Montana Individual Income Tax Rebate (HB192)
To address the State’s revenue surplus, House Bill 192 was passed to provide a rebate of individual income taxes to qualifying MT residents. Rebates will be automatically issued to those that qualify starting in July of 2023!
What is the Individual Income Tax Rebate?
The Individual Income Tax Rebate is a rebate of 2021 individual income taxes.
How much is the Individual Income Tax Rebate?
Your rebate amount will be the lesser of:
The amount of income tax reported on line 20 of your 2021 Montana Form 2, or
$1,250 if your 2021 Montana filing status was single, head of household, or married filing separately,
$2,500 if your 2021 Montana filing status was married filing jointly.
** If you have an outstanding obligation with the state, your approved rebate amount will first be used to offset this obligation. Any remaining rebate amount will be sent to you after the obligation is paid.
How do I qualify?
You qualify for the Individual Income Tax Rebate if:
You were a resident of Montana for the entire 2021 tax year
You filed a 2020 Montana resident or part-year resident return;
You filed a 2021 Montana resident tax return;
You filed your 2020 and 2021 Montana tax returns by the due date for tax year 2021 (including extensions);
You weren’t claimed as a dependent by another taxpayer for federal or Montana income tax purposes in tax year 2021; and
The amount of income tax reported on Line 20 of your 2021 Montana Form 2 is greater than zero.
Do I need to do anything to claim an Individual Income Tax Rebate?
No. You don’t need to do anything to claim an Individual Income Tax Rebate. The department will send your rebate to you automatically if you qualify.
How will I receive my Individual Income Tax Rebate?
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. If you selected direct deposit to receive your refund or direct debit to pay your tax bill, we will send your rebate to the bank account information listed on your most-recently filed Montana Form 2. If you elected to receive your refund by a paper check or paid your tax bill by check, we will mail you your rebate using the address on your most-recently filed Montana Form 2.
When will I receive my rebate?
The Dept of Revenue will begin issuing Individual Income Tax Rebates in July 2023.
Is my Income Tax Rebate subject to either federal of Montana income tax?
Rebates will not be subject to Montana income tax. Your rebate may be federally taxable if you itemized deductions and claimed a deduction of state and local taxes.
Where can I find additional information?
For more information visit the MT DOR website https://mtrevenue.gov/taxes/2023-montana-tax-rebates/ or contact your tax professional.