Montana Individual Income Tax Instructional Booklet
Extracted from PDF file 2017-montana-form-2-instructions.pdf, last modified January 2018
Individual Income Tax Instructional Booklet2017 Montana Form 2 Individual Income Tax Forms and Instructions (Includes Form 2EC) 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 17, 2018. Call us at (406) 444-6900. Dear Montana Taxpayer, Thank you for filing your Montana income tax return. In the charts below, you can see where our Montana tax revenues come from and how they are used to support important services and infrastructure. We also thank taxpayers who file their returns electronically. Last year over 87 percent of taxpayers filed electronically. Taxpayers find that e-filing is easy, convenient and helps to ensure correct filing. Also, remember to file early to avoid the rush at the April deadline. This year, individual income tax returns are due Tuesday, April 17, 2018. The extended filing date is due to the federally recognized holiday, Emancipation Day. Tax fraud and identity theft is a growing problem worldwide. The department is committed to do all that we can to help Montanans protect their identity and tax refunds. We accomplish this by building measures into our tax systems to identify fraudulently filed returns. Our fraud safeguards extend the time it takes for you to receive your refund and, in some cases, it could take 90 days. We appreciate your understanding that we are doing all we can to prevent tax fraud and protect your money. If you need more information about anything regarding your taxes, please visit our website at revenue.mt.gov or call our help line at (406) 444-6900. Please remember to e-file! Best regards, Mike Kadas, Director Montana Department of Revenue Your Tax Dollars at Work The first chart shows the sources of revenue for both state and local governments in Montana for 2014, the most recent year for which totals are compiled. The second chart shows state and local spending. What are Montana’s Public Revenues? Total Montana State and Local Revenue, Fiscal Year Ending 2014 Motor Fuel Taxes 2% Utility and Liquor Sales Natural Resource Taxes 2% 4% Interest Earnings and Other Federal 8% Revenue 30% Other Taxes 8% Individual and Corporate Income Taxes 14% Tuition and Other Charges for Services 14% Property Taxes 18% Where Your Income Tax Dollar Goes Education..................................................47% Health and Human Services......................22% Public Safety and Corrections...................14% General Government Operations................9% Transfers to Local Governments.................6% Other...........................................................2% Total Spending.........................................100% Where Do Your Public Dollars Go? Total State and Local Spending in Montana, Fiscal year Ending 2014 Interest on Debt 2% Public Safety 8% Environment, Housing, Natural Resources, Parks 8% Health and Human Services 23% Transportation 12% Public Schools 20% Higher Education 12% Administration, Judiciary, and Other 15% The table to the left shows where your individual and corporate income tax dollars—about 13% of total state and local revenues—were spent in 2015. File Montana Individual Income Tax Electronically! Visit revenue.mt.gov for available options. State and Federal E-Filing Options ● Montana Free File – Visit montanafreefile.org for help with free filing options. ● Tax Preparer Professionals – Your preparer can e-file your federal and state tax returns at the same time. Request direct deposit if you expect a refund. ● Retail or Online Software – You can use retail or online software to prepare and file your returns on your own. Provide your bank information for direct deposit if you expect a refund. Getting Started These simple steps will help you complete and file your Montana tax return. 1. Complete your federal tax return. 2. Determine if you are a Montana resident, nonresident or part-year resident. See FAQ e on page 39. 3. If you are a nonresident, complete the tax return for your state of residency, if required. 4. Determine which Montana tax return form is right for you. See FAQ w on page 39. 5. 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. 6. Decide if you will file electronically or use a paper tax return. This booklet is designed to help you file by either method. 7. If you file a paper return, remember to sign it and include any federal forms or schedules we requested on the return. If you are a resident, you are not required to include your entire federal return when you file your Montana return but you should keep it in your tax records and be able to provide it to us upon request. If you are a nonresident or a part-year resident, you are required to include your entire federal return with your Montana return. 8. File your Montana tax return (include your payment, if taxes are due) by April 17, 2018. See FAQ s on page 40 for information about receiving an extension. 9. When finished, please accept our thanks for a job well done! Steps to Completing Your Return Step 1 Personal Information............................................................... 1 Step 2 Exemptions.............................................................................. 3 Step 3 Federal Income and Federal Adjusted Gross Income...........4 Step 4 Montana Adjusted Gross Income and Taxable Income........6 Step 5 Tax, Nonrefundable Credits and Recapture...........................7 Step 6 Payments and Refundable Credits.........................................9 Step 7 Penalties, Interest and Contributions...................................10 Step 8 Amount You Owe or Your Refund.........................................12 Step 9 Sign, Assemble and File Your Return...................................13 FAQs Frequently Asked Questions.................................................38 What’s New?........................................................................................................................................................ 1 Instructions for Schedules............................................................................................................................... 14 I Montana Additions to Federal Adjusted Gross Income.................................................................... 14 II Montana Subtractions from Federal Adjusted Gross Income.......................................................... 16 III Montana Itemized Deductions......................................................................................................... 23 IV Nonresident/Part-Year Resident Tax................................................................................................ 27 V Montana Tax Credits........................................................................................................................ 31 VI Credit for an Income Tax Liability Paid to Another State or Country................................................ 36 VIII Reporting of Special Transactions................................................................................................... 37 Worksheets........................................................................................................................................................ 44 II Tax Benefit Rule for Federal Income Tax Refund............................................................................ 