Montana Montana Elderly Homeowner/Renter Credit (OBSOLETE)

Montana Elderly Homeowner/Renter Credit (OBSOLETE)
Form 2EC
Clear Form

	

2017 Montana Elderly Homeowner/Renter Credit	

First Name and Initial

File alone or with your Form 2. You can file electronically for free at revenue.mt.gov.
Last Name 	
Social Security Number
	

Form 2EC
Deceased? Date of Death

	
M M D D 2 0 Y Y
Mark this Spouse’s First Name and Initial
Last Name	
Spouse’s Social Security Number Deceased? Date of Death
box if
	
M M D D 2 0 Y Y
this is an
City
State Zip+4
amended Mailing Address
form.
Part I - Qualifications (You must answer “Yes” to each of the following four statements to qualify for this credit.)
Yes
I was age 62 or older as of December 31, 2017Y�������������������������������������������������������������������������������������������������������������
No
Yes
I occupied a Montana residence as an owner or renter for a total of six months or more during 2017Y��������������������������
No
I resided in Montana for nine months or more during 2017Y��������������������������������������������������������������������������������������������

Yes

No

My gross household income was less than $45,000 in 2017 (see instructions)Y�������������������������������������������������������������
Part II - Net Household Income
1. Enter your total gross household income (see worksheet on page 2EC-2 of the instructions)................................... 1.

Yes

No
00

2. Your standard exclusion is entered here for you........................................................................................................ 2.

6300 00
00

Questions? Call us at (406) 444-6900 or TDD (406) 444-2830 for hearing impaired.

3. Subtract line 2 from line 1 and enter the result here, but not less than zero............................................................... 3.
4. Enter your multiplier rate from the Household Income Reduction Table on page 2EC-2 of the instructions....................4.

.

5. Multiply line 3 by line 4 and enter the result here. This is your net household income.......................................... 5.

00

Part III - Credit Computation. Enter physical address of Montana residence (if different than mailing address) in the boxes below.
Address

City

6. Enter the property tax that you were billed for your Montana residence and up to one acre in 2017
����������������������� 6.
00
7. Enter the rent that you paid in 2017 for your Montana residence
���������������������������� 7.

00

9. Add lines 6 and 8; enter the result.............................................................................................................................. 9.

00

8. Multiply line 7 by 0.15 (15%) and enter the result...................................................................................................... 8.

00

10. Subtract line 5 from line 9 and enter the result, but not less than zero..................................................................... 10.

00

11. Enter the lesser of line 10 or $1,000..........................................................................................................................11.
12. Enter the percentage from the Credit Multiplier Table on page 2EC-3 of the instructions that corresponds to your
gross household income reported on line 1.............................................................................................................. 12.
13. Multiply line 11 by the percentage reported on line 12. This is your elderly homeowner/renter credit.	
► 13.
•	 If filing Form 2, enter the amount from line 13 above on Schedule V, line 24. Include Form 2EC with Form 2.
•	 If not required to file Montana Form 2, mail Form 2EC or file it online for free at revenue.mt.gov.
Direct Deposit
Your Refund

Complete 1, 2, 3 and 4.
See instructions on
page 2EC-3.

1. RTN#	

	

00
.

00

Mail your completed Form 2EC to:

Montana Department of Revenue
PO Box 6577
Helena, MT 59604-6577

2. ACCT#	

3. If using direct deposit, you must mark one box.	

	Checking	

	 Savings

4. Is this refund going to an account that is located outside of the United States or its territories?	

Yes	

No

Under penalties of false swearing, I declare that I have examined this claim, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct and complete.
Your Signature is Required	Date

X

Paid Preparer’s Signature

Paid Preparer’s PTIN/SSN

Third Party Designee
Do you want to allow another person (such as a paid
preparer) to discuss this return with us (see page 2EC-3)?
	

