Montana Estimated Tax Annualization Worksheet

Estimated Tax Annualization Worksheet
Form ESA
Montana Publication 1
Prepaying Income Tax

A Guide for Individuals, Trusts, Estates, and Corporations

Contents
Introduction ...................................................................................................................................... 1
Tax Withholding ............................................................................................................................... 1
Salaries and Wages .................................................................................................................. 1
Allowances ............................................................................................................................... 1
Additional Withholding Amount ................................................................................................. 1
Exemptions from Wage Withholding ............................................................................................ 2
Nonresident Employees of Interstate Carriers ........................................................................ 2
Exemptions Claimed by the Employee .............................................................................. 2
Reservists and National Guard Members. ......................................................................... 2
Pass-Through Withholding ....................................................................................................... 3
Treatment by Individuals, Trusts andEstates, and C Corporations .................................... 3
Treatment by Pass-Through Entities ................................................................................. 4
Mineral Royalty Withholding ..................................................................................................... 4
Treatment by Individuals, Trusts andEstates, or C Corporations ....................................... 4
Treatment by Pass-Through Entities.................................................................................. 4
Estimated Tax Payments ................................................................................................................. 5
C Corporations.......................................................................................................................... 5
Individuals, Estates, Trusts and Pass-Through Entities ............................................................ 5
Tax Estimation Methods ........................................................................................................... 6
Moving from One Method to the Other .............................................................................. 7
Legal References: ............................................................................................................. 7

Allowances

Introduction
The Montana income tax is a pay-as-you-go tax
system, just like the federal tax system. You must
pay tax as you earn or receive income during
the year. There are two ways to pay as you go:
withholding tax and paying estimated tax. This
publication explains when tax is withheld and
when individuals, trusts, estates, C corporations,
or pass-through entities must pay estimated tax.

Tax Withholding
Tax withholding is the first way to pay-as-you-go
in this tax payment system. Generally, income
tax is withheld on the payment of wages, mineral
royalties, and Montana source income derived
from pass-through entities.

Salaries and Wages
If you are an employee, your employer is required
to withhold income tax from your paycheck
unless an exemption applies.
Wages include regular pay, bonuses,
commissions, vacation allowances, other
supplemental wages earned in Montana, and
ordinary income recognized when property,
such as stock, is transferred in connection with
performance of services.
The employer calculates wage withholding
using the number of allowances and the
additional withholding amount you claimed,
and the withholding tax table published by the
department. Employees may claim allowances,
an additional withholding amount or an exemption
on Form MW-4. Supplemental wages may be
subject to a 6 percent withholding tax.
As a new employee, your employer must
provide you with a paper or electronic copy of
the Form MW-4. You should return a completed
Form MW-4 to your employer before the end
of the pay period or withholding based on zero
allowances will be applied. If your personal
situation changes (for example, with the birth of a
child, divorce, or an exemption becoming
applicable), you can submit a new Form MW-4 to
your employer.
We recommend you keep a copy of all the MW-4
forms you complete for your records.

An allowance is an exemption that reduces how
much income tax your employer deducts from
your paycheck. You can claim allowances for
you, your spouse, and your dependents. You
can claim an additional allowance if you expect
large deductions against your Montana income.
It is advisable to keep a sufficient level of
withholding, so that estimated tax payments will
not be required, even if you only receive wages.
TIP: If you are married and you have a working
spouse, you are likely to file separately for
Montana to lower your overall tax liability as a
couple. If you file separately, do not increase
your withholding to pay for your spouse. Wage
withholding is calculated on an individual basis.
To avoid possible interest or penalties, each
spouse must claim allowances based on their
own individual situation.

