Question

I have to file non resident for the state of Montana because I own a rental property there. Why was my Fed AGi (W-2 wages) earned in another state counted as income in MT

Forum|Forum|7 years ago
June 1, 2019
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TurboTax Self Employed Online

Employee

Montana is not taxing all of your income, but all of your income appears on the return to determine Montana tax. Montana will pretend that all of your income is taxable, calculate the tax on that amount, and then prorate your tax to the amount of income actually derived from Montana. Although on the return it will look like all of the income is being taxed, it is actually only the portion of income actually earned in Montana that is being taxed in Montana.

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