	Yes	

Spouse’s Signature	Date

Daytime Telephone Number

X

Third Party Designee’s Printed Name
Third Party Designee’s Phone Number

	No

*17CA0101*
*17CA0101*

Firm’s FEIN

For Department Use Only

Page 2EC-1	

Instructions for filing Montana Form 2EC

Instructions for Elderly Homeowner/Renter Credit Form 2EC
The Montana Elderly Homeowner/Renter Credit is a property
tax relief program that provides a refundable tax credit of up
to $1,000. To claim this credit, you must live in a household
where the total income of all household members is less
than $45,000 for that year, be 62 or older, have lived in
Montana for more than nine months during the tax year, and
occupied a Montana residence as a renter, owner or lessee
for a total of six months or more during the year.
The total amount of income from all household members
used to determine your eligibility is called “gross household
income.” Gross household income does not always equal
the taxable income that individuals report on their Montana
income tax return. It also includes income that is normally
not taxable. Part II of these instructions provides a list of the
income that must be included in gross household income.
You can claim this credit directly on this return if you are
not required to file a Montana individual income tax return
(Form 2). If you are required to file Form 2, you must provide
names, addresses and social security numbers on the Form
2EC that you include with Form 2.
If either spouse died during the claim year, enter the date
of death in the appropriate box. If filing an individual tax
return is not required and this claim is for either a deceased
individual or a married couple who are both deceased,
please include federal Form 1310.

Part I – Qualifications
You need to answer “Yes” to all four statements before you
apply. Any “No” answer means you are not eligible for the
credit.
Even though you may be eligible for the credit after
completing Parts II and III of this form, you still may not be
entitled to receive any credit. Note that only one claim is
allowed per household and that married taxpayers who are
living apart may qualify for only one credit per year.
Age 62 Test. If you were 62 or older as of December 31,
2017, you can answer “Yes” to this statement. If you are
married and both spouses own or rent your residence, only
one of you has to meet the age requirement.
Six-Month Test. You can answer “Yes” to this question as
long as you have occupied one or more residences as an
owner and/or renter for six months or more during the year.
Nine-Month Test. You must have lived in Montana for nine
months or more during the year to answer “Yes.” If you
are the personal representative of the estate of an eligible
individual who died during the year, you cannot claim this
credit if that individual died before October 1, 2017. If you
are married filing this claim with your spouse and if your
spouse, who would have been the only eligible individual,
dies before October 1, 2017, you are not eligible for this
credit. You are eligible only if, as a surviving spouse, you are

age 62 or older and you can continue to answer “Yes” to the
other statements.
Gross Household Income. If your gross household income
was less than $45,000, you can answer “Yes.” Your gross
household income includes all income received by all
individuals in the household. Use the worksheet on page
2EC-2 to calculate your Gross Household Income.

Part II – Net Household Income
Enter your gross household income on line 1. This is all the
income received, taxable and nontaxable, by all individuals
who live in your household. This includes, but is not limited
to, the income of adult children and unrelated individuals
living in your household. In addition to federal adjusted
gross income, the following are examples of items that are
included in gross household income:
●● Pension and annuity income (this includes railroad
retirement)
●● Disability benefits including, but not limited to, veteran’s
disability, SSI payments and workers’ compensation
●● Any capital gains that you excluded from your Montana
adjusted gross income, such as the gain from the sale of
your primary residence
●● Alimony and support payments
●● Nontaxable strike benefits
●● Cash, public assistance and relief - Do not include
LIEAP (Low Income Energy Assistance Program) or
SNAP (Supplemental Nutrition Assistance Program,
formerly known as the Food Stamp Program)
●● Interest on federal, state, county and municipal bonds
●● All social security payments except those paid directly to
a nursing home
●● Elderly homeowner/renter credit allowed or other federal
or state refundable credits
●● Long term care insurance benefits
You may have a basis (the amount you invested) in some
items above. If applicable, you may reduce the amount
received as an item of income by your basis in that item. For
example, if you paid $50,000 for the ownership of a primary
residence, $50,000 is your basis. If you sell that residence
for $80,000, your gross household income only includes the
gain of $30,000 ($80,000 sales price minus $50,000 basis).
If you received pension or annuity income or a distribution
from a traditional IRA, include the federally taxable amount
as shown on your Form 1099.
Do not reduce your gross household income by any losses
that you included in your federal adjusted gross income.
The following Gross Household Income Worksheet can be
used to help you calculate your gross household income.

