As Montana residents file their 2019 income tax returns, they should be aware of two key tax credits that could reduce their state income tax or bring a larger refund, even for those who owe no tax at all.
Montana Earned Income Tax Credit New This Year
For most Montanans, it’s worth 3 percent of the federal Earned Income Tax Credit, which about 75,000 Montanans already claim.
The Earned Income Tax Credit is aimed at low and middle-income workers, especially those with dependents. It’s refundable, which means that if the credit exceeds what’s owed in taxes, the difference is refunded to the taxpayer.
Montana Elderly Homeowner/Renter Credit
To qualify, the taxpayer must:
- Have turned 62 or older in 2019;
- Resided in Montana at least nine months of 2019.
- Owned or rented their home for at least six months of 2019.
- Have a total household income of $45,000 or less.
Learn more about the Montana Elderly Homeowner/Renter Credit.