44 III Qualified Capital Gain Exclusion..................................................................................................... 45 IV Partial Pension and Annuity Income Exemption.............................................................................. 45 V Standard Deduction......................................................................................................................... 46 VI-QMIP Qualified Mortgage Insurance Premiums Deduction....................................................................... 46 VI-IDL Itemized Deduction Limitation.......................................................................................................... 46 VII Calculation of Interest on Underpayment of Estimated Taxes – Short Method............................... 47 VIII Taxable Social Security Benefits for Form 2.................................................................................... 48 Form 2EC – Elderly Homeowner/Renter Credit Instructions (back of booklet)................................... 2EC1-3 2017 Montana Form 2 Main Form - What’s New This booklet is designed to address the laws for the majority of 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 mt.gov or call us with your questions. What’s New? Due Date Extended The due date for filing a Montana income tax return is extended to April 17, 2018 because of the District of Columbia’s observation of Emancipation Day. This is also the due date for any applicable payments normally owed April 15. Penalties and Interest New Calculation for Late File Penalty – Beginning with tax year 2017, the late file penalty is the greater of $50, or 5% per month on the unpaid amount. The penalty is calculated from the extended due date until the return is filed or the tax paid and cannot exceed 25% of the net amount of tax due on the extended due date. There is a minimum penalty of $50. The late file penalty will not be assessed if the return is filed by the due date (including extensions) and all tax, penalty and interest is paid on or before the date you file the return. New Calculation for Late Payment Penalty – Beginning with tax year 2017, the rate for calculating the late payment penalty is reduced from 1.2% per month to 0.5% per month on taxes past due. The maximum amount of late payment penalty that may be assessed remains 12% of the tax past due. Interest Rate – As of January 1, 2018, the interest rate assessed on outstanding balances is 4%. Each year, the interest rate is based on the interest rate established by the Internal Revenue Service for the third quarter of the preceding year and is subject to change at the beginning of each calendar year. New Rules for Filing on Extension – In previous years, a valid extension required a payment of 100% of the taxes owed in the previous year or 90% of the taxes due for the current year by the original due date of the return, usually April 15. Beginning with tax year 2017, individual taxpayers are granted an automatic extension of time to file of up to six months. An extension to file the return is still not an extension to pay. Although it is not required to receive an extension, individuals may still pay any additional tax due (after accounting for estimated payments and withholding) by the original due date of the return to avoid applicable late payment penalty and interest. Legislative Update Montana Medical Care Savings Account (MSA) – The 2017 Montana Legislature has enacted important modifications that will take effect in 2018. These changes pertain to the amount you can contribute to your account every year, the inheritance of MSA accounts, eligible Page 1 expenses, and reporting requirements. For more information, see the instructions included with the 2017 Form MSA. Form 2 Update Amended Returns – When amending a tax return, you need to check the box on the top left corner of Form 2 to indicate this is an amended return. In addition, beginning with the 2017 tax year, you must complete Schedule VIII, part III to provide information about the reasons for amending your return. See instructions for Schedule VIII, part III on page 37. Worksheet AMD has been discontinued. NOL – Carryback Election – Beginning with the 2017 tax year, the election to forgo the carryback of a net operating loss must be made on Form 2, Schedule VIII, part II of the year that created the NOL. See page 37 for instructions. Form DS-1 Discontinued – Form DS-1, which was used to calculate the partial retirement disability income exclusion for taxpayers under the age of 65, is no longer available beginning with tax year 2017. To calculate the exemption reportable on Schedule II, line 13, a worksheet is provided on page 19 of the instructions. Toll Free Number Removed The Department of Revenue no longer offers a toll free number. If you need assistance, please call us at (406) 444-6900. Step 1. Personal Information ►►Are you ready? ●● Gather any updated personal information. ●● Determine which filing status is best for you. This form is Montana’s “long form,” which has to be used by taxpayers who cannot file Montana Form 2EZ. Part-year residents and nonresidents of Montana must file Montana Form 2. Part-Year Resident and Nonresident If you are a part-year resident or a nonresident, complete lines 7 through 48 as if you were a resident using the instructions for Montana Form 2. After you have completed your return through line 48, determine your “part-year resident or nonresident tax after capital gains tax credit” by completing Form 2, Schedule IV. When you file your part-year resident or nonresident Form 2, you have to include with your Montana tax return the following items: ●● Forms W-2 issued for all wages reported on Form 2, line 7. This includes your Forms W-2 for wages earned in Montana and for wages earned outside of Montana. ●● Montana Form 2, Schedule IV. ●● Other Montana schedules, as applicable. ●● A copy of your federal tax return including all federal forms and schedules. Page 2 Form Heading, Filing Status and Main Form - Boxes 1-3a Heading Print your name, mailing address and social security number in the spaces provided. If you are married filing a joint return or married filing separately on the same form, enter your spouse’s name and social security number. If your filing status is married filing separately on separate forms or married filing separately and your spouse is not filing a return, do not include your spouse’s information in the heading. You need to include your spouse’s social security number when you select your filing status. 