Instructions for filing Montana Form 2EC	

Page 2EC-2

Gross Household Income Worksheet
Income Source (taxable and nontaxable)

Amount

required documents in your tax records and will provide
those documents to us upon request.

1.

Wages, salaries, bonuses, tips, etc.

Line 6 – Property Tax Billed

2.

Business, partnership, rent, royalties (do
not include losses).

3.

Dividends, interest (including interest from
federal, state, county and municipal bonds)
and capital gains (do not include capital
losses).

Report the amount of taxes, special assessment and fees
that were billed on the property tax statement. Do not report
the amount of property tax you actually paid.

4.

Any federal or state refundable credits
including the 2EC credit.

5.

Alimony, cash public assistance,
unemployment.

6.

Pension, annuities, IRA distributions,
benefits from railroad retirement, public
employee’s retirement, veteran’s disability
and social security (do not include social
security income paid directly to a nursing
home).

7.

Income from any source or other
household members not included above

8.

Add lines 1 through 7; enter the total here
and on Form 2EC, line 1. This is your
gross household income.

You are allowed only the property tax billed on your primary
residence and up to one acre of land that is associated
with this residence. If the one-acre farmstead or primary
acre is not separately identified on your tax bill and if your
ownership is less than 20 acres, your property tax to be
used in the credit calculation is the larger of: total amount
of property tax billed multiplied by 80%, or total amount of
property tax billed divided by the total acreage.
If your property tax bill is on property that you held in a
revocable trust and if you are the grantor(s) and trustee(s) of
that property, you can qualify for this credit. If your property
taxes are billed to your living trust or life estate, you can
qualify for this credit. If the property occupied by you is in a
name other than your own, the property taxes billed for that
property can qualify as rent only.

Line 7 – Rent Equivalent Paid

Line 4 – Household Income Reduction Table
If your household income on line 3 is:
At least

But not more than

Your multiplier is

$0

$1,999

0.000

$2,000

$2,999

0.006

$3,000

$3,999

0.016

$4,000

$4,999

0.024

$5,000

$5,999

0.028

$6,000

$6,999

0.032

$7,000

$7,999

0.035

$8,000

$8,999

0.039

$9,000

$9,999

0.042

$10,000

$10,999

0.045

$11,000

$11,999

0.048

$12,000 and greater

0.050

Part III – Credit Computation
Enter the physical address of the residence you are basing
your claim on if it is different than the mailing address shown
on this form or your Form 2. If you had multiple residences
during the year, enter the address of the one you occupied
the longest. You need to include a copy of your 2017
property tax bill and/or your signed rent receipts when you
file Form 2EC. If you are unable to get signed rent receipts,
a statement detailing the rent paid during the year signed
by your landlord is an acceptable substitute. If you are filing
electronically, you do not need to send us your property
tax bill or rent receipts. When you file electronically, you
represent that you have completed Form 2EC, retained the

Your rent is only the amount of money that you paid to
occupy your home. If you live in a health care, long-term
care, personal care or residential care facility, the rent
allowed is the actual out-of-pocket rent that you paid,
excluding services provided by staff, that is board expenses
such as meals, housekeeping, transportation and medical
or paramedical expenses such as nursing care, assisted
living care and memory care. The out-of-pocket rent
can be determined using a facility statement providing
the breakdown between rent and these amenities, or by
deducting from your total payments some proportional
amount representing board and/or care as follows.
1. Total payment to the facility
2. Multiply 1 by 20% if you received board
services on a continuous basis (meal,
housekeeping, laundry, transportation,
entertainment)
3. Multiply line 1 by 30% if you received care on
a continuous basis (nursing care, assisted
living care, memory care)
4. Out-of-Pocket Rent, deduct lines 2 and 3
from line 1

If you wish to claim the credit for a previous tax year still
open and you were living in a long term care facility, you
must use the rules that applied during these years. Refer to
the instructions of each tax year.
Do not use rent you pay for an apartment or a facility that is
exempt from property tax because the credit is not allowed in
these situations. Verify with your landlord or facility that the
property is subject to property taxes beyond assessments
such as sewer and garbage fees. You may also contact us
for assistance in determining if the property is exempt from
property tax. Items that also should not be included as rent
equivalent paid on line 7 are as follows (this list is not all
inclusive):