Additional Withholding Amount
Additional Income. If you have a large amount
of income from sources not subject to withholding
(such as interest, dividends, capital gains, or
business income), you may be able to request
to have an additional amount withheld from
your paycheck on Form MW-4. You can use this
additional withholding instead of making estimated
tax payments. (See page 5 to determine the
alternative estimated taxes you would need.)
Pensions and annuity payments. If you receive
pension or annuity payments, you may choose to
have the remitter withhold a flat amount of taxes
every distribution period. You can enter this flat
amount on line H of Form MW-4.
The withholding can be changed or revoked at
any time. To make a change, send a new Form
MW-4 to the payor of the pension or annuity, with
a change of amount on line H.
The payor is not required to withhold if the
amount of tax withholding is less than $10.
TIP: In general, you can quickly estimate the
additional amount you will need to withhold
as follows:
● Estimate your additional income or
expected taxable pension and annuity

2022 Montana Publication 1

Page 1

distributions for the year;
● Multiply the result by 6.75 percent
(0.0675) to determine the overall
amount of additional withholding for the
rest of the year; then,
● Divide the additional withholding by the
number of paydays or payments left for
the year.

Exemptions from Wage Withholding
Some wages earned in Montana are not subject
to wage withholding. There are two exemptions
that are determined by the employer. Other
exemptions must be claimed by the employee.

Exemptions Determined by the Employer
Active Duty Members of the Armed Forces
Active-duty military compensation received for
services in the regular armed forces paid under a
United States Code Title 10 order is not subject to
withholding in Montana. This exemption applies
whether you are a resident or a nonresident.

Nonresident Employees of Interstate Carriers
Nonresident interstate employees of railroad,
trucking, air and water interstate carriers are
exempt from Montana wage withholding.
Employers are responsible for determining the
state of residency of the employee and applying
the corresponding withholding. Employers must
withhold on the wages received by employees
who are residents of Montana.

Exemptions Claimed by the Employee
There are two types of exemptions from wage
withholding that you can claim as an employee:
limited exemptions and unlimited exemptions.
You must complete a new Form MW-4 and give it
to your employer each year to continue receiving
any of these exemptions from withholding.

Limited Exemptions

Limited exemptions are those that apply to a portion
of the wages you receive from your employer. When
you claim one of these exemptions, you must also
claim one or more allowances to reduce the amount
of withholding applied to your non-exempt wages.
The exemptions for enrolled tribal members and

for military reservists and National Guard members
under U.S.C. Title 10 orders are limited exemptions.
Non-exempt wages must be reported on Montana
Form 2 (Montana Individual Income Tax Return),
even if the employer omitted to withhold on them.
TIP: If you forgot to claim a limited
exemption on your Form MW-4, you may be
entitled to a refund of your wage withholding.
You will need to file your Montana Form 2 to
obtain a refund.
Enrolled Tribal Members. If you are an
enrolled tribal member living and working on
the reservation of your governing tribe, your
wages earned on the reservation are exempt
from Montana withholding.
However, tribal members’ wages earned off
the reservation of their governing tribe are
always subject to withholding.
Consequently, even if the wages earned
within the reservation are exempt, tribal
members should also claim allowances on
the Form MW-4 each year.
This number of allowances will be used
by the employer to reduce the amount of
withholding on wages earned outside the
external boundaries of the reservation.
Example: You are an enrolled tribal member
of the Crow Nation and lived on the Crow
Indian Reservation the entire year. In that
year, you earned $35,000 of wages working
on the Crow Indian Reservation. Your wages
of $35,000 are exempt from Montana wage
withholding. That same year, you also
earned $10,000 working in Billings and
$2,000 working on the Northern Cheyenne
Indian Reservation. The $12,000 of wages
earned in Billings and on the Northern
Cheyenne Indian Reservation are subject to
withholding by the employer. If you did not
claim any allowances on the Form MW-4, the
amount of withholding will be higher than if
you had claimed allowances.

Reservists and National Guard Members.
Active duty military compensation received for
services in the National Guard or Reserves
paid under a U.S.C. Title 10 order is not subject

2022 Montana Publication 1

Page 2

to withholding in Montana. You may claim this
exemption on Form MW-4 if you received U.S.C.
Title 10 orders. Compensation received under a
U.S.C. Title 32 order is still subject to withholding
in Montana, unless it was paid for being part of a
unit engaged in a homeland defense activity or a
contingency operation. You must determine the
number of allowances to claim on the Form MW-4.
This number of allowances will be used by your
employer to reduce the amount of withholding on
wages you receive under U.S.C. Title 32.