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 2 (married filing jointly) or 3a (married filing separately on the same form) 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. See the following explanation about the filing statuses available to you on your Montana tax return. Box 1 – Single You can claim this filing status if on December 31, 2017, 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, 2017, and you did not remarry in 2017. If your filing status is single, report your income and deductions in column A only. Box 2 – Married Filing Jointly You can claim this filing status if: ●● you were married as of December 31, 2017, even if you did not live with your spouse at the end of 2017; or ●● your spouse died in 2017 and you did not remarry in 2017; or ●● you were married as of December 31, 2017, and your spouse died in 2018 before filing a 2017 return. You and your spouse can file a joint return even though one of you has no income or deductions, but note that both spouses have to sign the return. If you filed your federal tax return jointly with your spouse, you are not required to file your Montana tax return jointly with your spouse. Generally, if you both have taxable income, you can benefit by filing your return separately using filing status 3a or 3b. If your filing status is married filing jointly, report your combined income and deductions in column A. 2017 Montana Form 2 Box 3a – Married Filing Separately on the Same Form If both you and your spouse have income, you can file your Montana tax returns separately, even if you filed your federal income tax return jointly. But, if you and your spouse are filing separately, you will each need to report your own adjusted gross income. You cannot arbitrarily assign income between the two of you. Your income from salaries, wages, bonuses, commissions and other income from providing personal services either as an employee or as an independent contractor should be reported by the spouse who earned it. Any other income that you earned from rents, royalties, dividends, etc., from property that is owned by only one spouse has to be reported by that spouse. If any income is earned from property that is jointly owned by both spouses, that income should be split equally, unless you and your spouse can show a different proportional ownership. When you file separately, both spouses must either claim the standard deduction or itemize their deductions. You cannot file separately on the same form when one spouse is a resident and the other spouse is a nonresident. In this case, use either filing status 3b or 3c. When you file separately on the same form, report your income and deductions for one spouse in column A and the other spouse in column B. Although submitted on the same form, married taxpayers electing to file using this status are submitting two tax returns. If both taxpayers are entitled to refunds, we issue two separate checks or direct deposits. In the event both spouses owe additional tax, penalties or interest, we mail separate Notices of Assessment. However, if you are entitled to a refund and your spouse owes and you file separate returns on the same form, we treat your election to file separately on the same form as your direction to us to apply your refund to the amount owed by your spouse. If you do not want your refund to be used to pay any tax due from your spouse, you and your spouse must file on separate forms. If we discover a math or other computational error when processing the form, we adjust it to correct the error and this may result in our applying one spouse’s refund to the other spouse’s increased tax. If you do not want this to happen, you need to file your own separate return. REMINDER! Montana law permits department employees to discuss all information on the form with either spouse when the couple elects to file with this status. The department may also discuss any subsequent adjustments with either spouse. If you do not want to allow this, you and your spouse should file on separate forms. However, the new law does not allow you to make decisions for your spouse or to receive information about an amount your spouse may owe. 2017 Montana Form 2 Main Form - Boxes 3b-5c and Line 6b Box 3b – Married Filing Separately on Separate Forms You and your spouse should use filing status 3b if both of you have Montana source income and one spouse is a resident of Montana and the other spouse is a nonresident. You should also use this filing status if you do not want your refund to be used to pay any tax due from your spouse. When you select this filing status, you have to include your spouse’s social security number in the space provided on this form. The rules for the assignment of income and expenses (as explained in Box 3a) also apply when you use filing status 3b. When you file separately on separate forms, report your income and deductions in column A. Box 3c – Married Filing Separately and Spouse Not Filing You can use filing status 3c 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 have to include your spouse’s social security number in the space provided on this form. Note that when you use this filing status, you cannot claim your spouse as an exemption on your return. When you file separate returns and your spouse does not file, report your income and deductions in column A. Box 4 – Head of Household You qualify to file as head of household on your Montana tax return if you qualify for filing head of household for federal income tax purposes. When you use this filing status, include your federal Form 1040 or 1040A, pages 1 and 2, with your Montana tax return. When you file as head of household, report your income and deductions in column A. Boxes 5a through 5c – Residency Status Mark the appropriate box that describes your residency status. To determine your residency status, refer to FAQ e on page 39. 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 have to file separate Montana tax returns and use filing status 3b or 3c described above. North Dakota Reciprocity Montana has an income tax reciprocity agreement with the state of North Dakota which provides that any compensation received for work performed in a state by an individual resident of the other state is not taxed in the first state. If you are a resident of North Dakota, wages you received in 2017 for work performed in Montana are not taxable in Montana. Page 3 If, while a resident of North Dakota, your employer withheld Montana income tax from your wages, you must complete Form 2 as follows: 1. Complete the applicable items at the top of page 1 (through line 5c), as instructed. 2. Mark the box for “North Dakota Reciprocity” at the top of page 1. 3. File this form as a nonresident, but do not include any wages earned in Montana on Schedule IV. (If you do not have any other gross income from Montana sources, leave the Dependents section and lines 6a through 38, and 39 through 54, blank. Enter the federal adjusted gross income shown on your federal Form 1040, 1040A or 1040EZ on line 38a.) 4. Fill in the amount of the Montana income tax withheld from your wages on line 55, and complete the rest of the return as instructed. 5. File this form with a copy of your federal return and Form(s) W-2 showing Montana income tax withholding. If your wages are covered by reciprocity and you do not want your employer to withhold Montana income tax from them anymore, you must complete Form MT-R and give it to your employer. Ask your employer for this form or you can get it at revenue.mt.gov. you…? Did ●● Use blue or black ink if you are filing on paper. ●● Make sure that you entered the correct social security number and it matches the number on your Form(s) W-2. ●● List your mailing address. ●● Mark a filing status box. ●● Mark the correct residency status. ●● If filing electronically, save the tax information that you have entered. Step 2. Exemptions (Lines 6a-6d) ►►Are you ready? ●● Gather the social security number(s) of your dependent(s). Line 6a – Yourself Since you are allowed one exemption for yourself, we placed an “X” in the first box on line 6a 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. You are also 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. Line 6b – Spouse If you are married and filing jointly with your spouse, or if you file separately on the same form, your spouse is entitled to one exemption. Your spouse is also entitled Main Form - Lines 6c-6d Page 4 2017 Montana Form 2 to an additional exemption if he or she is age 65 or older at the end of the tax year, and an additional exemption if he or she is blind. You are not entitled to your spouse’s exemption if you file separately on separate forms or if you file separately and your spouse does not file a Montana tax return. 