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 January 20, 2009.
Form 2M, Worksheet VI – Itemized Deduction Worksheet
- Line 10 has been deleted.
- Line 11 has been renamed “Line 10. Divide the amount on line 9 by 3 and enter the result here and on Form 2M, Schedule I, line 30. This is the amount of your itemized deductions not allowed.”
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 2008, the limitation applies to taxpayers whose Montana adjusted gross income is more than $159,950, or $79,975 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. Beginning in 2008, the amount by which these itemized deductions are reduced is only 1/3 of the amount of the reduction that otherwise would have applied. Unfortunately, this change was overlooked when Worksheet VI was created for the 2008 tax year.
A revised Worksheet VI is now available. In addition, the department is working with electronic filing software vendors to update Worksheet VI in their programs.
If you have questions regarding this issue or need income tax assistance, please call toll-free (866) 859-2254 (in Helena, 444-6900).