Unlimited Exemptions

Unlimited exemptions apply to the entire portion
of wages received from an employer. These
include wages received as a spouse of a military
service person and wages received by a North
Dakota resident working in Montana. The
following exemptions are unlimited. When you
claim one of them, the entire wages paid by the
employer are exempt until the end of the year or
until the exemption no longer applies.
Spouse of Military Service Person. If
you are the spouse of a military service
person, your wages earned in Montana are
not subject to withholding if you moved to
Montana solely because:
● You are the nonmilitary spouse of an
active duty service member of the
regular armed forces stationed in
Montana in compliance with U.S.C. Title
10 orders, and
● You and your spouse are both residents
of the same state, which is not Montana.
These wages are not Montana source
income and, if applicable, are taxable in your
state of residence.
If your situation changes, either because you
choose to become a Montana resident, your
spouse is no longer serving in Montana, or
you have divorced, you must complete a new
Form MW-4. Withholding may apply from
the date of the change if you cannot claim
another exemption.
North Dakota Residents Working in
Montana. If you are a North Dakota resident
earning wages from work performed in
Montana, these wages are exempt from

Montana withholding. Note that the wages
you earn for work in Montana are subject to
income tax in North Dakota.
To benefit from this exemption, mark the
North Dakota Exemption box on Form MW-4,
and give it to your employer as soon as
possible after the hiring date to avoid
withholding, or after becoming a North
Dakota resident.
If, in the next year, you receive a Form W-2
showing Montana withholding, verify with
your employer that the amount of withholding
is correct. You may claim the refund of
excess withholding by filing Montana Form 2.

Pass-Through Withholding
If you receive a Montana Schedule K-1 from a
partnership, S corporation, or disregarded entity
(pass-through entity), the entity may be required
to withhold tax on your behalf. If this applies to
you, it will be reported on Part 5 of your Montana
Schedule K-1 (PTE).
Pass-through withholding is 6.75 percent of the
distributive share of Montana source income
attributable to nonresident owners, foreign C
corporations, or second-tier pass-through entities,
unless there is a waiver of this requirement in
place. A pass-through entity that owns interest in
another pass-through entity is called a secondtier pass-through entity.
Waivers can be claimed by nonresident individuals,
nonresident trusts or estates, and domestic secondtier pass-through entities. Domestic second-tier
pass-through entities are owned entirely, directly or
indirectly by resident individuals, resident trusts or
estates, or domestic corporations.
A domestic corporation is a corporation registered
to do business in Montana. See Form PT-AGR for
more information on how to apply for the waiver.

Treatment by Individuals, Trusts and
Estates, and C Corporations
If you are an individual, trust or estate, or C
corporation, report the pass-through withholding
from your Montana Schedule K-1 (PTE) on
your income tax return, Form 2, Form FID-3, or
Form CIT, as indicated in the instructions.

2022 Montana Publication 1

Page 3

This amount is fully creditable against your income
tax liability. The excess payment is refundable.
Note that if you are an indirect owner in a
pass-through entity, this entity may be required
to withhold on the Montana source income
attributable to a second-tier pass-through entity
before the income flows to you. As a result, you
will receive a Montana Schedule K-1 with some
pass-through withholding paid on your behalf
even if you are a resident individual, trust or
estate, or domestic C corporation.

Treatment by Pass-Through Entities
A second-tier pass-through entity must allocate
the pass-through withholding they receive to each
of its owners according to the owners’ distributive
share of Montana source income.
If the pass-through entity also derives Montana
source income from its own trade or business
activities, pass-through withholding must
be calculated based on the total Montana
source income attributable to each owner.
The second-tier pass-through entity may use
the pass-through withholding it received from
a lower-tier pass-through entity to offset any
pass-through withholding it may owe on its return.

