Source: https://www.taxformfinder.org/montana/worksheets-i-and-ii
Timestamp: 2020-08-13 20:04:05
Document Index: 437351827

Matched Legal Cases: ['§ 645', 'art 5', 'art 5', '§ 651', '§ 651', 'art 3', 'art 3']

Montana Worksheets I and II (Credit for Income Tax Liability Paid to Another State or Country - Full Year Resident Only and Part Year Resident Only) - 2019 Montana TaxFormFinder
Montana Worksheets I and II
Montana Credit for Income Tax Liability Paid to Another State or Country - Full Year Resident Only and Part Year Resident Only
Worksheets I and II PDF
2019 Worksheets I and II 2018 Worksheets I and II 2017 Worksheets I and II 2016 Worksheets I and II 2015 Worksheets I and II 2014 Worksheets I and II
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2019 Montana Form FID-3
Income Tax Instructions for Estates and Trusts
It’s Easy to File and Pay
Call us at (406) 444-6900
Check our online services at
MTRevenue.gov.
Thank you for filing your Montana tax return
To make filing of your tax return as easy as possible, we have made some changes.
Please see the What’s New section for the changes to our 2019 tax forms.
It is important for Montanans to know where your tax dollars go. In the graphs below,
you can see where tax revenues come from and how they are used to support
important services and infrastructure.
We are committed to assisting you with any questions you may have about your filing
requirements. If you need more information or would like help, please visit MTRevenue.
gov visit or call our help line at (406) 444-6900.
Also, we encourage you to file electronically. Last year more than 84 percent of
business taxpayers filed electronically. Taxpayers find that e-filing is easy, convenient,
and helps ensure accurate processing. It can also help you get any refund you are
owed more quickly.
Your Montana Department of Revenue
Total Montana State and Local Revenue, Fiscal Year Ending 2016
Total State and Local Spending in Montana, Fiscal year Ending 2016
What’s New for 2019?.....................................................................................................1
Form Changes.........................................................................................................1
Interest Rate for 2020..............................................................................................1
Form FID-3 Instructions...................................................................................................1
Entity Information.....................................................................................................1
Specific Line Instructions.........................................................................................2
Worksheets I and II..................................................................................................4
Schedule A – Schedule of Additions.......................................................................10
Schedule B – Schedule of Deductions/Subtractions...............................................11
Schedule C – Montana Distributable Net Income (MDNI) and Montana Income Distribution
Deduction (MIDD)............................................................................................13
Schedule D – Beneficiaries and Montana Income Distributions.............................14
Schedule E – Resident Capital Gains Tax Credit Calculation.................................15
Schedule F – Nonresident/Part-Year Resident Estate and Trust Tax.....................15
Schedule G – S Portion Tax Calculation of an ESBT..............................................16
Schedule H – Special Transactions, NOL Election, and
Amended Return Information...........................................................................17
Montana Schedule K-1 Instructions........................................................................18
FAQs – Frequently Asked Questions.............................................................................19
This booklet is designed to address the laws for the majority of tax filing situations. If you have a
unique situation that is not addressed in the booklet, please refer to Title 15 of Montana law found at
leg.mt.gov or call us with your questions.
Form FID-3 Instructions
Form FID-3 was changed to clarify the
determination of income and tax retained by the
estate or trust. Changes include:
●● The federal income tax deduction has been
removed from schedule B. It is now included
on page1, line 22, for federal taxes paid or
accrued on undistributed income.
●● Schedule F was changed to apply only to the
income that is retained in the estate or trust.
●● The calculation of capital gains credit matches
the calculation for individuals.
●● Schedule G was simplified to match the
calculation flow of the non-S share of income
on Form FID-3.
Effective January 1, 2020, the annual interest
rate assessed on outstanding balances is 5
percent. This rate also applies to underpayment of
estimated taxes. Interest is calculated daily.
You must use the same tax year used for federal
income tax purposes (as indicated on the federal
tax return) for Montana income tax purposes. If the
estate or trust has a fiscal year, enter the beginning
and ending dates of the fiscal year. Use a 2018
Form FID-3 if the estate’s or trust’s tax year began
in the 2018 calendar year.
Enter the legal name of the estate or trust on
the first line. Enter the name and title, if any, of
the fiduciary on the second line and include the
fiduciary’s mailing address on the third and fourth
Enter the FEIN from page 1 of federal Form 1041.
Enter the date the estate or trust was created from
page 1 of federal Form 1041.
Schedule K-1 and Beneficiary Information
Enter the number of Montana Schedules
K-1 included and the number of each type of
beneficiary: resident, nonresident, or other. An
example of another type of beneficiary would be a
corporation or pass-through entity.
Checkbox Items:
Mark the “Initial return” box if this is the first return
filed in Montana for this estate or trust.
Mark the “Final return” box if this is the last return
to be filed in Montana for this estate or trust.
Mark the “Amended return” box if this return is
being filed to correct a previously filed Form FID-3.
See FAQ f page 22 for more information.
Mark the “Refund return” box if this return is being
filed to receive a refund.
Mark the “Estate or filing trust made a 645
election” box if the estate and filing trust has a
valid Internal Revenue Code § 645 election to treat
the trust as part of the estate for federal purposes.
2019 Montana Form FID-3 Instructions
Mark the applicable box for the same entity type
checked on page 1 of federal Form 1041 unless the
trust is a qualified funeral trust. If a fiduciary files
a federal Form 1041-QFT for a trust, the fiduciary
needs to file a Montana Form FID-3 and mark the
“Qualified funeral trust” box.
If the entity type is not identified, processing of the
return will be delayed. Often, the fiduciary must then
provide additional information to complete the filing.
Mark the applicable box to indicate the residency
status of the estate or trust, see FAQ w on page 19
If the residency status is not identified, processing
of the return will be delayed. Often, the fiduciary
must then provide additional information to
complete the filing.
Lines that need additional instructions are listed below.
Enter the amount of income reported on federal
Form 1041, lines 1 through 8.
Line 2 – Ordinary Dividends. Enter the total amount
reported on line 2a of federal Form 1041. Montana
taxes dividends as ordinary income and does not
apply the federal tax rate on qualified dividends.
Line 9 – Total Federal Income. Add lines 1 through 8.
This total federal income must match the total
federal income reported on federal Form 1041. If the
trust is an electing small business trust (ESBT), see
FAQ k on page 23 for more information.
Deductions entered on lines 10 through 15 include
the total deductions related to taxable income
reported on federal Form 1041. See federal Form
1041 instructions, “Allocation of Deductions for
Tax-Exempt Income,” for information on how
to determine the allocable amount to enter on
The tax-exempt income included on lines 10
through 15 must be reduced by any deductions
attributed to the tax-exempt income.
Enter the amounts from federal Form 1041,
lines 10 through 15, on the corresponding lines.
