Senior Interest Income Exclusion
Revision to Form 2, Schedule II, Line 12 and Form 2M, Line 30
Certain federally exempt interest income may now be included in the interest exclusion allowed for taxpayers 65 years of age or older in determining Montana adjusted gross income. This change was part of an amendment to the Administrative Rules of Montana (ARM, 42.15.215), and applies to Form 2, Schedule II, line 12 and Form 2M, line 30.
According to the original instructions for these forms, a single taxpayer can exempt up to $800 of the interest income that is reported in the “federal adjusted gross income.” Now, all references to “federal adjusted gross income” have been changed to “Montana adjusted gross income.” This change is effective for tax years 2005 and later.
Income tax returns of all taxpayers who have already filed will be automatically adjusted. Taxpayers do not need to amend their tax returns or provide any additional information. If the adjustment results in a tax overpayment, a refund will be issued by August 31, 2009.
In addition, the department is working with electronic filing software vendors to update the instructions in their programs.
If you have questions regarding this issue or need income tax assistance, please call toll-free 1-866-859-2254 (in Helena, 444-6900).
