Changes to the 2017 Form 2 to Conform to New Federal Tax Laws

The following changes were made to the 2017 Montana Individual Income Tax Return (Form 2):

• The department voided and reserved for future use:
  • line 35 on Form 2 (Tuition and Fees)
  • line 14 (Qualified Mortgage Insurance Premiums) on Schedule III (Itemized Deductions) because these two federal provisions expired at the end of 2016.
    These deductions have been reinstated by the Bipartisan Budget Act of 2018.
• Line 3 of Schedule III (Itemized Deductions) was updated to reflect the new limitation used to calculate allowable medical and dental expenses as included in the federal tax form bill (HR1). Medical and dental expenses are allowed for tax year 2017 to the extent if they exceed 7.5% of the taxpayer adjusted gross income.