Thanks, but the spouse has no MT source income. The instructions say, "You and your spouse must use filing Status 2b if one spouse is a resident of Montana and the other spouse is a nonresident who has Montana source income."

2c is the appropriate filing status. You can use filing Status 2c when "You are a resident and your spouse is a nonresident who has no Montana source income".

I tried 2b anyways, and same results, all the income and deductions were in the taxpayer column. All my inputs only have MT on the MT source income.

Maybe it's a Lacerte issue since the other state is WA and has no income tax and thus just has the US designation. I can't figure out how to make just the spouse a nonresident.