(HELENA) – With the beginning of tax season here, you may find yourself wondering if your Montana income or property tax rebate you received in 2023 are taxable on your 2023 return.
For federal purposes, the rebates are not taxable for most people. However, individuals who claimed the standard deduction on their federal tax return will not pay any federal tax on their rebates, but those who itemized their federal deductions and deducted any Montana state taxes paid are typically required to include state tax rebates in gross income on their federal income tax returns.
For state purposes, neither rebate is subject to state income tax. This also includes the upcoming Property Tax Rebate, which will be available beginning August 15th. State tax refunds included in federal adjusted gross income are not taxable in Montana.
