State tax filing

You are correct, unemployment compensation is never taxable for Montana.  The exclusion is recorded on the tax return as follows:

• Subtractions Schedule, line 7 – Unemployment Compensation

  Enter the unemployment compensation from Schedule 1, line 7. Do not subtract the federal exclusion of unemployment compensation from this line.

When you go through the Montana (MT) interview there are a couple of screens you should make an entry in and it should provide the results you are looking for.

1. The part year residency status was used in my example
2. First review your Form 1099-G entry in the federal section (my example is posted below)
3. Go to the States tab and select MT
4. Next continue through the interview until you reach 'Montana Portion of Income', then enter the full amount of your unemployment
5. Continue until you reach 'Your Montana Tax Return Summary' - you should see all of the unemployment as a Montana Subtraction.
6. See the images below.
7. Please update here if you need further assistance.