The department adopted the following proposed amendments and new rules effective April 28, 2018.
Pension and Annuity Income Exclusions, Dependent Exemptions, and Medical Care Savings Accounts
The proposed amendments included minor housekeeping changes, however, amendments to rules pertaining to dependent exemptions clarify the meaning of a “child” and provide better guidance on how to claim the additional exemption for a dependent child with a disability. Amendments related to Montana Medical Savings Accounts largely implement House Bill 175, enacted by the 2017 Legislature.
The proposed amendments included minor housekeeping changes, revise the due date for filing the annual reconciliation and wage statements in accordance with House Bill 63, L. 2017, and clarify how a pass-through entity treats a credit for mineral royalty withholding, including how it distributes the credit to owners.
The proposed amendments and New Rule I (42.9.112, ARM) related to the allocation and apportionment of income earned by a pass-through entity, in general, and with respect to the new sourcing rules provided in House Bill 511, L. 2017. New Rule II (42.9.303) provides guidance on how guaranteed payments made to a partner are sourced to the state.
Read more about Sourcing Guaranteed Payments.