two payments if both owe taxes. Line 24 – Tax Overpaid. If you report tax overpaid on line 24, go to the Refund Schedule on page 2 to determine if you want this tax overpaid applied to your 2020 estimated tax, deposited onto a 529 Qualified Tuition Program (Family Education Savings Account) or 529A Achieving a Better Life Experience Account, or refunded. If your status is 2a (Married Filing Separately on the Same Form) and your spouse has a tax due on line 23, go to Status 2a Payment Schedule first. Your tax overpaid must be reduced by the tax due by your spouse before you can calculate your refund. Status 2a Payment Schedule This schedule must be used by taxpayers who are married filing separately on the same form and when one of the spouses has a tax due while the other has a tax overpaid. By choosing Status 2a, you elect to have your tax overpaid applied against the tax due by your spouse. Example: Kerri reports tax due of $60 on line 23. Steve has an overpayment of $100 on line 24. Kerri and Steve must complete the Status 2a Payment Schedule to figure if Kerri has a net amount due or if Steve has a net overpayment. On the Status 2a Payment Schedule, Kerri reports $60 on line 1 and Steve reports $100 on line 2. As a result, line 3 shows zero net amount due, and line 4 shows a net overpayment of $40 ($100-$60) that Steve may enter on his column of the Refund Schedule, line 1. Line 1. Enter the amount from page 1, line 23. This amount may be in column A or B. Line 2. Enter the amount from page 1, line 24. This amount may be in column A or B. Line 3. If you are the spouse with an amount on line 23, this is the net amount of tax due. See instructions for line 23 on how to make a payment. Line 4. If you are the spouse with an amount on line 24, this is the net amount of tax overpaid. Go to the Refund Schedule and report this amount in your column. Refund Schedule Line 1. Enter your tax overpaid here. If your status is 2a and part of your tax overpaid was used to pay your spouse’s tax due, enter the amount from Status 2a Payment Schedule, line 4. Line 2. This is the amount from your tax overpaid you want applied to your 2020 return. The amount you carry forward to your 2020 return is applied to your first Tax Year 2020 estimated tax quarterly payment. See Publication 1 (Prepaying Income Tax) for further information on your obligation to prepay income tax. Line 3. If you want all or part of your refund deposited into a Family Education Savings account (FES) or an Achieve a Better Life Savings (ABLE) account, complete Schedule MT-529 and report the total amount deposited on this line (See Form 2, page 12, for Schedule MT-529 instructions). Line 4. This is your refund. This amount cannot be less than zero. 2019 Montana Form 2 Instructions Page 13 Direct Deposit Daytime Phone Number If you would like to use direct deposit, enter your financial institution’s routing number (RTN#) and your account number (ACCT#) in the space provided. Your routing number is nine digits and your account number can be up to 17 characters, including numbers and letters. Mark whether your account is a checking or savings account and if your refund will go to a bank outside of the United States and its territories (Midway Islands, Puerto Rico, American Samoa, U.S. Virgin Islands, Federated States of Micronesia, and Guam). If you and your spouse are due a refund, each of you will get a direct deposit. If your financial institution does not accept the direct deposit, we will mail you a refund check. If both you and your spouse are due a refund, you will each receive a refund check. A sample of a personal check is provided for your reference. Signature, Paid Preparer, and Third-Party Designee Your tax return is not complete unless you sign it. If your filing status is Married Filing Jointly or Married Filing Separately on the Same Form, your spouse must also sign. Incomplete returns cannot be processed and require us to contact you for additional information. If you have someone prepare your return, you are still responsible for the correctness of the return. Electronic Return Signatures If you are filing your return electronically, the act of filing your return electronically signifies your declaration, under the penalty of false swearing, that: ● You are the taxpayer identified in the return; and ● The information in the return is true, correct, and complete. Your filing electronically, with this declaration, is your signature. Providing your daytime phone number may help speed the processing of your return. We may have questions about items on your return and if you are able to answer our questions over the phone, we may be able to continue processing your return without mailing you a letter. If you are filing a joint return, you can enter either your or your spouse’s daytime phone number. If your paid preparer is also a third-party designee (see below), you can enter your paid preparer phone number here. Paid Preparer Signature. Anyone you pay to prepare your return must sign it. Someone who prepares your return but does not charge you should not sign your return. PTIN/SSN. The paid preparer must include his or her Preparer Tax Identification Number (PTIN) in the space provided. FEIN. The paid preparer must also include his or her firm’s Federal Employer Identification Number (FEIN), if applicable. Third-Party Designee Box. You (not the paid preparer) must mark the box if you want the paid preparer to be a third-party designee. When the third-party designee box is not checked, we cannot talk to the paid preparer about your return, which may delay the process of the return. For more information about third-party designees, see below. The paid preparer must give you a copy of the return for your records. Third-Party Designee To allow us to discuss your 2019 Form 2 return with your paid preparer and/or your friend, family member, or any other person you choose, mark the appropriate boxes and provide the required information on Form 2, page 2, Signature, Paid Preparer, and Third-Party Designee section. The Paid Preparer designation box is located to the right of the “Firm’s FEIN” boxes. You must include the Preparer’s daytime phone number. To designate someone other than, or in addition to, the paid preparer, mark the box below the “Paid preparer’s signature” field and above the “Name” field. You must include your designee’s name and phone number. 2019 Montana Form 2 Instructions Page 14 By selecting a Third-Party Designee, you are authorizing the designee to: ● Discuss your 2019 Form 2 return; ● Give us any information that is missing from your return, such as a missing Form W-2; ● Call us for information about the processing of your re
Extracted from PDF file 2019-montana-form-2-instructions.pdf, last modified January 2020

More about the Montana Form 2 Instructions Individual Income Tax Tax Return TY 2019

Use this free instructional booklet to help you file your Form 2 tax returns by mail or online via the Montana Department of Revenue's website. This booklet does not include the form.

We last updated the Individual Income Tax Instructional Booklet in January 2020, so this is the latest version of Form 2 Instructions, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form 2 Instructions directly from TaxFormFinder. You can print other Montana tax forms here.

Other Montana Individual Income Tax Forms:

TaxFormFinder has an additional 78 Montana income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 2 Montana Individual Income Tax Return
Form IT Payment Voucher Individual Income Tax Payment Voucher
Form 2 Instructions Individual Income Tax Instructional Booklet
Form AMD Montana Individual Income Tax Amended Return Reconciliation
Form 2M-WKST Worksheets

Download all MT tax forms View all 79 Montana Income Tax Forms


Form Sources:

Montana usually releases forms for the current tax year between January and April. We last updated Montana Form 2 Instructions from the Department of Revenue in January 2020.

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Form 2 Instructions is a Montana Individual Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Montana Form 2 Instructions

We have a total of five past-year versions of Form 2 Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:



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While we do our best to keep our list of Montana Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.

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