Note: The best practice when entering multiple state tax information into TaxSlayer ProWeb is to start with the nonresident return(s) and finish with the resident return. This allows the income tax data from the nonresident state(s) to transfer to the resident return.
Montana residents may claim a nonrefundable credit for taxes paid to another state or country. The income must be taxed by both jurisdictions. This credit is for state or foreign income taxes imposed on a taxpayer's income; it does not apply to local taxes. Note that credit for foreign taxes cannot be taken if the Foreign Tax Credit was claimed on the federal return.
Before starting the Montana return, prepare the nonresident return(s). Once all nonresident returns are finished, create the Montana resident return and ProWeb will automatically calculate the credit based on the nonresident return information.
If the Montana return is for a part-year resident, print a copy of the nonresident return(s) to refer to when entering the information for the credit.
To enter or adjust the credit for taxes paid to another state in the Montana individual tax return in ProWeb, from the Montana Return menu select:
- Credits
- Credit for Income Taxes Paid to Another State
Additional Information:
ProWeb: Which State does Montana have a Reciprocal Agreement with?
MT DOR: Individual Income Tax Return Instructions
MT DOR: Individual Income Tax Credits
TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.