Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.17 - WITHHOLDING AND ESTIMATED TAX PAYMENTS
Subchapter 42.17.3 - Estimated Tax Payments
Rule 42.17.310 - DETERMINATION OF TAX LIABILITY - STATUS CHANGE FROM JOINT TO SEPARATE
Current through Register Vol. 6, March 22, 2024
(1) Taxpayers who file separate returns on separate forms for the current period and who filed a joint return for the preceding tax year must compute their prior year's estimated tax liability as follows:
Example: Husband and wife file a joint return for the calendar year one showing taxable income of $50,000 and a tax of $3,556. Of the taxable income, $30,000 was attributable to the husband and $20,000 to the wife. Husband and wife filed separate returns on separate forms for calendar year two. The tax shown on the return for the preceding taxable year, for purposes of determining if interest is owed on an underpayment, is determined as follows:
Taxable income of husband for year one: $30,000
Tax on $30,000 (on basis of separate return): $ 1,712
Taxable income of wife for year one: $20,000
Tax on $20,000 (on basis of separate return): $ 934
Aggregate tax of husband and wife (on basis of separate returns): $ 2,646
Portion of year one tax shown on joint return attributable to husband ($1,712/$2,646 X $3,556): $ 2,301
Portion of year one tax shown on joint return attributable to wife ($934/$2,646 X $3,556): $ 1,255
15-30-2620, MCA; IMP, 15-30-2512, MCA;