Montana State Tax Deductions - 2012, 2013

2013 Montana Income Tax Deductions

	Montana Standard Deduction
	Montana Personal Exemption
	Montana Dependent Deduction

Montana income tax deductions are above-the-line expenses that can be deducted from your gross income before you calculate your taxable income.

By carefully choosing your deductions in order to minimize your taxable income, you can ensure that you get the largest possible refund when you file your Montana and Federal income taxes.

Montana supports many of the same deductions as the IRS does for your federal income tax return. You may be able to reuse many of your Federal income tax deductions, including any itemized deductions from your Federal 1040 Schedule A.

Montana may have different rules or cut-offs for certain deductions, so you should still double check to ensure that your deductions are permitted under Montana tax law. For more information about the Montana income tax, see the main Montana income tax page.

Montana Income Tax Deductions Table
$3,990.00	$7,980.00	Montana Standard Deduction The Montana standard deduction is $3,990.00 for individuals and $7,980.00 for married couples filing jointly. The standard deduction may be chosen instead of filing an itemized deduction on your Montana tax return. You should only file an itemized deduction you have enough qualified expenses to receive a larger income tax deduction.
$2,130.00	$2,130.00	Montana Personal Exemption Montana's personal income tax exemptions include a personal exemption of $2,130.00 for single individuals and $2,130.00 for couples filing jointly. You can deduct one single exemption from your gross income if you are responsible for supporting yourself financially. You may not, however, claim a personal exemption if someone else has declared you as a dependent on their tax return.
$2,130.00		Montana Dependent Deduction Montana has a dependent exemption of $2,130.00. You may claim one dependent examption for each of the children, relatives, or others who live with and are supported by you as described § 152 of the IRC (Internal Revenue Code). Children claimed as dependants must be age 18 or younger, or a student age 23 or younger § 152(c)(3).
		Montana Itemized Deductions Montana closely follows Federal rules regarding itemized deductions, so you should be able to reuse your Federal itemization with your Montana income tax return. Montana may still have state-specific rules for certain deductions, so be sure to double-check your itemization before you file. A variety of expenses can be itemized as deductions on your Montana tax return. Here's a list of some of the most popular itemized deductions. Business Deductions - Qualifying business expenses, business losses, and losses due to theft or depreciation may be itemized and deducted. Education and Tuition Deduction - If you paid tuition to an accredited college or university, you can deduct some or all of the tuition and fees you paid. You cannot deduct housing, food, or other secondary expenses, but you may deduct interest accrued on student loans. Property Tax Deduction - Many states allow you to deduct any property tax paid to a county or municipality from your gross income. Mortgage Interest Deduction - If you have a mortgage on a first or second home, you may deduct mortgage interest paid as defined in 26 U.S.C. § 163(h). Self-Employment Deductions - If you pay both the employee and the employer's half of the payroll tax, you may deduct the employer's half from your gross income. This deduction generally applies to individuals who are self-employed or small business owners. IRA Contribution Deduction - You can deduct a limited contribution to your qualifying Individual Retirement Account every year. The deduction limits for 2012 are $5,000 per year for individuals under 50, and $6,000 per year for individuals 50 or over. Charitable Donations - Donations to qualifying charities or nonprofit organizations are 100% tax deductible, up to 50% of your gross income. Medical Deductions - You can deduct up to 7.5% of your out-of-pocket medical and dental expenses. Self employed individuals may also deduct premiums for qualifying health insurance plans.

Visit the Montana income tax page for details on Montana's income tax. If you would like to learn about the income tax in other states, visit our listing of income taxes by state.

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