For 2020 you will file part-year returns for both Idaho and Montana.
Idaho taxes income from (1) All sources while a resident; and (2) Idaho sources while a nonresident.
Prepare your Idaho return first.
- Include all of your husband's earnings for the year from his Idaho-based business.
- Include any of your earnings, while living in Idaho (or from Idaho sources).
Then prepare your Montana return.
- As you go through your MT return you will see several screens, Montana Portion of Income. This is where you can exclude the income from your husband's Idaho business.
- Since only Idaho is taxing your husband's business income, there is no need for a credit paid to other states on your MT return.
For 2021 forward you will be filing a non-resident ID return and a resident MT return.