Mineral Royalty Withholding
A mineral royalty interest is treated as real property
and any royalty paid for the extraction of minerals
located in Montana is Montana source income.
The remitter of Montana mineral royalty must
withhold a 6 percent tax from each net payable
amount of royalty due to a Montana mineral royalty
owner. Some exceptions apply. If mineral royalty
tax was withheld, this amount can be taken as a
refundable credit against Montana income tax.
TIP: Do not confuse the mineral royalty
withholding with the production taxes that are
also subtracted from the royalty payments.
There are two ways you can receive the information
that mineral royalty withholding tax was withheld
on the amount of royalties you received: on a Form
1099-MISC or on a Montana Schedule K-1.
Form 1099-MISC. If you received a
Form 1099-MISC reporting Montana mineral
royalty income, the mineral royalty withholding

will be reported in Box 15.
TIP: Make sure that Box 15 shows only
Montana withholding before claiming the
credit. If Box 15 shows the sum of withholding
amounts from mineral royalty interests
located in several states, you must obtain a
breakdown of Box 15 from the remitter.
Montana Schedule K-1. If you received a
Montana Schedule K-1 from a pass-through
entity, a trust or an estate, mineral royalty
withholding may be reported in Part 5.

Treatment by Individuals, Trusts and
Estates, or C Corporations
If you are an individual, an estate or trust, or
a C corporation, report the mineral royalty
withholding from Form 1099-MISC or Montana
Schedule K-1 on your income tax return as
indicated in the instructions.
This amount is fully creditable against your income
tax liability. The excess payment is refundable.
TIP: In some circumstances, when tax was
required to be withheld from a distributive
share of Montana source income from a passthrough entity, the mineral royalty withholding
may have already been applied against the
pass-through withholding. When this is the
case, mineral royalty income may be reported
on your Montana Schedule K-1, but no mineral
royalty withholding is reported in Part 5.

Treatment by Pass-Through Entities
When a pass-through entity receives a Form
1099-MISC or a Montana Schedule K-1, it must
allocate any mineral royalty withholding to its
owners according to their distributive share of
Montana source income. Special allocation in
partnerships may apply.
Generally, if the owner is an individual, trust or
estate, a C corporation, or has a waiver of passthrough withholding in place, the mineral royalty
withholding is distributed to the owner on its
Montana Schedule K-1.
If the owner is subject to pass-through
withholding or elects to pay composite tax, the
mineral royalty withholding is applied against the
pass-through withholding or composite tax. Any

2022 Montana Publication 1

Page 4

mineral royalty withholding in excess of passthrough withholding or composite tax may be
refunded to the entity.

tax year beginning on January 1, estimated tax
payments are therefore due on April 15, June 15,
September 15, and December 15.

When a pass-through entity uses mineral royalty
withholding as a credit against any taxes it owes,
it will not be reported on the Montana Schedule
K-1 issued to the owner.

C corporations must refer to the Administrative
Rules of Montana Title 42, Chapter 23,
Subchapter 6 for the calculation of estimated
taxes and interest on underpayment of estimated
taxes. ARM 42.23.606

Note that if the pass-through withholding calculated
for an owner is zero, the owner’s entire share of
mineral royalty withholding must be distributed and
reported on the owner’s Montana Schedule K-1.

Estimated Tax Payments
Quarterly estimated tax payments constitute
the second part of the pay-as-you-go system.
The quarterly payments are based on either an
estimation of the taxes owed for the current tax
year or 100 percent of the tax liability reported on
the return of the previous tax year.
When there is an underpayment of quarterly
estimated tax payment, interest must be assessed
using the rate of the calendar year in which the
income tax return for the tax year is due. For
example, interest on underpayment of estimated
taxes for Tax Year 2022 will be calculated using
the interest rate effective for 2023, because the
2022 income tax return is due in 2023.

C Corporations
Estimated tax payments must be made when the
amount of annual estimated taxes owed by a C
corporation is more than $5,000.
In general, each quarterly payment must equal 25
percent of either:
● 80 percent of the annual estimation of
taxes, or
● the amount of tax liability shown on the
return of the previous tax year, provided
the taxpayer filed a return covering a
period of 12 months.
The dates of the quarterly payments are based
on the tax year of the taxpayer.
Payments are due on the 15th day of the 4th month,
6th month, 9th month and last month following the
beginning of the tax year. For corporations with a

