MT Form 2

Filing Status:

The Montana filing status is calculated based on federal.  If the federal filing status is Joint, Crosslink will optimize the Montana filing status between 'Joint' and 'Separate on Combined Return' based on the amount of Spouse income.  If Spouse income exceeds the standard deduction plus the exemption amount, Montana filing status will be 'Separate on Combined Return'.  The filing status may be overridden on field MT019800.

Exemption Optimization:

When Montana filing status is 'Separate on Combined Return', exemptions for dependents are optimized between taxpayer and spouse based on income.  A higher exemption amount is allocated to the taxpayer with the most income.

Estimated Tax:

Montana estimated tax will be computed based on a protective estimate.  The estimated tax can be adjusted as necessary by making entries directly on the estimate worksheet.

Estimated Tax Penalty:

To calculate an underpayment of estimated tax, Form EST-P must be added.  Crosslink doesn't automatically calculate the penalty.

MT Form 2, Page 6, Itemized Deductions

Optimization:

When Montana filing status is 'Separate on Combined Return', certain itemized deductions are optimized between taxpayer and spouse based on income.  A higher deduction amount is allocated to the taxpayer with the most income.

Form 2, Itemized Deductions, Line 5 - Medical Insurance Premiums

Medical insurance premiums are calculated by making an entry of 'I' in the 'State Use' field (US07OC03) on Federal Schedule A.  Amounts allocable to the spouse must be entered in the spouse field, Column B.

Form 2, Itemized Deductions, Line 6 - Long-Term Care Insurance

Long-term care insurance is calculated by making an entry of 'L' in the 'State Use' field (US07OC03) on Federal Schedule A.  Amounts allocable to the spouse must be entered in the spouse field, Column B.