Montana Department of Revenue

Form NOL for 2018 is Now Available

Home / Archives for Updates

Updates

Form NOL for 2018 is Now Available

by

The Montana Net Operating Loss (Form NOL) for 2018 is now available. It includes guidance on a new class of net operating losses (NOL) and how to include the loss limitation in section 461(l) of the Internal Revenue Code (IRC) in your NOL deduction so you can take it in future years.

Because of changes made to section 172 of the IRC in the Tax Cut and Jobs Act, Montana NOL deduction from losses incurred in 2018 must now follow new principles. This is because Montana statute has a rolling conformity with this federal section. For simplification, the Montana NOL instructions call the net operating losses following the new principles Class B NOLs.

Class A NOL
Class A NOLs are NOL deductions from losses incurred in tax years before 2018.
These keep following the principles that applied in tax years before 2018.
Class B NOL
Class B NOL, including a 2018 NOL, cannot be carried back, except for farming losses, which can only be carried back two years.
Class B NOL deductions cannot be more than 80 percent of your taxable income reported before such NOL deduction.
As a result, when a Class B NOL deduction is taken, there will always be Montana taxable income. However, there is no longer any limit to the number of years you can carry forward such losses after taking an NOL deduction.

Form NOL also includes guidance on the new limitation in Subsection 461(l) of the IRC. If you have more than $250,000 of business losses, or $500,000 in the case of a joint return, the excess cannot be taken in 2018 and must be included in the Class B NOL deduction to carry forward to 2019.

You can find instructions about how to calculate excess losses for Montana tax purposes in the Montana Individual Income Tax (Form 2) Instructions.

2019 Withholding Filing Guidelines

by

Your Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3) is due January 31.

The guidelines below will help you avoid the most common mistakes. Errors or incomplete submissions may cause delays in the processing of your reconciliation and the validation of tax refunds for employees and others.

Guidelines for filing your Form MW-3, Forms W-2 and 1099

Filing through the TransAction Portal (TAP)

Filing through TAP is the most accurate way to file your return.

TAP lets you

  • Submit your Form MW-3, either manually or using your payroll software.
  • Upload your W-2s and 1099s using files from your payroll software
  • Enter your W-2s and 1099s with wage withholding on TAP.
  • Send a message to the department if you need online filing assistance.

Other Filing Guidelines

  • File the Montana Form MW-3, not the federal Form W-3.
  • Include the correct Employer Identification Number (EIN).
    If you’re a payroll service provider, be sure you are using your client’s EIN.
  • Include the correct state account number.
    Montana withholding accounts numbers are a 13-digit alphanumeric ID ending in “WTH.”
  • Do not mail duplicate paper copies of your forms.
    • Please Note: If you file your Form MW-3 electronically and mail your W-2 and 1099 forms, do not include another copy of the Form MW-3 in the mail. Our system will automatically link your mailed W-2 and 1099 forms with your electronically filed Form MW-3.
  • Submit all your W-2s with or without Montana withholding.
  • File your W-2 and 1099 forms for the correct reporting year.
  • Submit only your 1099 forms showing Montana withholding with your Form MW-3.
    • Please Note: If you must submit 1099 forms with no Montana withholding, do not send these forms with your Form MW-3 on TAP. Instead, file them using the TAP file upload application.
    • If you mail your 1099 forms with no Montana withholding, include a copy of your federal Form 1096.
Form MW3 Preview

Filing Season Begins January 28, 2019

by

The Montana Department of Revenue will open the state Individual Income Tax filing season on Monday, January 28, 2019.

“We encourage Montanans to get started early with their returns, and to file electronically,” said Montana Department of Revenue Director Gene Walborn. “E-filing is the easiest and most secure way to file your returns and the best way to get your refund as quickly as possible.”

Nearly 90 percent of Montanans already file electronically. Tax software providers and tax professionals will be accepting and preparing tax returns before January 28, and will submit those returns when the IRS and state systems open.

