Do I need to report my federal income on my Montana state tax return?

Yes, you are required to report your federal income on your Montana state tax return. Montana follows a "federal starting point" approach for determining state taxable income. This means that your federal income serves as the starting point for calculating your Montana state taxable income. You will need to reference your federal tax return to determine various income sources, deductions, and exemptions, which then get adjusted based on Montana-specific laws and regulations. It is important to accurately report your federal income as failing to do so can result in penalties and interest. Detailed instructions and forms can be found on the Montana Department of Revenue's website to help you accurately report your federal income on your state tax return.