Montana Additions - Schedule I
Montana Additions are items of income that are not included in federal taxable income but must be added to determine Montana taxable income. These additions are reported on Schedule I of the Montana Individual Income Tax Return (Form 2).
What Are Montana Additions?
- Montana additions include income that is excluded from federal taxable income but is taxable in Montana.
- Examples include certain types of business income, partnership or S corporation income, and other state-specific adjustments.
- These additions are reported on Schedule I, line 7, and then transferred to Form 2, page 1, line 4.
How to Report Montana Additions
- Complete Schedule I — Montana Adjustments to Federal Taxable Income.
- Enter the total of your Montana additions on Schedule I, line 7.
- Transfer the total from Schedule I, line 7, to Form 2, page 1, line 4.
- For more details, refer to the instructions for “Schedule I — Montana Adjustments to Federal Taxable Income” on page 15 of the Form 2 instructions.
Special Considerations for Nonresidents and Part-Year Residents
- Nonresidents and part-year residents must use Schedule II to report Montana source income and determine tax liability.
- Business income from partnerships or S corporations earned while a Montana resident must be reported on Schedule I, line 4.
- Sole proprietors must report Montana source business income on Schedule I, line 3.
Source:
Montana Individual Income Tax Return Form 2 Instructions
Montana Working Military Retirement and Survivor Benefit Exemption
Form DE: Profit or Loss from a Disregarded Entity Owned by a Nonresident
Disclaimer: Always verify information with the official Federal or State Department of Revenue Forms and Instructions.