The Montana Elderly Homeowner/Renter Credit program is a property tax relief program that provides a refundable income tax credit of up to $1,150.

Eligibility

Elderly Montana homeowners or renters (age 62 or older) may qualify for this credit even if they do not have to file an income tax return.

You are eligible for this credit if, during the year for which you are claiming the credit, you:

• Are 62 years of age or older as of December 31,
• Lived in Montana for at least nine months,
• Rented, owned, or leased a home in Montana for at least six months, and
• Have a total household income less than $45,000

Benefit

The benefit is a refundable credit on your Individual Income Tax, up to $1,150.

The amount of your credit is calculated by a formula based on household income, rent, and property tax. You may use the Montana Elderly Homeowner/Renter Credit schedule (Form 2, Page 10) to calculate your credit.

Forms

With a Filing Requirement

If you have a Montana filing requirement, you will need to complete the Montana Individual Income Tax Return (Form 2). The Elderly Homeowner/Renter Credit schedule is included on Page 10.

Without a Filing Requirement

If you don't need to file a return other than to claim the credit, you only need to complete the following parts of the Form 2:

1. Use Form 2, page 10 to see if you are eligible for the credit and how much you may receive
   
   • Complete the Elderly Homeowner/Renter Credit Schedule
   • Complete the Long-Term Care Facility Rent Calculation Worksheet, if applicable.
2. Fill out Form 2, page 1:
   
   1. Complete your filer information and filing status
   2. Mark your residency
   3. List any dependents you may have
   4. Mark the "65 or older" box if you were over the age of 65 on December 31 of the tax year
   5. Use the information from any Forms W-2, SSA-1099, or 1099-R you may have received to complete Form 2, page 1:
      
      • Line 1,
      • Line 4a,
      • Line 5a, and
      • Line 6a if applicable
   6. Put the amount of your credit on line 22 and 27
3. Fill out your direct deposit or refund information on the Refund Schedule found on Form 2, page 2
4. Sign your return
5. Mail your return to:
   Montana Department of Revenue
   PO Box 6577
   Helena, MT 59604-6577

If you do not file pages 1, 2, and 10 of the Montana Individual Income Tax Return (Form 2), we will not be able to process your claim.

Credit Computation 

Property Tax Billed

Property tax for purposes of the credit is property taxes, special assessments, and fees included on the property tax statement for up to one acre of land associated with the residence. If the one-acre farmstead or primary acre is not separately identified on the tax bill, use the one-acre land calculator to determine the amount of property tax paid on the land that is eligible for the credit. 

Rent Equivalent Paid

Rent is the amount of money paid to occupy the home.

If you live in a health care, long-term care, personal care, or residential care facility, the rent allowed is the actual out-of-pocket rent paid, excluding services provided by staff, such as board expenses including meals, housekeeping, and transportation, and medical or paramedical expenses such as nursing care, assisted living care, and memory care. The out-of-pocket rent can be determined using a facility statement providing the breakdown between rent and these amenities. If you do not receive a statement from your facility, use the Long-Term Care Facility Rent Calculation Worksheet on Form 2, page 10 to determine the amount that would be considered rent for purposes of calculating the credit.

Rent paid for an apartment or a facility that is exempt from property tax is not eligible for the credit, unless the rent was paid to a county or municipal housing authority. Verify with your landlord or facility that the property is subject to property taxes beyond assessments such as sewer and garbage fees.

Montana Cadastral provides this information as well.

1. Click on Search. 
2. Choose the county of the property. Then select By Address and enter the property's address. 
3. This will bring up the Property Report Card. 
4. If the Property Type in the General Property Information section is listed as EP - Exempt Property, the rent paid to reside at the property is ineligible for the credit (unless the rent was paid to a county or municipal housing authority). 

You may also contact us for assistance in determining if the property is exempt from property tax.

Related Laws

15-30-2337 through 15-30-2341, MCA

ARM 42.4.3