Individuals, Estates, Trusts and PassThrough Entities
Estimated tax payments must be made when
the amount of annual estimated taxes owed by a
taxpayer, after any withholding and nonrefundable
credits, is more than $500. This is generally
the case if you receive income not subject to
withholding, such as dividends, interest, capital
gains, rental income, certain royalties, or business
income from self-employment.
The same rules apply for all individuals, whether they
are residents, nonresidents, or part-year residents.
Estates and trusts must pay estimated taxes
based on their own Montana tax obligations.
When the estate or trust distributes all their
income, no estimated tax is due.
Pass-through entities must pay estimated taxes on
behalf of their owners who elected to pay composite
tax on their Montana source income in the previous
tax year, if the entity filed a return with a period of 12
months. They are not required to make estimated tax
payments for pass-through withholding.
You are not required to make estimated tax
payments, even if you owe more than $500, if
you meet one of the following criteria:
● You were not required to file a Montana
income tax return in the previous tax year;
● Your previous tax period covered 12 months
and your Montana tax liability was zero;
● You retired and were at least 62 years of
age at the end of the previous tax year
(This exception applies only in the year
you retire and for one additional year
following the year of retirement);
● You became disabled in the previous or
current tax year; or,
● At least two-thirds of your gross income

2022 Montana Publication 1

Page 5

is derived from farming and ranching
operations. (Montana does not apply
a “lookback” provision in determining
farming and ranching gross income).
Caution: If you are an employee, make
sure your Form MW-4 reflects your current
situation. For example, if you are claiming
too many allowances for dependents, you
may not have enough tax withheld from your
paycheck and have to pay estimated tax.
Quarterly Installments – Estimated tax
payments must be made in four installments.
Payments are due on the 15th day of the 4th month,
6th month, and 9th month following the beginning
of the tax year, and the first month following the
end of the tax year. For taxpayers with a tax year
beginning on January 1, estimated tax payments
are due April 15, June 15, and September 15 of that
year, and January 15 of the next calendar year. If any
of these dates fall on a weekend or a holiday, your
payment is due on the next business day.
To determine the amount of estimated taxes
owed for each installment you may use one of the
following three methods. All methods require that
you deduct withholdings and expected credits
before determining the installment amounts.
100 Percent of the Prior Year Tax Method. If
you use this first method, you do not need to
estimate your tax for the year, and you avoid
interest on underpayment automatically. You can
use this method only if you filed a return for the
preceding tax year. You cannot use this method if
your preceding return was a short year.
For example, to calculate your estimated tax for
2022, you must use your tax liability reported on
your 2021 income tax return.
To calculate your estimated tax payments using
this method:
1. Identify your tax liability reported on the
return from the preceding year;
2. Deduct any overpayment you carried over
from the prior year;
3. Deduct the wage withholding taxes you
know will be paid on your behalf;
4. If the result is more than $500, divide it by
four; and

5. Make payments following the quarterly
installment schedule.

Tax Estimation Methods
If you do not want to use your tax liability from the
prior year, you must first estimate your tax for the
year and pay 90 percent of this amount with a
combination of withholding and estimated taxes to
avoid interest on underpayment of estimated taxes.
Two additional methods are available, the income
estimation method and the annualization method.
Both require you to reduce your amount of estimated
taxes by the amount of your required withholding tax.
Income Estimation Method. To figure your
estimated tax, you must estimate your expected
taxable income, deductions, and credits for the year.
Use Worksheet ESW, on page 8, if you choose this
method. Worksheet ESW will help you calculate
90 percent of your estimated tax after credits and
withholding taxes. The installments are presented
on an aggregate basis to show the amount that
should have been paid by each installment.
So, if you miss a payment or if you start paying
estimated tax after the first quarterly payment
is due because your situation has changed
during the year, the worksheet will include any
necessary catch-up payment automatically.
If your tax situation changes during the year, you
must recalculate your estimated tax using lines 1
through 10 of a new Worksheet ESW and enter
the refigured percentages on the column for the
quarters in which you have not yet made payments.
Example: You estimated a Montana
Adjusted Gross Income of $50,000. Your
estimated tax was initially $2,000. You
paid $500 on April 15. You received an
unexpected item of income of $10,000 during
the second quarter. Your Montana Adjusted
Gross Income is now $60,000, and your
estimated tax is now $2,700.
Your installments are now $675 each. However,
on the second quarter you must pay $850 ($675
+ $175 not paid with your first installment).
If your Federal Adjusted Gross Income
decreases, Worksheet ESW will account for the
payments already made in the determination

