UTAH
222Forms0and
Instructions
TC-20S
S CorporationS Corporation
Utah State Tax Commission • 210 North • 1950 West Salt Lake•tax.utah.govCity, Utah 84134
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UTAH
222Forms0and
Instructions
TC-20S
S CorporationS Corporation
Utah State Tax Commission • 210 North • 1950 West Salt Lake•tax.utah.govCity, Utah 84134
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Contents
General Instructions and Information .........................................................................................................................................................1
TC-20S – Utah S Corporation Tax Return Instructions ...............................................................................................................................5
Schedule A – Utah Taxable Income for Pass-through Taxpayers ...............................................................................................................7
Schedule E – Prepayments of Any Type.....................................................................................................................................................9
TC-20, Schedule J – Apportionment Schedule ........................................................................................................................................11
Schedule K – Shareholders’ Pro Rata Share Items ..................................................................................................................................14
Schedule K-1 – Shareholder’s Share of Utah Income, Deductions and Credits .......................................................................................19
Schedule M – Qualifi ed Subchapter S Subsidiaries .................................................................................................................................21
Schedule N – Pass-through Entity Withholding Tax ..................................................................................................................................21
TC-559, Corporation/Partnership Payment Coupon .................................................................................................................................25
Common Return Errors ............................................................................................................................................................................26
Cover art by Randolph Prawitt
File the Right Corporate Forms Utah Taxpayer Advocate Service
• TC-20 if Corporation fi led federal form 1120, 1120-IC-DISC The Taxpayer Advocate Service helps taxpayers who have made
• TC-20S if S Corporation fi led federal form 1120S multiple, unsuccessful attempts to resolve concerns with the Tax
Commission. This service helps resolve problems when normal
• TC-20MC if Corporation fi led federal forms 1120-H, 1120-RIC, agency processes break down, identifi es why problems occurred, and
1120-REIT, 990-T or 8023 suggests solutions. See tax.utah.gov/contact, or contact us to fi nd
out if you qualify for this service at 801-297-7562 or 1-800-662-4335,
E-Filing is Easier! ext. 7562, or by email at taxpayeradvocate@utah.gov.
E-fi ling is the easiest and most accurate way to fi le. Ask your tax Do not use the Taxpayer Advocate Service to bypass normal methods
preparer about e-fi ling your individual, fi duciary, partnership, C cor- for resolving issues or disputes.
poration and S corporation returns, or use commercial tax software.
Utah is Online Need more information?
Utah offers many online services for individual and business fi lers,
including: Questions 801-297-2200 or
1-800-662-4335 (outside the Salt Lake area)
tap.utah.gov
Research Utah rules, bulletins and Commission decisions:
• Pay by e-check or credit card. tax.utah.gov
• Manage your Utah tax account. Utah Code (UC): le.utah.gov
• Request payment plans. Internal Revenue Code (IRC):
tax.utah.gov law.cornell.edu/uscode/26
• Download forms and instructions for all Utah tax types.
• Link to free business resources and other services.
E-Verify for Employers If you need an accommodation under the Americans with Disabili-
Employers can help prevent identity theft by verifying the Social ties Act, email taxada@utah.gov, or call 801-297-3811 or TDD
Security numbers of job applicants. E-Verify is a free service of 801-297-2020. Please allow three working days for a response.
the U.S. Department of Homeland Security that verifi es employ-
ment eligibility through the Internet. Employers can use E-Verify at
uscis.gov/e-verify.
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2022 Utah TC-20S Instructions 1
General Instructions and Information
Corporations incorporated in Utah must fi le Articles of Dis-
What’s New solution with the Department of Commerce.
• Solar Energy Systems Phase-out: The maximum Re-
newable Residential Energy Systems Credit (credit 21) for Corporations incorporated outside of Utah (foreign corpora-
solar power systems installed in 2022 is $800. tions) must obtain a Certifi cate of Tax Clearance from the
Tax Commission before withdrawing from Utah. Foreign
• Utah Tax Rate: The 2022 Utah Legislature passed SB corporations must fi le an Application for Withdrawal with the
59, lowering the state corporate income tax rate from 4.95 Department of Commerce.
percent to 4.85 percent.
To request a Certifi cate of Tax Clearance, email the Tax
• Payroll Protection Program Loan Addback: In certain Commission at taxmaster@utah.gov, or call 801-297-2200
situations you must add to your income the amount of PPP or 1-800-662-4335. We will send you an Application for Tax
grants or loans forgiven in 2022. See page 7. Clearance to Withdraw a Foreign Corporation to complete
and return.
