Montana allows qualifying individuals a credit for a portion of their property taxes or rent paid. This refundable credit of up to $1,000 can be claimed against state income tax liability or as a direct refund if the person is not required to file a Montana state income tax return. Only one claim per household is allowed.
If an individual can answer “yes” to all the following questions, he or she may be eligible for the credit:
- Were you 62 or older as of December 31, 2017?
- Did you live in a Montana residence as an owner or renter for a total of six months or more during 2017?
- Did you live in Montana for nine months or more during 2017?
- Was your total gross household income less than $45,000 in 2017? Form 2EC contains instructions for determining total gross household income for the purpose of determining the tax credit.
Except for dwellings rented from a county or municipal housing authority, a claim for relief may not be allowed on rented lands or rented dwellings that are not subject to Montana property taxes during the claim period. (15-30-2341, MCA)
Beginning with tax year 2017, individuals claiming the Elderly Homeowner/Renter Credit, who are residents of a long-term care facility (LTCF) that is not exempt of property taxes, can use a new method for determining the amount of rent to report. See the instructions for “Line 7 – Rent Equivalent Paid” on Form 2EC.
File on our TransActionPortal (TAP) for free or complete the Montana Elderly Homeowner/Renter Credit (Form 2EC) to determine eligibility and to calculate the credit. For additional information and assistance regarding the Elderly Homeowner/Renter Credit, contact our call center at (406) 444-6900.