Line 11 – Taxes. Enter the taxes deducted on federal
Form 1041, line 11. These may include state and
local income taxes, real or personal property taxes,
foreign or U.S. possession income taxes, state
and local general sales taxes, and generationskipping taxes. Adjustments to this line are made
on Schedules A and B.
Line 15 – Other Deductions. Examples of
deductions include casualty and theft losses or
Line 17 – Federal Adjusted Total Income or (Loss).
Line 20 – Add lines 17 and 18, then subtract line
19. This is Montana adjusted total income or (loss).
If line 20 is a loss, you may have an NOL. See
FAQ l on page 25 for more information.
Line 21 – Montana Income Distribution Deduction.
Enter the Montana income distribution deduction
from Schedule C, line 13. If an amount greater
than zero is entered on this line, you must include
Schedule C with the return even if the Montana
income distribution deduction is equal to the federal
deduction. Do not enter an amount less than zero.
Line 22 – Federal Taxes Paid or Accrued on
Undistributed Income. If the estate or trust paid
federal taxes, including federal income taxes,
estate tax, or certain generation-skipping taxes on
undistributed income, report these taxes on this line.
Estates and trusts must choose whether they
deduct federal taxes paid or accrued, but they
cannot deduct both. Once a method has been used
for one return, the same method must be used for
Line 23 – Exemption. Each estate or trust is allowed
one exemption of $2,510.
Line 26 – Tax from Tax Table. For bankruptcy
estates, leave lines 26 through 28a blank and enter
the tax computed on Form 2 on line 30 of this form
(FID-3). For all other estates and trusts, compute
the tax using the following tax table:
6% (0.060) $421
For example: Taxable income
$6,800 x 3% (0.03) = $204
$204 minus $85 = $119 tax
Line 28 – Resident Tax After Capital Gains Tax
Credit. If the estate or trust is a resident, subtract
line 27 from line 26. This is resident tax after capital
gains tax credit. Skip line 28a and go to line 29.
If the estate or trust is a nonresident or part-year
resident, complete this line and go to line 28a.
Line 28a – Nonresident, Part-Year Resident
Tax after Capital Gains Tax Credit. Enter the
nonresident, part-year resident tax after capital
gains tax credit from Schedule F, line 18. See the
instructions for Schedule F on page 15.
Line 29 – Tax on Lump-Sum Distributions. If the
estate or trust qualifies on its federal tax return for
special averaging of a lump-sum distribution and
the distribution is not included as ordinary pension
income in federal adjusted gross income, the estate
or trust will need to pay Montana income tax on this
distribution. The Montana tax liability on the lumpsum distribution is 10 percent of the federal tax
calculated on federal Form 4972.
Line 30 – Total Tax. If the estate or trust is a resident,
add lines 28 and 29. If it is a nonresident or partyear resident, add lines 28a and 29.
Line 31 – Credit for Taxes Paid to Other States or
Countries (residents and part-year residents only).
Enter the amount from Worksheet I, line 10, if the
estate or trust is a resident or the amount from
Worksheet II, line 10, if the trust is a part-year resident.
Resident estates and trusts are allowed a credit for
income taxes paid to another state or country on
net income that is also taxable to Montana. Partyear resident estates and trusts are allowed a credit
for income taxes paid to another state or country
on net income that is also taxable to Montana and
if the income is included on Schedule F, line 14,
column B. A credit is allowed against Montana
income tax only if the tax paid to a state or foreign
country was based on net income of the same
taxable year and the income taxed by the state or
foreign country was derived from sources outside
of Montana. Unless you file the Montana tax return
electronically, you must include a copy of the other
state’s or country’s income tax return with Form
FID-3. If you file the tax return electronically and
you cannot include a copy of the other state or
country’s income tax return, retain the copy so that
you can provide it to the department upon request.
If the estate or trust had income from a state that
has no state income tax, make no entry on line 31
and go to line 32.
Note: Nonresident estates and trusts may not
claim this tax credit against their Montana tax
Resident and part-year resident estates and trusts are
allowed a credit for income taxes paid to another state
or country. The credit is a nonrefundable single-year
credit and is limited to an income tax liability paid on
net income that is also taxed by Montana. It cannot
reduce the Montana tax liability below zero. No
unused credit amount can be carried forward.
If the estate or trust is filing as a full-year resident
and paid income tax to another state or country,
use Worksheet I to determine the amount of
nonrefundable credit that you may be able to claim
on your Montana tax return. If the estate or trust is
filing as a part-year resident, use Worksheet II.
If the estate or trust is required to file an income tax
return in more than one state or country and it is
entitled to the credit, complete a separate Worksheet I
for residents or Worksheet II for part-year residents for
each state or country in which an income tax return
was filed and tax was paid on the income that is also
taxed to Montana. Additionally, credits may exist for
both the S portion of an ESBT and the S portion of an
non-ESBT reported on the same return. The fiduciary
will need to complete a separate worksheet for each
state or country to which the estate trust has paid an
income tax liability. Complete a separate worksheet
for each state or country to which the S portion of an
ESBT has paid an income tax liability.
The fiduciary cannot combine payments on one
worksheet. If more than one worksheet is used,
enter the total of all worksheets for estates and
non-ESBTs on Form FID-3, line 31. Enter the total
of all worksheets for ESBTs on Schedule G, line 11.
You are not entitled to this credit if the other
state or country in which you filed an income
tax return has allowed you a credit against the
taxes that they have imposed on your net
income because you are also subject to tax on
the same income by Montana.
Shareholders of an S corporation or Partners in a
Partnership. If the estate or trust is a shareholder
of an S corporation or a partner in a partnership,
and the S corporation or partnership pays an
income tax, excise tax, or franchise tax that was
measured by and imposed on net income to
another state (including composite tax paid on your
behalf) or country, you can claim a credit for your
share of these income taxes paid by the entity.
Other taxes paid by the S corporation or
partnership. Other taxes paid – such as, but not
limited to, franchise or license taxes, fees that
are not imposed on or measured by net income,
gross receipt taxes, or gross sales taxes – are not
When the estate or trust claims this credit for the
taxes paid by a pass-through entity, it will have to
add back to Montana income its share of the S
corporation or partnership’s federal tax deduction
that is included in total income. This is required
whether or not the S corporation or partnership
separately or nonseparately stated the income tax
deduction on the federal Schedule K-1.
“Sourced and Taxable.” In the instructions that follow,
“sourced and taxable” means any income included in
your Montana taxable income that must be reported to
another state or foreign country in accordance with the
other state’s or country’s rules, and that is not subject
to an exemption. If the income is partially exempt,
only the part that is non-exempt can be used for the
calculation of this credit. On a practical level, income
that is sourced and taxable to another state is found on
the line after state specific additions and subtractions
to federal adjusted gross income. In general, this line is
labeled for the state-specific adjusted gross income.
