PTE Schedule K-1: Montana Schedule K-1 for Pass-Through Entities (2024)
Montana · Montana DOR · Used for tax years 2024
The 2024 Montana Schedule K-1 (Form PTE) reports an owner's share of income, losses, deductions, credits, and Montana adjustments from a pass-through entity. It also shows Montana taxes paid or withheld on the owner's behalf.
Who files this form
Pass-through entities must provide a Montana Schedule K-1 to every owner. Owners use it to report their share of income, losses, deductions, credits, and other items on their Montana tax returns.
The owner instructions include these filing rules:
- Composite return participants: If you are an eligible participant in a composite return filed on your behalf by the entity, do not file your own Montana tax return.
- Certain nonresident owners: A nonresident individual, estate, or trust does not have to file a Montana income tax return if the Part II PTET election box is marked and the owner has no additional Montana source income.
- PTET credit without the election box marked: If the Part II PTET election box is not marked but Part V, line 1 shows pass-through entity tax, you must file a Montana income tax return.
- Owners who filed Form PT-AGR: By filing that agreement, you agreed to timely file a Montana tax return and pay all taxes.
What you'll need
To report the entity's tax items on your Montana return, use:
- Your Montana Schedule K-1. A federal Schedule K-1 cannot replace it.
- Any additional statement provided by the entity. If all supplemental information does not fit in Part V, line 5, the entity should provide a statement with the rest.
- An amended Montana Schedule K-1, if you received one. The changes may require an amended Montana tax return.
For instructions on preparing a Montana Schedule K-1 for each owner, refer to the Form PTE instruction booklet.
Common mistakes
- Substituting the federal Schedule K-1. It cannot serve as a substitute for Montana Schedule K-1.
- Using Column B as a resident owner's taxable income. For Montana resident individuals, estates, and trusts, Column B in Parts III and IV is informational only and relates to the pass-through entity tax election.
- Confusing mineral royalty withholding with production taxes. Part V, line 4 reports allocated mineral royalty tax withholding, not amounts deducted from royalty payments for production taxes.
- Applying tax credits against composite tax or PTET. The instructions say tax credits cannot be taken against composite tax or pass-through entity tax.
Questions people ask
Where do I report the PTET credit in Part V, line 1?
Individuals report it as a refundable credit on Form 2, line 11c. Estates and trusts report it on Form FID-3, line 14a. Pass-through entities report it on Form PTE, page 3, Flow-Through Payments Schedule, Part I.
What does Part V, line 3c show?
It is the total Montana income tax withheld on your behalf, combining lines 3a and 3b. Report it as a pass-through withholding credit on your Montana income tax return.
What if I receive an amended Montana Schedule K-1?
You may need to file an amended Montana tax return to report changes in Montana source income and adjustments.
Who is the beneficial owner listed on the schedule?
This field identifies the taxpayer who will claim the reported income on their tax return. For a corporation included in a unitary filing, it shows the parent corporation's FEIN. For a grantor trust, it shows the grantor's taxpayer identification number.
Where can I ask questions?
Call (406) 444-6900, or use Montana Relay at 711 for the hearing impaired.