Article: 50584
Overview
If you are a Montana resident who earned income in another state and were taxed on that income by both states, you may be eligible for the Credit for Income Tax Paid to Another State. This credit prevents you from being taxed twice on the same income.
To claim this credit, you will complete the Credit for Income Tax Paid to Another State form within your Montana Form 2 return.
Who Qualifies?
You may claim the deduction if:
- You contributed to a qualified First-Time Home Buyer Savings Account during the tax year.
- The account was properly designated for first-time homebuyer purposes with your financial institution.
- Withdrawals (if any) were used for qualified home purchase expenses.
- You have not previously owned or purchased a home as a primary residence.
Note: Qualified withdrawals include down payments and eligible closing costs.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Montana.
- Click on the General tab.
- Select Credit for Income Tax Paid to Another State to open the screen.
- Enter all applicable information.
- Click Save once complete.
Additional Resources
For further guidance, see:
2024 Montana Form 2 Individual Income Tax Instructions (PDF)