Taxes Paid to Another Country. The estate or trust
is not entitled to a Montana tax credit for taxes paid
to a foreign country unless it has an unused federal
foreign tax credit that is not eligible to be carried
back or carried forward to another tax year. You
cannot claim this credit and deduct the foreign tax
from your Montana adjusted gross income.
If the trust is a part-year resident, the fiduciary
needs to allocate income using Form FID-3,
Schedule F, before completing this worksheet.
Line 1. This amount may differ from what you
calculated as your total taxable income on the other
state’s form. For example, a trust had rental income
in both Utah and Montana during the year. The
trust’s total rental income was $50,000, with $10,000
earned in Utah. Enter only the Utah sourced rental
income of $10,000 on line 1. Do not include income
on this line that is not taxable in Montana.
Line 2. Enter the total income sourced and taxable
to the other state or country. See “sourced and
taxable” above to find the appropriate amount of
income on another state’s return.
Line 4. Tax Paid to Another State or Country – Enter
the actual tax liability paid by you or on your
behalf to the other state or country. This amount
comes from either a fiduciary tax return you filed
or a composite tax return filed on your behalf by a
partnership or S corporation.
Do not include any penalties and interest paid
to the other state or country.
Line 7. If the estate or trust claimed a credit for taxes
paid to another country for federal tax purposes,
the estate or trust cannot claim a state credit for
taxes paid to another country.
Worksheet I – Credit for an Income Tax Liability Paid to Another State or Country
Full-year Resident Only
1 Enter the income sourced and taxable to another state or country (see instructions) that is included in Montana
2 Enter the total of all income sourced and taxable to the other state or country.
income on Form FID-3, line 25, or, if the S portion of an ESBT trust, on Schedule G, line 4.
Indicate state’s abbreviation
3 Enter the total Montana income from Form FID-3, line 25, or, for the S portion of an ESBT, from Schedule G, line 4
4 Enter your total income tax liability paid to the other state or country
5 Enter the Montana tax liability from Form FID-3, line 28, or, for the S portion of an ESBT, subtract
Schedule G, line 12, from line 7
6 Divide line 1 by line 2. Enter the percentage, but not more than 100%
7 Multiply line 4 by line 6 and enter the result. (When calculating credit for taxes paid to another country, see
8 Divide line 1 by line 3. Enter the percentage, but not more than 100%
9 Multiply line 5 by line 8 and enter the result
10 If an estate or trust with no ESBT S portion, enter here and on Form FID-3, line 31, the smaller of the amounts
reported on line 4, 7, or 9 above. For the S portion of an ESBT, enter here and on Schedule G, line 11, the smaller
of the amounts reported on line 4, 7, or 9 above.
This is the estate’s or trust’s credit for an income tax paid to another state or country. 10
Worksheet II - Credit for an Income Tax Liability Paid to Another State or Country
1 Enter the income sourced and taxable to another state or country (see instructions) that is included in
Montana income on Schedule F, line 14, or, if the S portion of an ESBT, on Schedule G, line 8.
3 Enter the total Montana income retained from Schedule F, line 14, or for the S portion of an ESBT, from
Schedule G, line 8
5 Enter the Montana tax liability from Form FID-3, line 28a, or, for the S portion of an ESBT, subtract line 12 from line
7 Multiply line 4 by line 6 and enter the result. (When calculating credit for taxes paid to another country,
8 Divide line 1 by line 3. Enter the percentage, but not more than 100%.
10 If a trust with no ESBT S portion, enter here and on Form FID-3, line 31, the smaller of the amounts reported on
line 4, 7, or 9 above.
For the S portion of an ESBT, enter here and on Schedule G, line 11, the smaller of the amounts reported on
This is the trust’s credit for an income tax paid to another state or country. 10
Line 32 – Other Nonrefundable Credits. If the
estate or trust is claiming one or more of the
nonrefundable credits listed below, identify each
credit it is claiming and include the amounts of the
nonrefundable credits in the total for line 32. If more
than one credit is claimed, include a list of credits
and credit amounts claimed and enter the total.
Include all applicable credit forms.
In order to claim any credit, you must include
the appropriate forms with the estate’s or
trust’s tax return unless you file the return
electronically. If you file the return
electronically and you cannot attach a copy of
a credit form, retain the copy so you can
provide it upon request. The forms do not
specifically address estates and trusts, but
estates and trusts are allowed to claim the
credits listed below. The forms and instructions
are available at MTRevenue.gov.
Nonrefundable/Noncarryover Credits:
●● Alternative fuel credit (Form AFCR)
●● College contribution credit (Form CC)
●● Energy conservation installation credit (Form
ENRG-C)
●● Health insurance for uninsured Montanans
credit (Form HI)
●● Qualified endowment credit (Form QEC)
●● Recycle credit (Form RCYL)
●● Innovative educational program credit
●● Student scholarship organization credit
●● Apprenticeship tax credit
Nonrefundable/Carryover Credits:
●● Alternative energy system credit (Form
ENRG-B)
●● Alternative energy production credit (Form
AEPC)
●● Biodiesel blending and storage credit (Form
BBSC)
●● Contractor’s gross receipts tax credit
●● Empowerment zone credit
●● Geothermal system credit (Form ENRG-A)
●● Historic property preservation credit (federal
Form 3468)
●● Infrastructure user fee credit (Form IUFC)
●● Mineral and coal exploration incentive credit
(Forms MINE-CERT and MINE-CRED)
Line 35 – Endowment Credit Recapture Tax. If the
estate or trust previously claimed an endowment
credit and has also taken a charitable deduction for
a gift that it contributed to a qualified endowment
and the estate or trust has now received the gift
back, the estate or trust is required to recapture the
previous credit to the extent the credit reduced an
income tax liability in a previous year.
Enter the amount of the endowment credit
recapture tax. If, in addition to the recapture tax,
part of the amount that is recaptured was claimed
as a charitable contribution in a prior year, the
estate or trust will have to include in income on
Form FID-3, Schedule A, line 4, any recoveries
of this prior-year deduction that reduced the tax
liability in the year of that deduction.
Line 37a – Total Montana Income Tax Withheld.
Enter the amount of Montana income tax withheld.
This amount is usually reported in Box 17 of the
federal Form W-2, or in Box 12 of federal Form
1099-R. When the estate or trust claims Montana
income tax withheld, it must include a copy of the
withholding statements, such as federal Forms W-2
or 1099-R.
Do not report on this line Montana mineral
royalty tax withheld or income tax withheld as
a result of an ownership interest in a passthrough entity.
Line 37b – Montana Income Tax Withheld
Allocable to Beneficiaries. Enter the amount of
Montana income tax withheld reported on line 37a
and allocable to beneficiaries.
Line 37 – Montana Income Tax Withheld Allocable
to the Estate or Trust. Subtract line 37b from 37a.