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 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. Line 6c – Dependents Disabled Dependent Child Exemption You can claim a dependent exemption for each person who qualifies as your dependent. Complete the table for dependents located above line 6a. List each dependent’s first name, last name, social security number and his or her relationship to you. If you have more than four dependents, you need to include a separate list of these additional dependents and then include these additional dependents in the total on line 6c, columns A or B. A person who meets the following requirements is considered your dependent for Montana income tax purposes. Since some of Montana’s dependency requirements are different from the federal dependency requirements, you need to meet all of the following requirements in order to claim a dependent on your Montana tax return. 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 has to 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 as a result 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 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, and add an additional exemption to your total on line 6c, columns A or B. You are allowed this disabled child exemption if you meet all of 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% or more of the body as a whole. 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 need to 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, and we do not require you to file it again until the circumstances of your disabled child change. Line 6d Add lines 6a through 6c and enter the total on this line. If you are married filing separately on the same form, use columns A and B. If you are claiming dependent exemptions, you can allocate these exemptions to either spouse. If your child is disabled and you are claiming an additional exemption for this disabled child, the spouse claiming that dependent also has to claim the additional exemption. Step 3. Federal Income and Federal Adjusted Gross Income (Lines 7-38) ►►Are you ready? ●● Fill out your 2017 federal tax return. Lines 7 through 38a Your income on your Montana tax return begins with your federal adjusted gross income. On lines 7 through 38, enter the amount corresponding to your federal tax return Form 1040, 1040A, or 1040EZ. If you are married and filed your federal tax return jointly with your spouse but are now filing a separate Montana tax return, apply the following rules as 2017 Montana Form 2 Main Form - Lines 9-20b you allocate the income and deductions between you and your spouse: ●● If you are married and filing separately with your spouse on the same form or on separate forms, you must each report your own adjusted gross income. You cannot arbitrarily assign income from one spouse to another. ●● 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 rents, royalties, dividends and interest should be reported by the spouse who owns the property from which the income was earned. If you and your spouse jointly hold the property, you split the income equally between both spouses unless you and your spouse can show a different proportional ownership. Line 13 – Capital Gain or (Loss) ●● Income from your or your spouse’s ownership in a sole proprietorship (federal Schedules C or F), partnership, S corporation or trust should be reported by the spouse who is the owner. 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. Detailed instructions for lines 7 through 38a are not provided for all lines. You need to refer to your federal income tax instructions for detailed information about how to complete these lines. Selected lines have been identified in these instructions to provide additional information about specific Montana tax details. Lines 16a and 16b – Pensions and Annuities Line 9 – Ordinary Dividends Enter the total ordinary dividends that you reported on your federal Form 1040, line 9a or Form 1040A, line 9a. Montana taxes all dividends as ordinary dividends and does not have a specific qualified dividend tax rate. 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 Form 2, Schedule II, line 6, to calculate your Montana adjusted gross income. Line 12 – Business Income or (Loss) Enter in the box labeled “NAICS” your North American Industry Classification System principal business or professional activity code. This code is located in Box B on your federal Schedule C or C-EZ. If you are reporting your income or loss from more than one Schedule C or C-EZ on line 12, enter the NAICS code for the business that recorded the greatest amount of gross income from sales. For further information, visit https://www.census.gov/eos/ www/naics/. Page 5 Enter the same amount of your capital gain or loss that you reported on your federal income tax return. For married taxpayers filing separate Montana tax returns, allocate the amount of gain or loss shown on the joint return between the spouses. The amount of capital gain or loss is reported by the spouse who owned the property that resulted in the gain or loss. If the property is jointly owned by both spouses, split that gain or loss equally, unless you and your spouse have a different proportional ownership. Lines 15a and 15b – IRA Distribution Enter the same amount of your IRA distribution that you reported on your federal tax return. If your Montana basis for your IRA is different from your federal basis, adjust your taxable amount on Form 2, Schedule I, line 15 or Schedule II, line 35. A portion may be exempt from Montana tax. Complete Form 2, Worksheet IV, on page 45, to determine if you are entitled to a partial exemption. Enter the same amount of your pension and annuity income that you reported on your federal tax return. However, a portion may be exempt from Montana tax. Complete Worksheet IV, on page 45, to determine if you are entitled to a partial exemption. Line 17 – Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts Enter the same amount of your income or loss that you reported on your federal Schedule E. For married taxpayers filing separate Montana returns, the amount of gain or loss is reported by the spouse to whom it is attributable. If the gain or loss is not clearly attributable to one spouse, split the amount equally. 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. Exclude this same amount by reporting it on Form 2, Schedule II, line 3. Line 20b – Taxable Social Security Benefits Enter the amount of the taxable social security benefits that you reported on your federal tax return. Your Montana taxable amount may be different than your federal taxable amount because of Montana adjustments. 