Reminders Dissolving and withdrawing corporations must also close their
• TC-250: List all nonrefundable and refundable credits other Utah tax accounts (sales, withholding, etc.). To close
received from an upper-tier pass-through entity on a Utah related tax accounts, send a completed TC-69C, Notice of
Schedule K-1, and any mineral production withholding tax Change for a Business and/or Tax Account, to Master Records
credit received on a form TC-675R. at the Tax Commission address above.
• Market Sourcing of Revenues from Performance of Ser-
vices by Multi-state Taxpayers: Corporations performing a S Corporations Not
service both in and outside of Utah must calculate the sales
factor numerator on TC-20, Schedule J by considering the Subject to Tax
service income to be in Utah if the buyer receives a greater An S corporation is not subject to Utah income tax. However,
benefi t of the service in Utah than in any other state. See shareholders are liable for Utah income tax in their separate
TC-20, Schedule J – Apportionment Schedule on page 11. or individual capacities. An S corporation must withhold Utah
• Method of Apportioning Income: To determine if you tax on all nonresident individual pass-through entity taxpayers
qualify as an optional apportionment taxpayer or a sales and all resident or nonresident business, estate, or trust pass-
factor weighted taxpayer, see Schedule J – Apportionment through entity taxpayers. See Pass-through Entity Withholding
Schedule on page 11. Requirements below.
Identifi cation Numbers Pass-through Entity
The corporation's federal Employer Identifi cation Number A pass-through entity is an entity whose income, gains, losses,
(EIN) is the Utah identifi cation number. The Utah Department deductions and/or credits fl ow through to its partners (partner-
of Commerce also issues a registration number upon incor- ships), members (limited liability companies), shareholders (S
poration or qualifi cation in Utah. Enter both the EIN and Utah corporations) or benefi ciaries (estates and trusts) for federal
Incorporation/Qualifi cation number in the proper fi elds on page tax purposes.
1 of form TC-20S. These numbers are used for identifi cation
of the corporate tax return.
Pass-through Entity Taxpayer
A pass-through entity taxpayer is an entity which has income,
Corporation Changes gains, losses, deductions and/or credits passed to it from a
Report corporation changes (e.g., name change, physical pass-through entity (e.g., an individual who is a shareholder
and/or mailing address changes, merger, or ceasing to do in an S corporation, or a partnership which is a shareholder
business in Utah) in writing to: in an S corporation).
UT Division of Corporations and Commercial Code
Department of Commerce Liability for Filing and Paying
160 E 300 S, 2nd Floor
PO Box 146705 Tax Forms
Salt Lake City, UT 84114-6705 The Tax Commission does not mail forms for fi ling corporate
and submit form TC-69C to: taxes. Get forms at tax.utah.gov/forms or by calling the
Master Records Forms Hotline at 801-297-6700 or 1-800-662-4335, ext. 6700.
Utah State Tax Commission Note: See What to Attach and What to Keep on page 3
210 N 1950 W for what federal information is required with the Utah return.
Salt Lake City, UT 84134-3215
Franchise Tax
Dissolution or Withdrawal Every C corporation incorporated in Utah (domestic), qualifi ed
in Utah (foreign), or doing business in Utah, whether qualifi ed
Corporations that cease to do business in Utah must either or not, must fi le a corporate franchise tax return. C corpora-
dissolve or withdraw the corporation. tion returns are fi led on form TC-20. There is a minimum tax
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2022 Utah TC-20S Instructions 2
(privilege tax) of $100 on every corporation that fi les form The S corporation must provide a Utah Schedule K-1 to each
TC-20, regardless of whether or not the corporation exercises shareholder showing the amount of Utah withholding paid on
its right to do business. behalf of the shareholder. This withholding tax is then claimed as
a credit by the shareholder on the shareholder’s personal return.
S Corporation
If this S corporation has an interest in a partnership (also
Every S corporation (as defi ned in IRC §1361(a)) that has considered a pass-through entity), that partnership is required
fi led a proper and timely election under IRC §1362(a) must to withhold Utah income tax on Utah income allocated to this
fi le form TC-20S, so long as the federal election remains in S corporation. The partnership must provide a Schedule K-1
effect. The minimum tax does not apply to S corporations. showing the amount of Utah withholding tax paid on behalf
of this S corporation. This withholding tax must be reported
Income Tax on TC-250 and then be allocated to the shareholders of this
Corporations required to fi le under the income tax provisions S corporation to be claimed on their personal returns. Enter
are those that derive income from Utah sources, but are not this previous pass-through entity withholding tax for each
qualifi ed to do business in Utah and have no regular and es- shareholder on Schedules K and K-1.
tablished place of business in Utah, either owned or rented, The S corporation may request a waiver of withholding tax
and do not maintain an inventory or have employees located and any associated penalty and interest for all or selected
at a place of business in Utah. shareholders who fi led and paid tax on their personal returns
on the Utah income from this S corporation. The tax must be
paid on or before the S corporation’s return due date, includ-
Example 1: ing extensions (see UC §59-10-1403.2(5)).