2022 Montana Publication 1

Page 6

of your installments. In addition, if 100 percent of
your prior year tax liability method results in less
estimated taxes to pay, Worksheet ESW will
automatically use this lesser amount tocalculate
your payments.
To estimate your amount of withholding on line 9,
you can use your paycheck or pension check
stubs that you have received before April 15.
Remember to reduce your estimated tax by
any backup withholding that may be made on
your behalf from a pass-through entity, or any
estimated refundable credits.
Annualization Method. If your income varies
during the year because, for example, you
operate your business on a seasonal basis or
receive a large capital gain late in the year, you
may be able to lower or eliminate the amount
of one or more required installments by using
the annualized income installment method. The
annualization method allows you to calculate
your estimated tax and each installment based
on the total amount of income you received since
the beginning of the year, and up until the end of
the quarter. This method is particularly suited for
taxpayers with fluctuating or seasonal income,
because it makes you adjust your estimated
tax and your quarterly payments based on the
income you received during the quarter.
You may still have to estimate withholding on
other types of income.
Use Worksheet ESA, on page 9, if you chose
this method.

Moving from One Method to the Other
You can move from one method to the other
freely. However, we recommend that if you
choose the annualization method, you keep using
this method for the rest of the year. In case of
underpayment of estimated tax, the annualization
method may reduce the amount of interest you
will have to pay.

Penalties for Underpayment of Estimated Tax.
When withholding taxes and tax credits are not
sufficient to cover at least 100 percent of the tax
liability from the previous year or 90 percent of
the amount owed for the current year, interest
is owed on the amount that you were required
to pay regardless of the method you used to
calculate your installments.
Note: You must indicate you are using the
annualization method on your Montana
individual income tax return to avoid interest
based on irregular installments.
Keep Worksheet ESA in your records. The
department may ask you to provide a copy and/
or other documents showing when you received
your income.
Interest is calculated daily based on the rate of
the calendar year in which the return for the tax
year is due.

How can I make estimated tax payments?
You can pay electronically at https://tap.dor.mt.gov.
Click on “Make a Payment.”
You can also make estimated tax payments by
check using the individual income tax payment
voucher. You can download the voucher at
MTRevenue.gov. Click on “Forms” and select
“Payment” in the list of filters.

Legal References:
Montana Code Annotated:
15-30-2501 through 15-30-2547 and
15-30-3301 through 15-30-3321
Administrative Rules of Montana:
42.17.304 through 42.17.317, and
42.9.101 through 42.9.540
Questions? Call us at (406) 444-6900, or
Montana Relay at 711 for the hearing impaired.

2022 Montana Publication 1

Page 7

Worksheet ESW – Montana Estimated Tax Worksheet – 2022
1 Enter your estimated Montana adjusted gross income for the year.
Pass-through entities: Enter the total estimated share of federal income for
1
all owners participating in the composite return.

Installments

Estimation of Tax

2 Itemized deductions or standard deduction. If you itemize, enter your itemized
deductions. If you use the standard deduction, enter 20 percent (0.20) of line 1, but
do not enter less than the minimum amount or more than the maximum amount
based on your filing status. (See table below.)
Pass-through entities: Add the standard deductions allowed for each participant.
Estates and trusts: Take the expected income distribution deduction.

