Montana Tax Rebates: Residents Receiving Up to $2,500 Before Year-End

Montana residents are set to receive tax rebates reaching up to $2,500 by December 31, with the state’s Department of Revenue completing the distribution process. These direct payments, which commenced in July, require residents to have filed their 2021 tax returns, and the actual refund amount depends on specific criteria.

tax rebates(Photo: CNN)

Montana Residents to Receive Tax Rebates

Qualifying individuals must have been Montana residents throughout the 2021 tax year and filed timely returns for both 2020 and 2021, excluding those claimed as dependents on someone else’s tax form. Additionally, the rebate hinges on line 20 of the 2021 return not surpassing zero.

Married joint filers can anticipate a maximum rebate of $2,500, while single filers could receive up to $1,250. However, the actual amount will be the lesser of the maximum based on filing status or the figure on line 20 of the tax form.

Governor Greg Gianforte highlighted, “Montanans overpaid their taxes, and we’re giving it back,” emphasizing the importance of returning this money to the pockets of eligible individuals.

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States Issue Stimulus Payments

Recipients do not need to undertake additional steps to receive the rebate, as the state ensures automatic distribution to all qualifying individuals by the year’s end, urging them to check their bank statements or mail for the incoming rebate.

Across other states, several have instituted similar stimulus-type payments to residents after the federal government concluded its pandemic support. Alabama, using $393 million from a $2.8 billion surplus in the Education Trust Fund, granted $300 deposits to taxpayers who filed their 2021 state income tax return by October 17, 2022, intending to offset grocery taxes.

Arizona and Virginia have also implemented varying payment schemes. Arizona offers $250 per person for dependents, capping at $750 for three dependents, while Virginia’s program grants $200 for single filers and $400 for joint taxpayers based on their 2022 tax liability. Although the federal government ceased stimulus payments over two years ago, no indications suggest the possibility of another round of stimulus from federal sources.

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