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 new "base amounts" and "adjusted base amounts" for determining the taxable portion of these benefits, which differ based on filing status. For single filers and heads of household, the base amount is set at $32,500, while for married couples filing jointly, it is $48,500. Additionally, the bill stipulates that if the new calculation results in a higher taxable income than previously calculated, the new provisions will not apply.

The bill also includes a delayed effective date, with the new tax provisions set to take effect on January 1, 2026, and will apply to tax years beginning after December 31, 2025. Furthermore, it specifies that certain provisions related to military pensions and retirement income will terminate on specified dates, ensuring that the changes are time-limited. Overall, this legislation seeks to adjust the tax burden on Social Security benefits for Montana residents, potentially providing tax relief for certain taxpayers.

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(3): 15-30-2120
HB0827_2(4): 15-30-2120
HB0827_2(5): 15-30-2120
HB0827_2: 15-30-2120