FID-3 Schedule K-1: Montana Form FID-3 Schedule K-1 – Beneficiary’s Share of Income (Loss), Deductions, Credits, Etc. (2025)
Montana · Montana DOR · Used for tax years 2025
Montana Form FID-3 Schedule K-1 reports a beneficiary’s share of an estate’s or trust’s income, gains, losses, deductions, credits, and other tax items. It also identifies 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 the beneficiary’s share of income, gains, losses, deductions, credits, and other items, including information about where income is sourced.
Beneficiaries use this information to prepare their Montana tax returns. The instructions cover resident, part-year resident, and nonresident individuals, estates, and trusts, as well as corporation, partnership, and limited liability company beneficiaries.
What you'll need
Have the following information and records available, as applicable:
- The estate or trust’s name, FEIN, fiduciary’s name, and mailing address.
- The beneficiary’s name, address, FEIN or SSN, entity type, and residency information supplied to the trustee or personal representative.
- The federal Schedule K-1 for income items reported in the Everywhere column.
- Form FID-3 amounts for withholding and pass-through entity tax credits allocated to beneficiaries.
- State Schedules K-1 when calculating the pass-through entity tax addition.
- Tax credit codes, credit authorization numbers if applicable, and credit amounts.
Attach a statement if reporting more than two tax credits or more than six Montana adjustments. Code AZ, Other additions, also requires a detailed statement.
Common mistakes
- Entering both identification numbers. Enter only one beneficiary identification number field: FEIN or SSN.
- Confusing mineral royalty withholding with production taxes. The instructions warn that these are different amounts.
- Counting qualified dividends again under code AJ. Do not include qualified dividends in this addition because they are already included in total ordinary dividends on federal Form 1041, line 2a.
- Leaving out required statements. Attach additional details when there are more than two credits or more than six adjustments. Include a detailed statement for code AZ additions.
- Overlooking an amended K-1. An amended Schedule K-1 contains updated information. You may need to amend your Montana tax return to report the changes.
Questions people ask
What does a 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 is the difference between the Everywhere and Montana columns in Part IV?
Column A, Everywhere, shows income items from the 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. Those amounts are used to determine the nonresident/part-year resident ratio on Montana Form 2.
Where are Montana additions and subtractions explained?
Part III reports the beneficiary’s share of Montana adjustments. Part VII provides the adjustment codes and amounts. If there are more than six adjustments, attach a separate statement listing the additional codes and amounts.
Where do I report withholding shown in Part V?
For Montana income tax withholding on Forms W2 and 1099 and pass-through entity withholding, report the amounts on the Montana tax return that reports the related income. Allocated mineral royalty withholding shown on line 3 is an amount you can claim as a credit on your Montana tax return.