Does T/P file rental income Federal?

Does Alabama require income tax NO

Yes

Interesting conversation that you are having with yourself.  I sometimes talk to myself, but I never thought of having those conversations here.  Interesting concept.🤔

concept was to avoid those questions by answering up front. Thanks for taking your time to help.

T/P paid the $104 to not become a tax dodger.

The taxpayer owed it so good for him or her or them.

Will MT tax anything they can, if they find out about it?

Yes.

https://support.taxslayer.com/hc/en-us/articles/360015905531-What-are-Montana-s-Filing-Requirements-

I reviewed the web site on Montana does not apply because T/P filed nonresident

Well, it appears the link I provided might be the 2021 filing threshold, but notice it uses a low Federal filing limit. If you think the program is in error, you would have to describe what is wrong about it. Age of the person, filing status, Fed income, and MT sourced income (which would be taxable, if they meet the reporting level).

I found a better link:

https://montana.servicenowservices.com/citizen/kb?id=kb_article_view&sysparm_article=KB0014583

Understood BUT T/P is a Nonresident retired in Alabama. His passive income of the farm income is nontaxable by MT and the Pro Series Professional software, in my opinion, correctly programmed the Montana State. My problem is with Montana. The programmers in Pro Series are professional.

"My problem is with Montana. The programmers in Pro Series are professional."

Ha ha ha. Okay, then your title was misleading. Because Montana doesn't do programming. Just visit our DMV.

What does DMV program for Pro Series? Ha, Ha, Ha

Seriously T/P should not have to pay $104 for his passive income, net $2,521, in Montana

"I am preparing a letter of appeal to MT quoting Pro Series that nonresident passive income is not taxable to Montana only the resident state of T/P (Alabama)."

That's not what MT believes.

"Seriously T/P should not have to pay $104 for his passive income, net $2,521, in Montana"

Seriously, are you looking at the material at the link I provided? It seems the farm is in Montana = sourced in state. The MT limit for who needs to file, even as NR, is using their filing status and their Fed income for the minimum of whether their MT source income requires them to file in MT.

So far, you have not disputed anything in that paragraph. Just because they don't live here, is not an excuse.

"You must file a Montana Individual Income Tax return if:

• You were a resident or part-year resident of Montana, or
• You were a nonresident who received Montana source income, and
• Your federal gross income, excluding unemployment compensation, meets the Montana filing threshold."

• Filing Status	Under 65	65 and Older
  Single or Married Filing Separately	$5,090	$7,800
  Head of Household	$10,180	$12,890
  Married Filing Jointly	$10,180	Single spouse over 65: $12,890 Both spouses over 65: $15,600