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 Schedule I and II. If you qualify for the partial exemption amount, use Worksheet IV on page 45 and report it on Schedule II, line 11. Page 6 Main Form - Lines 24-39 You have to complete all the lines of Schedule I and II when applicable, except Line 5 of schedule I and Line 23 of Schedule II, to find out if you have Montana additions or subtractions reportable on Schedule I and II (including any partial exemption amount). If you do, complete Worksheet VIII on page 48 to determine this difference and report it on Schedule I, line 5 if your taxable amount is higher, or on Schedule II, line 23 if your taxable amount is lower. Line 24 – Educator Expenses Report on the Montana return the same amount reported on federal Form 1040, line 23 or Form 1040A, line 16. 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 exemption that you might report on Form 2, Schedule II, line 18. Line 33 – IRA Deduction Enter the same IRA deduction that you reported on your federal tax return. You do not have to recompute the allowable deduction if you filed a joint federal tax return but are filing separate Montana tax returns. 2017 Montana Form 2 may correspond to the amount of federal adjusted gross income that you reported on your federal tax return. In any circumstance, your federal adjusted gross income reported on your Montana tax return plus your spouse’s federal adjusted gross income reported on a separate Montana tax return, or that is not reported, should correspond to the amount of your combined federal adjusted gross income that you reported for federal income tax purposes. If you are filing married filing separately on the same form (filing status 3a), combine the amounts on line 38, columns A and B, and enter the result on line 38a. This combined amount should correspond to the amount of federal adjusted gross income that you reported on your federal tax return Form 1040, 1040A, or 1040EZ. you…? Did ●● Fill in lines 15a, 16a, and 20a if they apply. ●● Include all of your federal income, even if you are a nonresident or part-year resident. ●● Report your 1099 information in the correct column if your filing status is married filing separately on the same form. ●● If filing electronically, save the tax information that you entered. Line 34 – Student Loan Interest Deduction Enter the same amount of the student loan interest deduction that you reported on your federal tax return. You are allowed this deduction even if you filed a joint federal return but are filing separate Montana tax returns. Line 37 Add lines 24 through 36 and enter the result on this line. Include in your total any write-in adjustments that you made on your federal income tax return. Refer to your federal instructions for a description of the allowable federal writein adjustments. Federal Write-Ins Checkbox Mark this box if either spouse included federal write-in adjustments in the total on line 37. Line 38a – Federal Adjusted Gross Income If you are filing single (filing status 1), married filing jointly (filing status 2), or head of household (filing status 4), enter the amount from line 38 in line 38a. If you are using the same filing status on your federal tax return, this amount should correspond to the amount of the federal adjusted gross income that you reported on your federal tax return Form 1040, 1040A, or 1040EZ. If you are filing married filing separately on separate forms (filing status 3b), or married filing separately and spouse is not filing (filing status 3c), enter the amount from line 38, column A on line 38a. Depending on what filing status you chose on your federal tax return, this amount Step 4. Montana Adjusted Gross Income and Taxable Income (Lines 39-45) ►►Are you ready? ●● Fill out Schedule I if you have Montana additions. ●● Fill out Schedule II if you have Montana subtractions. ●● Fill out Schedule III if you will be itemizing your deductions. Line 39 – Montana Additions to Federal Adjusted Gross Income You may need to add additional items of income to your federal adjusted gross income in order to arrive at your Montana adjusted gross income. Complete Form 2, Schedule I, to determine the amount of additions to enter on this line. Refer to page 14 for a detailed explanation of these additions. 2017 Montana Form 2 Main Form - Lines 40-48 Line 40 – Montana Subtractions from Federal Adjusted Gross Income You may be eligible to subtract items of income from your federal adjusted gross income in order to arrive at your Montana adjusted gross income. Complete Form 2, Schedule II to determine the amount of your subtractions that you need to enter on this line. Refer to page 16 for a detailed explanation of these subtractions. Line 41 – Montana Adjusted Gross Income Add lines 38 and 39, then subtract line 40; enter the result on this line. This is your Montana adjusted gross income. Caution: Do not include in your calculation the amount that you reported on line 38a. Line 42 – Standard or Itemized Deductions In most cases, your state income tax will be less if you take the larger of either your itemized deductions or the standard deduction. When you claim your standard deduction or itemized deductions, remember to mark the box on line 42 that identifies which method you are using. If you do not mark the appropriate box, it will delay the processing of your return. When you and your spouse file separately on the same form or on separate forms, you both have to 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. ●● Standard Deduction To calculate your standard deduction, complete Worksheet V on page 46. ●● Itemized Deductions To figure your itemized deductions, complete Form 2, Schedule III. You can find the instructions on page 23. Line 44 – Exemption You are entitled to at least one exemption (your own). Multiply $2,400 times the number of exemptions that you claimed on line 6d and enter the result on this line. Line 45 – Taxable Income To compute your taxable income, subtract line 44 from line 43 and enter the result on this line. you…? Did ●● Mark the correct box on line 42 to claim either the “standard deduction” or “itemized deductions.” ●● If filing electronically, save the tax information that you entered. Page 7 Step 5. Tax, Nonrefundable Credits and Recapture (Lines 46-54) ►►Are you ready? ●● Fill out Schedule IV if you are a nonresident or part-year resident. ●● Fill out Schedule V if you are entitled to any nonrefundable credits. Line 46 Compute your tax using the following tax table. The table is also on Form 2, page 4. 2017 Montana Individual Income Tax Table If Your Taxable Income Is More Than But Not More Than Multiply Your Taxable Income By And Subtract $0 $2,900 1% (0.010) $0 $2,900 $5,200 2% (0.020) $29 $5,200 $7,900 3% (0.030) $81 $7,900 $10,600 4% (0.040) $160 $10,600 $13,600 5% (0.050) $266 $13,600 $17,600 6% (0.060) $402 More Than $17,600 6.9% (0.069) $560 This Is Your Tax Line 47 – Capital Gains Tax Credit You can claim a capital gains tax credit against your Montana income tax of up to 2% of your net capital gains. Your net capital gains is the amount you reported on line 13 less any amounts reported on Schedule II, line 26, line 29 or any capital gains included in the amount on line 35. This credit is nonrefundable--it is applied directly against your income tax liability and it cannot reduce this liability below zero. This credit is applied before any other credits and cannot be carried back or carried forward. If you are a nonresident or a part-year resident, you must apply this credit to your Montana income tax that you computed on line 46 as though you were a resident. If you are married and you and your spouse are filing separately