GREAT FALLS — As tax season progresses, tax professionals say several updates this year could affect how much Montanans pay or get back.
Jeremy Trebas, owner of Trebas Tax in Great Falls, says while many changes happen quietly each year, some of this season’s updates are more noticeable.
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“One of the newer changes would be, you know, the standard deduction always increases, but for seniors over 65, it increases an extra $6,000 per person,” Trebas said
That means a married couple over the age of 65 could see a $12,000 additional deduction, income they won’t have to pay federal income taxes on.
Trebas says new exemptions for overtime and tips are also drawing attention.
“The big ones are overtime pay is exempted up to $12,500 per person, or $25,000 married filing jointly,” he said. “And then no tax on tips, up to $25,000 for qualified tips.”
For workers logging long hours or earning income through tips, those changes could significantly lower taxable income, particularly for those already in higher tax brackets.
Montana’s standard deduction alignment
At the state level, Montana continues to use a standard deduction that matches the federal level, a change that began last tax season.
“The state adopted the same standard deduction as the federal,” Trebas explained
Previously, taxpayers could claim personal exemptions and split income differently at the state level. Now, returns are combined similarly to federal filings. The tradeoff, Trebas says, is that the state’s standard deduction increased significantly.
“For most people, that higher standard deduction on the state level works out pretty well,” he said
Because the standard deduction is now much higher, many taxpayers no longer need to itemize deductions such as mortgage interest, real estate taxes, or charitable contributions.
Adoption credits expanded
Trebas also noted enhanced adoption credits at both the federal and state levels.
At the federal level, credits can reach up to approximately $7,500 per child, with a portion refundable, meaning families can receive money back even if they owe no taxes
Montana also offers refundable adoption credits, with higher amounts available for children adopted from the state foster care system
“It’s government’s incentive to get kids in homes through tax policy,” Trebas said.
What to bring to your tax appointment
For those still preparing to file, Trebas says organization makes the process smoother.
Common documents include:
• W-2 forms from employers
• 1099 forms for retirement or contract income
• Social Security benefit statements
• Mortgage interest statements (1098 forms)
• Profit and loss statements for small businesses or rental properties
“If you have a small business, your profit and loss statements,” Trebas said, adding that bookkeeping should be in order before meeting with a preparer.
As the deadline approaches, tax professionals encourage people not to wait until the last minute, especially if their situation includes overtime income, tips, business earnings, or recent life changes that could qualify them for new credits or deductions.
