Montana Individual Income Tax Forms And Instructions

2006 Montana Individual Income Tax Instructions

therapeutic, curing, treating, mitigating, and

homeowner/renter credit, do not confuse this amount with

rehabilitative service and personal care that is required

the amount of your property tax billed that is used to

for a chronically ill individual who is under the

determine the amount of your elderly homeowner/renter

prescribed care of a licensed health care practitioner.

credit. See Montana Form 2EC for information on the

Montana elderly homeowner/renter credit.

• Your premiums that you paid were for long-term care

for yourself, your dependents, your parents or your

Line 9 – Personal Property Taxes Paid in 2006. Enter

grandparents.

on Form 2M, Schedule I, line 9 any personal property

taxes that you paid in 2006. In order to claim this

• Your premiums have not been deducted elsewhere on

deduction, these personal property taxes have to be based

your return when you determined your Montana

on value and charged on a yearly basis.

adjusted gross income.

Your motor vehicle taxes that are based on the vehicle’s

• Your premiums were not considered as qualified elderly

value are considered a personal property tax and are

care expenses when you claimed the elderly care credit

deductible on line 9. Your motor vehicle fees that are not

that you reported on Form 2M, Schedule II, line 3.

based on the vehicle’s value are not deductible with the

Lines 7a through 7e – Federal Income Tax Deduction.

exception of the Montana light vehicle registration fee that

Montana allows federal income taxes paid during the year

is deductible – even though it is based not on the vehicle’s

as an itemized deduction. The deduction is limited to

value, but on the age of the vehicle. However, any light

$5,000 if you are filing as single or head of household. If

vehicle registration fee that you pay to another state is not

your filing status is married filing jointly, the deduction is

deductible on your Montana return. The taxes and fees

limited to $10,000.

that are listed on your Montana vehicle registration receipt

that are deductible on line 9 include codes 02-DOTRAT,

Complete lines 7a through 7d to report your 2006 federal

07-AVTAX, 08-BKAVTX, 14-COOPT, 61-REGRAT and 62-

income tax paid.

BKRGRT.

• Line 7a – Federal Income Tax Withheld. Enter on line

Line 10 – Other Deductible Taxes. Enter on Form 2M,

7a the total amount of the federal income tax withheld

Schedule I, line 10 any other deductible taxes that you

that was reported to you on your federal Form W-2(s)

paid in 2006 and that you did not report on lines 7a

and/or 1099(s).

through 9. When you claim these other deductible taxes,

• Line 7b – Federal Estimated Tax Payment Paid in

list on line 10 the type and amount of tax that you paid.

2006. Enter on line 7b the total amount of the federal

Please refer to federal regulations to determine which

estimated income tax payments that you made in 2006.

taxes may be deductible.

When you claim federal estimated tax payments, you

You cannot take a deduction on your Montana individual

should attach a copy of your federal Form 1040 or

income tax return for the following taxes that you paid in

1040A pages 1 and 2.

2006: state income tax, federal excise tax, social security

• Line 7c – 2005 Federal Income Taxes Paid in 2006.

tax, Medicare tax, gasoline tax, lodging tax, alcoholic

Enter on line 7c the balance of the total amount of the

beverage tax, cigarette and tobacco taxes or selective

2005 federal income tax that you paid in 2006.

sales taxes. Also, you cannot take a deduction for certain

• Line 7d – Additional Back Year Federal Income

license fees paid in 2006 – such as a hunting, fishing or

Taxes Paid in 2006. Enter on line 7d the total amount

driver’s license fee.

of additional back year federal income taxes that you

Line 11 – Home Mortgage Interest. Enter on Form 2M,

paid in 2006. For example, you may have paid

Schedule I, line 11 your home mortgage interest and

additional 2004 federal income taxes in 2006.

points allowed by federal law that was reported to you on

• Line 7e – Federal Income Tax Deduction. Beginning

your federal Form 1098.

with tax year 2005 your federal tax deduction is limited

Line 12 – Home Mortgage Interest Not Reported on

as follows:

Federal Form 1098. Enter on Form 2M, Schedule I, line

• If your filing status is single or head of household,

12 any home mortgage interest that you paid that was not

you should deduct the lesser of $5,000 or the sum of

reported on your federal Form 1098. If you bought your

lines 7a through 7d.

home from another person, write that person’s name,

• If you file your Montana income tax return jointly with

social security number and address in the space provided

your spouse, your federal income tax deduction is

on line 12.

limited to the lesser of $10,000 or the sum of lines 7a

Line 13 – Points Not Reported to You on Federal Form

through 7d.

1098. Enter on Form 2M, Schedule I, line 13 any points

Line 8 – Real Estate Taxes Paid in 2006. Enter on Form

that you paid that were not reported to you on federal

2M, Schedule I, line 8 any real estate taxes that you paid

Form 1098.

in 2006 on real estate that you own and that was not used

Line 14 – Investment Interest. Enter on Form 2M,

for business. If you qualify and then apply for the elderly

Schedule I, line 14 the investment interest deduction that

Montana Individual Income Tax Forms And Instructions - 2006 Page 8

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