A trucking company, operated in or through Utah by
a foreign corporation not qualifi ed to do business in Qualifi ed Subchapter S Subsidiary
Utah, is subject to income tax rather than franchise tax. An S corporation that owns one or more qualifi ed subchapter S
subsidiaries, as defi ned in IRC §1361(b)(3)(B), must:
• Include each subsidiary’s assets, liabilities and items of
income, loss and deductions as part of the parent S cor-
Example 2: poration’s assets, liabilities and items of income, loss and
An institution making loans or issuing credit cards deductions for Utah tax purposes. The qualifi ed subchapter
to Utah customers from outside Utah that are not S subsidiary shall not be treated as a separate corporation.
qualifi ed to do business in Utah and have no place of • Take into account the activities of the qualifi ed subchapter
business in Utah is also subject to income tax rather S subsidiaries in determining whether the S corporation
than franchise tax. parent is doing business in Utah. For purpose of this deter-
mination, all of the subsidiary’s activities will be attributed
to the parent.
A $100 minimum tax applies to the corporate income tax. • Attach TC-20S, Schedule M identifying the qualifi ed sub-
chapter S subsidiaries incorporated, qualifi ed, or doing
Pass-through Entity Withholding business in Utah.
Requirements
S corporations and business entities treated as S corpora- Taxable Year
tions are considered pass-through entities (see UC §59-10- The taxable year for Utah tax purposes must match the tax-
1402(10)) and must withhold Utah income tax on all nonresi- able year used for federal tax purposes. When the taxable
dent individual shareholders, on all resident and nonresident year changes for federal purposes, the taxable year must be
business shareholders, and on all resident and nonresident changed for Utah purposes. See Filing Return When Period
trust and estate shareholders. These shareholders are col- Changed below.
lectively referred to as pass-through entity taxpayers (see
UC §59-10-1402(11)). An S corporation is not required to Filing Return When Period Changed
withhold on a shareholder that is exempt from tax under UC When changes are made to the taxable year, as indicated
§59-7-102(1)(a) or §59-10-104.1, or if the pass-through entity under Taxable Year above, a short-period return is required.
is a plan under IRC §§401, 408 or 457 and is not required The short-period return must cover the period of less than
to fi le a return under UC Chapter 7, or is a publicly traded 12 months between the prior taxable year-end and the new
partnership as defi ned under UC §59-10-1403.2(1)(b)(iv). taxable year. The pass-through entity withholding provisions
Utah imposes a 4.85 percent withholding tax on all Utah busi- as provided in Utah Administrative Rule R865-9l-13, apply to
ness and nonbusiness income derived from or connected with short period S corporation returns.
Utah sources and attributable to pass-through entity taxpay-
ers. The S corporation may reduce this withholding by any Where to File
mineral production withholding tax, previous pass-through Mail your return to:
entity withholding tax allocated to the shareholder, and taxes
Utah State Tax Commission
paid for this shareholder with form TC-75, Voluntary Taxable
210 N 1950 W
Income Election for Pass-through Entities.
Salt Lake City, UT 84134-0300
Calculate Utah withholding tax on Schedule N. See the in-
You may also pay any tax due at tap.utah.gov.
structions for Schedule N on page 21.
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2022 Utah TC-20S Instructions 3
Due Date You may also:
A return must be fi led on or before the 15th day of the fourth 1. complete form TC-804B, Business Tax Payment Agree-
month following the close of the taxable year or the due date ment Request (tax.utah.gov/forms), or
of the federal return, whichever is later. If the due date falls on 2. call the Tax Commission at 801-297-7703 or 1-800-662-
a Saturday, Sunday or legal holiday, the due date becomes 4335 ext. 7703.
the next business day.
Filing Extension What to Attach and
Corporations are automatically allowed an extension of up to What to Keep
six months to fi le a return without fi ling an extension form. This Include the following with your Utah TC-20S. Also, keep copies
is NOT an extension of time to pay your taxes – it is only of these with your tax records.
an extension of time to fi le your return. To avoid penalty,
• Utah S Corporation Return Schedules: Attach applicable
the prepayment requirements must be met on or before the
Utah schedules A, E, H, J, K, M, N, and/or TC-250. Also
original return due date and the return must be fi led within
attach a Utah Schedule K-1 for each shareholder.
the six-month extension period.
