Good news for millions of Americans as two new direct payment programs could soon be available. Americans could be in line for two direct payments worth between $500 and $1,250 from a $2.5 billion pot.
The state of Montana considers how to distribute its budget surplus. These payments are expected to ease the burden of inflation and provide financial support to taxpayers.
WHO IS ELIGIBLE?
Montana taxpayers could benefit from $480 million set aside from the $2.5 billion pot, with money becoming available for one-time payments of $1,250 each as a rebate on their 2021 state income taxes. On the other hand, $284 million would be earmarked for homeowners to receive up to $500 in property tax rebates from 2022 and 2023.
Approximately 292,000 households in Montana are expected to be qualified annually, according to the Montana Department of Revenue. Both sets of direct payments would be available to everyone who paid taxes in the relevant years.
READ ALSO: $914 SSI Payments to be Received by 33 Sates in February – Check Your State
WHEN ARE THE PAYMENTS COMING?
The direct payments are part of a six-bill package totaling more than $1 billion of one-time spending, which passed a spending committee on January 27 on party-line or near-party-line votes. Although Republicans, including Montana’s Governor, are in agreement on how to allocate a large proportion of the state’s $2.5 billion surplus, the direct payments are not confirmed yet. The bills still face votes on the House floor and review by the Senate, while many Democrats have criticisms of the tax rebates.
Republicans see the direct cash injections as a simple way to ease the pain of inflation on Montanans. If the tax rebates pass, they will benefit 460,000 taxpayers in total, with some getting back their entire state income tax payment from last year.
Business owners could also benefit from another bill in the package, which would raise the exemption threshold for the state’s business equipment tax from $300,000 to $1 million. Another bill proposes changes to how the state defines its capital gains rate and a reduction to that rate.
In conclusion, millions of Americans could potentially receive two direct payments worth between $500 and $1,250 from a $2.5 billion pot in Montana. The state is considering distributing its budget surplus and is proposing this method as a way to ease the impact of inflation on its residents. Both sets of payments would be available to all taxpayers who paid taxes in the relevant years. Although the direct payments are not yet confirmed, they could bring much-needed financial relief to hundreds of thousands of households. Whether you’re a homeowner or simply a taxpayer, keep an eye out for updates and be ready to take advantage of these potential rebates.
READ ALSO: $1,700 New Stimulus Check Rolling Out in 9 States – Check Your Eligibility Now
