|
|
|
Montana
|
|
Details:
• Get a tax break for the purchase of a new motor vehicle.
As part of the American Recovery and Reinvestment Act of 2009, individuals who purchased certain new motor vehicles after February 16, 2009 but before January 1, 2010 may deduct state or local sales and excise taxes or other taxes and fees in states without a sales tax. Federally, an individual can claim the deduction even if they do not itemize their deductions. If you are filing a Montana tax return, you are entitled to this education but only if you itemize your deductions. Please see the instructions for Schedule III, line 11 on page 33 for more information.
•
Take advantage of the federal first-Time Homebuyer Credit, does it have an effect Montana tax return.
No, the credit is not included in your taxable income on your Montana tax return. Also, the credit is not considered a refund of federal taxes so it is not included if you need to compute your taxable federal refund on Worksheet II.
•
Montana follows the federal bonus depreciation allowance.
The bonus depreciation allowable on your Montana tax return is the same as what is reported on your federal tax return.
• The federal changes to the energy credits impact the energy conservation
installation credit available for Montana tax purposes.
The federal changes did not directly impact the state energy conservation installation credit. However, we know that the similarities and differences between the federal and state credits can be confusing. Therefore, we encourage you to visit recovery.mt.gov/revenue for additional information regarding the federal and state energy credits.
Pension and annuity income exemption changed. The 2009 Montana Legislature enacted a law impacting the pension and annuity income exemption. An inflation factor will be applied to both the pension and annuity income exemption and to the federal adjusted gross income threshold, which will increase the amount of the exemption and slow its phase-out. Because 2009 is the base year, the exemption amount and federal adjusted gross income threshold will remain $3,600 and $30, 000, respectively, for this tax year. However, these amounts will change beginning with the 2010 tax year. Please see the instructions for Schedule II, Line 11 on page 26.
•
Claim “innocent spouse” relief.
Good news! If the Internal Revenue Service granted you “innocent spouse” relief from a joint federal tax liability for tax years beginning on or after January 1, 2003, you may be eligible for similar relief if you filed a joint Montana tax return for the same year. Please visit our website at revenue.mt.gov for additional information.
• Changes to the alternative energy credit.
If you invested in a masonry heater or an outdoor hydronic heater, the purchase now qualifies for alternative energy credit beginning with the 2009 tax year. Please see Form ENRG-B and the instructions for Schedule V, line 14 on page 42 for more information.
Changes to the partial interest exemption for taxpayers 65 and older. The administrative rule addressing this exemption was revised last year to retroactively clarify that you can exempt up to $800 of the interest income that you included in your “Montana” adjusted gross income when determining your Montana taxable income. The rule previously referred to “federal” adjusted gross income. For additional information regarding this exemption, please see the instructions for Schedule II, line 12 on page 27.
• Claim the tax that was withheld by a pass-through entity.
We have now included a separate line for you to show any tax withheld and reported to you as a result of your ownership in an S corporation, partnership or disregarded entity. The payments that should be reported on this new line are included on Form PT-WH “Montana Income Tax Withheld for a Nonresident Individual, Foreign C Corporation, or Second Tier Pass through Entity” sent to you by the pass-through entity. For prior years, we asked you to include them with the estimated tax payments reported on the return. Please see the instructions for line 56 on page 18.
• Nonresident with an interest in a “publicly traded partnership”.
calculate the gain when I sell my interest in a “publicly traded partnership”. The 2009 Montana Legislature clarified that all or a portion of the gain from the sale of a nonresident’s interest in a publicly traded partnership doing business in Montana is defined as “Montana source income.” Please see the instructions for Schedule IV, line 7 on page 37 for more information.
•
Tax break available if sell a mobile home park.
Yes, beginning with the 2009 tax year, all or a portion of the gain recognized from the sale or exchange of a mobile home park to certain entities is excluded from income. Please see Montana Form MHPE and the instructions for Schedule II, line 34 on page 31 for more information.
•
Access Montana Tax Account Online.
Yes, you can sign up to access your Montana tax account online. Please visit our website at revenue.mt.gov and select the For Individuals option under Online Services for registration information. After you register for account access, you will be able to file your tax return, view previously filed tax returns, view tax payment information and make payments, update your account information and grant access to others, such as your tax practitioner.
•
The interest rate on unpaid taxes.
The current interest rate is 8%, and it will continue to be in effect through December 31, 2010. Under Montana law, the interest rate for all unpaid individual income taxes depends on the rate set by the Internal Revenue Service and may fluctuate each year, but will not be less than 8%.
|
|
Government Link:
http://revenue.mt.gov/revenue/forbusinesses/taxsoftwarevendors/2009%20Forms/2_booklet.pdf
|
|
|