• Federal Return: Attach only pages 1 through 5 of your
Note: All pass-through withholding tax from Schedule N, column federal S corporation return, plus Schedule M-3 and IRS
J must be paid by the original due date of the return, without form 1125-A, if applicable.
regard to extensions.
Do not send a copy of your entire federal return, federal
Schedules K-1, credit schedules, worksheets, or other
Penalties documentation with your Utah return unless otherwise
Utah law (UC §59-1-401) provides penalties for not fi ling stated in these instructions. Keep these in your fi les. We
tax returns by the due date, not paying tax due on time, not may ask you to provide them later to verify entries on your
making suffi cient prepayment on extension returns, and Utah return.
not fi ling information returns or supporting schedules. See
tax.utah.gov/billing/penalties-interest and Pub 58, Utah
Federal Taxable Income (Loss)
Interest and Penalties, at tax.utah.gov/forms.
Utah law defi nes federal taxable income as “taxable income
The Tax Commission will calculate the penalty for underpay- as currently defi ned in Section 63, Internal Revenue Code
ment of required prepayments. of 1986.” Since Utah’s taxable income is based on federal
taxable income, a shareholder’s ability to carry forward and
Interest (in addition to penalties due) carry back corporation losses is determined on the federal
level. The loss taken by a shareholder in a given year must
Interest is assessed on underpayments from the due date match the loss taken on the federal return. Losses cannot be
until the liability is paid in full. The interest rate for the 2023 independently carried back or forward in any given year on
calendar year is 5.0 percent. the shareholder’s Utah return.
For more information, get Pub 58, Utah Interest and Penalties,
at tax.utah.gov/forms.
Utah Income
Complete Schedule A to determine Utah income or loss. If the
Rounding Off to Whole Dollars corporation does business both within and outside of Utah,
Round off cents to the nearest whole dollar. Round down if the portion of the corporation income attributable to Utah is
cents are under 50 cents; round up if cents are 50 cents and determined by fi rst completing TC-20, Schedule J, and then
above. Do not enter cents on the return. Schedule A.
Negative Numbers Business Income
When reporting losses or other negative numbers, do not Business income means income arising from transactions and
use parentheses. Always indicate a negative number with a activity in the regular course of the taxpayer’s trade or business
minus sign (-). and includes income from tangible and intangible property if
the acquisition, management and disposition of the property
constitutes integral parts of the taxpayer’s regular trade or
Suspension for Failure to business operations. See UC §59-10-1402(2).
Pay Tax Due Business income apportioned to Utah is subject to the pass-
Utah law provides for suspension of a corporation’s right to do through entity withholding requirements.
business in Utah if it fails to pay taxes due before 5:00 p.m. The following are examples of business income:
on the last day of the 11th month after the due date.
• Interest income on loans and investments made in the
If you cannot pay the full amount you owe, you can re- ordinary course of a trade or business of lending money.
quest a payment plan. Log into your corporate account at • Interest income on accounts receivable arising from the
tap.utah.gov, and click "Request waiver, payment plan or performance of services or sales of property.
payment plan email."
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2022 Utah TC-20S Instructions 4
• Income from investments made in the ordinary course
Nonbusiness Income
of a trade or business of furnishing insurance or annuity
contracts or reinsuring risks underwritten by insurance Nonbusiness income means all income other than business in-
companies. come. See UC §59-10-1402(8). Nonbusiness income includes
portfolio income that is not derived in the ordinary course of a
• Income or gain derived in the ordinary course of an ac-
pass-through entity’s trade or business. The burden of proof
tivity of trading or dealing in any property if such activity
is on the taxpayer to justify the manner in which income is
constitutes a trade or business (unless the dealer held the
claimed on the return.
property for investment at any time before such income or
gain is recognized).
• Royalties derived by the taxpayer in the ordinary course of Apportionable Income
a trade or business of licensing intangible property. The following types of income are apportionable business
• Amounts included in gross income of a patron of a coopera- income:
tive by reason of any payment or allocation to the patron 1. Interest, dividends, royalties, gains, etc., derived in the
based on patronage occurring with respect to a trade or ordinary course of a pass-through entity’s trade or business.
business of the patron.
2. Interest, dividends, gains, etc., of an entity whose primary
• Other income identifi ed by the IRS as income derived by business activity is investing funds (such as with a broker-
the taxpayer in the ordinary course of a trade or business. age fi rm).
