Montana Non Resident Online System Mistake/Omission?

[amyn1]

Help! On Turbo Tax online I completed our federal tax form, then I moved on to Montana State Non Resident (which you are instructed to do before our Resident Idaho state tax).  However, the program prompts you to put in your income that was made in Montana but then never asks what tax we already paid to Montana.  We have a separate W2 just for Montana which shows how much income was made there and how much tax we already paid Montana state.  I looked on the Montana paper form and basically Line 21, where you can enter how much tax was already paid, is not covered on the online program making it result in a bunch of tax due.  Help!!

[JulieS · Accepted solution]

All of your state income and tax withheld must be entered in the federal return and then it transfers to the state return. 

You say you have a W-2 that shows how much income was earned in Montana and how much tax was withheld. You need to enter the W-2 in your federal return to get it to show on the state return. 

If you have income for this W-2 in more than one state, you have to enter a second state line on that W-2. Here is how to do that:

1. Select Federal on the left side menu.
2. Select Wages and Income toward upper left.
3. Click Edit or Add to the right of Job (W2).
4. Click Edit to the right of the W-2 with the Montana information. 
5. Click Continue on the next screen. 
6. Scroll down to State taxes, boxes 15,16 and 17.
7. Click Add state and enter the amounts for Montana.
8. Continue through the rest of the section. 
9. Click on Federal Review in the upper right corner.
10. Continue through the review section . 
11. Continue to the State return. 
12. Review or finish your state return.

[amyn1]

Thank you!!