This is the amount of Montana income tax withheld
that is allocable to the estate or trust.
Line 38a – Total Montana Pass-Through Entity
Withholding from Montana Schedules K-1
(PTE), Part 5, line 3. If the estate or trust has an
ownership interest in a pass-through entity that
had Montana source income, and the pass-through
entity paid Montana pass-through withholding on
behalf of the estate or trust, enter the amount here.
This amount is reported to the estate or trust on a
Montana Schedule K-1, and should not be confused
with any Montana mineral royalty tax withheld
that passed through to the estate or trust from a
pass-through entity. Attach copies of the Montana
Schedules K-1 you received that report amounts
withheld on your behalf.
Line 38b – Montana Pass-Through Entity
Withholding Allocated to Beneficiaries. Enter the
amount of Montana pass-through entity withholding
reported on line 38a and allocable to beneficiaries.
Pass-through withholding must be distributed to the
beneficiaries if the associated income is distributed
Line 38 – Montana Pass-Through Entity
Withholding Allocable to the Estate or Trust.
Subtract line 38b from 38a. This is the amount of
Montana pass-through entity withholding that is
allocable to the estate or trust.
Line 39a – Total Montana Mineral Royalty Tax
withheld from federal Forms 1099 or Montana
Schedule K-1 (PTE), Part 5, line 4. If the estate or
trust paid Montana mineral royalty tax withholding,
enter the withholding on this line. If the estate
or trust receives a distributive share of Montana
mineral royalty tax withholding from a pass-through
entity, enter the withholding on this line. This is
generally reported on federal Form 1099. Royalty
payments made to owners of Montana mineral
rights are subject to state tax withholding if certain
thresholds are met. This amount should not be
confused with the production taxes that are also
subtracted from royalty payments.
If the mineral rights are held by a pass-through
entity in which the estate or trust has an ownership
interest in, or from which the estate or trust
receives a distribution, enter the amount reported
to the estate or trust as its share of the withholding.
Include a schedule detailing the calculation of the
estate’s or trust’s portion of the withholding and
any supporting documents, such as a Montana
Schedule K-1, issued to the estate or trust, or a
copy of Form 1099 issued to the pass-through
entity. For more information, visit “Mineral Royalty
Withholding” at MTRevenue.gov.
Line 39b – Montana Mineral Royalty Tax Withheld
Allocated to Beneficiaries. Enter the amount of
Montana mineral royalty tax withheld reported on
line 39a and allocable to beneficiaries. Mineral
royalty withholding must be distributed to the
beneficiaries if the associated royalty income is
Line 39 – Montana Mineral Royalty Tax Withheld
Allocable to the Estate or Trust. Subtract line
39b from 39a. This is the amount of Montana
mineral royalty tax withheld that is allocable to the
Line 40 – Estimated Tax Payments. If a fiduciary
has made estimated income tax payments for Tax
Year 2019, enter the amount of these estimated
tax payments. Include in this amount the 2018
refund that was requested to be applied to the 2019
estimated income tax payments. Do not include in
this total any income taxes paid for a previous year
because these are not estimated taxes paid for Tax
If a fiduciary makes estimated income tax
payments to be allocated to a beneficiary, do
not include these payments on this line. Instead,
apply these payments to the beneficiary’s account.
When estimated income tax payments allocable to
beneficiaries are sent to the department, include
the beneficiary’s name and Social Security Number
or Federal Employer Identification Number, as well
as an explanation that the payment is to be applied
to the beneficiary’s account.
Line 41 – Extension Payments. If a fiduciary made
an extension payment on or before April 15, 2020,
enter that amount on this line.
Beginning with Tax Year 2017, an extension
payment is not required to receive an extension of
time to file this return.
If a fiduciary would like to make an extension
payment, calculate the difference between the
amount of tax you think the estate or trust will owe
and payments already made, including amounts
withheld on behalf of the estate or trust. You
may pay by e-check or credit card through our
TransAction Portal at https://tap.dor.mt.gov or send
the payment with the extension box checked and
remember to include a Montana Estate or Trust Tax
Payment Voucher (available at MTRevenue.gov or
call us at (406) 444-6900 to request one).
Line 42 – Refundable Credits. If a fiduciary is
claiming a refund of one or more of the refundable
credits listed below, identify each credit being
claimed and the amounts of the refundable credits
in the total for line 42. If more space is needed,
make a list showing each credit and its amount and
include the list with the tax return. Also include all
applicable credit forms:
●● Emergency lodging credit (Form ELC)
●● Unlocking public lands credit
Line 46 – Interest on Underpayment of Estimated
Taxes. A fiduciary is required to pay an estate’s
or trust’s income tax liability throughout the year if
the estate or trust expects to owe an income tax
liability of at least $500 after subtracting tax credits
and withholding payments. Payments can be
made through withholding, installment payments of
If a fiduciary did not pay in advance at least 90
percent of the 2019 income tax liability (after
applying credits) or 100 percent of the 2018 income
tax liability (after applying credits), the fiduciary
may have to pay interest on the underpayment of
To calculate the interest, complete Form
EST-I (2019 Underpayment of Estimated Tax
by Individuals and Fiduciaries), available at
MTRevenue.gov or call us at (406) 444-6900.
Line 47 – Late File, Late Payment Penalties and
Late File Penalty. If a fiduciary files the estate and
trust tax return after October 15, 2020, the
fiduciary must pay a late file penalty if there
is tax due on line 44. The penalty is equal to
the greater of $50 or 5 percent per month on
the unpaid amount. The penalty is calculated
from the extended due date until the return is
filed or the tax is paid and cannot exceed 25
percent of the fiduciary’s tax liability on line 44.
Late Payment Penalty. The late payment penalty
is equal to 0.5 percent per month, calculated
daily, on the unpaid amount from April 15,
2020, until it is paid. The daily rate is 0.0164
percent. Your late payment penalty will never
exceed 12 percent (24 months x 0.5%) of the
unpaid tax. Late pay penalty is automatically
waived if you pay all the tax and interest with
your return, or within 30 days of the first notice
Interest. Compute interest on any tax liability
(line 44) that the estate or trust has not paid
by the due date of the tax return and enter the
Effective January 1, 2020, the interest
rate is 5 percent. To calculate the interest,
multiply line 44 by 0.0137 percent (0.000137),
and then multiply that result by the number of
days between April 15, 2020, and the day the
estate’s or trust’s income tax is paid.
A valid extension of time to file the estate’s or
trust’s tax return does not extend the due date
to pay the estate’s or trust’s income tax liability
after April 15, 2020.
If the estate or trust owes more than one of the
items listed above, enter each amount on the
Enter the total on line 47. (The fiduciary may wish
to keep this worksheet as part of the estate’s or
trust’s tax records for future reference.)
