Montana has no sales tax and a relatively favorable tax environment for businesses. The state has an individual income tax rate of 4.7% to 5.9% and a 6.75% corporate income tax rate.
Understanding the cost of apportionment in the state can help you accurately report earnings to the IRS and local government.
Corporations
- Filing Requirements. Every S corporation that has Montana source income must file a Form CLT-4S, Montana S Corporation and Composite Information Return, on or before the 15th day of the third month following the close of its annual accounting period.
- Allocation and Apportionment. Montana follows the double-weighted receipts factor in sourcing receipts from performance of services to the state.
Partnerships
Filing Requirements. Every partnership that has Montana source income must file a Form PR-1, Montana Partnership Information and Composite Tax Return, on or before the 15th day of the third month following the close of its annual accounting period.
Employees & individual filers
You must file a Montana Individual Income Tax return if you are a resident or part-year resident of Montana, or if you received Montana source income, and if your federal gross income, excluding unemployment compensation, meets the Montana filing threshold.
You should file a return if you had Montana tax withheld from your paycheck or if you pay estimated income tax, even if you aren’t required to file a return.
Ensuring Accurate Tax Filings
Consulting an expert CPA can help you keep a handle on different laws and tax implications.
Fusion CPA has a team of certified public accountants who are highly skilled in handling multi state taxes. As such, we’re positioned to help you take the stress out of tax season.
We can help you with a proactive tax strategy to save you time and money. Schedule a Discovery Call with one of our CPAs.
_______________________________________________________
This blog article does not provide legal, accounting, tax advice, or other professional services. Our content is based on current or proposed tax rules at the time of publishing. Older don’t always reflect tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog. We also disclaim the same in relation to use or interpretation of this information. You should not rely on the information on this website as being all-inclusive.