Montana filers should allow up to 90 days to receive their refunds.

Free and low-cost help is available for Montanans who qualify, with tax help events in dozens of communities across the state.

Taxpayers will see a few changes this year.

  • For those who file on paper, the federal Form 1040EZ has been discontinued, and with that change the corresponding Montana Form 2EZ is also discontinued. Filers who would have used form 2EZ can now file just the first page of the new, streamlined Form 2.
  • Copies of the 1099-G form will not be mailed. This form documents payments from Montana, such as income tax refunds, for use in federal returns. Starting this year, filers can find the information online at Get1099.mt.gov.
  • The former separate paper form for the Elderly Homeowner/Renter Tax Credit (Form 2EC) is now included in Form 2. Those with no obligation to file can still claim the credit online at dor.mt.gov, or on Form 2, using just Pages 1 and 9.

The department also urges those filing a Montana return for the first time to keep their mailing address current with the department to avoid possible delays in receiving their refunds. Visit revenue.mt.gov or call (406) 444-6900 for more information.

Tax returns must be filed by April 15.

Montana Individual Income Tax Return Form 2 Available in My Revenue

What’s Changed for 2019

by

Individual Income Tax

Updated Form: Montana Individual Income Tax Return (Form 2)
We have consolidated the Montana Individual Income Tax Return (Form 2) to better match the federal Form 1040.
Part of this change streamlines the layout of the Form 2. We have moved worksheets to be near their related schedules inside the Form 2. As such, we are no longer able to provide worksheets or schedules apart from the Form 2.
Paperless Change: Elderly Homeowner/Renter Credit
The Form 2EC is no longer available for paper filers. To claim the Elderly Homeowner/Renter Credit on paper, you will need to file a Montana Individual Income Tax Return (Form 2).
If you do not have a filing requirement and do not wish to file a Form 2, you still claim this credit through our TransAction Portal (TAP).
Removed Form: Montana Individual Income Tax Return (Form 2EZ)
We are discontinuing the Montana Individual Income Tax Return (Form 2EZ). This change matches the federal change to discontinue the federal Form 1040EZ.
If you previously filed the Form 2EZ, you will need to file a Form 2, or view other filing options.
Paperless Change: Form 1099-G, Certain Government Payments
We are no longer mailing Forms 1099-G.
You may access your Form 1099-G through our TransAction Portal (TAP).

Wage Withholding

New Form: Montana Employee’s Withholding Allowance and Exemption Certificate (Form MW-4)
Due to changes to the federal form, we have implemented a Montana-specific Withholding Allowance and Exemption Certificate.

  • New employees need to complete the Montana Form MW-4.
  • Current employees do not need to fill out a Form MW-4 unless their situation changes.
The new Form MW-4 will also be used to replace the Reciprocity Exemption from Withholding (Form MT-R), used to claim the North Dakota Reciprocity Agreement Exemption.

Property

Paperless Change: Livestock Reporting
We will no longer mail Livestock Reporting forms.
Livestock owners can report their livestock and pay the per capita fees through ReportYourLivestock.mt.gov.

First-Time Filers: Keep Your Address Updated

by

The Montana Department of Revenue has an important message to anyone filing Montana income tax returns for the first time:

If you change your mailing address after you file your return, notify the Department of Revenue. Otherwise, your state income tax refund could get delayed.

Here’s Why

As part of its ongoing anti-fraud measures, the department will not send refunds by direct deposit to first-time filers—just paper checks, through the mail. And, the Post Office will not forward paper checks to your next address, so just changing your address with the Post Office won’t be enough.

Changing your address is easy.

Download the Change of Address (Form ADD-CH), fill it out, and send it in.

Learn more about Changing Your Address.

In 2018, about 2,000 state income tax refunds came back to the department before eventually finding their rightful owners.

Contact us for more information.

The Montana Department of Revenue will be closed on for Lincoln's and Washington's Birthdays.

+