If you are filing as a full-year or part-year resident and paid income tax to another state or country, use Schedule VI to determine the amount of your credit for income tax paid to another state or country that you may be able to report on your Montana tax return. Specific information that will help complete selected lines follows. Also, please see the instructions for Form 2, Schedule V, line 1 (credit for an income tax liability paid to another state or country) on
page 31, as well as information provided on Schedule VI.
Enter the total income sourced and taxable to the other state that is also included in your Montana taxable income. This amount may differ from what you calculated as your total taxable income on the other state’s form. For example, you worked in both Utah and Montana during the year and
your total wages was $50,000, with $10,000 earned in Utah. Enter $10,000 on line 1 even if Utah includes all your wages in total taxable income on its return.
Do not include income on this line that is not taxable in Montana. For example, if a portion of your total wages came from $2,000 you earned in tips in Utah and you included that portion in the subtraction you claimed on Schedule II, line 14 on your Montana return, then do not report that income on Schedule VI, line 1.
Enter the total income sourced and taxable to the other state, including income not shown as taxable income on your Montana return. Examples of this include some tribal income or tips which may not be taxable in Montana. Similar to the amount reported on line 1, this may also differ from what you calculated as your total taxable income on the other state’s form.
Enter the actual tax liability paid by you or on your behalf to the other state. This amount comes from either an individual income tax return you filed or a composite tax return filed on your behalf by a partnership or S corporation.
Please note: Beginning with the 2014 tax year, the credit calculation previously made on Schedule VII is now made on Schedule VI.