Event Information
The Montana Partnership Information and Composite Tax Return (Form PR-1) is due for Partnerships filing on the calendar year on extension.
2017 Partnership Returns on Extension Due
Partnerships
3rd Quarter 2018 Individual, Pass-through, and Estate and Trust Estimated Payments Due
Event Information
Third quarter 2017 estimated payments are due for:
Payment Options
Individual Income Tax
Composite Income Tax and Estate and Trust Income Tax
2nd Quarter 2018 Individual, Pass-through, and Estate and Trust Estimated Payments Due
Event Information
Second quarter 2017 estimated payments are due for:
Payment Options
Individual Income Tax
Composite Income Tax and Estate and Trust Income Tax
Department of Revenue Administrative Rule Update
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.
Read more about Changes to Dependent Exemptions and Montana Medical Savings Accounts.
Withholding Taxes
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.
Pass-through Entities
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.
Sourcing Guaranteed Payments
Guaranteed payments remain with the partner receiving the payment as reflected on the federal Schedule K-1. The portion of the guaranteed payment that represents Montana source income is reported on part 4, line 4 of the partner’s Montana Schedule K-1. A guaranteed payment is considered Montana source income if the payment is considered a priority allocation of capital or if the payment compensates a partner that performed a service in the state or while a resident of the state.
Guaranteed payments that result from the individual efforts of the partners are treated, both to the partnership and to the individual partner, as compensation for services and, like other compensation for services provided, sourced in the state where the services are performed.
Guaranteed payments that are a priority allocation of capital are treated as a share of the profits from the partnership’s business activities generally. This portion is apportioned according to the partnership’s property, payroll, and sales factors.
1st Quarter 2018 Individual, Pass-through, Estate and Trust Estimated Payments Due
Event Information
First quarter 2017 estimated payments are due for: