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My part-time resident Montana State tax return is using my total federal taxable income, despite correctly entering Montana sourced income in a previous step.

 
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2 Replies
MaryK4
Expert Alumni

My part-time resident Montana State tax return is using my total federal taxable income, despite correctly entering Montana sourced income in a previous step.

Montana part-year returns calculate tax liability based on total federal income first, then apply a ratio to tax only the Montana-sourced portion.

Part-year residents are subject to Montana income tax only on income attributable to state sources.  See Montana Residency.

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My part-time resident Montana State tax return is using my total federal taxable income, despite correctly entering Montana sourced income in a previous step.

I see, after doing the math myself I see that the part year ratio and correct calculations are occurring in the background, thank you. 

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