Page 2EC-3	

Instructions for filing Montana Form 2EC

●● Mortgage payments, including mortgage interests
●● Nursing home costs that are paid directly from social
security to the facility
●● Rent paid for you by a rental assistance program (this
amount should also not be included in your gross
household income)

Line 12 – Credit Multiplier Table
If the amount on line 1 is:

Enter this figure on line 12:

Less than $35,000

1.00 (100%)

$35,000 to $37,500

0.40 (40%)

$37,501 to $40,000

0.30 (30%)

$40,001 to $42,500

0.20 (20%)

$42,501 to $44,999

0.10 (10%)

$45,000 and greater

0.00 (0%)

Sign and File your Return
Direct Deposit
If you would like to use direct deposit, enter your financial
institution’s routing number (RTN#) and your account
number (ACCT#) in the space provided. Your routing
number will be nine digits and your account can be up to
17 characters, including numbers and letters. Mark whether
your account is a checking or savings account and if your
refund will go to a bank outside of the United States and its
territories.
If your financial institution does not accept the direct deposit
or if the direct deposit information that you provided is
incomplete, we will mail you a refund check.

Sign Your Credit Claim
This form is not considered a valid claim unless you sign it.
If you are filing a joint claim, your spouse must also sign.
If you have someone prepare your Form 2EC, you are still
responsible for the correctness of the claim.

Electronic Signatures
If you are filing your claim electronically, you are not required
to actually sign your claim. The act of filing your claim
electronically signifies your declaration, under the penalty
of false swearing, that you are the taxpayer identified in the
claim and that the information in the claim is true, correct
and complete.
Filing electronically, with this declaration, is your signature.

Paid Preparer
Anyone you pay to prepare your claim must sign it and
include his or her Preparer Tax Identification Number (PTIN)
in the space provided. Preparers should have a PTIN,
but the preparer’s Social Security Number (SSN) may be
used when the paid preparer does not have a PTIN. The
paid preparer must also include his or her firm’s Federal
Employer Identification Number (FEIN), if applicable. The
preparer must give you a copy of this form for your records.
Someone who prepares your claim but does not charge you
should not sign your claim.

Third Party Designee
If you want to allow your preparer, a friend, a family member
or any other person you choose to discuss your 2017 Form
2EC with the department, mark the “Yes” box in the bottom
of the signature block. You must also enter the designee’s
printed name and phone number. If you do not complete
this section in its entirety, we cannot discuss your claim with
a third party.
If you mark the “Yes” box, you, and your spouse if filing
a joint claim, are authorizing the department to call the
designee to answer any questions that may come up during
the processing of your claim. You are also authorizing the
designee to:
●● Give the department any information that is missing from
your claim;
●● Call the department for information about the processing
of your claim or the status of your refund;
●● Receive copies of notices or transcripts related to your
claim, upon request; and
●● Respond to notices from the department about math
errors, offsets and claim preparation.
You are not authorizing the designee to discuss any other
tax year, receive any refund check, bind you to anything
or otherwise represent you before the department. If you
want to expand the designee’s authorization, please view
information about granting someone power of attorney at
revenue.mt.gov.
The authorization automatically ends no later than the due
date (without regard to extensions) for filing your 2018
return. This is April 15, 2019, for most people.

File Your Form 2EC
File Form 2EC with your Form 2, or alone if you are not
required to file a Montana tax return, through our website.
For further information on filing Form 2EC electronically, visit
our website at revenue.mt.gov.

Daytime Phone Number

If you choose not to file electronically and you are not
required to file Montana Form 2, mail your Form 2EC to:

Providing your daytime phone number may help speed the
processing of your claim. We may have questions about
items on this form. Your answer may allow processing your
claim without mailing you a letter. If you are filing a joint
claim, you can enter either your or your spouse’s daytime
phone number.

How can I find out more about this credit or other
tax matters, such as property tax relief?

Montana Department of Revenue
PO Box 6577
Helena, MT 59604-6577

Call us at (406) 444-6900 or visit our website at
revenue.mt.gov.