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Montana Free Printable  for 2019 Montana Individual Income Tax Instructional Booklet

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Individual Income Tax Instructional Booklet
Form 2 Instructions

2018 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 Get your refund faster ! File online and choose direct deposit. Check out Online Services at revenue.mt.gov. Filing deadline is April 15, 2019. Call us at (406) 444-6900. Dear Montana Taxpayer, Thank you for filing your Montana tax return. Your Montana Department of Revenue is committed to providing the best possible services to all Montanans! To make the filing of your tax return as easy and simple as possible we have made some changes. Please see the What’s New section for the changes to our 2018 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, especially in light of the changes to the federal and state income tax forms. If you need more information or would like help, please visit revenue.mt.gov or call our help line at (406) 444-6900. Also, we encourage you to file electronically. Last year more than 87 percent of taxpayers filed electronically. Taxpayers find that e-filing is easy, convenient and helps ensure correct filing. 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% File Your Montana Individual Income Tax State and Federal E-Filing Options ● Free File Alliance is a coalition of industry-leading tax software companies offering free filing services for qualified filers. Federal and State returns must be filed together. (Some companies may charge a fee for state tax return preparation.) www.IRS.gov/FreeFile ● TransAction Portal (TAP) – File your Montana Form 2EC or Form ETM on TAP. https://tap.dor.mt.gov ● Tax Preparer Professionals – Your preparer can e-file your federal and state tax returns at the same time. ● Retail or Online Software – You can use retail or online software to prepare and file your returns on your own. Visit revenue.mt.gov for available options. Getting Started These simple steps will help you complete and file your Montana tax return. 1. Before you begin, take the time to familiarize yourself with the forms, schedules, worksheets and other documents you’ll need to complete your tax return. 2. Decide if you will file electronically or use a paper tax return. This booklet is designed to help you file by either method. 3. If you file a paper return, remember to sign it. 4. If you are a resident, include any federal forms or schedules we requested on the return. You are not required to include your entire federal return. 5. If you are a nonresident or a part-year resident, you are required to include a copy of your entire federal return with your Montana return. 6. File your Montana tax return (include your payment, if taxes are due) by April 15, 2019. We recommend you request direct deposit if you expect a refund. 7. When finished, please accept our thanks for a job well done! 2018 Montana Form 2 Page iv 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? New Form 2 Montana Form 2 has been re-designed to make it easier to use. The new format should allow more taxpayers to file Form 2 using a limited number of sections. Personal information goes on page 1, along with much of the information needed to file, including: wages, interest, dividends, pensions, Federal Adjusted Gross Income, Montana additions and subtractions, deductions, Montana taxable income, over-payments and amount owed. This will allow many taxpayers to file using only page 1. As a result, Form 2EZ is no longer needed and was discontinued. Personal Information Federal Tax Information as shown on the new federal Form 1040 Direct Deposit Signature Worksheet Worksheets and Schedules are located in the order they are needed to complete the form. Worksheets are recognizable by their tag to the right of their name. Schedules have the word “Schedule” in their name. You are not required to include worksheets with your return. If you complete a schedule you must include that page with your return. Schedule 2018 Montana Form 2 Changes in Federal Tax Laws – The federal Tax Cuts and Jobs Act changed several provisions related to itemized deductions. Some have been either repealed or suspended. These instructions include the new provisions that impact Montana for Tax Year 2018. ●● The Qualified Business Income Deduction is not allowed for the determination of Montana taxable income. ●● Deferred foreign income includable on federal Form 1040 is also includable in Montana gross income. However, Montana law does not allow taxpayers to pay the related tax in installments. ●● Business loss limitations under IRC 461(l) apply to business losses reported on Form 2. Montana conforms with all aspects of the provisions, including the effect of filing status on the calculation of the excess business loss. See instructions on page 10. ●● Itemized deductions subject to the 2 percent of Adjusted Gross Income floor have been suspended. For example, taxpayers can no longer deduct most unreimbursed employees business expenses that were reported on federal Form 2106. Apprenticeship Tax Credit – If you are a Montana employer who is a Montana Registered Apprenticeship Program sponsor, you may be eligible to receive a tax credit for any new position hired for on-the-job