State Guide · Montana Resident / Iowa Employer
Living in Montana,
Working for a Iowa Company
Your tax situation changes significantly depending on whether you work from home or commute to Iowa. Here's exactly what applies to you.
🏠 If You Work From Home in Montana (Fully Remote)
Withholding
Your employer should withhold Montana state income taxes — not Iowa taxes. Check your paystubs to ensure Iowa taxes are not incorrectly withheld.
Filing
You only need to file a resident return in Montana. You will not owe or file in Iowa.
🏢 If You Commute to Iowa (In-Office)
Withholding
Your employer will typically withhold Iowa state taxes for days you physically work there.
Filing
File a Nonresident Return with Iowa to report income earned there. Then file a Resident Return in Montana and claim a credit for taxes paid to Iowa — so you are not double-taxed.
Because tax situations — especially surrounding remote work — can be complex, verify your specific W-2 reporting by consulting a tax professional or your employer's HR payroll system.
Ready to file?
Multi-state returns can be complex. TurboTax handles both states in one workflow, or connect with a CPA who specializes in remote workers.
File Accurately — Recommended Tools
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