Current through Register Vol. 18, September 20, 2024
(1) Except as
provided in (2), a taxpayer is allowed a dependent exemption for each dependent
who receives over half of his or her total support from the taxpayer. This
support test must be implemented like the support test in 152(d)(1)(C) of the
Internal Revenue Code (IRC), and all related U.S. Treasury Department
regulations about qualifying relatives.
(2) A dependent exemption is not allowed for
an individual described in (1):
(a) who,
during the calendar year, has gross income of more than the exemption amount
allowed under
15-30-2114,
MCA; unless the individual is the taxpayer's "qualifying child," as defined in
section 152 of the IRC, and meets the support test for "qualifying child" under
152(c)(1)(D), of the IRC;
(b) who
makes a joint return with their spouse for the same tax year or for a tax year
that begins in the calendar year in which the tax year of the taxpayer begins;
or
(3) In lieu of the
dependent exemption described in (1), a taxpayer is allowed an exemption equal
in amount to twice the dependent exemption for a qualifying dependent child
with disability.
(a) A child, meaning an
individual whose relationship to the taxpayer conforms with the requirements in
152(C)(2) of the IRC, qualifies as a dependent child with disability for the
purpose of applying 15-30-214, MCA, if:
(i)
the child receives over half of his or her support from the taxpayer, as in
(1);
(ii) the taxpayer's home is
the dependent disabled child's principal place of abode, as determined by
152(c)(1)(B) of the IRC and related U.S. Treasury Department regulations;
and
(iii) a licensed physician has
certified that the dependent child has a permanent disability constituting 50
percent or more of the body as a whole.
(b) The taxpayer must provide the physician's
certification with the first tax return on which they claim the disabled child
exemption. If the taxpayer files electronically, and is unable to attach the
certification to the electronic filing, it must be mailed to:
Department of Revenue
P. O. Box 5805
Helena, MT 59604-5805.
An exemption for dependent child with disability may be
disallowed if the department has not received a copy of the physician's
certification.
(c) To the
extent the child continues to qualify as a dependent with disability, the
taxpayer does not need to provide documentation with succeeding
returns.
(d) The taxpayer must
inform the department, in writing, of any change in the child's eligibility for
this exemption, to be mailed to the address provided in (b). Any year the
taxpayer does not claim this exemption on the return would satisfy this written
obligation.
(e) In the instance
that a child was no longer eligible for at least one year, and regains
eligibility, the taxpayer must comply with the requirements in (b) with a new
certification for the year the child qualifies again.
(f) If, as of January 1, 2019, the taxpayer
has not joined the physician's certification with a prior year's return, and
the child has continuously been eligible, the taxpayer must keep the
certification in their records to be provided to the department upon
request.
(g) The dependent disabled
child exemption may be claimed for a qualifying disabled child of any
age.
AUTH:
15-30-2620,
MCA; IMP:
15-30-2114,
15-30-2115,
15-30-2116,
MCA
