2021 ProSeries/Montana Readme
Release 2021.039
Contents
Items addressed in this release
What's new for ProSeries/Montana
Forms
Electronic filing
Additional Information
Items addressed in this release:
- Form NOL - Montana Net Operating Loss (NOL) Schedules has been updated in this ProSeries/Montana.
Issues addressed in a previous release:
- Form 8915 - The calculations in the program have been updated for filing of returns with federal Form 8915.
- Error checking, general enhancements. Various improvements to data validations, error checks updated.
What's new for ProSeries/Montana
The following items are new for tax year 2021:
- Reporting Federal Adjustments (HB 53).
House Bill 53 increased the amount of time individuals have to amend their Montana return after a federal adjustment. Individuals now have 180 days to file an amended Montana return after a federal income tax adjustment has been finalized.
- Family Education Savings Accounts (HB 129).
Individuals may now use the funds from Montana Family Education Savings Accounts on a wider variety of education expenses. See the Montana Subtractions Schedule, line 17 instructions for a detailed list of eligible education expenses.
- Trades Education and Training Credit (HB 252).
Employers may take a tax credit for the expenses incurred in providing employees with education and training for a trade profession. The credit is worth up to 50% of the cost of qualifying trades education or training expenses, not to exceed $2,000 per employee and $25,000 total.
- Montana Entrepreneur Magnet Act (SB 184).
Beginning in Tax Year 2026, the net long-term capital gain or exchange of certain capital stock will not be subject to tax. The exclusion is not available until Tax Year 2026, but some requirements take effect starting in 2021.
- Mobile Home Park Capital Gain Exclusion (SB 269).
The exclusion of the capital gain from the sale of an eligible mobile home park has increased. One hundred percent of the capital gain from the eligible sale of a mobile home park is excludable from Montana Adjusted Gross Income.
- Double-Weighted Receipts Factor (SB 376).
The Montana Legislature passed Senate Bill 376 to modernize the apportionment formula for sourcing purposes. Multistate businesses with a tax year starting after June 30, 2021, will count the receipts factor twice in determining the apportionment factor.
- Montana Medical Savings Account (MSA) Investment Options (SB 253).
In addition to checking and savings accounts at financial institutions, Montana MSAs may now be invested in stocks, bonds, mutual funds, a combination of both, or in an account that is allowable for a federal Health Savings Account (HSA). Note that while the MSA may be placed in an investment vehicle used for HSAs, the MSA cannot also be an HSA. To claim a subtraction for an MSA, the contributions and earnings must be included in Federal Adjusted Gross Income.
- Form 2.
The form has been updated to reflect changes made to the federal Form 1040.
- Partial Pension, Annuity, and IRA Income Exemption Worksheet.
The worksheet has been updated to change its name and to improve reporting for married filing jointly taxpayers. It was renamed to the Partial Pension, Annuity, and IRA Income Exemption Schedule for internal processing purposes. Lines 3a and 3b were added to assist married filing jointly taxpayers in totaling the amount of pension, annuity, and IRA income eligible for the income exemption.
- Taxable Social Security Benefits Worksheet.
The worksheet was renamed to the Taxable Social Security Benefits Schedule for Montana Department of Revenue internal processing purposes.
Forms
All forms are final in this release.
Electronic filing
You can file returns electronically with this version of ProSeries/Montana.
Additional information
Check all returns after printing
The Montana Department of Revenue scans computer-generated forms to quickly
process the income tax returns it receives. To meet the requirements for
producing computer-generated forms, ProSeries is required to limit the width of the tax
information printed on forms that are scanned. In certain cases, data you entered may be truncated. After completing
a tax return, review the information that prints (for example, mailing address information), make any necessary changes, and reprint the return before mailing
it.
About bar codes on printed state returns
Some states use bar codes on computer-printed tax forms. This special
formatting allows the state taxing authorities to process returns more quickly
and efficiently. On-screen, you'll see only a small representation of the bar
code on the lower-left side of the form. This image is static and does not
change based on the information in the return. However, when you print the
return, the bar code appears as a large rectangular box on the first page of
the form. The width of the bar code is constant; the height varies according to
the data in the return. In general, the more complex the
return, the larger the printed bar code.
Returns that contain special formatting may be processed at a different
location than manually prepared returns. Therefore, the filing instructions
that print with the state return may contain a mailing address that's different
from the mailing address in the package that is sent to taxpayers. Be sure to
have your clients mail their returns to the address in the filing instructions
that print with the return.
Important: Because the bar code image is a function of the data in
the tax return, it's important that you reprint the page with the bar code if
changes are made to any part of the return. Also, do not print blank copies of
the main form and prepare them manually. The Montana taxing authority may
attempt to scan the form and reject it.
End of ReadMe file for ProSeries/Montana