training. For more information visit apprenticeship.mt.gov. Applications for the credit must be submitted to the Department of Labor and Industry (DLI), Workforce Services Division. The credit equals: ●● $750 for each new registered apprentice, or ●● $1,500 for each new registered apprentice who is a veteran. A shareholder of an S Corporation or a partner of a Partnership may claim their distributive share of the credit on their tax return of the year it is approved by DLI. The credit is nonrefundable, and may not be carried forward or backward. Page v Montana Medical Savings Account (MSA) – Beginning with Tax Year 2018, account holders are required to report their beginning and ending balance each year. Form MSA has been discontinued and this reporting must be made on the Montana Medical Savings Account schedule included with Form 2. In addition, the contribution amount cannot be more than the allowable subtraction for 2018, which is $3,500. See instructions on page 19. Elderly Homeowner/Renter Credit – Form 2EC has been discontinued. Individuals can claim this credit using a new Schedule on their Form 2. Claimants who do not have a filing requirement, and who wish to claim the Elderly Homeowner/ Renter Credit, can file a reduced version of Form 2. See how to claim your Elderly Homeowner/Renter Credit on pages 3 and 34. 2018 Montana Form 2 Page vi Table of Contents General Instructions........................................................................................................................................... 1 Filing Requirements............................................................................................................................... 1 When Must You File?............................................................................................................................. 2 How to File............................................................................................................................................. 2 Elderly Homeowner/Renter Credit......................................................................................................... 3 Interest Rate for 2019............................................................................................................................ 3 Amending Your 2018 Return.................................................................................................................. 3 Line Instructions.................................................................................................................................................. 4 Personal Information.............................................................................................................................. 4 Federal Adjusted Gross Income............................................................................................................ 7 Montana Adjusted Gross Income........................................................................................................... 7 Tax, Credits and Payments.................................................................................................................... 7 Overpayments....................................................................................................................................... 8 Amount Owed........................................................................................................................................ 9 Sign and Date Your Return.................................................................................................................... 9 Form 2, Schedule 1 Additional Income and Adjustments to Income.................................................... 10 Net Operating Loss Election for Farming Losses................................................................................ 11 Amended Return Information............................................................................................................... 11 Third-Party Designee........................................................................................................................... 11 Montana Additions Schedule............................................................................................................... 11 Montana Subtractions Schedule.......................................................................................................... 13 Montana Medical Savings Account (MSA) Schedule........................................................................... 19 Partial Pension and Annuity Income Exemption, and Taxable Social Security Benefits Worksheets.. 20 Standard Deduction Worksheet........................................................................................................... 20 Itemized Deductions Schedule............................................................................................................ 20 Tax Liability Schedule.......................................................................................................................... 24 Nonresident/Part-Year Resident Ratio Schedule................................................................................. 25 Nonrefundable Credit Schedule........................................................................................................... 