3. Income received from holdings in or the sale of partnership
interests.
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2022 Utah TC-20S Instructions 5
TC-20S – Utah S Corporation Tax Return
Instructions
Filing Period Reason-for-Amending Codes
File the 2022 return for calendar year 2022 and fi scal years 1 You fi led an amended federal return with the IRS. Attach
beginning in 2022 and ending in 2023. If the return is for a a copy of your amended federal return.
fi scal year or a short tax year (less than 12 months), fi ll in the 2 You made an error on your Utah return. Attach an explana-
tax year beginning and end dates at the top of the form using tion of the adjustments made.
the format mm/dd/yyyy. 3 Your federal return was changed by an IRS audit or adjust-
ment and it affects your Utah return. Attach a copy of the
IRS adjustment.
Corporation Name and Address
4 Other. Attach an explanation to your return.
Enter the corporate name, address and telephone number,
including area code. If the address has changed, see Corpo- Enter the corrected fi gures on the return and/or schedules.
ration Changes on page 1. Enter all other amounts as shown on your original return. If
you received a refund on your original return, subtract the
previous refund (exclude refund interest) from the amount of
ZIP Code any tax paid with the original return and/or subsequent pay-
Enter your ZIP Code, including the “plus four” at the end, without ment of the tax prior to fi ling the amended return. Enter the
a hyphen. net amount on Schedule A, line 19. Enter a net refund as a
negative amount (preceded by a minus sign).
Foreign Country
If your address is in a foreign country, enter the mailing address Federal Form 8886
where indicated. Enter the foreign city, state/province and postal If you fi led federal Form 8886, Reportable Transaction Disclosure
code in the City fi eld. Abbreviate if necessary. Leave the State Statement, with the Internal Revenue Service, enter an “X” at
and ZIP Code fi elds blank. Enter only the foreign country name the top of TC-20S, where indicated.
in the Foreign country fi eld.
Line-by-Line Instructions
EIN and Utah Incorporation/
Line 1 – S Corporation First Return
Qualifi cation Number
If this is the fi rst return fi led as an S corporation, enter the
Enter your federal EIN and Utah Incorporation/Qualifi cation effective date of the S corporation election as shown on the
Number issued by the Department of Commerce in the ap- IRS approval letter, Notice of Acceptance as an S Corporation.
propriate fi elds.
Line 2(a) – Number of Shares
Amended Returns Enter the number of shares issued by the S corporation to
Resident Individuals, IRC 501 and Other Exempt Entities,
Note: Do not submit a copy of your original return with your and Nonresident Individuals and Other Pass-through Entity
amended return. Taxpayers.
To amend a previously fi led return, use the tax forms and in-
structions for the year you are amending. Get prior year forms Line 2(b) – Percentage of Shares
and instructions at tax.utah.gov/forms-pubs/previousyears. Enter the percentage of shares issued by the S corporation
Amend your return if: to Resident Individuals, IRC 501 and Other Exempt Entities,
and Nonresident Individuals and Other Pass-through Entity
• you discover an error on your Utah or federal return after
Taxpayers. The total percentages entered should equal 100
it has been fi led, or
percent.
• your federal return is audited or adjusted by the IRS and
the audit or adjustment affects your Utah return. You must Note: The percentage of shares must be the same as the
amend your Utah return within 90 days of the IRS’s fi nal total of the stock ownership percentages entered on line G
determination. of all federal Schedules K-1.
To qualify for a refund or credit, an amended return must be Line 3 – Corporations Conducting
fi led by the later of three years after the original return was Business in Utah
due or two years from the date the tax was paid. A return
fi led before the due date is considered fi led on the due date. Enter an “X” if this S corporation conducted any business in
Utah during the taxable year.
To amend a previously fi led return, at the top of page 1, on
the “Amended Return” line, enter the code number from the
following list that best describes your Reason for Amending:
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2022 Utah TC-20S Instructions 6
Line 4 – Qualifi ed Subchapter S Paid Preparer Authorization
Subsidiary Election If the corporation wants to allow the Tax Commission to dis-
Enter an “X” if this S corporation has elected to treat any cuss this return with the paid preparer who signed it, enter an
subsidiary as a Qualifi ed Subchapter S Subsidiary. List each “X” in the box to the right of the signature area of the return
of these subsidiaries that did business, incorporated or was where indicated.
