Maintaining compliance with the reciprocal income tax agreement between Montana and North Dakota requires a clear understanding and careful handling of the Montana NR-1 Form. This document is essential for residents of North Dakota who earn income for personal or professional services in Montana, allowing them to claim an exemption from Montana income tax under specific conditions established since 1975. A critical aspect of this process is the accurate reporting of the taxable year, income details, and tax withholdings alongside employer information, ensuring that individuals are accurately reflecting their earnings and exemptions. For couples where both spouses qualify under the Montana - North Dakota Reciprocity Agreement, a joint affidavit is an option, simplifying the submission. However, complexities arise in situations where Montana income tax has been withheld, necessitating the filing of a Montana income tax return accompanied by the NR-1 Form and relevant income documentation. Interestingly, for those whose earnings are not subjected to Montana income tax, the streamlined process requires only the NR-1 Form. The availability of these forms and detailed instructions through the Montana Department of Revenue’s channels highlights the state’s efforts to facilitate taxpayer compliance while fostering interstate cooperation on tax matters.
| Question | Answer |
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| Form Name | Montana Form Nr 1 |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | nr on affidavit form, Reciprocity, excludible, exemption |
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MONTANA |
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2008 North Dakota Reciprocal Affidavit |
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Rev. |
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Instructions on back |
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Last Name (if joint affidavit, use first names and |
First Name and Middle Initial |
Social Security Number |
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middle initials of both) |
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Spouse’s Last Name |
Spouse’s First Name and Middle Initial |
Spouse’s Social Security Number |
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Address |
City |
State |
Zip Code |
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1.Enter the taxable year for which this affidavit is being submitted ______________________
2.Enter the amount of income that you received for personal or professional services rendered within Montana for which you claim exemption. $ ________________
3. |
Was Montana income tax withheld on the income reported on line 2? |
yes ____ |
no ____ |
4. |
Was federal income tax withheld on the income reported on line 2? |
yes ____ |
no ____ |
5.Enter the name and address of the employer(s) from whom you received the income reported on line 2. If you need additional space, use the reverse side of this form.
Name
Address
6. |
Was North Dakota your state of legal residence during the entire taxable year for which this affidavit is being submitted? |
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yes ___ |
no ____ |
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Are you filing a North Dakota individual income tax return reporting the income entered on line 2 above? |
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yes ___ |
no ____ |
If yes, submit a copy of the North Dakota tax return with your Montana tax return. |
8. |
Were you ever a Montana resident? |
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yes ___ |
no ____ |
If yes, enter the last year you were a Montana resident ______________ |
I swear that the above information is true and correct to the best of my knowledge and is submitted in good faith.
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_________________________________ |
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Your Signature is required |
Date |
Spouse’s Signature |
Date |
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(if filing a joint affidavit, both must sign) |
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When you file your Montana income tax return electronically, you represent that you have retained all documents required as a tax record and that you will provide a copy to the department upon request.
129
Form
General. Pursuant to statutory authority, Montana and North Dakota have entered into a reciprocal income tax agreement whereby neither state will tax residents of the other state on certain income from personal services. Effective with taxable years beginning on and after January 1, 1975, compensation which is subjected to withholding of federal income tax and is received for personal or professional services rendered within Montana by an individual who is a North Dakota resident is excluded from Montana adjusted gross income to the extent the income is reported on the individual’s North Dakota individual income tax return. In order to claim this exclusion you must file Affidavit Form
This form, Montana
Joint Affidavit. If both husband and wife have income which is exempt under the Montana - North Dakota Reciprocity Agreement, they may file a joint affidavit on Form
Montana Income Tax Withheld. If Montana income tax has been withheld by your employer, you must file a Montana individual income tax return (Form 2), even
though your income is exempt under the reciprocity agreement. In such case, Affidavit Form
Montana Income Tax Not Withheld. If Montana income tax was not withheld by your employer and all of your Montana income is excludible under the reciprocity agreement, you do not have to file a Montana income tax return (Form 2). In this case, you need file only Affidavit Form
How to Obtain Forms. Call (406)
mt.gov/revenue/.
If you have questions, please call us toll free at (866)