Hi,

Montana is one of the states whose unemployment calculation was updated today. The federal UCE amount is added back on Form 2, page 4 (additions schedule), line 14. This should eliminate the double-dip issue. 

- Rebecca

Here's what you want to confirm:

Unemployment compensation is never taxable in Montana. As a result:

• Taxpayers who have filed their Form 2 as of March 12, 2021 should not amend their Montana returns to report this new federal exclusion of unemployment compensation if it was already excluded on Montana Form 2.
• Taxpayers filing after March 12, 2021, must follow the revised instructions for the lines below to exclude all unemployment compensation from Montana income tax.

Instructions for Montana taxpayers filing after March 12, 2021:

Schedule 1, line 8 – Other Income

Enter the amount from Form 1040, Schedule 1, line 8, including the federal exclusion of unemployment compensation.

Additions Schedule, line 14 – Other Additions.

In addition to other Montana additions reported on this line, enter the total amount of the federal exclusion of your unemployment compensation reported on Schedule 1, line 8. Enter “UCE” in the specification box.

Subtractions Schedule, line 7 – Unemployment Compensation

Enter the unemployment compensation from Schedule 1, line 7. Do not subtract the federal exclusion of unemployment compensation from this line.