on the same form or on separate forms, you each need to calculate your capital gains tax credit. Line 48 – Resident Tax After Capital Gains Tax Credit Complete line 48 if you are a resident, nonresident or a part-year resident. If you are a resident, this is your resident tax after the capital gains tax credit. Skip line 48a and go to line 49. If you are a nonresident or a part-year resident, go to line 48a. Page 8 Main Form - Lines 48a-52 Line 48a – Nonresident, Part-Year Resident Tax After Capital Gains Tax Credit If you are a nonresident or a part-year resident, go to Form 2, Schedule IV, to calculate your nonresident, part-year resident tax after the capital gains credit. Enter the result of this calculation on this line. See the instructions for Schedule IV on page 27. Line 49 – Tax on Lump-Sum Distributions If you qualify on your federal return for special averaging of your lump-sum distribution and have not included it as ordinary pension income in federal adjusted gross income, you must pay Montana income tax on this distribution. Your Montana tax liability on the lump-sum distribution is 10% of the federal tax calculated on federal Form 4972. Part-year residents must calculate the tax on all lump sum distributions received while residing in Montana. Include a copy of federal Form 4972. Line 50 – Total Tax If you are a resident, add lines 48 and 49; enter the result on this line. If you are a nonresident or part-year resident, add lines 48a and 49; enter the result here. Line 51 – Total Nonrefundable Credits Enter the amount from Schedule V, line 23, but do not enter an amount larger than the amount on line 50. This is your total nonrefundable credits. Line 52 – Recapture Taxes Some statutes that allow deductions and tax credits have provisions requiring a recapture of the tax benefit you received in an earlier tax year (if you do not meet certain requirements in subsequent tax years). If you must report a recapture, report the appropriate two-letter code and amount on this line. The four possible recapture taxes are: ●● BD – Biodiesel/Biolubricant Production Facility, Biodiesel Blending and Storage, and Oilseed Crushing Credit Recapture Tax If you previously claimed any of the tax credits for biodiesel or biolubricant production, biodiesel blending and storage, or oilseed crushing, and have ceased operations for a period of 12 consecutive months within five years of claiming the credit, the credit is subject to recapture. On this line, enter the amount of your biodiesel/biolubricant production facility, biodiesel blending and storage, or oilseed crushing credit recapture tax and enter the code ‘BD’ in the space indicated. ●● EC – Endowment Credit Recapture Tax If you previously claimed an endowment credit for a gift that you contributed to a qualified endowment and you now have received the gift back, you must recapture that previous credit to the extent it reduced your income tax liability in a previous year and to include in your income any amounts that you previously deducted as an itemized deduction. 2017 Montana Form 2 On this line, enter the amount of your endowment credit recapture tax and enter the code ‘EC’ in the space indicated. If, in addition to your recapture tax, part of the amount that is recaptured was claimed as a charitable contribution in a prior year, include in your income on Form 2, Schedule I, line 4 any recoveries of this prior year deduction that reduced your tax liability in the year of that deduction. Complete Worksheet IX to determine if you have to recapture any amount of your prior year deduction. You can get Worksheet IX at revenue.mt.gov or call us at (406) 444-6900. ●● FE – Family Education Savings Account Recapture Tax If you have a recapturable withdrawal from your family education savings account, you have to pay a 6.9% recapture tax on this withdrawal instead of including this withdrawal in your Montana adjusted gross income. A recapturable withdrawal is a withdrawal that is not used to pay for qualified higher education expenses or for a withdrawal from your family education savings account within three years from the date you opened the account. Multiply your recapturable withdrawal by 6.9%, enter the result on this line, and enter the code ‘FE’ in the space indicated. This is your family education savings account recapture tax. ●● AB – Montana Achieving a Better Life Experience Recapture Tax If you have a recapturable withdrawal from your Montana ABLE account, you have to pay a 6.9% recapture tax on this withdrawal instead of including this withdrawal in your Montana adjusted gross income. A recapturable withdrawal is a withdrawal that is not used to pay for qualified disability expenses of the beneficiary of the account. Multiply your recapturable withdrawal by 6.9%, enter the result on this line and enter the code ‘AB’ in the space indicated. This is your Montana ABLE account recapture tax. If you are married filing separately on the same form and each spouse has a recapture, enter the amount and code in the appropriate column. If you are reporting more than one recapture in one column, enter the total recapture amount for both and the code for the higher recapture. 2017 Montana Form 2 Main Form - Lines 55-62 Step 6. Payments and Refundable Credits (Lines 55-65) ►►Are you ready? You need: ●● Information about payments you made for this tax year. ●● To gather any Forms W-2, 1099 and/or Montana Schedules K-1 you received that show any tax withheld. ●● To have Schedule V filled out if you are entitled to any refundable credits. Line 55 – Montana Income Tax Withheld Enter the amount of the Montana income tax withheld from your compensation and reported in Box 17 of your federal Form W-2, or in Box 12 of your federal Form 1099-R. 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. Income tax withheld as a result of an ownership interest in a pass-through entity or mineral royalty payments received cannot be reported on this line. Line 56 – Montana Mineral Royalty Tax Withheld Enter the amount of the Montana mineral royalty tax withheld from royalty payments received during the year. This is generally reported on federal Form 1099MISC. 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% of your Montana royalty payments and should not be confused with the production taxes that are also subtracted from your royalty payments. If the mineral rights are held by a partnership, S corporation, estate or trust in which you have an ownership interest or from which you receive a distribution, enter the amount reported to you as your share of the withholding. Include a schedule detailing the calculation of your portion of the withholding and any supporting documents such as the Montana Schedule K-1 (issued to you by the entity) or a copy of the Form 1099 issued to the partnership, S corporation, estate or trust. For more information, visit revenue.mt.gov/home/businesses and select the General Tax Information/Special Programs tab. Line 57 – Montana Pass-Through Entity Withholding If you had an ownership interest in an S corporation, partnership or disregarded entity that had Montana source income and withheld Montana income tax, enter the amount here. This amount is reported to you on line 2c of the Montana Schedule K-1 issued by the entity and should not be confused with any Montana mineral royalty tax withheld passed through to you by the S corporation, partnership or