The Montana NR-1 form is an affidavit used by North Dakota residents to claim exemption from Montana income tax on certain income earned from personal services. This form helps ensure that individuals are not taxed by both states on the same income. To successfully complete the NR-1, specific information about income, residency, and tax withholdings must be provided.
The Montana NR-1 form serves as a vital document for individuals who are residents of North Dakota but have earned income from personal or professional services in Montana. This form is essential for claiming an exemption from Montana income tax under the reciprocal income tax agreement between the two states. When filling out the NR-1, individuals must provide personal details, including names, Social Security numbers, and addresses. It also requires information about the taxable year and the amount of income earned in Montana. Additionally, filers must indicate whether any Montana or federal income tax was withheld from their earnings. For those who qualify, the NR-1 allows for joint filing if both spouses have exempt income. However, if Montana income tax has been withheld, a separate Montana income tax return must still be filed, along with the NR-1 and relevant documentation from North Dakota. Understanding the requirements and implications of the NR-1 is crucial for ensuring compliance with tax regulations while maximizing potential tax benefits.
MONTANA
NR-1
2008 North Dakota Reciprocal Affidavit
Rev. 10-08
Instructions on back
Last Name (if joint affidavit, use first names and
First Name and Middle Initial
Social Security Number
middle initials of both)
Spouse’s Last Name
Spouse’s First Name and Middle Initial
Spouse’s Social Security Number
Address
City
State
Zip Code
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?
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
6.
Was North Dakota your state of legal residence during the entire taxable year for which this affidavit is being submitted?
yes ___
7.
Are you filing a North Dakota individual income tax return reporting the income entered on line 2 above?
If yes, submit a copy of the North Dakota tax return with your Montana tax return.
8.
Were you ever a Montana resident?
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.
__________________________________
____________
_________________________________
___________
Your Signature is required
Date
Spouse’s Signature
(if filing a joint affidavit, both must sign)
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 NR-1 Instructions
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 NR-1.
This form, Montana W-2’s and a copy of your North Dakota tax return must be submitted with your Montana tax return.
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 NR-1.
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 NR-1, Montana wage and tax statements and a copy of your North Dakota income tax return must be attached to your Montana tax return. Also, you may want to file Form NR-2 (Employee’s Certificate of North Dakota Residence) with your employer to stop withholding of Montana Income Tax on such exempt income.
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 NR-1.
How to Obtain Forms. Call (406) 444-6900 or mail requests to the Montana Department of Revenue, P.O. Box 5805, Helena, MT 59604-5805. In addition you may download our forms and instructions at
mt.gov/revenue/.
If you have questions, please call us toll free at (866) 859-2254 (in Helena, 444-6900). *
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