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Screen MTA - Montana Itemized Deductions (1040)

Overview

Use this screen to complete Form 2, Page 7. If information transferred from UltraTax/1040 does not require additional data or coding, UltraTax/1040-MT shows it on the form only, not in the input screen.

General Information

Use this section to enter general information to complete Form 2.
UltraTax CS optimizes between itemized and standard deductions. UltraTax CS also provides a default method and force methods of itemizing deductions depending on the code you choose. If you enter a code in this field and the optimal filing status is joint, your choice does not affect the calculation of joint deductions. If this field is blank and UltraTax CS determines that itemized deductions produce the lower tax, Form 2 allocates itemized deductions according to the default method used in code
2
, explained in the following table. Use this field to override UltraTax CS calculation by entering the desired code from the table that follows:
Code
Description
Form 2, Page 2
Form 2, Page 7
1
Use standard deduction
UltraTax CS disregards any itemized deductions transferred from federal data entry and any entries in this section of this input screen.
Form 2 Page 7 calculates, but does not print.
2
Itemize. (Divide, if necessary, allocating deductions to higher AGI.) This is the default option.
If the optimal filing status is
3
, deductions (see line numbers affected) are allocated to the taxpayer with the higher AGI until equalization occurs, at which time any remaining deductions are divided according to
T/S/J
 codes entered for those items.
Lines 4a, 4b, 4c, and 4d as well as lines 11, 12, 13, 14, 15, 16, and 24 are allocated to the higher AGI. All other lines (except line 22, which is calculated 50/50 on the supporting worksheet) are always divided by
T/S/J
 codes or allocated according to forced amounts entered for those items. This is the method UltraTax CS uses to compare to the standard deduction.
3
Itemize. (Divide, if necessary, using T/S/J codes entered at the federal level.)
If the optimal filing status is
3
, UltraTax CS divides items according to
T/S/J
 codes entered for those items. A blank code always defaults to taxpayer and code
J
 splits the amount 50/50.
This option gives full control of all itemized deduction amounts except line 22, which is always divided 50/50.
4
Itemize. (Divide, if necessary, using percent entered in the
Taxpayer percentage for code 4
 field for taxpayer.)
If the optimal filing status is
3
, UltraTax CS allocates amounts to the taxpayer using the percent entered in the
Taxpayer percentage for code 4
 field. The remainder is allocated to the spouse.
Lines 4a, 4b, 4c, and 4d as well as lines 11, 12, 13, 14, 15, 16, and 24 are allocated to the higher AGI. All other lines (except line 22 which is calculated 50/50 on the supporting worksheet) are always divided by
T/S/J
 codes or allocated according to forced amounts entered for those items. This is the method UltraTax CS uses to compare to the standard deduction.
If you entered code
4
 in the
Itemized or standard deduction
 (
Force)
 field, enter the percent of those amounts affected (see table for affected line items) that should be allocated to the taxpayer. The remainder is allocated to the spouse. In the event that the optimal filing status is joint, the entry made in this field does not affect the calculation result of Form 2.

Montana Deductions

Use this section to enter Montana specific information.
Enter amounts to be included as part of the Montana itemized investment interest worksheet if the percentage allocation based on investment interest is not the correct balance of expense for taxpayer / spouse when filing separately.
Montana investment interest income (line 6 of the Investment Interest Worksheet) is composed of Federal investment income, plus Montana Additions Schedule (lines 3 and 4) minus adjustments made on Montana Subtractions Schedule (lines 2,3,5, 22 and 27). Enter amounts if other adjustments from Additions Schedule or Subtractions Schedule are needed.
Enter amounts to be included as part of the Montana itemized deductions.
Entries in these fields are used to calculate Form 2441M. The amount calculated on Form 2441M appears as an itemized deduction on Form 2. The federal amounts are used for the calculation if no entries are detected in the state amount.

Married Filing Separate on Same Form

Use this section to complete the schedule of Montana itemized deductions when apportioning items to the taxpayer and spouse at the state level. All fields in this section are force values for the corresponding form fields. You may need to adjust the amounts allocated to the taxpayer and spouse if the Montana filing status is separate.
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