disregarded entity. Page 9 Line 58 – Estimated Tax Payments If you made estimated income tax payments for tax year 2017, enter the amount of these estimated tax payments. Include in this amount the 2016 refund that you requested us to apply to your 2017 estimated income tax payments. Do not include in this total any income taxes paid for a previous year since these are not estimated taxes paid for tax year 2017. You can view your payment history on TransAction Portal (TAP), at revenue.mt.gov. If you are married filing separately on the same form and made estimated payments, you might consider allocating the payments claimed by each spouse so that one spouse does not owe tax and the other is due a refund. You may wish to contact the department before filing your return to verify that estimated payments are applied to the intended spouse. Only estimated payments can be allocated. Withholding must be reported by the spouse whose name appears on the federal Forms W-2 or 1099. Line 59 – Extension Payment If you paid an extension payment on or before April 17, 2018, enter that amount on this line. Line 60 – Refundable Credits Your refundable credits are applied against your income tax liability with any unused credit refunded to you. You may be eligible for one or more of the four refundable credits that are available on Montana tax forms. Complete Form 2, Schedule V, lines 24 through 26 to determine the amount of the refundable credits to enter on this line. Refer to the instructions on Montana tax credits on page 31 for a detailed explanation of these refundable credits. Amended Return Use lines 61 and 62 only when filing an amended tax return. If you are filing an original tax return, go to line 63. Important: Do not forget to reenter your check-off contributions on line 69 if you still wish to contribute. Line 61 – Payments with Original Return Enter any payments made when you filed your original return and any subsequent payments that were applied to your 2017 tax liability. You can view your payment history on TransAction Portal (TAP), at revenue.mt.gov. Line 62 – Previous Overpayment Enter the overpayment you reported on line 72 of your previous return for the period. This includes refunds that may have been applied to another debt such as a prior tax year or child support debt and the overpayment amount you requested to be applied to your 2017 estimated tax payments. The deduction of previous overpayment reported on line 72 from the total payments prevents the modification of overpayment that was carried over to the following period. If your amended return results in an additional overpayment, you will receive a refund. If your amended Page 10 Main Form - Lines 63-67 return results in additional tax due, you need to make an additional payment. If you would rather use any available carryover amount to offset additional tax, contact us or include a statement with your amended return. The use of any carryover amount may necessitate amending the return(s) of subsequent periods already filed. Line 63 – Total Payments and Refundable Credits Add lines 55 through 61, and then subtract line 62. Enter the result here. This is your total payments and refundable credits. Line 64 – Tax Due If line 54 is greater than line 63, subtract line 63 from line 54. This is your tax due. Line 65 – Tax Overpaid 2017 Montana Form 2 If you did not pay in advance at least 90% of your 2017 income tax liability (after applying your credits) or 100% of your 2016 income tax liability (after applying your credits), you may have to pay interest on the underpayment of your estimated tax. You do not have to make estimated tax payments if at least 2/3 of your gross income is derived from farming or ranching operations. Mark the “2/3 farming gross income” box if this applies to you. Mark the “estimated payments were made using the annualization method” box if you used the annualization method to make your estimated tax payments for 2017. To calculate your interest, complete either Worksheet VII on page 47 or Form EST-I, 2017 Underpayment of Estimated Tax by Individuals, Estates and Trusts. This form is available at revenue.mt.gov or call us at (406) 444-6900. If line 63 is greater than line 54, subtract line 54 from line 63. This is your tax overpaid. Line 67 – Late File Penalty, Late Payment Penalty and Interest For married taxpayers filing separately, when both taxpayers have an overpayment, the amount of each overpayment will be reported to the Internal Revenue Service. When one spouse owes and the other has an overpayment, the amount reported to the Internal Revenue Service will be the gross overpayment amount for the spouse with the overpayment before netting the two columns. For example, if spouse A has an overpayment of $600 and spouse B owes $200, the amount reported for spouse A on federal Form 1099-G will be $600 even though the net refund check issued is $400. Many taxpayers will not find this result acceptable because it may affect their federal taxable income for the following year. See the instructions for line 58 for suggestions about reallocating estimated payments. If you and your spouse are filing on separate returns, penalties and interest are based on the amount that each spouse owes. In order to simplify calculations for Form 2, married taxpayers filing separately on the same form will compute penalties and interest on the combined tax due. If both spouses owe additional tax, penalties or interest, they will receive individual Notices of Assessment for the amount they owe. When one spouse owes tax but the other is overpaid, penalties and interest are based on the unpaid tax after applying the overpayment from the other spouse. ●● Late File Penalty If you file before October 15, 2018, you do not owe late file penalty. This is also true if you are claiming a refund on your return. If you file your return after October 15, you need to pay a late file penalty. The penalty is equal to 5% per month on the unpaid amount, up to 25% of your tax liability on line 64. The penalty is calculated from the extended due date until the tax is paid or the return is filed. The minimum penalty is $50. If you and your spouse elect the filing status “married filing separately on the same form” and both of you owe tax, the late file penalty will be assessed to both of you. ●● Late Payment Penalty The late payment penalty is equal to 0.5% per month, calculated daily, on the unpaid amount from April 17, 2018, until it is paid. The daily rate is 0.0164%. Your late payment penalty will never exceed 12% (24 months x 0.5%) of the unpaid tax. Late pay penalty is automatically waived if you pay all the tax and interest with your return, or within 30 days of the first notice from the department. you…? Did ●● Include any mineral royalty tax withheld on line 56; not line 55. ●● If filing electronically, save the tax information that you entered. Step 7. Penalties, Interest and Contributions (Lines 66-70) ►►Are you ready? You need: ●● Information about payments you made for this tax year. Line 66 – Interest on Underpayment of Estimated Taxes You must pay your income tax liability throughout the year. You can make your payments through employer withholding, installment payments of estimated taxes, or a combination of both. Main Form - Lines 68-69d 2017 Montana Form 2 ●● Interest If you have not paid 100% of your income tax liability by April 17, 2018, you have to