The Montana Form FID-3 is used by estates and trusts to report their Montana taxable income, calculate Montana income tax liability, and claim credits for taxes paid to other states. Estates or trusts that have federal Form 1041 filings must complete this form to reconcile federal and Montana-specific adjustments, deductions, and income allocations. Completing this form accurately ensures the fiduciary’s tax responsibility is properly reported, any Montana-specific adjustments are applied, and beneficiaries’ shares are correctly calculated for Montana income. This guide walks through each line of the form up to Schedule I, explaining how to enter the information, what supporting documentation may be needed, and how to calculate adjusted Montana income.

How to Complete Montana Form FID-3

Name of Estate or Trust: Enter the full legal name of the estate or trust.
Name and Title of Fiduciary: Enter the fiduciary’s full name and title (e.g., executor, trustee).
Current Mailing Address: Provide the fiduciary’s complete mailing address.
City / State / ZIP Code + 4: Enter city, state, and ZIP +4.
FEIN: Enter the federal employer identification number of the estate or trust.
Date Entity Created: Enter the date the estate or trust was established.
Schedules K-1 Included: Enter the number of Schedule K-1 forms included with this return.
Resident Beneficiaries: Enter the number of resident beneficiaries.
Nonresident Beneficiaries: Enter the number of nonresident beneficiaries.
Other Types of Beneficiaries: Enter the number of other beneficiaries.

Entity Type Section

Decedent’s Estate: Check if this is a decedent’s estate.
Simple Trust: Check if this is a simple trust.
Complex Trust: Check if this is a complex trust.
QSST: Check if this is a Qualified Subchapter S Trust.
ESBT: Check if this is an Electing Small Business Trust.
Grantor Type Trust: Check if this is a grantor type trust.
Bankruptcy Estate (Ch. 7): Check if the entity is a Chapter 7 bankruptcy estate.
Bankruptcy Estate (Ch. 11): Check if the entity is a Chapter 11 bankruptcy estate.
Pooled Income Fund: Check if applicable.
Qualified Disability Trust: Check if this is a qualified disability trust.
Qualified Funeral Trust: Check if applicable.
Other: Check and specify if none of the above.

Residency Status Section

Resident / Nonresident / Resident Part-Year: Mark the appropriate residency status for the estate or trust.
State Moved To / State Moved From: If a part-year resident, indicate the states.
Date of Change: Enter the effective date of the residency change.

Taxable Income Section (Page 1, Lines 1–9)

Line 1 – Federal Adjusted Total Income: Enter total income or loss from federal Form 1041, line 17.
Line 2 – Montana Adjustments: Enter Montana adjustments to federal total income from Schedule I, Column A, Line 3.
Line 3a – Federal Tentative Income Distribution Deduction: Enter based on distributable net income from Form 1041, Schedule B, Line 14.
Line 3b – Montana Adjustments to Distributable Net Income: Enter from Schedule I, Column B, Line 3.
Line 3c – Net Tax-Exempt Income Included on Line 3b: Enter amount.
Line 3 – Montana Income Distribution Deduction Based on Distributable Net Income: Add lines 3a and 3b, then subtract line 3c.
Line 4a – Federal Tentative Income Distribution Deduction: Enter based on distribution requirements from Form 1041, Schedule B, Line 13.
Line 4b – Montana Adjustments to Income Distribution Deduction: Enter from Schedule I, Column C, Line 3.
Line 4c – Net Tax-Exempt Income Included on Line 4b: Enter amount.
Line 4 – Montana Income Distribution Deduction Based on Requirements: Add lines 4a and 4b, then subtract line 4c.
Line 5 – Lesser of Line 3 or 4: Enter the lesser amount; this is the final Montana Income Distribution Deduction.
Line 6 – Montana Estate or Generation-Skipping Transfer Tax Deduction: Mark box if this deduction differs for Montana purposes.
Line 7 – Fiduciary Montana Adjusted Total Income: Add lines 1 and 2, then subtract lines 5 and 6.
Line 8 – Federal Exemption: Enter from Form 1041, line 21.
Line 9 – Fiduciary Montana Taxable Income: Subtract line 8 from line 7.

