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2011 Montana Individual Income Tax Form 2M Worksheets

Worksheet IV - Partial Pension and Annuity Income Exemption

If your federal adjusted gross income from Form 2M, line 21 is $33,250 ($35,130 if ﬁ ling a joint return) or more, stop here. You are not entitled to this exemption. If

your federal adjusted gross income is less than this amount, you may be entitled to an exemption on all or part of the ﬁ rst $3,760 of your reported taxable pension

and annuity income (Form 2M, line 11b) or IRA distributions not considered premature for federal income tax purposes (Form 2M, line 10b). Complete Worksheet

IV to determine the exemption amount. Please see the instructions on page 4 for more information.

Early distributions that required payment of the federal 5% or 10% additional tax do not qualify. Subtract any nonqualifying distribution(s) from Form 2M, line 10b

before reporting amounts on this worksheet.

If you receive Tier II Railroad Retirement beneﬁ ts, see the instructions for Form 2M, line 34 on page 6.

1. Enter your federal adjusted gross income from Form 2M, line 21 here .............................................................................................1.

2. Federal adjusted gross income limitation amount .............................................................................................................................2.

$31,370

If line 1 is smaller than line 2, enter on Form 2M, line 29, the smaller of your pension and annuity income, or $3,760 for each

person who has pension and annuity income. Stop here; do not complete the remainder of this worksheet.

3. If line 1 is larger than line 2, subtract line 2 from line 1 and enter the result here .............................................................................3.

4. Fill out only one of the following. If your ﬁ ling status is:

a. Single or head of household. Enter the smaller of your pension and annuity income or $3,760 .................................................4a.

b. Joint. Enter the smaller of each spouse’s taxable pension and annuity income or $3,760 in the following space:

Spouse 1

Spouse 2

Add together Spouse 1 and Spouse 2; enter the total here ............................................................................................................4b.

5. Multiply the amount on line 3 by 2 and enter the result here .............................................................................................................5.

6. Pension and annuity exemption. Subtract line 5 from line 4a or 4b, whichever applies. If the result is zero or negative, you are

not eligible for the pension and annuity exemption. If the number is positive, enter the result here and on Form 2M, line 29.

This is your partial pension and annuity exemption. ...................................................................................................................6.

Worksheet V - Standard Deduction

1. Enter your Montana adjusted gross income from Form 2M, line 38 here ..........................................................................................1.

2. Multiply the amount on line 1 by 20% (0.20) and enter the result here .............................................................................................2.

3. Enter here the amount below that corresponds to your ﬁ ling status ..................................................................................................3.

If your ﬁ ling status is single (Form 2M ﬁ ling status 1) enter $4,110. This is your maximum standard deduction.

If your ﬁ ling status is joint or head of household (Form 2M ﬁ ling status 2 or 3) enter $8,220. This is your maximum standard

deduction.

4. Enter here the amount from line 2 or 3, whichever is smaller ...........................................................................................................4.

5. Enter here the amount below that corresponds to your ﬁ ling status ..................................................................................................5.

If your ﬁ ling status is single (Form 2M ﬁ ling status 1) enter $1,820. This is your minimum standard deduction.

If your ﬁ ling status is joint or head of household (Form 2M ﬁ ling status 2 or 3) enter $3,640. This is your minimum standard

deduction.

6. Enter here and on Form 2M, line 39 the amount from line 4 or 5, whichever is larger. This is your standard deduction. ............6.

Worksheet VI - Qualiﬁ ed Mortgage Insurance Premiums

If you have completed the Qualiﬁ ed Mortgage Insurance Premiums Deduction Worksheet for your federal return, you do not need to complete this worksheet. You

are allowed the same deduction. If you did not complete the federal worksheet, use this worksheet to calculate the amount you are allowed to deduct.

1. Enter the total premiums you paid in 2011 for qualiﬁ ed mortgage insurance for a contract issued after December 31, 2006. .........1.

2. Enter your federal adjusted gross income from Form 2M, line 21 ............................................................. 2.

3. Enter $100,000 .......................................................................................................................................... 3.

4. Is the amount on line 2 more than the amount on line 3?



No. Your deduction is not limited. Enter the amount from line 1 above on Form 2M, Schedule I,

line 14.



Yes. Subtract line 3 from line 2. If the result is not a multiple of $1,000, increase it to the next

multiple of $1,000. For example, increase $425 to $1,000; increase $2,025 to $3,000 ............ 4.

5. Divide line 4 by $10,000. Enter the result as a decimal. If the result is 1.0 or more, enter 1.0. .........................................................5.

6. Multiply line 1 by line 5 and enter the result here ..............................................................................................................................6.

7. Subtract line 6 from line 1. Enter the result here and on Form 2M, Schedule I, line 14. This is your qualiﬁ ed mortgage

insurance premiums deduction. ....................................................................................................................................................7.

Instructions For Form 2m - Individual Income Tax Forms And Instructions (Includes Form 2ec) - 2011 Page 28

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