29 Credit for Income Tax Paid to Another State or Country Schedule...................................................... 33 Other Payments and Refundable Credits Schedule............................................................................ 34 Elderly Homeowner/Renter Credit Schedule....................................................................................... 34 Contributions, Penalties and Interest Schedule................................................................................... 36 Tax Benefit Rule for Recoveries of Itemized Deductions Worksheet Instructions............................... 39 Answers to Frequently Asked Questions about the current tax year are available on our website at mtrevenue.gov/Form2FAQ. 2018 Montana Form 2 Page 1 General Instructions Filing Requirements Do You have to File? In general, if during the tax year you were a resident or partyear resident of Montana, or if you were a nonresident who received Montana source income and 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, you need to file a Montana income tax return. IF your filing status is… AND at the end of THEN you must 2018 you were… file a tax return if your federal gross income, excluding unemployment compensation was at least… Single, or married Under 65 filing separately 65 or older Under 65 Head of household 65 or older Both under 65 One spouse 65 or Married filing older jointly with your spouse Both spouses 65 or older $4,580 $7,020 $9,160 $11,600 $9,160 $11,600 $14,040 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 $2,440 to determine if you must file. If you are not sure about your filing status, see instructions on page 4. You may qualify for the Elderly Homeowner/Renter Credit even if you do not have a filing requirement. See page 3 for instructions on how to claim the credit. Filing requirement for taxpayers with losses – Note that if you incurred or took 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 Service Members 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. Nonresident Active Duty Service Members: Under the Service Members 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 Service Member: You qualify for relief under the Military Spouse Residency Relief Act, if: ●● You are the spouse of a nonresident military serviceperson; 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, you keep the residency status in the state you were a resident prior to moving to Montana, and 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 a 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 non-military 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. 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. 2018 Montana Form 2 General Instructions Page 2 You may source business income from a pass-through 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. 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 to us. Include all pages with a completed schedule. When Must You File? Easy Steps to Assemble Your Return as Shown Below – Do Not Staple From Top to Bottom File Form 2 and pay the tax due by April 15, 2019. 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 38. 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 Pub. 3 of the IRS 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. See the offers by clicking on the “Your Pay and File Options” button on revenue.mt.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 and 4. TIP: You will need to send only page 1 of Form 2 if: ●● You received either wages, dividends or taxable interest, and ●● You have fewer than four dependents, and ●● You do not report any adjustment to income (see page 10), and ●● You do not have any Montana additions or subtractions (see pages 11 and 13), and ●● You chose the standard deduction for 2018, and ●● You are not claiming any credit in 2018. If you wish to contribute to a check-off program, you will have to use the Contributions, Penalties, and Interest Schedule, and include page 10 to the return you are mailing. 1: Payment Voucher, if you are making a payment. 2: Your Forms W-2 and 1099 reporting Montana Withholding. 3: Your Montana Form 2, page 1. 4: Montana Form 2 pages showing completed Schedules. 5: Copy of your federal return: Nonresident/part-year residents must include a copy of your entire federal return. 6: Copy of your federal schedules: Nonresident/part-year residents must include a copy of your completed federal schedules. 2018 Montana Form 2 General Instructions 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 9 of Form 2 and claim it on the Other Payments and Refundable Credits Schedule on the same page. If you are not required to file a return, and you wish to claim the Elderly Homeowner/Renter Credit (EHRC), you can claim it on the TransAction Portal (TAP) (https://tap.dor.mt.gov) or on paper by completing just page 9 and page 1 of Form 2, as follows: Page 9: ●● First, complete Schedule EHRC and the Long Term Care worksheet (if applicable) to determine eligibility and calculate the amount of credit; ●● Report the amount of credit on the Other Payments and Refundable Credits Schedule, line 6. 