Schedule III: Schedule III – Tax Credits (2024)
Montana · Montana DOR · Used for tax years 2024
Schedule III is the tax credits schedule for 2024 Montana Form 2. It reports nonrefundable and refundable credits and calculates the credit for income taxes paid to another state or country, with separate calculations for ordinary income and net long-term capital gains.
Who files this form
Schedule III is the tax-credit schedule for 2024 Montana Form 2. Use it to report the credits listed in Part I, including nonrefundable and refundable credits.
Part II calculates the credit for income taxes paid to another state or country. It includes entries for full-year and part-year residents. The form does not state detailed eligibility rules for the listed credits.
What you'll need
The form says to include these documents for the corresponding credits:
- Qualified endowment credit: Form QEC.
- Recycle credit: Form RCYL.
- Trades education and training credit: Form TETC.
- Historic property preservation credit: federal Form 3468.
- Infrastructure users fee credit: Form IUFC.
- Media credit: Form MEDIA-CLAIM.
- Jobs growth incentive credit: Form JGI.
- Adoption credit: Form ADPT.
The schedule also asks for credit confirmation codes for the innovative educational program and student scholarship organization credits, a CGR Account ID for the contractor’s gross receipts tax credit, UCRNs for the media credit, and a credit certificate number for the jobs growth incentive credit.
For Part II, you need income and tax-liability amounts for Montana and the other state or country. The form refers full-year residents to federal Form 1040, line 9, and federal Schedule D, line 15. It refers part-year residents to Schedule II, lines 17 and 22.
Common mistakes
- Do not include net long-term capital gains in the ordinary-income entries on Part II, lines 1 and 3. The form handles net long-term capital gains separately.
- On Part II, lines 6, 8, 16, and 18, round the ratios to six decimal places and do not enter more than 1.000000.
- If you have multiple CGR accounts, mark the box on Part I, line 8.
- Include the supporting forms specifically requested next to the credits you report.
- For a carryforward from an expired or repealed credit on Part I, line 13, enter the tax credit code. The form directs you to see the instructions.
Questions people ask
Where do I report my total nonrefundable credits?
Add Part I, lines 1 through 13. Enter the total on Part I, line 14, and on Form 2, page 1, line 9.
Which credits are listed as refundable?
The adoption credit and unlocking public lands credit are listed as refundable. Add Part I, lines 15 and 16, and enter the total on line 17 and on Form 2, page 1, line 17.
How does Part II calculate the credit for taxes paid to another state or country?
It calculates separate credits for Montana ordinary income tax and Montana net long-term capital gains tax. Line 10 uses the smallest amount from lines 4, 7, and 9. Line 20 uses the smallest amount from lines 14, 17, and 19. Add lines 10 and 20 on line 21, then transfer that total to Part I, line 1.
Where do I report a carryforward from an expired or repealed tax credit?
Use Part I, line 13, and enter the tax credit code. The form says to see the instructions, but no instructions were provided with this text.