House Bill No. introduced by M. Cunningham aims to revise the taxation of Social Security benefits in Montana by modifying how these benefits are calculated for state tax returns. The bill amends Section 15-30-2120 of the Montana Code Annotated (MCA) to include new provisions regarding the treatment of Social Security benefits and tier 1 railroad retirement benefits. Specifically, it establishes that taxpayers who must include part of their Social Security benefits in their federal taxable income will calculate the amount included in their Montana taxable income according to the guidelines set forth in section 86 of the Internal Revenue Code, with adjusted base amounts for different filing statuses. The bill also introduces specific base amounts for single filers and married couples, which differ from the federal amounts.

Additionally, the bill includes a delayed effective date, stating that it will take effect on January 1, 2026, and will apply to tax years beginning after December 31, 2025. The legislation also specifies that certain provisions regarding military pensions and Social Security benefits will terminate on specified dates, ensuring that the changes are time-limited. Overall, this bill seeks to align Montana's taxation of Social Security benefits more closely with federal guidelines while providing specific adjustments for state tax calculations.

Statutes affected:
LC Text: 15-30-2120
HB0827_1(1): 15-30-2120
HB0827_1(2): 15-30-2120
HB0827_1(3): 15-30-2120
HB0827_1(4): 15-30-2120
HB0827_1: 15-30-2120
HB0827_2(1): 15-30-2120
HB0827_2(2): 15-30-2120
HB0827_2: 15-30-2120