Here’s How To Claim Montana Tax Rebates Of Up To $2,500

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Montana Gov. Greg Gianforte signed into law two bills that will provide eligible taxpayers with two rebates – an income tax rebate and a property tax rebate. The state Department of Revenue will start issuing the rebates in July; thus, taxpayers need to know how to claim Montana tax rebates.  

Who Qualifies For The Income Tax And Property Tax Rebate?

In March, Montana Gov. Gianforte signed into law two tax rebate bills (HB192 and HB222) that use hundreds of millions of dollars from the state’s surplus revenue to give tax rebates to residents.

To qualify for the income tax rebate, taxpayers need to be full-year Montana residents and paid state taxes on 2020 and 2021 income on time. Moreover, the taxpayer must have filed the return as single, head of household or married (filing separately).

Taxpayers who meet the above requirements would get a rebate of up to $1,250 on their 2021 taxes. Those who meet the above requirements but paid less than $1,250 in 2021, would have their entire payment refunded.

Single taxpayers, heads of household and married taxpayers filing separately will get up to $1,250, while married couples filing jointly are eligible for up to $2,500.

As for the property tax rebate, homeowners could get up to $500 a year for their 2022 and 2023 property taxes on their principal residence (owned or lived in for at least seven months of the year). Those who paid less than $500 in property taxes in either of the years will be eligible for a refund of the entire amount.

How To Claim Montana Tax Rebates

To claim the Montana tax rebates, taxpayers don’t need to do anything to claim the income tax rebate. The state’s revenue department says it will send the rebate automatically to eligible taxpayers.

Eligible taxpayers will get the rebate in the form of direct deposit or mailed check using the taxpayers’ most recent information that the department has. The department will start issuing the income tax rebate in July, while it is required to send out all the rebates by December 31.

“We will send your rebate to you either electronically or by mail, depending on how you requested your refund or paid your tax bill on your most recently filed Montana income tax return,” the Department of Revenue says.

To apply for the property tax rebate, residents need to visit the TransAction Portal, or apply through a paper application. The application period for paper applications runs from August 15 to October 1, 2023.

It must be noted that the property tax rebate is available only to homeowners. It is not available for renters or homes that aren’t owner-occupied. The same requirements will apply to the property tax rebates for the 2023 tax year. The application period for the 2023 property rebate will open on the same dates in 2024.

Applicants can subscribe to the Montana Department of Revenue newsletterto get notifications on updates about the 2023 Tax Rebates.