Level 5

Solved

Montana nonresident being taxed on Schedule F income

Forum|Forum|3 years ago
June 4, 2023
2 replies
30 views

Client lives and pay taxes to Alabama with nonresident income from Montana.

Pays taxes to Federal and reported as income to Alabama.

How do I adjust Montana tax?

Dr. Charles Hills

ProSeries Professional

This topic has been closed for replies.

Best answer by qbteachmt

Oh, you bet we want that tax dollar. Our $1billion surplus is not nearly enough for the 1 million residents!

Here is the link to see the filing requirements:

https://montana.servicenowservices.com/citizen/kb?id=kb_article_view&sysparm_article=KB0014583

You must file a Montana Individual Income Tax return if:

You were a resident or part-year resident of Montana, or
You were a nonresident who received Montana source income, and
Your federal gross income, excluding unemployment compensation, meets the Montana filing threshold.

Montana Filing Thresholds

Filing Status	Under 65	65 and Older
Single or Married Filing Separately	$5,090	$7,800
Head of Household	$10,180	$12,890
Married Filing Jointly	$10,180	Single spouse over 65: $12,890 Both spouses over 65: $15,600

Just-Lisa-Now-

Intuit Community Champion

Many non resident states compute tax on all income, then reduce the tax based on the non-resident percentage portion. You'll need to follow the money through the MT return to see if thats whats happening.

AL should be giving credit for taxes paid to MT, so therye not double taxed on the same income.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

CGHAuthor

Level 5

After reviewing the 'money trail' there is an alternative tax method only for non-residents.

Elected and only 0.0244% - $13 instead of MT calc of $104.

Thank you

Dr. Charles Hills, JD

qbteachmtAnswer

Level 15

Oh, you bet we want that tax dollar. Our $1billion surplus is not nearly enough for the 1 million residents!

Here is the link to see the filing requirements:

https://montana.servicenowservices.com/citizen/kb?id=kb_article_view&sysparm_article=KB0014583

You must file a Montana Individual Income Tax return if:

You were a resident or part-year resident of Montana, or
You were a nonresident who received Montana source income, and
Your federal gross income, excluding unemployment compensation, meets the Montana filing threshold.

Montana Filing Thresholds

Filing Status	Under 65	65 and Older
Single or Married Filing Separately	$5,090	$7,800
Head of Household	$10,180	$12,890
Married Filing Jointly	$10,180	Single spouse over 65: $12,890 Both spouses over 65: $15,600

Don't yell at us; we're volunteers

C

CGHAuthor

Level 5

Thank you. Income should not be taxed by Montana but they demand $104. Alabama threshold is also so high zero taxes owed only Federal.

I followed the money and found the alternative tax method is only $13 based on Schedule F $2521.

Again, Thank You for your help.

Dr. Charles Hills

qbteachmt

Level 15

"Income should not be taxed by Montana"

Ha ha ha. Don't tell that to our governor.

There are a lot of out-of-state owners of LLCs operating in MT, and there is no way the State would ignore this.

Don't yell at us; we're volunteers

Montana Filing Thresholds

Montana Filing Thresholds

Sign up

Login with SSO

Let's get you signed in

Login with SSO