Line 48 – Other Penalties. Include on this line the
following penalty if it applies to the estate or trust:
●● Farm and Ranch Risk Management
Account - 10 Percent Penalty.
If the estate or trust has not distributed
deposits and income from its farm and
ranch risk management account within three
years, the deposits and income are now
considered distributed. The fiduciary must
pay a 10 percent penalty on the amount of
tax due on the amount that is considered
distributed. On this line, enter the farm and
ranch risk management account 10 percent
penalty. For more information, refer to Form
FRM, available at MTRevenue.gov or call
us at (406) 444-6900.
Amount the Entity Owes or Its Refund
Line 50 – Amount the Estate or Trust Owes. If the
estate or trust has a tax due (amount on line 44),
add lines 44 and 49; or, if the estate or trust has a
tax overpayment (amount on line 45) and it is less
than line 49, subtract line 45 from line 49. This is
the amount the estate or trust owes.
A fiduciary can pay the amount an estate or trust
owes by:
●● Electronic funds withdrawal when e-filing
return. You can schedule your withdrawal for a
●● E-check or credit/debit card. Visit TransAction
Portal (TAP) https://tap.dor.mt.gov. and select
“Make a Payment.” There is a small fee when
●● Personal check, money order, or cashier’s
check. Be sure to include the payment
voucher available at MTRevenue.gov or call
us at (406) 444-6900 to request a voucher.
Make your check payable to the Montana
Department of Revenue, sign your check, and
write your FEIN and “Tax Year 2019” on the
Note: We may need to adjust your payment if it is
not in U.S. funds.
For more information about e-pay options, visit
MTRevenue.gov. Interest and penalties will be
assessed on any amount not paid when due.
If a fiduciary cannot pay the entire amount that
an estate or trust owes with the tax return, we
encourage the fiduciary to file the estate and trust
tax return on time and pay as much as possible.
By filing and paying as much as possible by April
15, 2020, you can reduce the amount of late
payment penalty and interest. If a fiduciary needs
to establish a payment plan, visit our TransActional
Portal at https://tap.dor.mt.gov or, call us at
(406) 444-6964, option 1, as soon as possible to
Line 51 – Overpayment. If an estate or trust has
a tax overpayment (amount on line 45) and it is
greater than line 49, subtract line 49 from line 45
and enter the result. This is the estate’s or trust’s
Line 53 – Refund. Subtract line 52 from line 51. This
is the amount of the estate’s or trust’s refund. Only
refunds more than $1 will be issued.
If a fiduciary would like to use direct deposit, enter
the estate’s or trust’s financial institution’s routing
number (RTN#) and the estate’s or trust’s account
number (ACCT#) in the space provided. The
routing number will be nine digits, and the account
number can be up to 17 characters, including
numbers and letters. Mark whether the account is
a checking or savings account and if the estate’s
or trust’s refund will go to a bank outside of the
United States and its territories (Midway Islands,
Puerto Rico, American Samoa, U.S. Virgin Islands,
Federated States of Micronesia, and Guam).
If the estate’s or trust’s financial institution does not
accept direct deposit, we will mail a refund check.
If a fiduciary is filing an estate and trust tax return
electronically, a signature is not required. The
act of filing electronically signifies the fiduciary’s
declaration, under the penalty of false swearing,
●● The fiduciary is authorized to file the return,
The act of filing electronically is the fiduciary’s
If a fiduciary is filing the estate and trust tax return
on paper, the tax return is not considered valid
unless the fiduciary or an officer representing the
fiduciary signs the tax return. Unsigned returns
cannot be processed and require us to contact the
fiduciary for a signature.
A paid preparer must sign the tax return and
include his or her address and Preparer Tax
If applicable, include the firm’s name, address,
FEIN and telephone number.
Assemble the Return
on paper, the fiduciary must include any applicable
federal forms and schedules we requested.
Assemble the return, without using staples, in the
following order. Include all Forms W-2 and 1099.
* Only include a copy of the returns from another
state if the estate or trust is a resident of Montana
and claims the credit for taxes paid to another state.
We encourage a fiduciary to efile the tax return
for estates and trusts. See FAQ o on page 22 for
more information. If a fiduciary files the return on
paper, mail the return to the following address:
Schedule A – Schedule of
Line 2 – Dividends Not Included in Federal Total
Income. Enter the amount of any dividends that
the estate or trust received that are not already
included in total federal income. Do not include
qualified dividends since these dividends are
already in the total ordinary dividends reported on
Form FID-3, line 2.
Line 3 – Taxable Federal Refund. If the estate or
trust claimed a federal tax deduction, either by
withholding or by paying an estimated tax in a prior
year, any refund of that tax is income in the year it
is received. Enter the taxable refund.
Line 4 – Other Recoveries. If the estate or trust
claimed a deduction in a prior year that reduced
Montana taxable income and the deduction
was subsequently reimbursed, enter that
Line 5 – All state and local taxes included on
page 1, line 11. Enter all state and local taxes
you deducted on line 11. The allowable state and
local deduction is re-calculated on Schedule B to
exclude state income tax.
Line 6 – Expenses Allocated to U.S. Obligations.
If an estate or trust has tax-exempt interest income,
report the adjustment for deductions related to the
tax-exempt interest income. Enter only the amount
deducted for federal purposes that is not allowed as
a deduction for Montana purposes.
Deductions allocable to tax-exempt interest income
must be used only against tax-exempt interest income.
Although subject to federal tax, interest in federal
bonds, notes and other U.S. obligations is exempt
from Montana income tax. Therefore, if interest in
federal bonds, notes and other U.S. obligations
is excluded on the Montana estate and trust tax
return, expenses related to such tax-exempt
interest income must be included in taxable income
for Montana purposes.
Line 1 – Interest and Mutual Fund Dividends
from State, County, or Municipal Bonds from
Other States. Enter the interest and mutual fund
dividend income that the estate or trust received
from bonds and obligations of another state,
territory, or political subdivision of another state
(county, municipality, district, etc.).
To compute the expenses allocable to tax-exempt
interest income, divide tax-exempt interest income
by total gross income (including tax-exempt interest
income). Multiply the resulting percentage by total
expenses not directly allocable to any item of
income. Report the portion of expenses allocated to
tax-exempt interest income on the appropriate line.
1 Gross income from
$6,190 (reported on Form FID-3,
Schedule B, line 1)
2 Total gross income
(total federal income on Form
FID-3, line 9, plus any capital
losses plus the gross tax-exempt
income from federal Form 1041,
3 Line 1 divided by line 2
4 Total indirect expenses
5 Indirect expenses allocated to $1,852 (reported on Form FID-3,
U.S. obligations income
(line 3 x line 4)
Schedule A, line 6)
Line 7 – Federal Net Operating Loss, Carryover.
