UTAH
separate property state

 

Military Income:   Fully taxable.

Military Spouse Residency Relief Act:  Service member and spouse had the same domicile prior to moving to Utah. Service member is in state under military orders. Spouse in state solely to be with their military spouse

Forms Used:            

Filing Status:  Same as federal.  If married and one spouse is not a resident of Utah, a separate return can be filed.  In order to qualify to file separate, one spouse must be a full year resident while the other is a nonresident. 

Attach Copy of Federal Return:  No.

Not Taxed:

Other State Tax Credit:  Available.  Attach Utah Form TC-40A and copy of other state return.

Where to Mail:

ALL RETURNS WITH PAYMENTS:
Utah State Tax Commission
210 N 1950 W
Salt Lake City UT  84134-0266

ALL OTHER RETURNS (including refunds):
Utah State Tax Commission
210 N 1950 W
Salt Lake City UT  84134-0260
Forms:  1-800-662-4335 ext 6700 Website:  www.incometax.utah.gov
General Information(801) 297-2200 E-File Help Desk:  (801) 297-7575
Other Info:  

Utah Tax Commission
210 N. 1950 West
Salt Lake City, UT 84134

 

E-filing Info:  The following CANNOT be filed electronically:

  • A Married Filing Separate State Return if the federal is filed jointly.

Mail the TC-8453, (if one is required) (DO NOT ATTACH supporting documents) to:

            Utah State Tax Commission
            Electronic Filing Section
            210 North 1950 West
            Salt Lake City UT 84134-0210

The TC-8453 is only required if there are certain documents in the Utah return.  If any boxes are checked on the TC-8453, ensure taxpayers signs two copies of form.

All supporting documents must be maintained by the ERO for 3 years.

Tax Form Instructions:
Resident Instructions Non-Resident Instructions

Military Specific Publication

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Utah residents, lived at their present location all year, and one or both had income.

Main Info Screen.

 

Utah TC-40 Form.  A joint resident Utah income tax return is prepared.  

 

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Utah, while the other member is a resident of a different state.  A Utah income tax return must be prepared due to the taxpayer or spouse having Utah earned income.

Main Info Screen.  If married and one spouse is not a resident of Utah, a separate return or a joint return can be filed.  Try both methods to see which gets the taxpayer a larger refund. In order to qualify to file separate, one spouse must be a full year resident while the other is a nonresident.  For this example, the taxpayer is a resident of Utah while the spouse is a resident of North Dakota. Utah requires taxpayers to file the same Utah form as the Federal form unless all the following conditions are met

1. You are a service member of the spouse of a service member.
2. You have filed a married filing joint federal income tax return.
3. You have a spouse who is a nonresident of Utah.
4. You must be a full-year Utah resident.

You must determine what the Adjusted Gross Income (AGI) would have been if the Utah resident had filed a Married Filing Separate (MFS) federal return. This amount will be used to complete the Allocation Percentage for the Utah Special Instructions worksheet.Divde the MFS AGI by the combined Federal AGI to determine the Allocation Percentage. Carry the percentage out to four decimal places. This Allocation Percentage will be used to calculate any Utah Additions or Subtractions for the Utah MFS return.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Utah TC-40 Form. In order to prepare a Married Filing Separate Utah return, you must override the MFJ and MFS check boxes on the Utah TC-40 form. Override the appropriate fields in the Exemptions area to remove any nonresidents from the Utah return. Line 4 of the UT TC-40 will need to be overridden to show the MFS AGI amount used earlier when calculating the Allocation Percentage.

 

UT TC-40A Income Tax Supplemental Schedule - If there are any Utah Additions or Subtractions the amount must be adjusted by the Allocation Percentage determined earlier. The Allocation Percentage will not be used to adjust any amounts on Line 82.Line 88 cannot be used on the MFS return.


Review the remainder of the Utah Form TC-40 and complete all other fields and forms with red or required information.

Utah does not allow the return to be e-filed. Choose NO to e-file.

According to Utah's instructions, you must Residency Code of "8". There is no way to perform this in the software. After the return is printed, you must the change the residency code on the printed form to 8 prior to signing the return and mailing it in. Mail the return to the address listed in the table above.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Utah tax return due to one or both having Utah earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Utah income tax return because the spouse worked in Utah.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Utah Form TC-40.   A joint non-resident Utah income tax return should be prepared.  You must enter the Home State Abbreviation as indicated. 

 

Utah Form TC-40A Page 1 - Income Tax Supplemental Schedule.  To comply with the provisions of the Service Member's Civil Relief Act, the military member's nonresident income must be entered in Part 2 - Deductions from Income,.  Enter the amount of nonresident active duty military pay on line 82. A nonresident spouse of a military member will also have their income exempted IAW the MSRRA. All the salary/wages of the nonresident spouse is entered on Line 88.

Review the remainder of the Utah Form TC-40, TC-40S and TC-40C to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Utah during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Utah.  The Spouse and taxpayer must file a Utah tax return due to one or both of them having Utah earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from Utah to Utah during the year.  The spouse was a resident of Utah but is now changing their residency to Utah for tax purposes.  The spouse therefore was a part-year resident of both Utah and Utah and must file a Utah income tax return because the spouse worked in Utah.

 

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Utah Form TC-40.   A joint part-year resident Utah income tax return should be prepared.  Line 18 must be completed with the dates of residency. 

 

Utah Form TC-40S - Income Tax Supplemental Schedule.  To comply with the provisions of the Service Member's Civil Relief Act, the military member's nonresident income must be entered in Part 2 - Deductions from Income,.  Enter the amount of nonresident active duty military pay on line 82.

Review the remainder of the Utah Form TC-40 and TC-40A to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Utah with Income from Another State  - Taxpayer is single.  The taxpayer must file a Utah tax return due to him or her having Utah earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in Utah but a resident of Utah.  The taxpayer had a job in Utah therefore having Utah earned income.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Utah TC-40 Form.  A resident Utah income tax return is prepared.  Utah taxes residents on income from all sources, even income earned while living in another state (Utah as in this example).  

Utah TC-40S Form, Credit for Taxes Paid to Another State.  Utah TC-40S Form must be prepared to give a credit for taxes paid to another state (North Dakota). You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the taxpayer had withheld from his or her pay but the amount of tax imposed on them.  Line 1 is the amount of income earned in the other state (North Dakota).  Line 6 is the amount of income tax liability on the (North Dakota) tax return.  A copy of the other state's return must be attached to the Utah return if not e-filed.

 

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Utah return must be filed because the taxpayer received new tax information after their Utah return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Utah TC-40 - Utah Individual Income Tax Return.  The same Utah TC-40 Form that was used to file the return is used to amend the return.  Answer the questions as in the example.  You must check the box to lock in the original refund or balance due before making any changes to the return.  Choose from the following codes for amended returns: 

1.  You filed an amended return with the IRS (attach a copy of your amended federal return).
2.  You made an error on your Utah return (attach an explanation of the error).
3.  Your federal return was changed by an IRS audit and/or adjustment and it affects your Utah return (attach a copy of the IRS adjustment).
4.  You had a net operating loss. Utah treats net operating losses in the same manner as the federal return. If any of your amended return is the result of a net operating loss carryback, use Code 4 and complete an income tax return for each year you are amending (attach a copy of your amended federal return).
5.  Other (attach explanation to return).

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Utah TC-40 - Utah Individual Income Tax Return.  Return to the Utah TC-40 form to determine if the taxpayer is receiving an additional refund or owes money.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.