Revision to Worksheet VI – Itemized Deduction Worksheet
(Non-allowable Itemized Deductions)
The Montana Department of Revenue has revised its Worksheet VI, also known as the Itemized Deduction Worksheet, effective March 16, 2007.
The department provides Worksheet VI for taxpayers to calculate the limitation on the itemized deductions that they are allowed to report for state purposes. For tax year 2006, the limitation applies to taxpayers whose Montana adjusted gross income is more than $150,500, or $75,250 per taxpayer for married couples filing separate returns.
The federal government began phasing out the limitation on itemized deductions beginning with the 2006 tax year, as part of the 2001 Economic Growth and Tax Relief Reconciliation Act. This change was also applicable for state purposes. Unfortunately, this change was overlooked when Worksheet VI was created for the 2006 tax year.
A revised Worksheet VI is now available by clicking here. In addition, the department is working with electronic filing software vendors to update Worksheet VI in their programs.
The department will adjust the worksheets of all taxpayers who have already filed and would benefit from this change. The taxpayer does not need to submit an amended tax return or any other information. If the change results in a refund due to the taxpayer, the department will issue the refund by no later than May 30, 2007.
If you have questions regarding this issue or need income tax assistance, please call (406) 444-6900.