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 at least 9 months of 2018 in the state); ●● List dependents, if any; ●● Mark the box “65 or older” in the exemption section if applicable; ●● Complete lines 1, 4a 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 18 and 23; ●● Complete the direct deposit section; ●● Sign at the bottom. Page 3 Interest Rate for 2019 Effective January 1, 2019, the annual interest rate assessed on outstanding balances is 5 percent. This rate also applies to underpayment of estimated taxes. Interest is calculated daily. Amending Your 2018 Return If you are amending your 2018 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. 5. If you requested a refund or if you carried over all or part of the overpayment reported on your original return to 2019, make sure that you completed line 2 of the Contributions, Penalties, and Interest Schedule. 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. 2018 Montana Form 2 Filing Status 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 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 income the same way you reported them on your 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. The Status 2a election includes: ●● An authorization to direct the department to automatically apply the overpayment reported by one spouse to the amount owed 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 on line 23, you must apply your overpayment on line 22 to the amount owed by your spouse, if any, on line 25. Use the worksheet on page 8 of these instructions. ●● 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. 2018 Montana Form 2 Filing Status, Residency Status Page 5 Status 1 – Single Status 4 – Married Filing Jointly You can claim this filing status if on December 31, 2018, 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, 2018, and you did not remarry in 2018. If your filing status is single, report your income and deductions in only column A. You can claim this filing status if you were married as of December 31, 2018, even if: ●● You did not live with your spouse at the end of 2018; or ●● Your spouse died in 2018 and you did not remarry in 2018; or ●● You were married as of December 31, 2018, and your spouse died in 2019 before filing a 2018 return. 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 9, 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 that 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. 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 outside of Montana with no intention of returning. 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. North Dakota Reciprocity Montana has an income tax reciprocity agreement with the state of North Dakota which provides that a resident of one state may elect 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 2018 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, page 1 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 on line 7. 6. Fill in the amount of the Montana income tax withheld from your wages on line 17, and also include this amount on lines 21, 22 and 23. 7. File this form with a copy of your federal return and Form(s) W-2 showing Montana income tax withholding. 2018 Montana Form 2 Dependents, Exemptions 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 $2,400, 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. ●● 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, but you cannot claim your uncle’s spouse as a dependent. 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. Page 6 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. 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. 2018 Montana Form 2 Federal Adjusted Gross Income, Montana Taxable Income 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 7 and Form 2, Schedule 1, on page 2. 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 7 On lines 1 through 7, enter the amounts corresponding to your federal tax return Form 1040. Complete the Form 2, Schedule 1 on page 2, 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 and 4b – IRAs, Pensions and Annuities IRA distributions, pensions and annuities may entitle you to a partial exemption. See the Montana Subtractions Schedule, line 34, 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 3 or the Montana Subtractions Schedule on page 4. Line 7 – Federal Adjusted Gross Income If you are filing Single, Married Filing Jointly, or Head of Household, this amount should correspond to the amount of the Federal Adjusted Gross Income that 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 you reported on you federal Form 1040. Montana Taxable Income Line 8 – 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 Page 7 instructions for the Montana Additions Schedule on page 11. If you report one or more additions you must include page 3 of Form 2 with your return. Line 9 – 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 13. If you report one or more subtractions you must include page 4 of Form 2 with your return. Line 11 – 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 6. 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 6 of Form 2 with your return. If you do not mark the box or do not include page 6, the processing of your return may be delayed or your return may be adjusted using the standard deduction. Line 12 – Exemptions Multiply $2,440 times the number of exemptions that you calculated on the Exemptions Section, line d. Tax, Credits and Payments Line 14 – Tax Liability Residents: If you are a full-year resident, and you do not owe any recapture tax (see page 23), nor any taxes on lump sum distributions (see page 25), compute your tax using the following table and report the result on line 14. 