Schedule I: Schedule I – Montana Adjustments (2025)
Montana · Montana DOR · Used for tax years 2025
Montana Form 2 Schedule I reports additions and subtractions used to adjust federal taxable income for Montana tax purposes. It also calculates Montana medical savings account adjustments, including deposits, earnings, and nonqualified withdrawals.
Who files this form
Schedule I is the Montana adjustments page of Form 2 for tax year 2025. It covers additions to and subtractions from federal taxable income.
The adjustments listed include certain bond interest, state income tax deductions and refunds, exempt tribal income, military income, certain savings account deposits and withdrawals, and business expenses. Part II covers Montana medical savings account adjustments.
The form does not state a general filing requirement.
What you'll need
The form identifies these documents for specific adjustments:
- Form ETM: Include it for exempt tribal income on Part I, line 11.
- Form WMRE: Include it for the military retirement income and military survivor benefits subtraction on Part I, line 13.
- Form RCYL: Include it for business-related expenses for purchasing recycled material on Part I, line 18.
- Medical savings account year-end statement: Use the ending balance shown on this statement for Part II, line 5.
- Federal Form 1040: Part I, lines 22 and 23 refer to Railroad Retirement Benefits included on Form 1040, lines 6b and 5b.
Common mistakes
- Do not include recoveries of federal income tax on Part I, line 2.
- If your Montana medical savings account is new, enter 0 as the beginning balance on Part II, line 1.
- For Part II, line 2, the form limits medical savings account contributions to $4,600 per taxpayer.
- On Part II, line 3, mark the box if your account balance is less than your beginning balance. The form refers you to instructions for this situation, but those instructions were not provided.
- Use the ending balance shown on your year-end account statement for Part II, line 5.
Questions people ask
Where do my total Montana adjustments go?
Add Part I, lines 1 through 6, and enter the total on line 7 and Form 2, page 1, line 4. Add Part I, lines 8 through 23, and enter the total on line 24 and Form 2, page 1, line 5.
How do I calculate the medical savings account subtraction?
Add contributions on Part II, line 2, and earnings on line 3. Enter the total on Part II, line 4, and Part I, line 14.
How are nonqualified medical savings account withdrawals reported?
Subtract withdrawals for eligible expenses on Part II, line 7, from total withdrawals on line 6. Enter the result on Part II, line 8, and Part I, line 3. To calculate the amount subject to penalty on line 10, subtract the nonqualified withdrawals not subject to penalty on line 9 from line 8.
What first-time homebuyer account subtraction is listed for 2025?
Part I, line 15, lists first-time homebuyer account deposits and earnings from deposits made before January 1, 2024.