If you are filing a return which requires one or more Montana forms to be attached, you can still file electronically. Do not mail a paper copy of your Montana income tax return or accompanying attachments. Maintain a complete copy of your return and attachments for future reference. The department will contact you if a paper copy of your return or attachments is needed.
Health Care Professional Loan Payment Exclusion
If you are a health care professional licensed in Montana, you may exclude from adjusted gross income up to $5,000 for a loan payment made during the tax year on your behalf by a federal, state or qualified private loan repayment program. To qualify for the exclusion, you must be serving a significant portion of a designated geographic area, a special population, a federally designated health professional shortage area, a medically underserved area, or a federal nursing shortage county.
Farm and Ranch Risk Management Account
An individual or family farm corporation may exclude from adjusted gross income deposits into a farm and ranch risk management trust account. You are limited to one account for each individual or family farm corporation. You may exclude the lesser of 20% of your net income attributable to agricultural business included in your federal adjusted gross income or $20,000 a year. See Form FRM for detailed instructions.
Medical Care Savings Account
You and your spouse may establish a separately owned Medical Care Savings Account and exclude from adjusted gross income annual contributions of not more than $3,000 plus interest or other income earned on the principal. Within certain limitations, the contributions to the account will be tax-free as long as they are used for eligible medical expenses. Eligible expenses paid with account funds can not be deducted elsewhere on the return. Non-qualified withdrawals are subject to tax and penalties. See Montana Form MSA for detailed instructions.
First-Time Home Buyers Savings Account
If you are a qualifying individual you may exclude from income up to $3,000 per year ($6,000 if filing jointly) for contributions to a first-time home buyer's account. Interest earned on the principal is also excludable from income. Withdrawals from an account for eligible cost for the first-time purchase of a single-family residence is exempt from tax. Non-qualified withdrawal of funds not used in the purchase of a home is subject to a 10% penalty and taxed as ordinary income. See Montana Form FTB for detailed instructions.
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