2018 Montana Individual Income Tax Table If Your Multiply Taxable But Not Your Income Is More Than Taxable More Than Income By 1% $0 $3,000 (0.010) 2% $3,000 $5,200 (0.020) 3% $5,200 $8,000 (0.030) 4% $8,000 $10,800 (0.040) 5% $10,800 $13,900 (0.050) 6% $13,900 $17,900 (0.060) 6.9% More Than $17,900 (0.069) And Subtract $0 $30 $82 $162 $270 $409 $570 This Is Your Tax 2018 Montana Form 2 Overpayments If you owe recapture taxes or the tax on lump-sum distributions, see the instructions on page 25 to complete the Tax Liability Schedule on Form 2, page 7 to figure the amount you need to report on line 14. Nonresidents and part-year residents: See the instructions on page 25 to complete the Tax Liability and the Nonresident/Part-Year Resident Ratio Schedules, and report the amount of tax liability on line 14. Include page 7 with your return. Line 15 – Nonrefundable Credits For information about refundable credits, including the capital gains credit and credit for taxes paid to another state, see the instructions on page 29. If you are claiming a nonrefundable credit you must include page 8 with your return. Line 17 – 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, self-employment, 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. 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 18 – Other Payments and Refundable Credits This line consists of all other refundable credits, including the Elderly Homeowner/Renter Credit. See the instructions on page 35 to complete the Other Payments and Refundable Credits Schedule. Include page 9 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. Page 8 Line 20 – Contributions, Penalties and Interest Complete this schedule if you are: ●● making one or more contributions to a voluntary checkoff program. (See instructions on page 37) ○○ 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 instructions on page 37) ●● reporting penalties or interest. (See instructions on page 38) Overpayments Line 22 – Amount Overpaid If line 21 is more than line 16, you have an overpayment. You can choose to either claim the refund of the overpayment (line 23), apply this overpayment to your 2019 estimated tax (line 24), or split your overpayment between those options. Taxpayers filing separately on the same form: Status 2a – Payment Worksheet. If you have an overpayment, and your spouse owes an amount, your overpayment must be applied toward the amount owed by your spouse. Use the payment worksheet below to figure how much you or your spouse owes or how much of your or your spouse’s overpayment, if any, is available to be refunded to you or your spouse, or to be applied to your 2019 estimated taxes. Status 2a – Payment Worksheet 1 Overpayment shown on Form 2, line 22 2 Amount owed shown on Form 2, line 25 3 Subtract line 2 from line 1. If the result is more than zero, there is a net overpayment, claim the amount on this line as a refund (line 23) or carry it over to 2019 (line 24) on the same column as the overpayment. ●● If the result is less than zero, there is a net amount owed. Report the amount as a positive number here. Make a payment for this amount following the directions on page 9. ●● If the result is zero, there is no overall overpayment or amount due. Examples are shown on the following page. Direct Deposit, Amount Owed, Sign and Date 2018 Montana Form 2 Examples: Net amount owed: Column A Column B Line 22 $100 Line 25 $150 You must pay $50 (line 25 - line 22 = $50). Net overpayment: Column A Line 22 $200 Line 25 Column B $150 You have a net overpayment of $50 (line 25 - line 22 = -$50). You can request a refund (line 23), or carry forward this amount to Tax Year 2019 (line 24), or a combination of both. Line 23 – Amount You Want Refunded If you have an overpayment you want refunded to you, enter this amount on this line. Any remainder is available to be applied to your Tax Year 2019 estimated taxes on line 24. Direct Deposit 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. Amount Owed Line 25 – Amount You Owe If line 21 is less than line 16, but more than zero, subtract line 21 from line 16 and enter the result on line 25. If line 21 is zero or less, add lines 16 and 20, then subtract lines 17 and 18 and enter the result on line 25. You can pay the amount you owe by: ●● Electronic funds withdrawal when e-filing your joint federal/state tax return. You can Schedule your withdrawal for a later date. Page 9 ●● E-check or credit/debit card—visit revenue.mt.gov and click on TransAction Portal (TAP) or Income Tax Express (ITE) e-payment services. ●● Personal check, money order or cashier’s check. Be sure to include the payment voucher available at revenue.mt.gov, or call us at (406) 444-6900 to request a voucher. Make your check payable to the Montana Department of Revenue, sign your check, and write your Social Security Number and “Tax Year 2018” on the memo line. Note: We may need to adjust your payment if it is not in U.S. funds. 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, 2019, 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, call us at (406) 444-6900 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. Sign and Date Your Return 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. Daytime Phone Number 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. 