2023 Was The Last Year For This Tax Option in Montana

Montana is wrapping up "tax season". I am guessing it will be a chance for all the certified public accountants to take a break and get some rest, when it is finally finished. For me doing my own taxes is not an option. Normally I am a little more ahead of the game when it comes to getting my taxes done. This year it was a different story.

Montana's Tax Code Change

I found myself sitting in a tax preparers office two days before the tax deadline, it was not ideal. Every time I get my taxes done, I learn something new about the process. I also learn something new about the changes in the tax code. This year I learned that Montana has made a change to the tax code that will possibly change the way I file my taxes next year.

The Change Was Passed 3 Years Ago

The change was made in the Montana legislature back in 2021 with Senate Bill 399. It will go into effect next tax year in 2025. I wasn't aware of the change coming, since it was 3 years ago when the bill was passed. If you are like me and missed it, you will no longer have a choice of filing differently in Montana than you do federally. The filing must be filed the same way both in Montana and federally. The reason for the bill was to try to simplify Montana's taxation.

You Won't Have A Choice Next Year

For example, right now, you can file differently in Montana than you do federally. You can file "married filing separately" in Montana and then on your federal returns you can file "married filing jointly", if that gives you a better return. That option is going away starting next year. Next year we will have to see if this makes filing easier in Montana or not. Either way, I will still need to file my taxes with a professional. I appreciate all the people who are able to navigate the tax codes and deal with tax payers like me that need all the help they can get.