ARM 42.15.301. WHO MUST FILE RETURNS

(1) The following persons must file an individual income tax return: (a) every resident who is required to file a federal income tax return; (b) every nonresident with Montana source income, including net losses, who is: (i) not eligible for the nonresident exclusion for temporary workers provided in 15-30-2106, MCA; or (ii) from a pass-through entity and the nonresident's share of the income is not included in a return filed under either 15-30-3312 or 15-30-3326, MCA; (c) an individual claiming an adjustment to federal taxable income if it results in Montana taxable income, as provided in 15-30-2602(1)(b), MCA; or (d) a Montana medical savings account holder who is a resident and required to report under ARM 42.15.602(3). (2) An individual not required to file a federal income tax return will still need to file a Montana individual income tax return in the following situations: (a) they are claiming a refundable tax credit such as the Montana earned income tax credit or adoption credit; or (b) they are requesting a withholding refund for overpaid withholding on Montana wages, withholding on wages earned by a nonresident military spouse, withholding on wages earned under the North Dakota reciprocity agreement, or mineral royalty withholding for an individual without a federal filing requirement. (3) The following persons must file a fiduciary return: (a) the estate of a decedent who was a resident must file a return if its gross income for the year from all sources exceeds its federal exemption allowance; (b) the estate of a decedent who was a nonresident must file a return if its gross income from all sources exceeds its federal exemption allowance, and the estate has any Montana source income; and (c) a nonbusiness trust which is not a grantor trust and is subject to the Montana Trust Code, Title 72, chapter 33, MCA, must file a return if its gross income for the year from all sources exceeds its exemption allowance. (4) A nonresident's distributive share of a pass-through entity's Montana source income is included in determining a nonresident's obligation to file a Montana individual income tax return. A nonresident whose only Montana source income for the tax year is from one or more partnerships or S corporations, each of which has elected to file a composite return and pay a composite tax on behalf of consenting participants, is not required to file an individual income tax return. A nonresident who has Montana source income from a partnership or S corporation who does not elect to file a composite return or who has any other Montana source income (for example, wages from employment in Montana or rental income from property located in Montana), is required to file a Montana individual income tax return if the gross income from all sources, adjusted as provided in this rule, exceeds the applicable limit.