2018 Montana Form 2 Form 2, Schedule 1 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 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 page 11. The paid preparer must give you a copy of the return for your records. Form 2, Schedule 1 Additional Income and Adjustments to Income Line 10 – Taxable Refunds, Credits or Offsets of State and Local Income Taxes Enter the same amount that you reported on your federal tax return. You need to include your state tax refund here and then report it as a subtraction from income on your Montana Subtractions Schedule, line 1, to calculate your Montana Adjusted Gross Income. Line 13 – Capital Gain or (Loss) Enter the same amount of your capital gain or loss that you reported on your federal income tax return. Married taxpayers who are filing jointly for federal tax purposes but separate Montana tax returns 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. If you are married and are both residents, and 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. Page 10 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 19 – Unemployment Compensation Enter the same amount of the unemployment compensation that you reported on your federal tax return. Unemployment compensation is exempt from Montana tax. Subtract this same amount on the Montana Subtractions Schedule, line 7. Line 21 – Other Income Deferred foreign income – Include the same amount of deferred foreign income, net of the deduction in IRC 965(c), that you reported on line 21 of your federal Schedule 1 filed with your Form 1040 as required in IRC 965. However, note that you are not allowed to pay the tax in installments, and the S Corporation shareholder deferral to pay the tax is not allowed. If your taxable income is a loss and you elected not to apply your deferred income against an NOL deduction or in the determination of an NOL, you will have to deduct your deferred foreign income on Montana Subtractions Schedule, line 22. Figure the tax owed using the tax table on page 7 above, and enter the result on the Tax Liability Schedule, line 4. Excess business losses – This line may contain an addback resulting from the limitation on excess business losses in IRC 461(l). Do not deduct this add-back from this line. The loss limitation must be recalculated based on your filing status and the business additions and subtractions used in determining Montana Adjusted Gross Income. To recalculate the limitation, use federal Form 461 and related definitions for the current tax year and: 1. Deduct the federal add-back reported on Form 2, Schedule 1, line 21 by adding it on the Montana Subtractions Schedule, line 22; 2. Add any Business Additions reported on the Montana Additions Schedule to federal Form 461, Part I, line 9; 3. Subtract the Business Subtractions reported on Montana Subtractions Schedule from Form 461, Part I, line 9; 4. Recalculate federal Form 461, Part III, with the new figures and threshold related to the marital status claimed on Form 2, and report it on the Montana Additions Schedule, line 14. See Montana Form NOL for instructions on how to carry over the disallowed losses under IRC 461(l). Line 26 – Health Savings Account Deduction Enter the same amount of federal health savings account contributions that you reported on your federal tax return. Be careful not to confuse this deduction with the Montana Medical Care Savings Account subtraction. Line 36 – Combine lines 23 through 35 Include in the total of line 36 any of the write-in adjustments allowed on your federal Form 1040. 2018 Montana Form 2 NOL, Amended Return, Third-Party, Additions Net Operating Loss Election for Farming Losses If you chose to forgo a carryback of the Montana NOL resulting from farming losses you calculated on Schedule A of the Form NOL, you must make this election by the due date, including the extension for filing Form 2. You cannot revoke this election after filing your return. Amended Return Information. When amending a return, check the appropriate box(es) reflecting the reason(s) why you are amending your return. In the table, provide information about the lines you corrected that result in a change to your taxable income or to the credit(s) you are claiming. Third-Party Designee If you want to allow your friend, family member, or any other person you choose to discuss your 2018 tax return with the department, you must designate this person on the return. If you do not want to allow us to discuss your return with another person, mark the box “No.” Make sure you did not check the Third-Party Designee Box in the paid preparer section on page 1. If you want to allow us to discuss your return with your paid preparer, including allowing us to request information missing from your return, mark the Third-Party Designee box in the paid preparer section at the bottom of page 1. If you want to give us your daytime telephone number and your paid preparer phone number, use the space at the bottom of page 2 to enter your paid preparer phone number. You do not need to complete the rest of that section. If you want to allow us to discuss your return with a person other than your paid preparer, including