qualifi ed in Utah on Schedule M. This authorization applies only to the individual whose signature
appears in the Paid Preparer's Section of the return. It does not
Line 5 – Total Tax
apply to the fi rm, if any, shown in that section. If you enter an
Enter the total tax from Schedule A, line 17. If Schedule A “X” in the box, the corporation is authorizing the Tax Commis-
is not required because all shareholders are Utah resident sion to call the paid preparer to answer any questions that may
individuals, enter zero. arise during the processing of the return. The paid preparer is
also authorized to:
Line 6 – Total Payments
• give the Tax Commission any information that is missing
Enter the total payments from Schedule A, line 20. If Schedule from the return,
A is not required because all shareholders are Utah residents,
enter zero. • call the Tax Commission for information about the process-
ing of the return or the status of any refund or payment(s),
Line 7 – Tax Due and
If line 5 is larger than line 6, subtract line 6 from line 5. • respond to certain Tax Commission notices about math
errors, offsets, and return preparation.
Line 8 – Penalties and Interest The corporation is not authorizing the preparer to receive any
Enter any penalties and interest that apply to this return. See Pub refund, bind the entity to anything (including any additional
58, Utah Interest and Penalties. tax liability), or otherwise represent the entity before the Tax
Commission. The authorization will automatically end no later
Line 9 – Total Due - Pay This Amount than the due date (without regard to extensions) for fi ling next
Add lines 7 and 8. Pay at tap.utah.gov, or send a check year's tax return.
or money order with your return (make payable to the Utah If you want to expand the preparer’s authorization, complete
State Tax Commission). Do not mail cash. The Tax Commis- and submit form TC-737, Power of Attorney and Declaration
sion assumes no liability for loss of cash placed in the mail. of Representative (tax.utah.gov/forms). If you want to revoke
Complete the TC-559 coupon (see the back of this book) and the authorization before it ends, submit your request in writ-
send it with your payment. See Payment Options below for ing to the Utah State Tax Commission, attention Taxpayer
information about making payments. Services, 210 N 1950 W, SLC, UT 84134.
Line 10 – Overpayment
If line 6 is larger than the sum of line 5 and line 8, subtract the Paid Preparer
sum of line 5 and line 8 from line 6. The paid preparer must enter his or her name, address, and
PTIN in the section below the corporate offi cer’s signature
Line 11 – Amount of Overpayment to be on the return.
Applied to Next Taxable Year
All or part of any overpayment shown on line 10 may be applied Preparer Penalties
as an advance payment for the next tax year. Enter the amount (UC §§59-1-401(11)-(12))
to be applied (may not exceed the overpayment on line 10).
The person who prepares, presents, procures, advises, aids,
Line 12 – Refund assists or counsels another on a return, affi davit, claim or
similar document administered by the Tax Commission, and
Subtract line 11 from line 10. This is the amount to be re- who knows or has reason to believe it may understate a tax,
funded to you. fee or charge is subject to both a civil penalty ($500 per docu-
ment) and criminal penalty (second degree felony with a fi ne
from $1,500 to $25,000).
Signature and Date Line
Sign and date the return. We will not issue a refund without
a signature. Supplemental Information to be
Supplied by All S Corporations
All S corporations must complete the information on page 2
of the TC-20S.
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2022 Utah TC-20S Instructions 7
Schedule A – Utah Taxable Income for Pass-
through Taxpayers
Line 1 – Federal Income/Loss Reconciliation Line 13 – Utah Apportioned Business Income/
Enter the amount of federal income or loss reconcilia- Loss
tion as shown on federal form 1120S, Schedule K, line 18 Multiply the apportionable income/loss on line 11 by the ap-
(R865-9I-13). portionment fraction on line 12.
Line 2 – Charitable Contributions Line 14 – Total Utah Income/Loss Allocated to
Enter the amount of charitable contributions deducted on Pass-through Entity Taxpayers
federal form 1120S, Schedule K, line 12a. Add line 8 and line 13.
Line 3 – Foreign Taxes Line 15 – Total Pass-through Withholding Tax
Enter the amount of foreign taxes deducted on federal form Enter the total pass-through withholding tax from Schedule
1120S, Schedule K, line 16f. N, column J.
Line 4 – Recapture of Section 179 Deduction This pass-through withholding tax must be paid to the Tax
Commission by the original due date of the return, without
Enter the amounts reported on federal Schedules K-1, box
regard to extensions. Pay at tap.utah.gov or use form TC-559,
17, code L.
Corporation/Partnership Payment Coupon.
Line 5 – Payroll Protection Program Grant or Do not include any pass-through withholding tax credit re-
Loan Addback ceived from another pass-through entity as reported on a
Utah Schedule K-1 you received. Pass-through withholding
If you received a COVID-19 Payroll Protection Program (PPP)
tax credits received from other pass-through entities are en-
grant or loan, enter any amount that:
tered on TC-250 and allocated to the shareholders on Utah
1. was forgiven during the 2022 tax year, Schedule K-1.
