Montana Residents Can Receive Up To $6,000 From The Tax Shelter Annuity

The annual tax shelter annuity benefit is available for parents and grandparents who are taxpayers in Montana and who make contributions to the section 529 plan on behalf of their child or grandchild. Montana taxpayers receive a $3,000 deduction if they file as single or head of household; married joint filers can receive $6,000. You must be a Montana resident to receive the deduction. The federal amount is $12,000 (or $24,000 for married joint filers) per year, per child. Simply stated, you can contribute up to $12,000 without incurring a federal gift tax. Any amount exceeding the 529 gift tax exclusion limit is considered a taxable gift and must be reported on your federal gift tax return.