The federal net operating loss carryover that you
reported on your Form FID-3, line 15b, may be
different from the amount of your Montana net
operating loss carryover. On this line, you should
enter the amount of your federal net operating
loss carryover from line 15b, and then compute
your Montana net operating loss carryover using
Montana Form NOL. The Montana net operating
loss carryover is reported on Schedule B, line 7.
Line 8 – Other Income. Include a detailed schedule
listing types and amounts. If the trust or estate
took the Qualified Business Income deduction on
line 15a, add this amount back on this line.
Schedule B – Schedule of
Line 1 – Exempt Interest and Mutual Fund
Dividends from Federal Bonds, Notes, and
Other Obligations. Enter the interest on United
States government obligations and mutual fund
dividends attributable to that interest that an estate or
trust received if these amounts are included in total
federal income on Form FID-3, line 9. In addition,
enter the interest on obligations from U.S. territory or
government agency obligations that are specifically
exempt under federal law or any mutual fund
dividends attributable to this interest that an estate or
federal income on Form FID-3, line 9.
Interest on obligations that are only guaranteed by
the United States government is not tax-exempt. If
an estate or trust received interest or mutual fund
dividends attributable to Government National
Mortgage Association (Ginnie Mae) bonds, Federal
National Mortgage Association (Fannie Mae) bonds,
or Federal Home Loan Mortgage Corporation
(FHLMAC) securities, a fiduciary cannot subtract
these interest amounts or mutual fund dividends.
●● Series E, EE, F, G, and H savings bonds
●● U.S. treasury bills
●● U.S. government notes
●● U.S. government certificates
●● Refer to Form 1099-DIV to determine what
percentage of the dividends received qualify
Line 2 – State Tax Refunds. If a state tax refund is
included as other income on Form FID-3, line 8,
subtract it on this line.
Line 3 – Other Recoveries. If a recovery was shown
as income on Form FID-3, line 8, but the original
deduction did not reduce Montana taxable income,
deduct it on this line.
Line 4 – Partial Pension and Annuity Income
Exemption. If an estate or trust reported taxable
retirement income on FID-3, line 8, the estate or trust
may be entitled to a partial exemption of this income.
Qualifying pension and annuity income is reported
on federal Form 1099-R with distribution code 7.
Premature distributions and early withdrawals of
retirement income do not qualify for the retirement
income exemption. Early distributions, which required
payment of the federal 5 percent or 10 percent
additional tax, do not qualify for this exemption.
received from the Railroad Retirement Board are
exempt from Montana tax. Enter the full amount
of Tier I and Tier II annuity or pension benefits
reported on Form FID-3, line 8, as a reduction to
income on Schedule B, line 5.
When total federal income is $35,800 or less,
the retirement exemption is limited to the taxable
retirement income that an estate or trust received
or $4,300, whichever is less. When total federal
income exceeds $35,800, the retirement exemption
is reduced $2 for every $1 that total federal income
is over $35,800. For example, if total federal
income is $36,800, the retirement exemption is
$2,300 ($4,300 – ($1,000 x $2) = $2,300). The
estate or trust is not entitled to this retirement
income exemption if total federal income is greater
than $37,950 ($4,300 – ($2,150 x $2) = $0).
To calculate the pension and annuity income
exemption, use this worksheet:
1 Enter total federal income from Form FID-3, line 9.
Do not include disability income if you are also
eligible to claim the Disability Income Exclusion
2 Phase-out limitation
If line 1 is smaller than line 2, enter the smaller of the pension and
annuity income or $4,300 on Schedule B, line 4.
Stop here; do not complete the remainder of this worksheet.
3 If line 1 is larger than line 2, subtract line 2 from
line 1 and enter the result
4 Enter the smaller of the pension and annuity income
or $4,300
5 Double the amount on line 3 and enter the result
6 Pension and annuity exclusion. Subtract line 5
from line 4. If the result is zero or negative, there
is no exclusion. If the number is positive,
enter the result and exclude this amount on
Schedule B, line 4. This is the partial pension and
annuity exemption.
If an estate or trust received a disability pension,
which is identified as Distribution Code 3 on federal
Form 1099-R, the estate or trust should use the
worksheet that follows to determine the disability
income exemption:
Disability Income Exemption Worksheet
1 Retirement disability benefits received
2 Multiply $100 by the number of weeks you received
3 Enter the smaller of line 1 or line 2
4 Enter the total of Schedule B, line 10 without this
Deduct line 4 from Form FID-3, line 17
Add Form FID-3, line 18, to line 5
Your income limitation
Subtract line 7 from line 6 and enter the result, but
9 Subtract line 8 from line 3 and enter the result, but
not less than zero.
This is your partial retirement disability income
Add line 6 from the Partial Pension and Annuity
Income Exclusion worksheet and line 9 from the
Disability Income Exemption worksheet and enter
the sum on Schedule B, line 4.
Line 5 – Subtractions for Federal Taxable
U.S. Railroad Retirement Board Benefits.
exempt from Montana tax. Enter the full amount of
Tier I or Tier II annuity or pension benefits reported
on Form FID-3, line 8.
Line 6 – Expenses Allocated to Other States’
Interest and Mutual Fund Dividends. If an
estate or trust has tax-exempt income, report the
adjustment for additional expenses allocated to
the tax-exempt income. Enter only the additional
deductible expenses for Montana on this line.
Although exempt from federal tax, interest on nonMontana state and municipal securities is taxable
to Montana. Therefore, if interest in non-Montana
municipal securities is included on the Montana
estate and trust tax return, expenses related to
such tax-exempt income must be subtracted from
taxable income for Montana purposes.
income, divide tax-exempt income by total gross
income (including tax-exempt income). Multiply the
resulting percentage by total expenses not directly
allocable to any item of income. Report the portion
of expenses allocated to tax-exempt income on the
1 Gross taxable municipal interest $4,575 (reported on Form FID-3,
Schedule A, line 1)
(total federal income on
Form FID-3, line 9, plus any
capital losses, plus the gross
tax-exempt income from federal
Form 1041, page 2, Other
Information, line 1)
5 Indirect expenses allocated to
out-of-state municipal income
$1,369 (reported on Form FID-3,
Schedule B, line 6)
Line 7 – Montana Net Operating Loss Carryover.
The Montana net operating loss (NOL) carryover
may be different from the amount of your federal
net operating loss carryover. On this line, you
should enter the amount of the Montana net
operating loss carryover from Montana Form NOL.
For further instructions, and to calculate the net
operating loss, see Montana Form NOL. If you
included deferred foreign income on Form FID-3,
line 8, and you elected to not use your deferred
foreign income in the determination of an NOL for
2019, you must subtract it on this line.
Line 8 – State and Local Taxes Limited to $10,000.
Add all state and local taxes, except state income
tax, paid or accrued in 2019. Enter the result on this
line but not more than $10,000.
