Your Itemized Deductions will be listed on the Montana state return, Schedule III, which will be found as part of your state return. You can make manual adjustments to these totals.
Medical And Insurance Expenses
- Medical and Dental Expenses: List medical expenses paid for the tax year once you have deducted any payments received from your insurance company or other sources.
- Medical Insurance Premiums: You may be able to deduct 100% of the medical premiums you paid on your own for you and your family. To qualify for the 100% deduction, you must meet the following criteria:
- Your premiums must be paid for health and medical insurance coverage.
- Your premiums cannot be paid using a Health Savings Account or Medical Savings Account.
- Your Premiums cannot be paid through an employer cafeteria plan, or be
- Your Premiums cannot be deducted as self-employment insurance deduction on your federal return.
- Medicare taxes withheld from your wages cannot be deducted.+
- Long-term Care Insurance Premiums: Without regards to the 10% floor limitation, you may be able to deduct 100% of the long-term care insurance premiums that are already deductible on your federal return. To qualify for the 100% deduction, you must meet the following criteria:
- Your payments must be for long-term care policies.
- The policies have to be for you, your dependents, your parents, or your grandparents.
- The premiums cannot be deducted elsewhere on your Montana return. This includes reporting your payments for qualified elderly care expenses.
Taxes Withheld And Paid
Montana allows you to list federal income taxes paid to be listed as an itemized deduction. Do not include taxes you paid to Montana or another state. This does not include self-employment taxes. The amount you can claim may be based on your filing status.
The following are allowed as an itemized deduction for federal taxes paid:
- 2022 Federal Income Taxes Paid in 2023
- Other Back Year Federal Income Taxes Paid in 2023
- Federal Estimated Tax Payments made in 2023
- General State and Local Sales Taxes Paid in 2023
- Local Income Tax Paid
- Real Estate Taxes Paid
- Personal Property Taxes Paid
- Montana Light Vehicle Registration Fees
- Per Capita Livestock Fees
- Other Deductible Taxes
For a detailed description or limitations on these itemized deductions, please click here.
- Home Mortgage Interest: You may enter the amount of interest and points that you paid that was reported to you on your Form 1098. For acquisition indebtedness incurred after
Dec. 15, 2017, the deduction of interest is limited to the first $750,000.
- Investment Interest: You may enter your investment interest once you have determine the deduction using Form 4952. If you are filing as Married Filing Separately, use Form 4952 to compute your investment deduction separately.
Deduction for political contributions that you made during the year. Limited to a total of $100 for
yourself and $100 for your spouse. To qualify, your contribution must be made to one of the following:
- an individual who is a candidate for nomination or election to any federal, state, or local public
office in a primary, general, or special election
- a committee, association, or organization set up to campaign for the nomination or election to any
federal, state, or local public office in a primary, general, or special election
- a national committee or a national political party
- a state committee of a national political party
- a local committee of a national political party
Child And Dependent Care Expenses
To qualify for this deduction, you must have a home where you care for a child under the age of 15 or a dependent or spouse who is unable to care for themselves. You must also meet these income requirements: AGI is under $22,800 with 1 child, AGI is $25,200 with 2 children, or AGI is $27,600 with 3 or more children.
If you are married filing separately on the same form, your deduction must be divided equally between you and your spouse. If you are married and filing separately on separate forms, you cannot take this deduction.
Casualty And Theft Losses
You may claim a casualty loss or theft from a federally declared disaster area. You must complete federal form 4684 to claim the loss. Use your Montana Adjusted Gross Income in place of the Federal Adjusted Gross Income to figure the amount you can claim on your state return.
Miscellaneous Deductions not Subject To 2% AGI Limitation:
The same deductions allowed on the Federal itemized Schedule A, line 16.
You may take a deduction for gambling losses that you incurred during the tax year to the extent of the gambling winnings already reported.
To make any adjustments to these totals pulled from your federal return, follow the steps below:
- State Section
- Itemized Deductions
For more information regarding these itemized deductions, please click here.