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Beneficiary’s Instructions for Montana Schedule K-1

General Instructions

Montana Schedule K-1, Parts 3-5

A fiduciary of an estate or trust is required to provide

Part 3 – Montana Adjustments

a Montana Schedule K-1 to all beneficiaries. Montana

A-B. Montana Additions and Deductions

Schedule K-1 shows information about a beneficiary’s

share of income, gains, losses, deductions, credits and

To compute Montana income taxable to beneficiaries,

other items from an estate or trust. A beneficiary may need

certain items have to be added to or deducted from income

this information to complete the appropriate Montana tax

reported for federal income tax purposes. Any amounts

return.

listed are the beneficiary’s distributive share of Montana

additions and deductions. A detailed schedule is required to

Partnership or corporation beneficiary. If you are a

be included. The form shows a partial list.

corporation, partnership, or limited liability company, the

Part 4 – Beneficiary’s Share of Montana Source Income

Montana Schedule K-1 shows your share of Montana

source income and Montana statutory adjustments from

(Loss)

the estate or trust that may affect the preparation of your

If you are a resident, nonresident or part-year resident

Montana tax return.

beneficiary, you will need this information to file a Montana

Resident individual, estate or trust beneficiary. If you

tax return. If you are a corporation or pass-through entity,

are a Montana resident individual, estate, or trust, your

you may need this information to report your Montana

entire share of the estate’s or trust’s income, gains, losses

source income. Your share of the estate’s or trust’s

and deductions that is includable in your federal taxable

distributed Montana source income, gains, losses and

income is Montana source income. Montana Schedule K-1

other additions to income that you need to report on your

shows your share of Montana source income and Montana

Montana tax return are shown in Part 4.

statutory adjustments from the estate or trust that may

Part 5 – Supplemental Information

affect the preparation of your Montana tax return.

Montana mineral royalty tax withheld. If the estate or

Nonresident or part-year resident individual, estate,

trust received royalty payments subject to withholding

or trust beneficiary. If you are a nonresident or part-

and distributed the mineral royalty tax withheld to the

year resident individual, estate, or trust, the amount of

beneficiary, the amount distributed to the beneficiary is

your share of the estate’s or trust’s income, gains, losses

listed.

and deductions having their source in Montana is used to

determine your Montana tax liability. Your share of Montana

Other Information. Supplemental information which could

source income and Montana statutory adjustments are

result in adjustments to your Montana tax return are listed

reported on the Montana Schedule K-1. You will need a

on this line. If all of the supplemental information could

Montana Schedule K-1 to file a Montana tax return.

not be listed on this line, the estate or trust should provide

you with a statement showing the additional information.

Amended Schedule K-1. If you received an amended

Additional information includes income tax paid on behalf

Montana Schedule K-1 from the fiduciary, you may need to

of beneficiaries and allocated items that you may be able

file an amended Montana tax return to report the changes

to use to calculate a tax credit. An example of an item

in income, gains, losses and deductions.

that can be used to calculate a tax credit is a contribution

made by an estate or trust that qualifies for a qualified

endowment credit. A portion of a contribution that is not

used to calculate a credit against the estate or trust’s

liability may be allocated to you. If you receive a portion of

this contribution, the amount will be reported on this line.

Form Clt-4s And Pr-1 Draft - Montana Schedule K-1 - Partner'S/shareholder'S Share Of Income (Loss), Deductions, Credits, Etc. - 2016, Form Fid-3 Draft - Montana Schedule K-1 - Beneficiary'S Share Of Income (Loss), Deductions, Credits, Etc. - 2016 Page 4

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