WMRE: Montana Working Military Retirement and Survivor Benefit Exemption (Form WMRE) (Revision)
Montana · Montana DOR · Used for tax years 2024, 2025, 2026
Form WMRE calculates the military retirement income or military survivor benefits you can exempt from Montana taxable income. It reports residency information and the income used to calculate the exemption and is attached to Montana Form 2.
Who files this form
Use Form WMRE if you qualify for and want to claim Montana’s working military retirement or military survivor benefit exemption. Attach it to your Montana Individual Income Tax Form (Form 2).
You must be a military retiree or a beneficiary receiving qualifying military survivor benefits and meet either residency condition:
- You became a Montana resident after June 30, 2023.
- You were a Montana resident before July 1, 2023, and began receiving military retirement income or survivor benefits while a Montana resident.
If you became a resident before July 1, 2023, but began receiving these payments before becoming a Montana resident, you do not qualify. Retirees or beneficiaries who become nonresidents after being Montana residents are also ineligible.
Military retirees must have Montana source income from working a job, running a business, or operating a farm. Qualifying retirement income must be for service in the U.S. Armed Forces, Army National Guard, Air National Guard, or a U.S. Reserve Component.
Qualifying survivor benefits must be paid under the U.S. Department of Defense’s Survivor Benefit Plan. Death benefits do not qualify.
What you'll need
Have the following forms and information available to complete Form WMRE:
- Montana Form 2: Attach Form WMRE to this return to claim the exemption.
- Taxpayer information: Name, Social Security number, and the first tax year the exemption was taken.
- Residency information: The date you became a Montana resident. If you became a resident before July 1, 2023, the form also asks when you began receiving military retirement income or survivor benefits. If you have always been a Montana resident, use your birthdate as your residency date.
- Form 1099-R: The instructions identify qualifying retirement income and survivor benefits as amounts in box 2a with code 7 in box 7. For survivor benefits, use the form from the Defense Finance and Accounting Service (DFAS).
- For military retirees: Form 1040, line 1z, for wages, and Schedule 1, lines 3, 5, and 11, as applicable, for business, partnership or S corporation, and farming income.
Part-year residents need the qualifying retirement income or survivor benefits received while Montana residents, along with applicable Montana source earned income for that period.
How to file
- Enter your taxpayer information and mark either Military Retiree or Beneficiary Receiving Military Survivor Benefits.
- Complete Part I for residency information.
- Complete Part II for military retirement income or Part III for survivor benefits.
- Enter the exemption from Part II, line 8, or Part III, line 2, on Form 2, Schedule I, Part I, line 13.
- Attach a copy of Form WMRE to Form 2.
If you file jointly and both spouses qualify, complete only one Form WMRE. Use the name and Social Security number of the taxpayer listed first on Form 2, page 1.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Leaving out Form WMRE: You must attach a copy to Form 2 to claim the exemption.
- Overlooking the residency restriction: If you became a resident before July 1, 2023, and began receiving the payments before becoming a Montana resident, the form tells you to stop. You do not qualify.
- Claiming the retiree exemption without qualifying work income: A resident military retiree with no Montana source income from a job, business, or farm does not qualify.
- Including death benefits: Do not include death benefits reported on Form 1099-R with code 4 in box 7. They do not qualify.
- Entering negative amounts on Part II, lines 3 through 5: Enter 0 when the applicable income is zero or less.
- Completing separate forms when both spouses qualify on a joint return: The instructions say to complete only one form.
Questions people ask
How much military retirement income can I exempt?
The exemption is the lesser of 50% of your taxable military retirement income or the total qualifying Montana source income entered on Part II, lines 2 through 5. Those lines cover wages, business income, partnership and S corporation income, and farming income.
Do survivor benefits use the same work-income limit?
No. Qualifying beneficiaries can exempt 50% of their taxable military survivor benefits under the U.S. Department of Defense’s Survivor Benefit Plan. Death benefits do not qualify.
How long can I claim the exemption?
The exemption can be claimed for only five consecutive years after meeting the eligibility requirements. For eligible retirees or beneficiaries who were residents before July 1, 2023, that period begins with tax year 2024 and ends with tax year 2028.
What if I do not know my exact Montana residency date?
If you moved from another state before July 1, 2023, the instructions generally use the residency date reported on your first Montana Form 2. If you do not have that date, you may use an approximation, such as the date you obtained a Montana driver’s license or purchased a Montana residence. If you have always been a Montana resident, enter your birthdate.
Where can I ask questions about this form?
Call (406) 444-6900, or use Montana Relay at 711 for people with hearing impairments.