2

3 Personal exemptions: Multiply the exemption amount on the table below by
the number of your allowable exemptions.
3
Trusts and estates: Enter only one exemption.
4 Subtract lines 2 and 3 from line 1 and enter the result.
This is your estimated taxable income. If the result is zero or less, stop here. You
4
do not need to make estimated tax payments.
5 Estimated tax: Multiply the amount on line 4 using the tax table below.
5
Pass-through entities: Multiply the result by the estimated composite tax ratio.
Credits:
Enter
your
estimated
nonrefundable
single-year
credits
and
carryover
6
6
credits for the year (individuals, trusts and estates only).
7 Subtract line 6 from line 5 and add any recapture or lump sum taxes you expect
to owe. This is your estimated total tax after nonrefundable credits. If the amount
7
is less than $500, stop here. You do not need to make estimated tax payments.
8 Enter 90 percent (0.90) of line 7 or your tax liability amount from the prior
8
year, whichever is smaller.
9 Enter the amount of your estimated withholding taxes and refundable credits. 9
10 Estimated tax: Subtract line 9 from line 8. If the result is less than $500, stop here.
10
You do not need to make estimated tax payments.
Periods
11 Enter 25 percent of line 10 on column 1; 50 percent of line 10 on column 2;
75 percent of line 10 on column 3; and 100 percent of line 10 on column 4.
If your estimated Montana Adjusted Gross Income increases during
the year, recalculate your estimated tax (lines 1 through 10) on a new
worksheet and enter the updated results in the column for the quarters in
which you have not yet made payments.
11
12 Enter any overpayment from prior years on column 1 or report the total
amount of estimated tax paid since the beginning of the tax year including
12
carryover payments from last year in columns 2, 3, and 4.
13 Subtract line 12 from line 11. If less than zero, enter zero.
These are your required 2022 estimated payments.
13

2022 Montana Publication 1

1

2

3

4

Page 8

2022 Montana Individual Income Tax Table

Standard Deduction
Percentage
20%
Minimum
Maximum
Single
2,260
5,090
Joint or HoH
4,520
10,180
Personal Exemption

2,710

If Your Taxable
But Not
Income Is More Than More Than

$0
$3,300
$3,300
$5,800
$5,800
$8,900
$8,900 $12,000
$12,000 $15,400
$15,400 $19,800
More Than $19,800

2022 Montana Publication 1

Multiply Your
Taxable Income By

1% (0.010)
2% (0.020)
3% (0.030)
4% (0.040)
5% (0.050)
6% (0.060)
6.75% (0.0675)

And
Subtract

$0
$33
$91
$180
$300
$454
$603

This Is
Your Tax

Page 9

Installments

Annualized Tax

Annualized Deductions

Income

Worksheet ESA – Estimated Tax Annualization Worksheet – 2022
Period
1
2
3
4

5
6

7
8
9
10
11
12
13
14
15
16

17

Annualization amounts.
1
Montana adjusted gross income for the period.
2
Annualized Income: multiply line 2 by line 1.
3
Individuals: If you itemize, enter your itemized
deductions for the period shown in the column headings.
If you do not itemize enter zero and skip to line 6.
Estates or trusts: Enter the allowable deductions not
included on line 2, and add your income distribution
deduction for the period.
4
Multiply line 4 by the amount on line 1.
5
Standard deduction: If you use the standard deduction,
enter 20 percent (0.20) of line 3, but do not enter less than
minimum amount or more than the maximum amount
depending on your filing status. (See table on previous page). 6
Enter the larger of line 5 or line 6.
7
Personal exemptions: Multiply the exemption amount on the
table on page 8 by the number of your allowable exemptions. 8
Subtract lines 7 and 8 from line 3.
9
Figure your tax on the amount on line 9 using the tax table.
See page 8.
10
Nonrefundable credits expected for the period. See Form 2
instructions for a complete list of available nonrefundable
credits (only for individuals, estates, and trusts).
11
Annualized tax: subtract line 11 from line 10.
12
Applicable percentage.
13
Annualized estimated tax: Multiply line 12 by line 13.
14
Enter any withholding and refundable credits for the
15
period shown in the column heading
Enter any overpayment from last year in column 1 or
report the total amount of estimated tax paid since the
beginning of the tax year including any overpayment
carried over from last year.
16
Annualized Installment: Subtract lines 15 and 16 from
line 14. If less than zero, enter zero. This is your required
estimated tax payment for each quarter.
17

Jan 1 –
Mar 31
4

Jan 1 –
May 31
2.4

Jan 1 –
Aug 31
1.5

Jan 1 –
Dec 31
1

22.50%

45%

67.50%

90%

2022 Montana Publication 1

Page 10