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 (Line 3) This entry is made in the Federal Section of the return and pulled automatically to the state. To make the entry:
- Federal Section
- Interest and Dividends
- Interest or Dividend Income
- Dividend Income
- Taxable State Dividend
Dividends Not Included in Federal Adjusted Gross Income (Line 4) Enter any amounts of dividend income that is not already included in your federal AGI.
Taxable Federal Refunds (Line 1) 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 Recoveries Deducted In Earlier Years That Reduced Montana Taxable Income (Line 2) 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.
Addition to Federal Taxable Social Security (Line 16) Your SS benefits that are taxable to Montana may be different from that amount that is reported on your Montana return, line 20B. The program will figure this amount for you based on your entries in the federal and state returns.
Sole Proprietor Allocation Of Compensation To Spouse (Line 8) 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 (Line 6) 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 (Line 7) 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 (Line 11) 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
- the distribution was not distributed within 5 yrs of the original deposit.
Dependent Care Assistance Credit Adjustment (Line 10) If you claimed business expenses on your schedule C, E, or F and are claiming the dependent care assistance credit, you have to add the amount of the expenses used to calculate your Montana Dependent Care Assistance credit back to the return.
Smaller Federal Estate Taxable Distributions (Line 5) 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.
Federal NOL Carryover (Line 9) Enter the amount of your federal NOL carryover from line 21 and then compute your Montana NOL carryover using Montana Form NOL. Enter your Montana NOL under subtractions form income.
Share Of Federal Income Taxes Paid By S Corp (Line 12) If you are a shareholder in an S corporation that has to pay a federal income tax on its income, add back to your federal adjusted gross income the portion of your income that has been reduced by the federal income taxes paid by your S corporation. Get the amount form your K-1 form.
Title Plant Depreciation And Amortization (Line 13) 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.
Other Additions (Line 14) Enter any other additions to Federal Adjusted Gross Income not described above. Examples of items that may qualify is Capital Loss Carryover or Passive loss Carryover that is different for state and federal purposes. See the instructions for more information.
You can enter these additions by following the steps below:
- State Section
- Montana Return
- Additions to Income
For more information regarding these additions, please click here.