In the current year’s legislative session, Montana’s Legislature, led by the Republican majority, has allocated a substantial portion of the state’s remarkable budget surplus a grand total of $899 million for the purpose of income and property tax rebates.
These rebates, which were officially endorsed into law by Governor Greg Gianforte in March, have been in action with income tax rebates disbursed to homeowners in July. Moreover, an initial phase of property tax rebates is now accessible for application starting from August 15.
What is My Eligibility Amount?
If you maintained your residency in Montana for the entire year and timely paid your state taxes on income earned in both 2020 and 2021, you are entitled to a rebate of up to $1,250 for your 2021 tax assessment. In the event that you meet these criteria but your 2021 tax payment was less than $1,250, you can anticipate a complete refund of your payment.
The maximum limit of $1,250 applies to individuals who filed as single taxpayers, heads of households, or married taxpayers who filed their taxes separately. Married couples who submitted joint tax returns are eligible for a potential amount of twice that figure, amounting to $2,500.
It is essential to note that the legislation specifies that individuals who did not file taxes as full or part-year residents in 2020, or those who made tardy payments for their 2020 or 2021 taxes, will not qualify for these rebates.
For more comprehensive details regarding income tax rebates, you can refer to the Montana Department of Revenue. Alternatively, you can contact the department directly at 406-444-6900.
Property Tax Rebates for 2022 and 2023
Homeowners have the opportunity to receive rebates of up to $675 annually for their property taxes in both 2022 and 2023, applicable to their primary residence. A primary residence is defined as the location where an individual has resided for a minimum of seven months within a given year.
Should your property tax payments fall below the $675 threshold for either of these years, you are eligible to receive a complete reimbursement of the payment made.
Although property tax payments are frequently managed through banking institutions for homes with mortgages, these payments are directed to county treasurers twice a year, with deadlines falling in November and May. Specifically, the 2022 rebate pertains to property tax payments due in both November 2022 and May 2023, while the 2023 rebate is applicable to property tax payments scheduled for November 2023 and May 2024.
How Can I Qualify for the Income Tax Rebate?
No action is necessary on your part, as stated by the revenue department. Qualifying taxpayers will receive rebates automatically. These rebates will be processed either through electronic bank deposits or mailing, utilizing the account or address details provided to the department in your latest tax return.
The distribution of income tax rebates will commence in July, as announced by the department. It’s important to note that all rebate distributions must be finalized by December 31, in accordance with legal requirements.
To track the progress of your income tax rebates, you can make use of the department’s online tool titled “Where’s My Rebate?”
How Can I Secure Property Tax Rebates?
Applying for these rebates is required. The department offers two avenues for applying for the 2022 property tax rebates: the online TransAction Portal or a paper form. The application window for these rebates will be open from August 15, 2023, to October 1, 2023.
When using the TransAction Portal, you will need the following details: Your residential address. Social security numbers for yourself, your spouse, and any dependents listed on your latest income tax filing. The state geocode utilized to identify your primary property. This geocode can be found on the reappraisal notice you likely received from the revenue department in late June or early July. Alternatively, you can access it via the Montana Cadastral website at svc.mt.gov/msl/mtcadastral.
The total amount of property taxes paid in 2022, retrievable from your home’s property tax bill provided by your county treasurer.
An identification number from a property tax rebate letter, typically issued by the revenue department in early August. For claims submitted online, rebates will be processed within 30 days, while hard copy claims will be processed within 90 days, according to the department.
A similar application period for 2023 rebates will be available during the corresponding dates in 2024.
Where Can I Find the Amount I Paid in 2021 State Income Taxes?
If you find yourself in a situation where you’re seeking information about the amount you paid in 2021 state income taxes and are examining your past tax filings, the Montana Department of Revenue provides guidance on locating the pertinent figure for its rebate calculations.
Specifically, the income tax amount that serves as the basis for these rebate calculations can be located on line 20 of the 2021 Montana Individual Income Tax Return form. By referencing this designated line on the tax return form, you can access the necessary information to assist you in the process of calculating or verifying the relevant income tax value for your rebate considerations.
Who is not eligible for income and property tax rebates in Montana
Non-residents: To qualify for the rebate, you must be a Montana taxpayer who, in the claim year, were billed and paid property taxes on your principal residence. You must have lived in your Montana home as a principal residence for at least 7 months during the claim year
Homes held in an LLC or Corporation: Homes held in an LLC or corporation aren’t eligible for the rebate, even if a member or shareholder lived in the home for more than seven months during the claim year
Late Taxpayers: The law specifies that taxpayers who didn’t file taxes as full- or part-year residents in 2020 or who paid their 2020 or 2021 taxes late won’t be eligible for rebates