Earned income credit in Montana
Varies
Does Montana Have an Earned Income Tax Credit?
Short answer: Yes: Montana offers the Montana Earned Income Tax Credit, 20% of the federal EITC for 2026 (doubled from 10%) (refundable). Montana residents who claim the federal EITC. HB 337 (2025) set the 20% rate starting in tax year 2026. The DOR's credit page still showed 10% when checked.
Claim the federal EITC on Form 1040 (with Schedule EIC if you have qualifying children); state credits go on your state return.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Earned income credit in Montana
Varies
Individuals / Personal Taxes
Yes: Montana offers the Montana Earned Income Tax Credit, 20% of the federal EITC for 2026 (doubled from 10%) (refundable). Montana residents who claim the federal EITC. HB 337 (2025) set the 20% rate starting in tax year 2026. The DOR's credit page still showed 10% when checked.
Business justification
Yes: Montana offers the Montana Earned Income Tax Credit, 20% of the federal EITC for 2026 (doubled from 10%) (refundable). Montana residents who claim the federal EITC. HB 337 (2025) set the 20% rate starting in tax year 2026. The DOR's credit page still showed 10% when checked. Claim the federal EITC on Form 1040 (with Schedule EIC if you have qualifying children); state credits go on your state return.
Category
- Personal Tax Deductions