allowing us to request information missing from your return, mark the box “Yes” and complete the name and phone number section. When you mark the box, you are also authorizing the designee to: ●● 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 return or the status of your refund or payment(s); and ●● Respond to notices from us about math errors, offsets and return preparation. Note: The department will only send notices directly to you, not to the third-party designee. You are not authorizing the designee to discuss any other tax year, receive any refund check, bind you to anything or otherwise represent you before us. The authorization automatically ends no later than the due date (without regard to extensions) for filing your 2019 return. This is April 15, 2020, for most people. Please be aware that you cannot revoke this authorization. If you want to expand the third-party designee’s authorization (for example, to verify any estimated payments you’ll be making in the future), use Form POA, Power of Attorney, Authorization to Disclose Tax Information. Form POA is Page 11 available at revenue.mt.gov or you can submit a POA through TransAction Portal (TAP) at tap.dor.mt.gov. If you are married filing separately on the same form or filing a joint return, review the following instructions carefully. 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 discuss the return with the third-party designee to answer any questions that arise while we are processing your 2018 tax return. If you are filing a joint return, you are automatically authorizing us to discuss the joint return with either spouse, but you still need to complete the third-party designee section if you wish to allow another person to discuss your return with us. Montana Additions Schedule To determine your Montana Adjusted Gross Income you may have to make some additions to your Federal Adjusted Gross Income. General Additions Line 1 – Recovery of Federal Income Tax Paid in 2017 If you received a federal income tax refund in 2018 from federal taxes you claimed as an itemized deduction on your 2017 Montana tax return, you may need to report a portion or all your federal refund as income on your Montana tax return. No addition is necessary if you claimed the standard deduction on your Form 2 for 2017. Payments of refundable credits or refunds of selfemployment (SE) taxes are not included in this calculation because such refundable credits or SE taxes are not deductible as itemized deductions. If your itemized deduction for federal taxes paid in 2017 was less than $5,000, or less than$10,000 if you filed jointly, then all your refund of federal income taxes paid in 2017 and deducted is taxable. Use the Recovery of Federal Income Tax Deducted in 2017 Worksheet on Form 2, page 3 to figure how much of your refund is taxable. If your deduction for federal taxes paid in 2017 was limited to $5,000, or $10,000 if you filed jointly, your refund may or may not be taxable. You need to complete the Recovery of Federal Income Tax Deducted in 2017 Worksheet to determine whether your federal income tax refund is taxable in 2018. If you and your spouse filed your federal tax return jointly and are now filing your Montana tax return separately, you each need to complete a separate Recovery of Federal Income Tax Deducted in 2017 Worksheet. Prorate your federal income tax refund between you and your spouse by applying the ratio of your 2016 federal income tax deduction to the total federal tax deducted. If you received a refund for an amount deducted in 2017 other than federal income tax, you must use line 2. 2018 Montana Form 2 Additions Line 2 – Other Recoveries of Amounts Deducted in Earlier Years that Reduced Montana Taxable Income. To the extent that an itemized deduction you claimed on one of your previous Montana returns reduced the amount of your Montana income tax liability, any subsequent refund of the amount deducted is considered income in the year the refund is received. If you received a refund of an expense you could have claimed as an itemized deduction in the year you used the standard deduction, your refund is not taxable. For example, you may have received a refund in 2018, such as a federal income tax refund from 2015 and a casualty loss reimbursement for a loss claimed as a deduction in 2017. You elected to use the st
Extracted from PDF file 2018-montana-form-2-instructions.pdf, last modified December 2018

More about the Montana Form 2 Instructions Individual Income Tax TY 2018

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 2019, so this is the latest version of Form 2 Instructions, fully updated for tax year 2018. 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 2EZ Montana Individual Income Tax Return - Short Form (DISCONTINUED)
Form 2EC Montana Elderly Homeowner/Renter Credit (OBSOLETE)
Form 2 Instructions Individual Income Tax Instructional Booklet
Form IT Payment Voucher Individual Income Tax Payment Voucher

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 2019.

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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 four 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:



TaxFormFinder Disclaimer:

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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