Tax Benefits and Credits for Immigrants in Montana in 2025

Key Takeaways

• Montana’s state EITC increases to 10% of the federal credit, up from 3% in 2024.
• Property tax rebates and elderly homeowner/renter credits continue providing relief for qualifying residents.
• A $500 long-time resident income tax credit is proposed, pending 2025 legislative approval.

Montana has made important changes to its state tax benefits for 2025, directly affecting immigrants who live and work in the state. These updates include a higher state Earned Income Tax Credit (EITC), ongoing property tax rebates, and a proposed new credit for long-time residents. Understanding these changes is key for immigrants who want to make the most of available tax relief. Below is a detailed summary of what’s new, who is affected, what actions are needed, and how these changes impact pending and future applications.

Summary of Key Changes for 2025

• Montana’s state Earned Income Tax Credit (EITC) is now 10% of the federal EITC, up from 3% in previous years.
• No separate state child tax credit exists, but families benefit indirectly through the EITC.
• A new long-time resident income tax credit is proposed but not yet law.
• Property tax rebates and elderly homeowner/renter credits continue to provide relief for qualifying residents.
• Eligibility rules for immigrants remain tied to federal standards, especially regarding Social Security numbers and residency status.

Let’s break down each program, who qualifies, and what steps immigrants in Montana need to take in 2025.

Montana State Earned Income Tax Credit (EITC) in 2025

Montana’s state EITC is a major support for working families, including many immigrants. The credit is now refundable and set at 10% of the federal EITC amount. This means if you qualify for the federal EITC, you can also claim the Montana state EITC, and you’ll get money back even if you owe no state income tax.

Who is eligible?
– Immigrants with resident alien status who have a valid Social Security number (SSN) for work can claim both the federal and state EITC.
– You must be a U.S. citizen or resident alien for the entire tax year. Nonresident aliens are not eligible unless they file jointly with a spouse who is a U.S. citizen or resident alien.
– ITINs (Individual Taxpayer Identification Numbers) are not accepted for the EITC. Only SSNs valid for employment are allowed.
– The amount you receive depends on your income, how many children you have, and your filing status. Working parents with children usually get the largest credits.

What changed?
– Before 2024, Montana’s EITC was only 3% of the federal amount. Now it’s 10%, making a real difference for low- and moderate-income families.
– The credit remains refundable, so even if you don’t owe state taxes, you can still get a refund.

What should you do?
– Make sure you have a valid SSN for employment.
– File your federal and Montana state tax returns for the 2024 tax year (due in 2025).
– Calculate your Montana EITC as 10% of your federal EITC.
– Use Montana Form 2 to file your state taxes. You can find the official form and instructions on the Montana Department of Revenue website.

Why does this matter?
– The higher state EITC puts more money in the pockets of working immigrant families, helping with everyday costs like rent, food, and childcare.
– Because it’s refundable, it can help even those who don’t owe state income tax.

Child Tax Credit and Family-Related Credits in Montana

Montana does not have a separate state child tax credit. However, if you qualify for the federal child tax credit, you can still claim it on your federal tax return. The state EITC, which is based on the federal EITC, increases as you have more qualifying children, so families with kids benefit more from the state EITC.

Key points:
– No state-level child tax credit in Montana as of 2025.
– Federal child tax credit is still available if you meet the federal requirements.
– State EITC indirectly helps families with children because the federal EITC amount rises with each qualifying child.

What should you do?
– If you have children and meet the federal requirements, claim the federal child tax credit on your federal return.
– Claim the Montana state EITC on your state return if you qualify for the federal EITC.

Other Montana State Tax Credits for Immigrants

Montana offers several other credits that may help immigrants, especially those who are long-term residents, seniors, or homeowners.

1. Long-Time Resident Income Tax Credit (Proposed for 2025)
– What is it? A proposed $500 non-refundable credit for people who have lived in Montana for at least 10 years and earn less than $100,000 per year.
– Who qualifies? Residents who have lived in Montana for at least 7 months each year for 10 years.
– Status: As of March 2025, this credit is not yet law. It’s being discussed in the state legislature (House Bill 839).
– If passed, it could help long-term immigrant residents who meet the requirements.

2. Elderly Homeowner/Renter Credit
– What is it? A refundable credit up to $1,150 for people aged 62 or older with gross household income under $45,000.
– Who qualifies? Seniors, including immigrants with valid residency, who meet the age and income rules.
– How to claim: File the appropriate forms with your Montana state tax return.

3. Credit for Income Taxes Paid to Another State or Country
– What is it? A credit to avoid double taxation if you pay income tax to another state or country on income also taxed by Montana.
– Who qualifies? Montana residents, including immigrants, who have income taxed by another state or country.
– How to claim: Report the taxes paid and claim the credit on your Montana return.

4. Qualified Endowment Credit
– What is it? A credit for donations to qualified Montana endowments, worth 40% of the present value of planned gifts, up to $10,000 per taxpayer.
– Who qualifies? Anyone who donates to a qualified endowment, including immigrants.

