How do I report state and local general sales tax deduction?
• 2008 and 2007 Montana Form 2, Schedule III “Montana Itemized Deductions”: Any general and local sales tax paid in 2008 or 2007 may be deducted in addition to the federal income tax deduction. Please report this deduction on Line 11 “Other Deductible Taxes” instead of including it with the federal income tax deduction on line 7f (2008) or line 7e (2007). Please keep a copy of all supporting documents regarding the general or local sales tax paid. • 2005 and 2006 Montana individual income tax returns: If applicable, you may file amended tax returns for the 2005 and/or 2006 tax year to reflect a deduction for state and local sales tax in addition to the federal income tax deduction. • None of the resort, accommodations or similar taxes collected in some communities in Montana qualifies as a general sales tax under the federal definitions and are not deductible.