2. is exempt from federal income tax, and
Line 16 – Utah Use Tax
3. you used for expenses that you deducted on your federal
tax return. Use tax is a tax on goods and taxable services purchased for
use, storage or other consumption in Utah during the taxable
Line 6 – RESERVED year. Use tax applies only if sales tax was not paid at the time of
purchase. If you purchased an item from an out-of-state seller
Line 7 – Total Income/Loss (including Internet, catalog, radio and TV purchases) and the
Add lines 1 through 6. seller did not collect sales tax on that purchase, you must pay
the use tax directly to the Tax Commission.
Line 8 – Utah Net Nonbusiness Income If you have a Utah sales tax license/account, report the use tax on
Enter the nonbusiness income net of expenses allocated to your sales tax return. If you do not have a Utah sales tax license/
Utah from TC-20, Schedule H, line 14. account, report the use tax on line 16 of TC-20S, Schedule A.
Sales of Utah property and rents received on Utah property, if You may take a credit for sales or use tax paid to another
not part of the trade or business income of the S corporation, state (but not a foreign country). If the other state’s tax rate
are considered Utah nonbusiness income. is lower than Utah’s, you must pay the difference. If the other
state’s tax rate is more than Utah’s, no credit or refund is
Line 9 – Non-Utah Net Nonbusiness Income given. If sales tax was paid to more than one state, complete
Enter the nonbusiness income net of expenses allocated the Use Tax Worksheet below for each state. Add lines 8 on
outside Utah from TC-20, Schedule H, line 28. all worksheets and enter the total on line 16 of Schedule A.
Sales and use tax rates vary throughout Utah. Use the Use
Line 10 Tax Rate Chart below to get the rate for the location where the
Add line 8 and line 9. merchandise was delivered, stored, used or consumed. Use
the county tax rate if the city is not listed.
Line 11 – Apportionable Income/Loss Grocery food bought through the Internet or catalog is taxed
Subtract line 10 from line 7. at 3 percent. The grocery food must be sold for ingestion or
chewing by humans and consumed for the substance’s taste
Line 12 – Apportionment Fraction (Decimal) or nutritional value. The reduced rate does not apply to alco-
Enter 1.000000, or the apportionment fraction (decimal) from holic beverages or tobacco. See Pub 25, Sales and Use Tax,
TC-20, Schedule J, line 9 or 10, if applicable. at tax.utah.gov/forms.
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2022 Utah TC-20S Instructions 8
Use Tax Rate Chart (Effective Dec. 31, 2022) Use Tax Worksheet
.0635 Beaver County .0795 Garden City 1. Amount of purchases (except grocery food)
.0735 Beaver City .0725 Salt Lake County subject to use tax 1 _________
.0610 Box Elder County .0875 Alta
.0665 Brigham City, Perry, Willard .0835 Brighton 2. Use tax rate
.0640 Mantua .0745 Murray, South Salt Lake (decimal from Use Tax Rate Chart) 2 .__ __ __ __
.0710 Snowville .0775 Salt Lake City,
.0670 Cache County Inland Port SLC 3. Multiply line 1 by line 2 3 _________
.0695 Cache Valley Transit, Hyde .0635 San Juan County 4. Amount of grocery food purchases
Park, Lewiston, Millville .0675 Blanding, Monticello subject to use tax 4 _________
.0700 Hyrum, Logan, Nibley, N. Logan, .0745 Bluff
Providence, Richmond, River .0635 Sanpete County 5. Multiply line 4 by 3% (.03) 5 _________
Heights, Smithfield .0645 Centerfield, Mayfield
.0635 Carbon County .0675 Ephraim, Fairview, Gunnison, 6. Add line 3 and line 5 6 _________
.0645 Helper Mt. Pleasant 7. Credit for sales tax paid to another state
.0675 Price .0665 Manti on use tax purchases 7 _________
.0665 Wellington .0635 Sevier County
.0735 Daggett County .0645 Aurora, Redmond 8. Use tax due (subtract line 7 from line 6) 8 _________ (If
.0845 Dutch John .0665 Monroe less than zero, enter "0.")
