Montana Individual Income Tax Forms And Instructions

2006 Montana Individual Income Tax Instructions

qualify for this credit as long as the building in which the

energy, solid waste, and organic waste in your principal

investment is made is owned by both spouses.

home. Your credit cannot exceed $500 and any balance of

your credit that is not used in 2006 can be carried forward

In order to qualify for this credit you will have to show, and

and applied to future income tax liabilities for a period of

provide to us upon request, verification of your

four succeeding tax years.

expenditures and that your investment will reduce the

waste or dissipation of energy or reduce the amount of

If you are a resident of Montana, you can claim a credit

energy that is required to accomplish a given amount of

against your income tax liability for the cost of purchasing

work. If you are unable to provide this documentation and

and installing an energy system using a low emission

verification you will not be allowed to take this credit.

wood or biomass combustion device, such as a pellet or

wood stove in your principal home. Your credit cannot

For further instructions on the energy conservation credit

exceed $500 and any balance of your credit that is not

and to calculate this credit, see Montana Form ENRG-C.

used in 2006 can be carried forward and applied to future

When you claim this credit, you will have to attach a copy

income tax liabilities for a period of four succeeding tax

of Montana Form ENRG-C to your income tax return.

years.

Line 3 – Elderly Care Credit. You can claim a credit

For further instructions on the alternative energy system

against your income tax liability for paying certain

credit, and to calculate this credit, see Montana Form

expenses in order to provide care to an elderly family

ENRG-B. When you claim this credit, you will have to

member. Your credit cannot exceed $10,000 in one tax

attach a copy of Montana Form ENRG-B to your income

year for the care of two or more family members.

tax return.

In order to qualify for this credit, you need to care for an

Line 7 – Elderly Homeowner/Renter Credit. You can

elderly family member who is at least 65 years of age,

receive a refundable residential property tax credit if you

who has been determined to be disabled by the Social

can answer yes to the following four statements:

Security Administration; and who has a family income of

$15,000 or less if not married, or $30,000 or less if

• I was age 62 or older as of December 31, 2006.

married.

• I resided in Montana for nine months or more during

2006.

For further instructions on the elderly care credit and to

calculate this credit, see Montana Form ECC. When you

• I occupied a Montana residence as an owner or renter

claim this credit, you will have to attach a copy of Montana

for a total of six months or more during 2006.

Form ECC to your income tax return.

• My gross household income was less than $45,000 in

Line 4 – Developmental Disability Account

2006.

Contribution Credit. You can claim a credit against your

If you answered yes to these four statements, see

income tax liability for contributions that you made to the

Montana Form 2EC for further instructions and about how

Montana Developmental Disability Service Account

to calculate your 2006 elderly homeowner/renter credit.

administered by the Montana Department of Public Health

and Human Services. Your credit is equal to 30% of the

After you have completed Form 2EC and when you file a

contributions that you made during the year but your

Montana income tax return, Form 2M, enter the amount of

credited contribution cannot exceed $10,000 in any one

your elderly homeowner/renter credit from Form 2EC, line

tax year.

19, on Form 2M, Schedule II, line 7.

In order to qualify for this credit, your contribution should

Form 2 Instructions

be made to the Montana Department of Public Health and

Human Service Developmental Disability Service

Residents, part-year residents, or non-residents of

Account. Any other contribution to another program that

Montana can file Montana Form 2, which is called our

provides services to the developmental disabled does not

“long form.” You can use Form 2 if you are married filing

qualify for this credit. When you claim this credit, you

separately with your spouse, if you claim itemized

cannot take a charitable contribution deduction for this

deductions or the standard deduction, if you claim a

contribution elsewhere on your return.

nonrefundable Montana tax credit, if you made estimated

tax payments, or if you are applying your 2005 refund to

For further information on the developmental disability

your 2006 income tax liability.

account contribution you can call the Montana Department

of Public Health and Human Services at (406) 444-2995 or

Part-year Resident and Non-resident. If you are a part-

visit their web site at

year resident or a non-resident you will complete lines 7

through 48 as if you were a resident using the instructions

Line 6 – Alternative Energy Systems Credit. If you are a

for Form 2 on pages 18 through 47. After you have

resident of Montana, you can claim a credit against your

completed your return through line 48 you will then

income tax liability for the cost of purchasing and installing

determine your part-year resident or non-resident tax after

an energy system that uses a recognized nonfossil form of

capital gains tax credit by completing Form 2, Schedule

energy such as, but not limited to, solar energy, wind

IV.

Montana Individual Income Tax Forms And Instructions - 2006 Page 11

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