Credits and Payments Section (Page 2, Lines 10–31)

Line 10a – Total Montana Income Tax Withheld: Include amounts from federal Forms W-2 and 1099.
Line 10b – Withholding Allocated to Beneficiaries: Enter amount allocated.
Line 10 – Montana Income Tax Withheld: Subtract line 10b from 10a.
Line 11a – Montana Pass-Through Entity Withholding: Enter total from Montana Schedules K-1 (PTE), Part V, line 3c.
Line 11b – Pass-Through Withholding Allocated to Beneficiaries: Enter amount.
Line 11 – Net Pass-Through Withholding: Subtract 11b from 11a.
Line 12a – Montana Mineral Royalty Tax Withheld: Enter total from federal Forms 1099 or Montana Schedules K-1 (PTE), Part V, line 4.
Line 12b – Mineral Royalty Tax Allocated to Beneficiaries: Enter amount.
Line 12 – Net Mineral Royalty Tax: Subtract 12b from 12a.
Line 13a – Montana Pass-Through Entity Tax: Enter from Montana Schedules K-1 (PTE), Part V, line 1.
Line 13b – Pass-Through Tax Allocated to Beneficiaries: Enter amount.
Line 13 – Net Pass-Through Entity Tax: Subtract 13b from 13a.
Line 14 – 2025 Estimated Tax Payments: Enter payments made.
Line 15 – Overpayment Applied from 2024 Return: Enter amount applied.
Line 16 – Extension Payments: Enter amount.
Line 17 – Amended Return Payments: Enter payments from original filing if applicable.
Line 18 – Unlocking Public Lands Credit: Enter applicable amount.
Line 19 – Overpayments Applied to 2026: Enter if filing an amended return.
Line 20 – Total Payments and Refundable Credits: Add lines 10–18 and subtract line 19.
Line 21 – Tax Liability: Enter amount from page 3, line 19.
Line 22 – Tax Due: Subtract line 20 from line 21 if greater.
Line 23 – Tax Overpaid: Subtract line 21 from line 20 if greater.
Line 24 – Interest on Underpayment: Enter interest if applicable.
Line 25 – Late Filing / Payment Penalties: Enter total penalties.
Line 26 – Other Penalties: Enter other penalties.
Line 27 – Total Penalties and Interest: Add lines 24–26.
Line 28 – Total Tax Due: Add line 22 and 27, or subtract line 23 if less than line 27.
Line 29 – Overpayment: Subtract line 27 from 23 if greater.
Line 30 – Amount Applied to 2026 Estimated Taxes: Enter desired amount.
Line 31 – Refund: Subtract line 30 from line 29; this is your refund.

Schedule I – Adjustments To Everywhere Income And Montana Source Income

Line 1 – Total Additions: Enter total additions to federal income.
Line 2 – Total Subtractions: Enter total subtractions from federal income.
Line 3 – Total Adjustments to Everywhere Income: Add lines 1 and 2 to get net adjustments.
Line 4 – Total Additions to Montana Source Income: Enter total additions.
Line 5 – Total Subtractions from Montana Source Income: Enter total subtractions.
Line 6 – Total Montana Source Adjustments: Add lines 4 and 5 to get net adjustments to Montana source income.

Schedule II – Montana Source Income

Line 1 – Interest Income: Enter all interest income from Montana sources.
Line 2 – Dividends: Enter dividends received from Montana corporations or sources.
Line 3 – Business Income: Enter Montana-source business income allocated to the estate or trust.
Line 4 – Capital Gains / Losses: Report gains or losses from Montana-source capital transactions.
Line 5 – Rents and Royalties: Enter Montana-source rents and royalties.
Line 6 – Farm Income: Include Montana-source farm income.
Line 7 – Other Income: List any other income sourced in Montana.
Line 8 – Total Montana Source Income: Add lines 1 through 7.

