Montana stands out among U.S. states by offering significant financial benefits to taxpayers, including homeowners and non-homeowners, with several refunds ranging from $650 to $1,250 in Stimulus Check. Owning a home in America is a complex task. Not only have housing prices surged dramatically, but the obligations involved in maintaining a property are also considerable. Recognizing these challenges, some states are making efforts to provide support to property owners.
In Montana, as well as in the rest of the United States, two newly implemented laws are providing both immediate and enduring property tax reductions for homeowners. Qualified homeowners can anticipate two separate Montana property tax refunds as well as ongoing property tax reductions. Governor Greg Gianforte declared, during a ceremony enacting the latest property tax relief law, that together with these property tax refunds, Montana residents will enjoy over $470 million in property tax alleviation.
Montana Property Tax Refunds Eligibility, Amounts, and How to Claim for 2022 and 2023
Up to $650 in two Montana property refunds is accessible for eligible homeowners for the property taxes paid in 2022 and 2023. However, the refund amounts may be less for certain homeowners, as the property tax refund cannot surpass the taxes paid during the fiscal year, and $650 is the maximum amount receivable.
As an illustration:
- A refund of $500 will be given if $500 was paid in property taxes.
- A refund of $650 will be given if $1,100 was paid in property taxes.
Some homeowners may have been informed by the state regarding the property tax refund, but the Montana Department of Revenue (DOR) emphasizes that receiving this letter doesn’t confirm eligibility. Instead, a separate letter with eligibility details will be sent in August.
Prerequisites to Claim Your Tax Refund Money in Montana
To qualify for a property tax refund, homeowners must:
- Reside in their Montana property for a minimum of seven months.
- Have the property taxes billed at that residence.
- Pay the property taxes billed at that location.
Claims for the Montana property tax refund for 2022 can be made starting August 15th through the State’s Transaction Portal or by paper. The deadline to claim the 2022 tax refund is October 1st, 2023, while applications for 2023 refunds will not begin until August 2024. The timing for receiving the 2022 property tax refunds after application has not been disclosed by the Montana government. Refunds will be disbursed as applications are reviewed, so early claims may result in quicker payments.
In addition to these property tax refunds, Governor Greg Gianforte also sanctioned a bill providing $120 million in lasting property tax relief for Montana inhabitants. This legislation establishes a specialized account to support public schools and diminish property taxes, with savings visible starting next year.
Montana offers another refund of $1,250 ($2,500 for joint filers) separate from the $650 property tax refund, applicable to eligible homeowners and non-homeowners based on the 2021 state income tax return.
Eligibility for this larger refund includes:
- Independence from being claimed as a dependent on another’s tax return.
- Filing Montana tax returns for 2020 and 2021 within the fiscal year 2021 deadline (or receiving an extension).
- Submitting a full-year resident Montana tax return for 2021.
- Filing a Montana tax return for 2020 for a part or the whole year.
- Having an amount greater than zero on Line 20 of the Montana Form 2.
To claim this refund, the 2021 tax return must be filed. Montana has commenced the distribution of income tax refund payments, which will be automatic for those who meet the criteria.
Are income tax refund payments automatic for those who meet the criteria in Montana?
To qualify for the Individual Income Tax Rebate in Montana, you must be a Montana resident for tax purposes in both Tax Years 2020 and 2021. Part-year residency in 2020 is considered residency for purposes of the rebate.
Only Montana taxpayers who filed a 2021 Montana full-year resident tax return will receive a payment. Montana residents must have also filed a part-year or full-year 2020 state tax return. Individuals claimed as a dependent on a 2021 Montana or federal income tax return are not eligible for the payment. Line 20 of your Montana Form 2 must be greater than zero to receive an income tax rebate payment.
The amount of your Montana income tax rebate check depends on your filing status and the amount recorded on line 20 of your Montana Form 2 for the tax year 2021. The maximum amount joint filers can receive is $2,500, and the maximum amount for other filers is $1,250. If line 20 on your 2021 Montana Form 2 does not have an amount greater than zero, you will not receive an income tax rebate in 2023.
Eligible taxpayers do not need to take any action to receive their 2023 Montana rebate checks. Montana will send your income tax rebate automatically, based on your most recently filed Montana Form 2. If you chose direct deposit on your most recently filed Montana state tax return, your rebate payment will be automatically sent to your bank account. Other eligible taxpayers will receive a paper check in the mail.
To summarize, income tax refund payments for those who meet the criteria in Montana are automatic. Eligible taxpayers do not need to take any action to receive their rebate checks. The rebate amount depends on filing status and the amount recorded on line 20 of the Montana Form 2 for the tax year 2021. The payments will be sent either via direct deposit or paper check based on the information provided on the most recently filed Montana Form 2.
What Happen If I Don’t Claim My Tax Refund Payments?
Failing to claim your tax refund payments can lead to several consequences, as detailed in the provided sources. Firstly, if you’re owed a refund but don’t file your tax return, you forfeit the refund. According to the law, you have a three-year window from the original due date to claim it; after that, the refund becomes the property of the U.S. Treasury.
Additionally, certain tax credits, such as the Earned Income Tax Credit (EITC), require a filed tax return for eligibility. If you neglect to file, you miss out on these valuable credits, including the Child Tax Credit and credits for expenses like daycare and college.
Furthermore, excess tax withholdings are only refunded when you file a tax return. This can have a significant impact on students and part-time workers who have a high rate of tax withheld from their wages. Lastly, for self-employed individuals, not filing a tax return means you won’t receive credit for your earnings in the Social Security and Medicare system. This can affect your eligibility for Medicare benefits and the amount of Social Security payments you’re entitled to receive.