Montana Individual Income Tax Forms And Instructions

2006 Montana Individual Income Tax Instructions

you computed on your federal Form 4952. You cannot use

are searching for gainful employment or while you and

your interest expense that is related to exempt income

your spouse both were at work, you can qualify for a child

when you compute your investment interest deduction.

and dependent care expense deduction.

Line 15 – Contributions Made by Cash or Check. The

To qualify for this deduction, you have to maintain a

contributions allowed as a deduction in computing your net

household for a child under the age of 15 or for a

income for Montana income tax purposes are those same

dependent or spouse who is unable to care for himself or

contributions allowed as a deduction for federal income

herself. You also have to meet the following income level

tax purposes – with the following exceptions:

requirements.

• Your contributions made in 2006 to the Montana

If you and/or your spouse’s total Montana adjusted gross

veterans’ service special revenue account, the Montana

income is:

state veterans’ cemetery program, or the surcharge for

Under

And You Have

Then You

the purchasing of the Montana patriotic specialty

license plate are included as an itemized deduction on

$22,800

1 child

qualify

your Montana income tax return as long as you did not

$25,200

2 children

qualify

already include these contributions as part of your

federal contribution deduction. For further instructions

$27,600

3 or more children

qualify

about this contribution see Montana Form VT.

If you are a licensed and registered daycare operator who

• When you apply the federal 50%, 30% and 20%

operates a family daycare home or a group daycare home

contribution limitations, you should use your Montana

and if you care for your own child in addition to at least

adjusted gross income instead of your federal adjusted

one other unrelated child, you can deduct the employment

gross income when you determine your contributions

related expenses considered to have been paid by you for

that are allowed.

the care of your own child.

• Any portion of a contribution that you used to calculate

For further information on the child and dependent care

your qualified endowment tax credit cannot also be

expense deduction, see the instructions on Montana Form

claimed as a contribution deduction.

2441M. When you claim this deduction, complete

• Any portion of a contribution that you used to calculate

Montana Form 2441M and attach a copy of it to your

your developmental disability account contribution

Montana income tax return.

cannot also be claimed as a contribution deduction.

Line 19 – Casualty and Theft Loss. If you have a

Enter your contributions made by cash or check on Form

casualty and theft loss, you should complete federal Form

2M, Schedule I, line 15.

4684 to figure the amount of the Montana loss that you

can enter on Form 2M, Schedule I, line 19. To determine

Line 16 – Contributions Made Other Than by Cash or

your casualty and theft loss, you should use your Montana

Check. Your non-cash contributions allowed as a

adjusted gross income in place of the federal adjusted

deduction for Montana income tax purposes are those

gross income.

same non-cash contributions that are allowed as a

deduction for federal income tax purposes – with the

Line 20 – Unreimbursed Employee Business

following exceptions:

Expenses. When you deduct the unreimbursed employee

business expenses on your Montana income tax return,

• When you apply the federal 50%, 30% and 20%

you should use the same expenses that are allowed on

contribution limitations, you should use your Montana

your federal income tax return. To claim these expenses,

adjusted gross income instead of your federal adjusted

you will need to complete federal Form 2106 or 2106EZ.

gross income when you determine your contribution that

is allowed.

Line 21 – Other Expenses. Enter on Form 2M, Schedule

I, line 21 other expenses that are allowed on your federal

• Any portion of a contribution that you used to calculate

income tax return. Examples of these expenses include,

your qualified endowment tax credit cannot also be

but are not limited to, your tax preparation fee, certain

claimed as a contribution deduction.

legal and accounting fees, clerical help, and office rent

Enter the contributions that you made by other than cash

and custodial fees.

on Form 2M, Schedule I, line 16.

Line 22 – Add lines 20 and 21 and enter the result on line

Line 17 – Contribution Carryover from the Prior Year.

22.

Enter on Form 2M, Schedule I, line 17 any contribution

Lines 23 and 24 – Your unreimbursed employee business

carryover amounts that you were not allowed to deduct in

expenses and other expenses reported on lines 20 and 21

an earlier year because they exceeded your Montana

are only deductible to the extent these expenses exceed

adjusted gross income limitation.

2% of your Montana adjusted gross income. Enter on line

Line 18 – Child and Dependent Care Expense. If you

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

pay for household or dependent care services for a child

under the age of 15 or for a disabled dependent while you

Montana Individual Income Tax Forms And Instructions - 2006 Page 9

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