You may need to add additional items of income to your federal adjusted gross income in order to arrive at your Montana adjusted gross income. Complete Form 2, Schedule I to determine the amount of additions to enter.
Recovery of Federal Income Tax Deducted in 2018 If you received a federal income tax refund in 2019 from federal taxes you claimed as an itemized deduction on your 2018 Montana tax return, you may need to report a portion or all your federal refund as income on your Montana tax return
Other Recoveries of Amounts Deducted in Earlier Years that Reduced Montana Taxable Income. To the extent that an itemized deduction you claimed on one of your previous Montana returns reduced the amount of your Montana income tax liability, any subsequent refund of the amount deducted is considered income in the year the refund is received
Adjustment for Smaller Federal Estate and Trust Taxable Distribution. The Montana taxable distribution that you received from an estate or trust may be greater than your federal taxable distribution from the same estate or trust. If so, the difference is an addition to Federal Adjusted Gross Income and you report it on this line
Medical Savings Account If you made some nonqualified withdrawals from your account in 2019, report the amount here
First-time Home-Buyer Savings Account Nonqualified Withdrawals If you made nonqualified withdrawals from your account in 2019, report the amount here