Note: The best practice when entering multiple state tax information into TaxSlayer Pro is to first create the nonresident return(s) and finish with the resident return. This allows the income tax data from another state to transfer to the resident return. In TaxSlayer Pro, when creating the resident return you are prompted to pull in other state tax info, and by selecting "Yes" this info is pulled in and the credit for taxes paid to another state is automatically calculated.
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. TaxSlayer Pro will prompt to import any other state tax information found. Selecting Yes at this prompt will automatically calculate the credit for taxes paid to the other state.
Otherwise, to view or adjust the credit for taxes paid to another state in the Montana individual tax return in TaxSlayer Pro, from the Montana Tax Return Menu select:
- Net Tax
- Total Nonrefundable Credits
- Other States Credit
Additional Information:
Desktop: 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.