(1) If a taxpayer or a taxpayer's spouse is age 65 or over, certain interest income is exempt as provided in this rule.
(2) If a taxpayer is single, the taxpayer may exclude up to $800 of interest income included in the taxpayer's Montana adjusted gross income.
(3) If married taxpayers file a joint return, they may exclude up to $1600 of interest income included in their joint or in their separate Montana adjusted gross income even if only one spouse is age 65 or over.
(4) If a married taxpayer who is age 65 or older files separately, the taxpayer may exclude up to $800 of interest income earned by them and included in their Montana adjusted gross income. The taxpayer may not exclude interest income earned by the taxpayer's spouse.
(5) The exclusion cannot exceed the amount reported as taxable interest income.