The Individual Income Tax Rebate is a rebate of 2021 Montana individual income taxes.
Individual Income Tax Rebate Amount
The Individual Income Tax Rebate amount depends on a taxpayer’s 2021 filing status and the amount of tax paid for 2021, which can be found on line 20 of the 2021 Montana Form 2.
For those whose filing status was single, head of household, or married filing separately, the rebate will be either $1,250 or the line 20 amount, whichever is less.
Married filing jointly taxpayers’ rebates will be $2,500 or the line 20 amount, whichever is less.
For example, Jerry filed single on his 2021 Montana Form 2, reporting $1,009 on line 20. He meets all the qualifications and will receive a rebate of $1,009.
Frank and Estelle are married but filed separately in 2021. Frank reported $387 on his line 20 while Estelle reported $2,441 on her line 20. They both meet all the qualifications, so Frank’s rebate will be $387, and Estelle’s rebate will be $1,250.
George and Susan filed jointly in 2021, reporting $3,985 on line 20. They meet all the qualifications and will receive a rebate of $2,500.
You qualify for the Individual Income Tax Rebate if:
- You were a resident of Montana for the entire 2021 tax year beginning January 1, 2021;
- 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
- Line 20 of your 2021 Montana Form 2 has an amount greater than zero.
Claiming a rebate
Taxpayers do not need to do anything to claim an Individual Income Tax Rebate. The department will send rebates automatically to those who qualify.
Where’s my rebate?
Please check your individual income tax rebate status using Where’s My Rebate in our TransAction Portal (TAP).
Frequently Asked Questions
- First, check the status of your rebate at Where’s My Rebate.
- If you have any debts owing to the State of Montana, your rebate may have been used to offset your balance.
- If you received a notice from us about your 2020, 2021, or 2022 Form 2 and didn’t respond to that notice, we are holding your rebate until we can verify your identity. If you’ve misplaced a notice from us, please contact us.
Checks mailed to an incorrect address may be reissued only after 30 days have elapsed from the date on the original check.
When the department receives a returned check as undeliverable, we may contact you by phone to update your address.
Please contact our customer service department for more information.
If you used third-party banking information to receive your refund, then we may issue a paper rebate check to you by mail.
- We will begin issuing Individual Income Tax Rebates in July 2023. Individual Income Tax Rebates will be issued in the order that a 2021 tax return was filed. All Individual Income Tax Rebates will be issued by December 31, 2023.
- The Individual Income Tax Rebate will be issued according to the information provided on your most recently filed Montana Form 2—either electronically via direct deposit, or by paper check to the address on the return.
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.
For more information about your potential offset, please call 406-444-6964.
Your rebate is not subject to Montana’s state income tax.
According to the IRS, for most individuals, the individual income tax rebate will not be included in Federal taxable income.
For example, individuals who claimed the standard deduction (as most individuals do) will not include the rebate in Federal gross income because they would not have previously deducted the refunded amount of Montana state taxes paid on their Federal income tax returns.
However, individuals who itemized deductions, and then deducted the amounts of any Montana state taxes paid for Federal income tax purposes, are generally required to include the Montana state tax refunds in gross income on their Federal income tax returns, to the extent that they received a Federal income tax benefit from the prior Federal income tax deductions.
You must be a Montana resident for tax purposes in both Tax Years 2020 and 2021.
Part-year residency in 2020 is considered residency for purposes of the rebate.
It depends on when you filed your amended return.
- If you filed an amended 2021 Montana Form 2 on or before May 1, 2023, your rebate is based on the amount of taxes reported on line 20 of your amended 2021 Montana Form 2.
- If you amended your 2021 Montana Form 2 after May 1, 2023, your rebate is based on the amount of taxes reported on line 20 of your 2021 Montana Form 2 as of May 1, 2023.
- If you amend your 2021 Montana Form 2 after you receive your rebate, you must report the rebate as a payment made with your original return.
A deceased taxpayer who filed a 2021 Form 2 and met all other criteria for purposes of the Individual Income Tax Rebate is eligible for a rebate.