Thanks to Montana’s approval of income tax rebates earlier this year, it is now possible for individuals to receive increased refunds for overpaid taxes. Thanks to Montana’s multi-billion dollar state surplus, lawmakers and Governor Greg Gianforte have allocated $480 million to be returned to taxpayers. This includes income rebates with amounts of up to $1,250 for single filers and $2,500 for married joint filers.
Beginning this Monday, the Montana Department of Revenue will initiate the distribution of tax refund direct payments. Taxpayers can anticipate receiving their rebates either through a mailed check or deposited directly into their bank accounts. Gianforte expressed, “Montanans have overpaid their taxes, and we are committed to returning it to them. It is our goal to put this money back where it rightfully belongs – in the pockets of Montanans.”
Who Qualifies for a Refund as Direct ‘Overpaid Tax’ Payments?
Please note that certain criteria must be met in order to be eligible for the state rebate. These requirements include filing taxes for the years 2020 and 2021 by October 17, 2022, and not being claimed as a dependent on another individual’s tax return. In order to be eligible for an income rebate, it is essential to have paid income taxes and completed line 20 on your 2021 tax return form (Form 2) with a value greater than zero.
If you meet the eligibility criteria and the amount entered on line 20 exceeds $1,250 for individuals or $2,500 for joint filers, qualifying taxpayers will receive those respective amounts. For individuals whose line 20 amount falls below the aforementioned thresholds, they will receive the total amount entered on line 20. For instance, if a single filer enters $1,000 on line 20, their rebate will be $1,000. Over 530,000 taxpayers in Montana are eligible for an income rebate.
Rebates for Property Owners
The state has recently allocated $280 million towards property tax rebates, benefitting homeowners in Montana. Each homeowner will have the opportunity to claim rebates of up to $675 based on the property taxes paid in 2022.
Starting from August 15, taxpayers can choose to claim their rebates online through the TransAction Portal or by using a paper form. The deadline for filing all rebate claims is October 1.
For the following year’s rebate (2023), taxpayers will need to submit their claims online through the TransAction Portal or by using a paper form, beginning August 15, 2024. The deadline for filing these claims will also be October 1, 2024.
To qualify for a Property Tax Rebate, homeowners must meet the following criteria:
- Own and reside in a Montana property as their primary residence for at least 7 months each year.
- Have been assessed and paid property taxes for the respective tax year(s) on this residence.
Make sure to take advantage of this opportunity if you meet the eligibility requirements and claim your Property Tax Rebate within the specified timelines.
Increased Cash Disbursements
In addition to Montana, several other states are dispersing funds to their residents. Alaska, for instance, is issuing its Permanent Fund Dividends for the years 2021 and 2022. The dividends amounted to $1,114 and $3,284, respectively, during those years. If your application has been approved, you can expect to see the status as “eligible-not paid.” Those with this status reflecting the date of July 12 will receive their funds on July 20, as confirmed by the state’s Department of Revenue.
Meanwhile, New Mexico has initiated the distribution of rebates to over 900,000 taxpayers. These rebates are valued at $500 for single filers and $1,000.
Physical checks for these rebates will be mailed out starting July 21.
The city of Sacramento in California has taken a significant step in implementing guaranteed income by disbursing the initial installment of $500 per month to 80 households. This progressive initiative aims to provide financial stability and support to selected individuals and families.
Additionally, here is a comprehensive list of states that are currently delivering payments in July, with amounts reaching up to $1,044. These states recognize the importance of direct financial assistance and are committed to improving the economic well-being of their residents.