How does Montana tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Montana.
• If you're considered a full-year or part-year resident of Montana, you'll be taxed on all income earned from all Montana sources during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Montana.
• Montana taxes income earned for personal services performed while in Montana (even if you're a nonresident). This includes remote work for an employer or clients based outside Montana if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your Montana resident return for any income required to be reported in multiple states.
3. My employer was based in Montana.
• If your employer was based in Montana, they may have withheld Montana taxes from your wages as shown on your W-2. However, as long as you didn't live or work in Montana, you will not owe Montana taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold Montana taxes and you were a nonresident of Montana, you probably don't need to file a Montana return at all unless you otherwise have a Montana nonresident filing requirement.

If your wages were minimal and you didn't do any other business in Montana, it's possible you will be exempt from filing regardless of residency. See the Montana Form 2 instructions for more information.