Line 9 – Other Subtractions. Please specify. Include
Schedule C – Montana
Distributable Net Income (MDNI)
and Montana Income Distribution
Deduction (MIDD)
Lines 1 through 5 compute Montana distributable
net income (MDNI). MDNI serves the same
purpose as the federal DNI. MDNI, adjusted for
items not included in the gross income of an estate
or trust in accordance with 26 U.S.C. §§ 651
and 661, limits the deduction an estate or trust
may claim for distributions to beneficiaries. MDNI
may also limit the amount of Montana income a
beneficiary or trust owner must report on his or her
Line 1 – Montana Adjusted Total Income (Loss).
Enter the amount from Form FID-3, line 20.
If line 20 is a loss and line 4 is a loss, enter the
Line 2a. Enter the gross amount of tax-exempt
interest income from federal Form 1041, Other
Information, line 1. Do not use the amount
reported on federal Form 1041, Schedule B,
line 1, which normally has been adjusted for
Line 2c. Enter the gross exempt interest and
mutual fund dividends from federal bonds,
notes, and other U.S. government obligations
reported on Form FID-3, Schedule B, line 1.
Line 2d. Enter the expenses allocated to U.S.
government tax-exempt income reported on
Form FID-3, Schedule A, line 6.
Line 2e. Enter the expenses allocated to out-ofstate municipal tax-exempt income. These
expenses are reported on Form FID-3,
Schedule B, line 6.
Line 2f. Enter the gross taxable out-of-state
municipal tax-exempt income. This income is
reported on Form FID-3, Schedule A, line 1.
Line 2 – Montana Tax-Exempt Interest Income.
Enter the sum of lines 2a through 2f. This is
Montana adjusted tax-exempt interest income.
Line 3a. Enter the amount from federal Form 1041,
Schedule B, line 3. This is total net gain from
federal Form 1041, Schedule D, line 15,
column (1) Beneficiaries.
Line 3b. Enter the amount from federal Form 1041,
Schedule B, line 4. This is the amount from
federal Form 1041, Schedule A, line 4,
(capital gains allocated to corpus and paid or
permanently set aside for charitable purposes).
Line 3c. Enter the amount from federal Form 1041,
Schedule B, line 5. This is the amount from
federal Form 1041, Schedule A, line 1 (amount
paid or permanently set aside for charitable
purposes from gross income).
Line 3 – Total Net Capital Gains. Enter the sum
of lines 3a through 3c. This is the sum of total
net capital gains reported on federal Form 1041,
Schedule B, lines 3 through 5.
Line 4. If the amount on Form FID-3, line 4 is a net
gain, enter the gain as a negative. If the amount on
Form FID-3, line 4, is a net loss, enter the loss as a
Line 5 – Montana Distributable Net Income. Enter
the sum of lines 1 through 4.
The computations on lines 6 through 13 of
Schedule C adjust MDNI and compute certain limits
for Montana income distribution deduction (MIDD).
The MIDD is generally computed in accordance
with 26 USC §§ 651 and 661.
Line 6. This line applies to complex trusts only. Enter
the accounting income of the trust for the tax year
determined under the terms of the governing
instrument and Montana income tax law.
Line 7. Enter the amount of income required to be
distributed currently, whether distributed or not.
This amount is also reported on federal Form 1041,
Schedule B, line 9.
Line 8. This line only applies to a decedent’s estate
or complex trust. These distributions consist of
any other amounts paid, credited or required to
be distributed and are referred to as second-tier
Line 9 – Actual Total Distributions for the Year.
Enter the sum of lines 7 and 8. This is actual total
distributions to beneficiaries for the tax year.
Line 11. Subtract line 10 from line 9. This is the
tentative income distribution deduction based on
total actual distributions.
Line 12. Subtract line 2 from line 5. Enter zero if
equal to zero or less. This is the tentative income
distribution deduction based on MDNI less Montana
adjusted tax-exempt interest income.
Schedule D – Beneficiaries and
Montana Income Distributions
Complete Schedule D for all beneficiaries who
received an income distribution if an estate or trust
was required to distribute income currently or if it
paid, credited, or was required to distribute any
other amounts to beneficiaries during the tax year.
List the name, SSN or FEIN (enter nine digits and
no dashes), and residency status of the beneficiary.
●● Line a, enter the beneficiary’s share of federal
distribution. In general, this is the amount of
distribution that is includable in gross income
for federal tax purpose, boxes 1 through 11 of
the federal Schedule K-1 (Form 1041).
●● Line b, enter the beneficiary’s share of
Montana distribution. This is the beneficiary’s
share included in the Montana income
●● Line c, subtract line b from line a and enter the
difference. If the result is a negative number
enter a negative number. This difference
represents the effect of Montana adjustments
to the beneficiary’s distribution includable in
gross income. Follow the Montana Schedule
K-1 (FID) instructions to report this difference
on the Montana Schedule K-1 (FID).
●● Use the dollar amount and not the percentage.
If there are more than eight beneficiaries, complete
additional copies of Schedule D. You can make
copies of the included Schedule D or download
additional copies from MTRevenue.gov. If Schedule D
is incomplete, the processing of the return will be
delayed until we receive this information.
Schedule E – Resident Capital
Gains Tax Credit Calculation
An estate or trust can claim a capital gains tax credit
against the Montana income tax liability of up to 2
percent of net capital gains. The net capital gains
eligible for the capital gains tax credit is the amount
reported on Form FID-3, line 4, less the amount of
net capital gains distributed to a beneficiary.
Example: A capital gain of $46,675 is reported
on Form FID-3, line 4. The income distribution
deduction to the beneficiary included $12,482 of
the capital gain. The 2 percent capital gains tax
credit is computed on the undistributed capital
gain of $34,193.
This credit is nonrefundable. It is applied directly
against the income tax liability and it cannot
reduce the liability below zero. This credit is
applied before any other credits and cannot be
carried back or carried forward.
If an estate or trust is a nonresident or a partyear resident, apply this credit to the Montana
income tax computed on Form FID-3, line 26, as
if it were a resident.
Schedule F – Nonresident/Part-Year
Resident Estate and Trust Tax
Schedule F applies only to nonresident and partyear resident estates and trusts that have Montana
source income. A fiduciary will use this schedule
to compute the ratio of Montana source income
to total income. This ratio is then multiplied by the
resident tax from Form FID-3, page 2, line 28, to
determine the nonresident or part-year resident tax
to be reported on Form FID-3, page 2, line 28a.
Column A – Total Undistributed Income
Enter in column A the total income from
Form FID-3, lines 1 through 8, and Schedule A.
Income retained by the estate or trust is the income
on which the estate or trust can be taxed after
taking the Montana Income Distribution Deduction.
Do not include any net operating losses reported
on Schedule A, nor any federal taxes deducted on
Form FID-3, page 1, line 22.
