Is the homeowner property tax refund taxable on my 2007 income tax return?
State Income Tax • Include this refund in your 2007 taxable income if you itemized your deductions and included a deduction for your real estate property taxes on your 2006 state income tax return. • Do not include this refund in your 2007 taxable income if you claimed the standard deduction on your 2006 state income tax return. See Montana’s tax booklets or visit mt.gov/revenue for additional information. Federal Income Tax • Include this refund in your 2007 taxable income if you itemized your deductions and included a deduction for your real estate property taxes on your 2006 federal income tax return. • Do not include this refund in your 2007 taxable income if you claimed the standard deduction on your 2006 federal income tax return.
