Introduction
Individuals, estates and trusts, and pass-through entities may need to make an estimated tax payment or make a tax payment separately from filing a return. Payments can be made using payment vouchers or through the TransAction Portal (TAP).
Information about estimated payments for C corporations is here.
Instructions
You can make estimated tax payments for your income tax account in two ways:
- Online using the TransAction Portal (TAP)
- By check, using the appropriate voucher:
- Individuals use Montana Individual Income Tax Payment Voucher (Form IT)
- Estates and Trusts use Montana Estate Or Trust Tax Payment Voucher (Form FID)
- S Corporations use Montana Small Business Corporation License Tax Payment Voucher (Form SB)
- Partnerships use Montana Partnership Tax Payment Voucher (Form PR)
Determining if you need to make estimated tax payments
The information provided here is not comprehensive and may not be accurate for your situation.
A qualified tax professional can help you determine your specific needs.
If you estimate you will owe more than $500 in tax for last year, you should make quarterly estimated payments this year. Partnerships and S Corporations only need to make estimated payments if they expect to owe more than $500 in pass-through entity tax or composite tax
Individuals might need to make estimated payments if they:
- Are self-employed
- Have pension income
- Have commission income
- Received a lump sum payment
- Have capital gains
- Have dividend, interest, alimony, or other source income not subject to withholding
Please use Worksheets ESW or ESA in Montana Publication 1 – Prepaying Income Tax to determine the amount of your estimated payments.
Estimated Payment Due Dates
Calendar Year Filers
| Estimated Payments for Calendar Year Filers are due: | |
|---|---|
| First Payment | April 15 |
| Second Payment | June 15 |
| Third Payment | September 15 |
| Fourth Payment | January 15 |
| Please Note: If the due date falls on a weekend or holiday, payments are due on the next business day. | |
Fiscal Year Filers
If you file your return on a fiscal year basis, your payments are due on the 15th day of the fourth, sixth, and ninth months of the fiscal year and the first month of the following fiscal year.
Estimated Tax Penalties and Interest
If you owe more than $500 in tax and didn't make estimated payments, you may be subject to penalties and interest.
You must make income tax payments throughout the year. Individuals may make payments through employer withholding, estimated tax payments, or a combination of the two.
To avoid underpayment interest, you need to pay either:
- 90% of your current year's tax liability
- 100% of your previous year's tax liability
Underpayment interest can be calculated in Montana Underpayment of Estimated Tax by Individuals, Estates, and Trusts (Form EST-I) or the Calculation of Interest on Underpayment of Estimated Taxes Schedule (Form 2, page 11).