Lawmaker proposes reducing taxes on Social Security benefits
HELENA, Mont. (AP) — A Montana lawmaker is proposing a bill to help retirees on fixed incomes better absorb increasing medical and property tax costs.
Republican Sen. Dave Howard of Park City wants to reduce taxes on Social Security income by exempting from taxes the first $30,000 for a single person and $60,000 for a couple. He says it would reduce the taxes for about 50,000 residents by between $300 and $1,200 a year.
State law matches federal law in exempting $25,000 for an individual and $32,000 for a couple. Montana is one of 13 states that tax such benefits.
Howard on Thursday cited the case of an 85-year-old constituent who was working as a greeter at Walmart so he could pay his taxes, saying “I think the state is doing something wrong.”
Howard’s bill is scheduled for a hearing on Feb. 13.