pay 4% annual interest, computed daily, on the amount you still owe. To calculate your interest, multiply the amount on line 64 by 0.01096% (0.0001096) times the number of days after April 17, 2018, that your tax is paid. Interest accrues from the original due date of your return. If you owe more than one of the items listed above, enter each amount you owe onto the following worksheet: Type Page 11 Line 69 – Montana Voluntary Check-Off Contribution Programs Per Montana law, you can use your tax return to donate any amount to the following programs. Your contribution will increase the amount you owe or reduce the amount of your refund. If you are amending your return, your original donations to check-off programs no longer apply. You can confirm or modify your contributions by checking the boxes or entering the dollar amount you wish to donate. Amount Late file penalty Late payment penalty Interest Total Enter the total on line 67. (You may wish to keep this information as part of your records for future reference.) Line 69a – Nongame Wildlife Program Your contributions to this program are used to ensure the well-being of Montana’s watchable wildlife species, such as eagles, herons, bluebirds, great horned owls, loons, chipmunks, pikas, flying squirrels and painted turtles. Line 68 – Other Penalties Include on this line any of the following other penalties if they apply to your situation. You can get a copy of any of these forms at revenue.mt.gov or call us at (406) 444-6900. ●● First-Time Home Buyer Savings Account 10% Penalty If you withdrew funds from your first-time home buyer savings account for purposes other than to pay for eligible costs for the purchase of a singlefamily residence, you must pay a 10% penalty on this withdrawal unless the withdrawal is on the last business day in December. Complete the penalty calculation on Montana Form FTB, 2017 First-Time Home Buyers Savings Account. Enter the amount of the penalty on this line and include a copy of Form FTB with your tax return. ●● Medical Care Savings Account 10% Penalty If you withdrew funds from your medical care savings account for purposes other than to pay for eligible medical costs, you must pay a 10% penalty on this withdrawal unless you made this withdrawal on the last business day in December. Complete the penalty calculation on Montana Form MSA, 2017 Medical Care Savings Account. Enter the amount of the penalty on this line and include a copy of Form MSA with your tax return. ●● Farm and Ranch Risk Management Account 10% Penalty If you have not distributed your deposits and income from your farm and ranch risk management account within five years, they are considered distributed. You must pay a 10% penalty on the amount of tax due on this amount that is considered distributed. On this line, enter the amount of your farm and ranch risk management account 10% penalty. If you need to pay more than one of the penalties listed above, enter on line 68 the sum of your other penalties. Line 69b – Child Abuse Prevention Program Your contributions to this program fund services and activities related to the prevention of child abuse and neglect. In addition, if you enclose a separate check with your timely filed return, you are allowed to take an itemized deduction for the amount of the contribution on the tax return you are filing with this contribution. Line 69c – Agriculture Literacy in Montana Schools Program Your contributions to this program fund the development and presentation of educational programs. This program ensures Montana’s young people have a better understanding of agriculture in our state and how it relates to the rest of the world. Line 69d – Montana Military Family Relief Fund Your contributions to this program help provide funding for grants that aid Montana families in defraying the costs of food, housing, utilities, medical services, and other expenses when a wage earner has been called to active military duty. Page 12 Main Form - Lines 70-74 Line 70 – Total Penalties, Interest and Contributions Add lines 66 through 69 and enter the result on this line. This is your total penalties, interest and check-off program contributions. you…? Did ●● Check that you confirmed or modified your contributions to check-off programs if you are filing an amended return? ●● If filing electronically, save the tax information that you entered. Step 8. Amount You Owe or Your Refund (Lines 71-74) ►►Are you ready? ●● Gather the routing and account number for your checking or savings account if you will be receiving a refund and would like the money to be direct deposited. Line 71 – Amount You Owe If you have tax due (amount on line 64), add lines 64 and 70 OR, if you have a tax overpayment (amount on line 65) and it is less than line 70, subtract line 65 from line 70. Enter the result here. Married taxpayers filing separately on the same form should determine the amount to report on this line as follows: ●● If both taxpayers have tax due (line 64) ○○ Add both spouses’ tax due amounts to the total on line 70, and enter the result on this line. ●● If one taxpayer has tax due (line 64) and the other has a tax overpayment (line 65) ○○ Compare the two amounts and: ●● If the tax due is greater than the tax overpaid, subtract line 65 from line 64, add the result to the amount on line 70, and enter the total on this line. ●● If the tax overpaid is greater than the tax due, subtract line 64 from line 65 and compare the result to the amount on line 70. If the remaining overpayment is less than the amount on line 70, subtract the overpayment from line 70 and enter the result on this line. Otherwise, go to line 72. ●● If both taxpayers have a tax overpayment (line 65) ○○ Add both spouses’ tax overpayment amounts and compare the total to line 70. ●● If the combined overpayment of tax is less than the amount on line 70, subtract the overpayment from line 70 and enter the result on this line. ●● If the combined tax overpayment is greater than the amount on line 70, proceed to line 72. 2017 Montana Form 2 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. ●● 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 2017” 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 17, 2018, 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. Line 72 – Your Overpayment If you have a tax overpayment (amount on line 65) and it is greater than line 70, subtract line 70 from line 65 and enter the result on this line. Married couples filing separately may have a combined overpayment. This results when either both spouses report a tax overpayment (line 65), or one spo
Form 2 Instructions
More about the Montana Form 2 Instructions Individual Income Tax TY 2017
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 2018, so this is the latest version of Form 2 Instructions, fully updated for tax year 2017. 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:
|Form Code||Form Name|
|Form 2||Montana Individual Income Tax Return|
|Form 2 Instructions||Individual Income Tax Instructional Booklet|
|Form 2EZ||Montana Individual Income Tax Return - Short Form|
|Form 2EC||Montana Elderly Homeowner/Renter Credit|
|Form 2 SCHedule III||Montana Itemized Deductions|
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 2018.
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 three 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:
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.