Individual Income Tax
Individual Income Tax
Composite Income Tax and Estate and Trust Income Tax
Write-ins refer to additional adjustments to income that are not reported on the federal Form 1040, Schedule 1, but which must be taken into account to determine federal adjusted gross income.
On federal Form 1040, Schedule 1, the write-ins must be included on line 36.
On the Montana Form 2, you must also include the write-ins adjustments on line 36 of the federal Form 1040, Schedule 1, on page 2. However, you do not have to mark this line with any code if you already marked your federal Form 1040, Schedule 1.
If you are adjusting your gross income by including several write-ins adjustments, or you are married and filing jointly for federal tax purposes and separately for Montana tax purposes, you may include a statement with your return identifying the write-ins or their allocation.
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).
- 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.
- 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.
Individual income tax returns are due on April 17. If you are not ready to file by that date, you may take advantage of Montana’s automatic extension and file by October 15.
In prior 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. You do not have to file any form or pay any amount to qualify for the extension.
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.
President Trump signed the Bipartisan Budget Act of 2018 on February 9, 2018. Tucked away in the bill are several federal extender provisions that expired but are now available through December 31, 2017.
What does this mean for the Montana tax return?
Two of the extended deductions impact the 2017 Montana Individual Income Tax return (Form 2):
- Tuition and Fees deduction, line 35 on Form 2
- Qualified Mortgage Insurance Premiums deduction, line 14 on Schedule III (Itemized Deductions)
The department previously voided and reserved these lines for future use, but will reactivate these lines to allow taxpayers to claim these deductions on the 2017 Montana Form 2.
Keep in mind that it may take a few weeks for tax software companies and tax agencies to update their products and systems to reflect these last-minute changes to the form. You can visit My Revenue to view the corrected version of the Montana Form 2 Booklet.
Please Contact Us for updates, developments, or if you have questions.