Schedule I: Schedule I – Montana Adjustments (2024)
Montana · Montana DOR · Used for tax years 2024
Montana Form 2 Schedule I reports additions to and subtractions from federal taxable income for 2024. It also calculates Montana medical savings account adjustments, including contributions, earnings, and nonqualified withdrawals.
Who files this form
The 2024 Montana Form 2 Schedule I is used to report Montana additions to and subtractions from federal taxable income. It also includes a section for Montana medical savings account adjustments.
The form lists adjustments for items such as certain interest income, military income, savings account deposits, and business expenses. It does not state a separate filing threshold for this schedule.
What you'll need
Depending on the adjustments you report, the form calls for:
- Federal Form 1040 and Schedule 1: The schedule references state income tax refunds on Schedule 1, line 1, and railroad retirement benefits included on Form 1040, lines 6b and 5b.
- Form ETM: Include it for exempt tribal income.
- Form WMRE: Include it for the subtraction for working military retirees’ retirement income and military survivor benefits.
- Form RCYL: Include it for business-related expenses for purchasing recycled material.
- Transition Schedule: Use it for the tax year 2024 transition adjustments.
For a Montana medical savings account, you will need the beginning balance, annual contributions, earnings, and withdrawal amounts, including withdrawals for eligible expenses.
Common mistakes
- Including federal income tax recoveries on Part I, line 2: The form says not to include them there. Line 8 is labeled for recovery of federal income tax deducted in 2023.
- Missing required forms: Include Form ETM for line 13, Form WMRE for line 15, and Form RCYL for line 20.
- Entering a beginning balance for a new medical savings account: Part II, line 1 says to enter 0 for a new account.
- Exceeding the listed contribution amount: Part II, line 2 allows contributions of up to $4,500 per taxpayer.
- Missing the account-balance checkbox: Part II, line 3 says to mark the box if the account balance is less than the beginning balance.
Questions people ask
Where do I enter my total Montana adjustments?
Add Part I, lines 1 through 8, and enter the total on line 9 and Form 2, page 1, line 4. Add Part I, lines 10 through 26, and enter the total on line 27 and Form 2, page 1, line 5.
How do I calculate the medical savings account subtraction?
In Part II, add line 2, contributions of up to $4,500 per taxpayer, and line 3, account earnings. Enter the total on Part II, line 4, and Part I, line 16.
How are nonqualified medical savings account withdrawals reported?
Subtract withdrawals for eligible expenses on Part II, line 6, from total withdrawals on line 5. Enter the result on Part II, line 7, and Part I, line 3. Part II then separates nonqualified withdrawals not subject to the 10% penalty from those subject to it.
What does the form say about first-time homebuyer accounts?
For tax year 2024, Part I, line 17 lists first-time homebuyer account deposits and earnings from deposits made before January 1, 2024.