Schedule III – Income Allocation To Beneficiaries

Line 1 – Resident Beneficiaries’ Share: Enter the total income allocated to Montana resident beneficiaries.
Line 2 – Nonresident Beneficiaries’ Share: Enter income allocated to nonresident beneficiaries.
Line 3 – Total Allocated Income: Add lines 1 and 2; must equal total fiduciary income.
Line 4 – Income Tax Withheld on Nonresident Share: Enter Montana withholding applied.

Schedule IV – Montana Tax Calculation

Line 1 – Fiduciary Montana Taxable Income: Enter from Form FID-3, line 9.
Line 2 – Resident Beneficiaries’ Taxable Income: Enter from Schedule III, line 1.
Line 3 – Nonresident Beneficiaries’ Taxable Income: Enter from Schedule III, line 2.
Line 4 – Montana Tax on Fiduciary Income: Calculate using Montana tax rates.
Line 5 – Montana Tax on Resident Beneficiaries: Apply Montana rates.
Line 6 – Montana Tax on Nonresident Beneficiaries: Apply rates and adjust for withholding.
Line 7 – Total Montana Tax: Add lines 4, 5, and 6.

Schedule V – Credits

Line 1 – Property Tax Credit: Enter amount allowed.
Line 2 – Credit for Taxes Paid to Other States: Enter allowable credits.
Line 3 – Energy Efficient / Renewable Energy Credit: Enter if applicable.
Line 4 – Historic Preservation Credit: Enter allowable amount.
Line 5 – Other Credits: List other Montana tax credits.
Line 6 – Total Credits: Sum lines 1 through 5.

Schedule VI – Payments

Line 1 – 2025 Estimated Tax Payments: Enter estimated payments for the tax year.
Line 2 – Overpayment Applied From 2024 Return: Enter any previous overpayment applied.
Line 3 – Extension Payments: Enter payments made for extension.
Line 4 – Amended Return Payments: Enter payments applied from prior filings.
Line 5 – Withholding from Beneficiaries’ K-1s: Enter total Montana withholding allocated.
Line 6 – Total Payments: Add lines 1 through 5.

Schedule K – Beneficiaries’ Allocation Summary

Line 1 – Beneficiary Name: Enter each beneficiary’s full legal name.
Line 2 – Address: Enter mailing address for each beneficiary.
Line 3 – SSN or FEIN: Enter Social Security Number (individual) or FEIN (entity).
Line 4 – Montana Source Income Allocated: Enter amount of Montana-source income allocated to the beneficiary.
Line 5 – Fiduciary Adjustments: Enter adjustments applied to the allocation.
Line 6 – Taxable Income Allocated: Add lines 4 and 5.
Line 7 – Montana Tax Withheld: Enter Montana tax withheld, if any.
Line 8 – Net Tax Due / Refund: Subtract withholding from allocated taxable income tax.

Repeat lines 1–8 for each beneficiary. Attach additional sheets if needed.

Final Notes

• Ensure all totals across Schedules I–VI and Schedule K match the amounts on the main Form FID-3.
• Double-check all Montana source income, allocations, credits, and payments.
• Attach supporting documentation such as federal Form 1041, K-1s, and Montana adjustments.
• Sign and date the main Form FID-3 before submission.

FAQs

Q: Who must file Form FID-3?
A: Estates and trusts with Montana-source income or Montana tax obligations.

Q: What is Schedule I used for?
A: To report adjustments to everywhere income and Montana-source income.

Q: How are beneficiaries’ shares reported?
A: Through Schedule III and Schedule K, showing allocations of Montana-source income.

Q: Can credits be applied to reduce tax?
A: Yes, Schedule V allows reporting of Montana tax credits to offset liability.

Q: What supporting documents should be included?
A: Federal Form 1041, Schedules K-1, and any Montana-specific adjustments.