Column B – Montana Source Income
included in column A
Enter the Montana source income included in
undistributed income for each line of this column.
If the estate or trust received a Montana Schedule
K-1 from a pass-through entity, include Montana
source adjustment on line 13.
For a nonresident trust, Montana source income
means all income attributable to a non-contingent
resident beneficiary in future distributions and all
income that would be sourced to Montana if the income
was distributed to beneficiaries who were nonresidents
during the year or are contingent beneficiaries.
Line 1 – Interest Income. Enter the interest income
retained from an installment sale of real property
in Montana. Include any interest retained from
a business or commercial property located in
Montana. Also include taxable Montana source
interest income that the estate or trust received
from a pass-through entity.
Line 2 – Ordinary Dividends. Enter the amount of
dividends retained while a resident. Generally,
dividends that nonresident estates or trusts receive
are not considered Montana source income.
Line 3 – Business Income or (Loss). Enter the net
income or loss received from any trade, business,
profession, or occupation carried on in Montana and
retained by the estate or trust. If an estate or trust
has more than one business, complete a separate
federal Schedule C for each business activity.
Line 4 – Capital Gain or (Loss). Enter the gains or
losses retained on the sale or transfer of tangible
property used or held in connection with the trade,
business, or occupation located in Montana.
Line 5 – Rental Real Estate, Royalties,
Partnerships, S Corporations, Other Estates or
Trusts, etc. Enter the following income or losses
that are retained by the estate or trust:
●● Net rental income or loss from real property and
tangible personal property located in Montana
●● Net royalties to the extent that the income
retained is for production, fabrication,
manufacturing, or other processing in Montana,
or the patented product is produced in Montana
●● Net copyright royalties to the extent that the
printing and other publication originated in
●● Partnership income derived from a trade,
business, occupation, or profession carried on
●● S corporation income derived from a trade,
●● Estate and trust income derived from a trade,
Line 6 – Farm Income or (Loss). Enter the farm
income or (loss) retained from the farming activity
carried on in Montana. Include a separate federal
Schedule F if necessary, showing only the Montana
Line 7 – Ordinary Gain or (Loss). Report any
ordinary gain or (loss) retained from the sale or
exchange of business property located in Montana
and reported on federal Form 4797.
Line 8 – Other Income. Enter any other income
attributed to Montana that is not identified on
lines 1 through 7. This includes, but is not limited to:
●● Montana lottery winnings
●● Nonemployee compensation
Line 9 – Interest and Mutual Fund Dividends from
Other States’ State, County, or Municipal Bonds.
Enter the interest and dividend income from
bonds and obligations of other states, territories,
or political subdivision of another state (county,
municipality, district, etc.).
Line 10 – Dividends Not Included in Total Federal
Income. Enter the amount of the dividends that the
estate or trust retained that is not already included
in total federal income.
Line 11 – Taxable Federal Refund. If the estate or
trust claimed a federal tax deduction in a prior year, any
refund of that tax is income in the year it is received.
Line 12 – Other Recoveries. If a deduction in a prior
year was claimed and reduced Montana taxable
income, and the estate or trust was subsequently
reimbursed, enter that reimbursement here.
Line 13 – Other Additions to income and
adjustments. Enter any other source of Montana
income that has not been included or identified in
the lines above. Do not include net operating losses
reported on Schedule A, line 7.
Schedule G – S Portion Tax
Calculation of an ESBT
Complete Schedule G if a trust or a portion of a
trust is an electing small business trust (ESBT).
Only report on Schedule G the activity of the ESBT.
Report activity of the non-ESBT portion of the trust
on Form FID-3 and other applicable schedules.
Line 1 – Total Federal Adjusted ESBT Income.
Enter total federal adjusted ESBT income as
determined on the separate schedule prepared for the
federal estate and trust income tax return. Include the
federal schedule with the Montana tax return.
Line 2 – Montana Additions to ESBT Income. Enter
total Montana additions to ESBT income. Montana
additions to ESBT income include dividends not
included in total federal income, taxable federal
refund, Montana income taxes paid or accrued, and
expenses allocated to U.S. obligations. Include a
statement that separately lists the additions. If the
ESBT received Montana Schedules K-1, include on
this line the amounts from Part 3, column I, line 1.
Line 3 – Montana Deductions to ESBT Income.
Enter total Montana deductions to ESBT income.
Montana deductions to ESBT income include
federal income tax deductions, exempt interest and
mutual fund dividends from federal obligations,
state tax refunds if included in total federal income,
and expenses allocated to other states’ interest
and mutual fund dividends. If the ESBT received
Montana Schedules K-1, include on this line the
amounts from Part 3, column I, line 2. Include a
statement that separately lists the deductions.
Line 7 – Tax from Tax Table. If line 6 is zero or less,
Compute the tax using the following tax table:
Line 8 – Montana Source Income. Complete this
line if the ESBT is a nonresident or part-year
resident. If the ESBT is a resident, skip this line.
If the ESBT is a nonresident, enter the Montana
source income included in Montana adjusted ESBT
income reported on line 3. Include with the return
all Montana Schedules K-1 that the trust received.
If you are a part-year resident, all your income
received while a resident is Montana source
income. You must source the everywhere income
to Montana based on the number of days the
ESBT was a resident of Montana during the tax
year. Reduce any Montana source income by
a corresponding ratio and add the result to the
Montana source income received as a resident.
Line 11 – Credit for Income Taxes Paid to Another
State or Country. Complete this line if the ESBT
is a resident or part-year resident. If the ESBT is a
nonresident, skip this line. If the ESBT is a resident,
complete Worksheet I on page 5 and enter the
amount from line 10. If the ESBT is a part-year
resident, complete Worksheet II on page 5 and
Extracted from PDF file 2019-montana-worksheets-i-and-ii.pdf, last modified October 2019
More about the Montana Worksheets I and II Individual Income Tax Tax Credit TY 2019
We last updated the Credit for Income Tax Liability Paid to Another State or Country - Full Year Resident Only and Part Year Resident Only in March 2020, so this is the latest version of Worksheets I and II, fully updated for tax year 2019. You can download or print current or past-year PDFs of Worksheets I and II directly from TaxFormFinder. You can print other Montana tax forms here.
Montana usually releases forms for the current tax year between January and April. We last updated Montana Worksheets I and II from the Department of Revenue in March 2020.
Original Form PDF is https://app.mt.gov/myrevenue/Endpoint/DownloadPdf?yearId=989
Worksheets I and II is a Montana Individual Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
Historical Past-Year Versions of Montana Worksheets I and II
We have a total of six past-year versions of Worksheets I and II in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2019 Worksheets I and II
2018 Worksheets I and II
2017 Worksheets I and II
2016 Worksheets I and II
2015 Worksheets I and II
2014 Worksheets I and II
Source: http://www.taxformfinder.org/montana/worksheets-i-and-ii