Individuals may be seeing different refund amounts on their 2024 Montana tax returns than they experienced in the past. The Montana Department of Revenue (DOR) encourages Montana taxpayers to review their income tax withholding annually.
Wage earners, self-employed individuals, and retirees with wage income can access the Montana Employee’s Withholding and Exemption Certificate (Form MW-4) and related information available on the department’s website.
The IRS provides similar guidance on federal withholding with their Tax Withholding Estimator, a user-friendly resource for determining the amount of income tax to withhold from their income.
What is withholding?
For employed individuals, withholding refers to the federal and state income tax amount deducted from their paycheck.
Why review?
Both DOR and the IRS suggest taxpayers review their withholding at least once annually. For anyone who has recently completed their 2024 return, now is an ideal time to do so. This tool is also useful to review withholdings after significant life events like marriage, divorce, buying a home, or having a child.
All forms of income should be considered, including part-time work, side jobs, or the sale of goods or services commonly reported on Form 1099-K.