FID-3 Schedule K-1: Montana Form FID-3 Schedule K-1 – Beneficiary’s Share of Income (Loss), Deductions, Credits, Etc. (2024)
Montana · Montana DOR · Used for tax years 2024
Montana Schedule K-1 (Form FID-3) reports a beneficiary’s share of an estate’s or trust’s income, gains, losses, deductions, credits, and other tax items. It includes Montana source income, Montana adjustments, and withholding allocated to the beneficiary.
Who files this form
An estate or trust must provide a Montana Schedule K-1 to every beneficiary. It reports each beneficiary’s share of income, gains, losses, deductions, credits, and other items.
Beneficiaries use this information to prepare their Montana tax returns:
- Montana resident individuals, estates, and trusts: The schedule reports income and Montana adjustments that may affect their returns.
- Nonresident or part-year resident individuals, estates, and trusts: The schedule is needed to file their Montana returns and determine their Montana tax liability.
- Corporations, partnerships, and limited liability companies: The schedule reports Montana source income and adjustments that may affect their returns.
What you'll need
The schedule calls for:
- The estate’s or trust’s name and FEIN, plus the fiduciary’s name and mailing address.
- The beneficiary’s name, mailing address, FEIN or SSN, entity type, and residency status if the beneficiary is an individual, estate, or trust.
- Income information from the federal Schedule K-1 and Montana source income information.
- Details of Montana adjustments, allocated withholding, and tax credits, as applicable.
Attach a statement if there are more than two tax credits or more than six adjustments. For other additions under code AZ, include a detailed statement.
Common mistakes
- Entering both tax identification numbers: Enter only one beneficiary identification field, FEIN or SSN.
- Confusing mineral royalty withholding with production taxes: The instructions specifically warn that these are different amounts.
- Including qualified dividends in adjustment AJ: Do not include them here. They are already included in total ordinary dividends on federal Form 1041, line 2a.
- Leaving out additional-credit or adjustment statements: Attach a statement when reporting more than two credits or more than six adjustments.
Questions people ask
What does “Final Schedule K-1” mean?
It means the estate has closed or the trust has terminated, and the return for the last tax period has been filed.
What should I do if I receive an amended Schedule K-1?
An amended K-1 means the fiduciary changed the return and issued updated information. You may need to file an amended Montana tax return to report the changes.
What is the difference between the Everywhere and Montana columns in Part IV?
Column A, Everywhere, shows income items from your federal K-1. Montana source income for residents is reported in Column A. Column B, Montana, shows Montana source income and deductions for nonresident and part-year resident beneficiaries, used to determine their nonresident/part-year resident ratio on Montana Form 2.
Where do I report withholding shown in Part V, lines 1 and 2?
Report these withholding amounts on the Montana tax return that reports the related income.