5. Property Tax Rebate (2024 Tax Year, Filing Opens August 15, 2025)
– What is it? A rebate up to $400 or the amount of property taxes paid on your main Montana home (whichever is less).
– Who qualifies? Homeowners who lived in their Montana home for at least 7 months in 2024.
– How to claim: File the rebate application starting August 15, 2025, with proof of property tax payments and residency.

Required Actions for Immigrants in 2025

To claim these credits and benefits, immigrants in Montana should take the following steps:

1. Get a valid Social Security Number (SSN) for employment. This is required for the state EITC and most other credits.
2. Keep records of your residency, income, and property taxes paid. This is important for the property tax rebate, elderly credits, and the proposed long-time resident credit.
3. File your federal and Montana state tax returns on time. Use Montana Form 2 and any other required schedules.
4. Apply for the property tax rebate starting August 15, 2025, if you own and live in your home.
5. Watch for updates on the long-time resident credit. If it becomes law, be ready to show proof of your long-term residency and income.
6. Consult the Montana Department of Revenue or a trusted tax professional for help with forms and eligibility questions.

Implications for Pending and Future Applications

• If you filed for the state EITC in previous years: The amount you receive for 2024 and beyond will be higher due to the 10% rate.
• If you are waiting on the long-time resident credit: No action is needed until the law passes. If it does, you may need to provide extra documentation.
• If you are a new immigrant: Make sure you get a valid SSN as soon as possible to qualify for these credits in future tax years.
• If you are a senior or homeowner: Continue to keep records and file for the elderly credit or property tax rebate as usual.

Expert and Stakeholder Perspectives

State leaders and policy experts have weighed in on these changes:

• State Rep. Lukas Schubert, who sponsored the long-time resident credit bill, says it’s meant to help people who have contributed to Montana for many years, including immigrants who have made the state their home.
• Tax policy analysts see the higher state EITC as a strong move to fight poverty and help working families, especially those with children.
• Some lawmakers have raised concerns about the complexity and possible legal issues with the proposed long-time resident credit, but it has support from both major parties.

As reported by VisaVerge.com, these changes reflect a growing trend among states to offer more support to low-income and working families, including immigrants, through refundable credits and targeted tax relief.

Background and Historical Context

• Before 2024, Montana’s state EITC was only 3% of the federal credit, which limited its impact.
• The 2023 law raising the EITC to 10% was part of a national movement to help low-income workers and families.
• Property tax rebates and elderly credits have been part of Montana’s tax system for years, helping seniors and homeowners manage rising costs.
• The proposed long-time resident credit is new and reflects efforts to reward people who have lived in Montana for many years.

Future Outlook and Pending Changes

• The long-time resident credit (HB 839) will be decided in the 2025 legislative session. If passed, it will offer new relief to long-term residents, including immigrants.
• Montana may consider raising the state EITC percentage again in the future, but no official plans have been announced.
• It’s important to monitor the Montana Department of Revenue for updates on new credits, changes to existing programs, and filing deadlines.

Official Resources and Where to Get Help

• The Montana Department of Revenue is the main source for tax forms, instructions, and updates on credits. Visit their official website for the latest information.
• For federal EITC details, see IRS Publication 596 and check your eligibility.
• For updates on the long-time resident credit, follow the Montana Legislature’s website and House Taxation Committee records.
• If you need help, consider reaching out to a local tax professional or community organization that supports immigrants.

Actionable Takeaways for Immigrants in Montana

• Check your eligibility for the state Earned Income Tax Credit (EITC) if you have a valid SSN and meet the income and residency rules.
• Claim the federal child tax credit if you qualify, and remember that Montana’s EITC will be higher if you have children.
• Apply for the property tax rebate if you own and live in your Montana home.
• If you are a senior or long-time resident, watch for updates on the elderly credit and the proposed long-time resident credit.
• Keep good records and file your taxes on time to make sure you get all the credits you deserve.

Montana’s 2025 tax changes offer real help to immigrant families, seniors, and homeowners. By understanding the new rules and taking the right steps, immigrants can claim valuable credits like the state Earned Income Tax Credit (EITC), benefit from the federal child tax credit, and take advantage of other state programs. Staying informed and prepared will help you get the most from these important benefits.

Learn Today

Earned Income Tax Credit (EITC) → A refundable tax credit for low- and moderate-income workers, based on earnings and family size.
Social Security Number (SSN) → A unique identifier issued to U.S. workers required to claim tax credits and benefits.
Resident Alien → An immigrant legally residing in the U.S. for tax purposes, eligible for many state credits.
Property Tax Rebate → A refund of some property taxes paid on a primary residence for qualifying homeowners.
Refundable Credit → A tax credit that can reduce tax owed below zero, resulting in a cash refund.

This Article in a Nutshell

Montana boosts its state Earned Income Tax Credit to 10% for 2025, aiding immigrant families. Property tax rebates and elderly credits remain. A new long-time resident credit awaits approval. Immigrants should secure valid SSNs, file taxes timely, and watch for legislative updates to maximize benefits and relief.
— By VisaVerge.com