Montana Individual Income Tax Forms And Instructions

2006 Montana Individual Income Tax Instructions

you can by April 16, 2007, you will not be assessed a late

• medical insurance and long-term care insurance

file penalty and you can reduce the amount of your late

premiums paid in 2006 that are claimed as a deduction

pay penalties and interest that is assessed against your

on your Form 2M, Schedule I, lines 5 and 6.

outstanding balance. If you need to establish a payment

• medical expenses paid with funds withdrawn from your

plan with us, call us at (406) 444-6900 as soon as possible

Montana medical care savings account.

to discuss your options and make payment arrangements.

Lines 2 and 3 – Your medical expenses reported on Form

Your Refund

2, Schedule III, line 1 should be reduced by .075 (7.5%) of

your Montana adjusted gross income. Enter on line 2 the

Line 59 – If line 57, which is your total due, is less than

amount that you reported on Form 2M, line 35. Multiply

line 52, which is your total payments and offsets, enter the

the amount on line 2 by .075 (7.5%) and enter the result

difference on Form 2M, line 59.

on your Form 2M, Schedule I, line 3.

Line 60 – Enter on line 60 the amount of your

Line 4 – Deductible Medical and Dental Expenses.

overpayment from line 59 that you want to be applied to

Subtract line 3 from line 1 and enter the result on line 4

your 2007 estimated taxes.

but do not enter an amount less than zero. This is your

Line 61 – Your Refund. Subtract line 60 from line 59 and

allowable deduction for medical and dental expenses.

enter the result on line 61. This is the amount of your

Line 5 – Medical Insurance Premiums. If you pay your

refund. Only refunds greater than $1.00 will be issued. If

own medical insurance premiums for coverage for yourself

you wish to use direct deposit, in the space provided enter

and your family, you may be eligible to deduct 100% of

your financial institution’s routing number (RTN#), your

these medical insurance premiums. To determine whether

account number (ACCT#) and whether this account is your

you can deduct 100% of your medical insurance

checking or savings account. Your routing number will be

premiums, you have to meet the following criteria:

nine digits and your account can be up to 17 characters

(both numeric and alpha). Your direct deposit will be

• Your premiums have to be paid for health and medical

rejected if the routing number or account number is

insurance coverage. Your life insurance premiums are

incorrectly listed. If your direct deposit is rejected, we will

not deductible.

have to mail you a check instead. A sample check is

• Your premiums cannot have been paid through a

provided for your convenience.

federal or state medical care savings account, such as

John Taxpayer

the federal Health Savings Account or the Montana

1234

Jane Taxpayer

Medical Care Savings Account.

23 Main Street

Anyplace, MT 59000

• Your premiums cannot have been paid through an

Pay to the

employer health benefit cafeteria plan in which your

Order of

premium payments are considered “pre-taxed” payment

Dollars

and therefore not subject to federal or state income tax

Routing

Account

Do not include the

Anyplace Bank

Number

check number in the

withholding, federal social security, or federal Medicare

Anyplace, MT 59000

account number

payments. If you are unsure whether your employer has

I:250000005 I:200000" 86 "

1234

a health benefit cafeteria plan, you may want to check

with your employer’s payroll office to discover whether

your medical insurance premiums are covered by a

Form 2M, Schedule I – Montana Itemized

health benefit cafeteria plan.

Deductions

• Your premiums cannot be deducted as Medicare A

premiums from your social security benefits. However,

You should use Form 2M, Schedule I to calculate your

Medicare B premiums that are deducted from your

itemized deductions, but remember that your Montana

social security benefits are 100% deductible on line 5.

itemized deductions may be different from your federal

itemized deductions. There are federal deductions that are

• Medicare taxes that are withheld from your wages or

not allowed on your Montana income tax return and state

paid as part of your self-employment tax are not

deductions that are allowed only on the Montana income

deductible on line 5.

tax return.

Line 6 – Long-term Care Insurance Premiums. If you

Line 1 – Medical Expenses. Enter on line 1 your medical

pay for long-term care insurance premiums, you may be

expenses paid in 2006 after you have deducted from these

eligible to deduct 100% of the long-term care insurance

expenses any payments that you received from your

premiums that you paid. To determine whether you can

insurance company or other sources. These expenses are

deduct 100% of your long-term care insurance premiums,

the same medical and dental expenses that are allowed

you have to meet the following criteria:

under the Internal Revenue Code with the exception of the

• Your premiums have to be for long-term care coverage

following expenses that are not deductible on line 1:

primarily for any qualified long-term care service that

provides for the necessary diagnostic, preventive,

Montana Individual Income Tax Forms And Instructions - 2006 Page 7

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