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 purposes. 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 introduces a provision that prevents taxpayers from including more in their Montana taxable income than what was previously included before the calculation.

The bill also includes a delayed effective date, with the new provisions set to take effect on January 1, 2026, and will apply to tax years beginning after December 31, 2025. The changes aim to provide a more favorable tax treatment for Social Security benefits, potentially reducing the tax burden on retirees and individuals receiving these benefits in Montana. The bill also specifies that certain provisions will terminate on specific dates, ensuring a review of the changes in the future.

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