Montana Form 2, Itemized Deductions Schedule, line 4a is reporting the amount from Form 1040, line 11a, instead of Form 1040, line 16 as expected. Form 1040, line 11a reports the current year federal income tax; line 16 reports all federal income tax withheld from Forms W-2 and 1099.
ProConnect Tax limits the MT deduction of federal income tax withheld and/or paid to the federal tax amount calculated on the current year 1040. When this limitation is applied to a return, you'll see the following suggestion:
- Federal income tax withheld and Federal estimated tax payments are being limited to federal taxes paid on the current year federal tax form. On Married Filing Separate Combined returns, the Federal tax used in the limitation is allocated between the spouses based upon their proportional share of Federal Adjusted Gross Income. Ref#51961
Refer to the 2020 Montana Form 2 Individual Income Tax Instructions for more information about line 4a on the Itemized Deductions Schedule.