The following are additions to income that may apply to you. Please review the following information and enter the necessary information to your return.
Interest and Mutual Fund Dividends from state, county, or municipal bonds from other states - This entry is made in the Federal Section of the return and pulled automatically to the state. To make the entry:
- Federal Section
- Income
- Interest and Dividends
- Interest or Dividend Income
- Dividend Income
- Taxable State Dividend
Other Recoveries Deducted In Earlier Years That Reduced Montana Taxable Income - If you received a reimbursement of an amount claimed as an itemized deduction on your prior return, and the deduction reduced the amount of your Montana tax liability in the year of that particular deduction, you may need to report a portion or all of the reimbursement as income.
Sole Proprietor Allocation Of Compensation To Spouse - If you are sole proprietor and reported your income on federal forms Schedule C or F, and your spouse regularly participated or performed services for your business but did not receive wages, you can allocate a reasonable amount to your spouse. This will be considered taxable income to your spouse.
Medical Care Savings Account Nonqualified Withdrawals - You must report any MSA distribution you received that was not used to pay for qualified medical expenses or long-term care.
First Time Home Buyer Savings Account Nonqualified Withdrawals - If you made a withdrawal from your First Time Home Buyers Savings Account and used it for any other purpose besides purchasing your single family residence, you must list is as an addition to income.
Farm and Ranch Risk Management Account Taxable Distributions - A distribution from your farm and ranch risk management account will be taxable IF:
- the distribution is from a fund that was previously excluded from your Montana AGI as a farm and ranch risk management contribution
OR
- the distribution was not distributed within 5 yrs of the original deposit.
Expenses used to claim a Montana Tax credit - If you claimed a Montana tax credit and reduced your federal AGI by deducting the business expenses associated with the credit, you must add back the amount of expenses used to calculate the credit.
Smaller Federal Estate Taxable Distributions - If your Montana taxable distribution from an estate or trust is larger than the federal taxable distribution, enter the difference here as an addition to federal adjusted gross income.
Total Additions from Montana Schedule K-1 (PTE) - If you are a shareholder and received Montana Schedule K-1, enter the total amount of everywhere additions from Column I. Do not report these additions separately, include a copy of the Montana Schedule K-1.
Title Plant Depreciation And Amortization - If you are taking a deduction on your federal return for depreciation and amortization on a title plant, you have to add back to your federal AGI, the amount of this depreciation and amortization when you determine your Montana AGI.
Taxable Federal Refunds - If you itemized on your prior year return, a portion of your federal refund may be taxable to Montana. If you claimed the standard deduction, no addition is required.
Other Additions - Enter any other additions to Federal Adjusted Gross Income not described above.
Program Entry
- State Section
- Edit Montana Return
- Additions to Income
For more information regarding these additions, please click here.