An appreciation to tax rebates that the state legislature approved and Governor Greg Gianforte signed into law, Montanans’ bank accounts will soon see improvements.

Montana taxpayers will soon be getting a boost to their bank accounts (Source: Yahoo! Finance)

Approval of $899 Million for Tax Rebates

According to the Montana Free Press, rebates of a total of $899 million have been approved. The categories for rebates are divided into two, income taxes and property taxes. A budget surplus made the rebates attainable.

For the full calendar year, residents of Montana who paid state taxes on their income for 2020 and 2021 just before the deadline are entitled to refunds of up to $1,250 a piece for taxes paid in 2021. If you comply with those conditions and your payment in 2021 was less than $1,250, the entire amount should be compensated. According to the Free Press, the $1,250 cap is eligible to taxpayers who registered as single filers, heads of households, or married taxpayers who filed separately. The maximum claim for married couples who filed jointly is $2,500.

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Convenient Application for Tax Payers

You don’t need to apply; the Montana Department of Revenue will distribute rebates automatically to eligible taxpayers. Rebates will either be electronically transferred into your bank account or mailed to you. The first part of the refunds of income taxes will be given out in July 2023, and they must all be sent by December 31. Refunds will not be granted to taxpayers who failed to file their taxes in 2020 as full- or part-year residents or who paid their taxes in 2020 or 2021 after the deadline.

Homeowners can acquire a property tax relief of up to $675 for their 2022 and 2023 principal residence property taxes. A property that you have lived for seven years out in a year is called a “principal residence”, in which you qualify for a full refund of your property tax payment if you paid less than $675 in either year.

For fillers who paid their taxes in November 2022 and May 2023, the property tax for 2022 is eligible for them. While the 2023 tax is credible to taxpayers who paid their taxes in November 2023 and May 2024.

According to the Free Press, you must apply to acquire the property tax rebate. You can use a paper form or the Department of Revenue’s online TransAction Portal to comply with an application for the 2022 property tax rebates. The application window is open through the dates August 15 to October 1 of 2023. During the same period in 2024, a second application is open for rebates for 2023 will be available.

According to a news release posted on the State of Montana website, the tax rebates were passed in March as a part of a wider tax relief package. A proposed permanent, refundable $1,200 per child tax benefit for working families was another issue Gianforte pushed for action on at the time.

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