42.15.402    PERSONAL EXEMPTIONS

(1) Each taxpayer is allowed one personal exemption for himself or herself. If the taxpayer is age 65 or older by the close of their tax year, they are entitled to an additional personal exemption. If the taxpayer is blind, as provided in 15-30-2114, MCA, at the close of their tax year, they are entitled to an additional personal exemption. The additional exemptions are cumulative and a taxpayer who is at least 65 years old and blind by the close of the tax year is allowed three personal exemptions.

(2) The following provisions apply to the personal exemptions of married persons:

(a) a married taxpayer filing a separate return whose spouse, for the calendar year in which the tax year of the taxpayer begins, has no gross income and is not a dependent of another taxpayer, is allowed the following additional personal exemptions:

(i) one additional exemption for their spouse;

(ii) another additional exemption if their spouse is 65 years or older at the close of the taxpayer's tax year; and

(iii) another additional exemption if their spouse is blind at the close the taxpayer's tax year or, if the spouse dies before the end of the tax year, is blind at the spouse's date of death;

(b) as provided in (1), married taxpayers filing a joint return are allowed two personal exemptions in computing their joint taxable income; and

(c) if a joint return is made by married taxpayers, no other person may claim an exemption for either spouse even if the spouse is the other person's dependent for whom a dependent exemption would otherwise be allowed as provided in ARM 42.15.403.

(3) An individual attains the age of 65 on the first moment of the day preceding their 65th birthday. Accordingly, a person whose birthday falls on January 1 attains the age of 65 on December 31 of the immediately preceding calendar year.

(4) The amount allowed as a personal exemption is as follows:

(a) For all tax years, the amount of the personal exemption, as adjusted for inflation for recent tax years, can be obtained by accessing past-year downloadable tax forms from the department's internet homepage web site located at: revenue.mt.gov; and

(b) for tax years beginning after December 31, 2004, the personal exemption is $1,900, adjusted annually for inflation by November 1 of each year as provided in 15-30-2114, MCA (effective January 1, 2005).

History: 15-30-2620, MCA; IMP, 15-30-2114, MCA; Eff. 12/31/72; AMD, Eff. 10/5/74; AMD, 1982 MAR p. 10, Eff. 1/15/82; AMD, 2004 MAR p. 3147, Eff. 12/17/04; AMD, 2010 MAR p. 1088, Eff. 4/30/10.