.0715 Davis County .0675 Richfield, Salina
.0725 Bountiful, Centerville, .0715 Summit County
Clearfield, Farmington, .0855 Mil. Rec. Park City
Kaysville, Layton, N. Salt .0905 Park City
Lake, S. Weber, Syracuse, .0745 Snyderville Basin Transit Line 17 – Total Tax
W. Bountiful, Woods Cross .0660 Tooele County
.0635 Duchesne County .0690 Erda, Grantsville, Lakepoint, Add lines 15 and 16. Carry this total to TC-20S, page 1, line 5.
.0645 Duchesne City Lincoln, Stansbury Park
.0675 Roosevelt .0700 Tooele City Line 18 – Prepayments from Schedule E
.0635 Emery County .0645 Uintah County Credit is allowed for advance payments made as quarterly
.0825 Green River .0695 Naples, Vernal
.0710 Garfield County .0715 Utah County estimated tax payments, prepayments and extension pay-
.0810 Boulder, Panguitch, Tropic .0725 American Fork, Cedar Hills, ments (form TC-559). Include any overpayment from a prior
.0830 Bryce Canyon Highland, Lehi, Lindon, Orem, year that was applied to this year. Use Schedule E to compute
.0820 Escalante Payson, Pleasant Grove, the total prepayment.
.0685 Grand County Provo, Santaquin, Spanish
.0885 Moab Fork, Springville, Vineyard Do not include any pass-through withholding tax on this line.
.0610 Iron County .0635 Wasatch County Pass-through withholding tax credit from a previous pass-
.0810 Brian Head .0665 Heber
.0620 Cedar City .0745 Independence, Mil. Rec. through entity is entered on TC-250 and allocated to the
.0610 Juab County Wasatch, Mil. Rec. Hideout shareholders on Utah Schedule K-1.
.0620 Mona .0775 Midway
.0650 Nephi .0825 Park City East
.0645 Santaquin South .0645 Washington County
.0710 Kane County .0675 Hurricane, Ivins, La Verkin, Line 19 – Amended Return Only
.0820 Kanab St. George, Santa Clara, This line is only for amended returns. Enter the amount of tax
.0810 Orderville Washington City
.0635 Millard County .0805 Springdale paid with the original return and subsequent payments made
.0645 Fillmore .0745 Virgin prior to fi ling this amended return less any previous refunds
.0620 Morgan County .0610 Wayne County (exclude refund interest). Enter a net refund as a negative
.0645 Morgan City .0725 Weber County amount (preceded by a minus sign).
.0610 Piute County .0745 Falcon Hill Riverdale,
.0635 Rich County Riverdale
Line 20 – Total Payments
Add lines 18 and 19. Carry this total to TC-20S, page 1, line 6.
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2022 Utah TC-20S Instructions 9
Schedule E – Prepayments of Any Type
Do not include any pass-through withholding tax credit re- Line 3 – Other Prepayments
ceived from another pass-through entity as reported on a
Utah Schedule K-1 you received. Pass-through withholding List the date and amount of all prepayments made for the
tax credits received from other pass-through entities are en- fi ling period. Enter the check number if payment is not made
tered on TC-250 and allocated to the shareholders on Utah electronically. Enter the total amount on line 3. Attach ad-
Schedule K-1. ditional pages, if necessary.
Prepayments are not required for pass-through withholding tax.
Line 1 – Overpayment Applied from Prior Year
Enter the amount of any refund applied from the prior year to Line 4 – Total Prepayments
the current year’s liability. Add lines 1, 2 and 3. Enter the total on this line and on Sched-
ule A, line 18.
Line 2 – Extension Prepayment
List the date and amount of any extension prepayment. Enter
the check number if payment is not made electronically.
TC-20, Schedule H – Nonbusiness Income Net of
Expenses
Complete TC-20, Schedule H to determine nonbusiness Dividends are business income where the stock with re-
income allocated to Utah and outside Utah. spect to which the dividends were received arose out of or
Business income is income arising from transactions and was acquired in the regular course of the taxpayer’s trade or
activity in the regular course of a taxpayer's trade or business. business operations or where the acquiring and holding of
It includes income from tangible and intangible property if the stock is an integral, functional, or operative component
the acquisition, management and disposition of the property of the taxpayer’s trade or business operations, or otherwise
constitutes integral parts of the taxpayer’s regular trade or materially contributes to the production of business income of
business operations. the trade or business operations. See Tax Commission Rule
R865-6F-8(2)(e)(iv).
Nonbusiness income is all income that does not arise from
a taxpayer’s trade or business operations. Intangible income Gain or loss from the sale, exchange, or other disposition
must be properly classifi ed and based upon factual evidence. of real property or of tangible or intangible personal property
The burden of proof is on the taxpayer to justify how the income constitutes business income if the property while owned by
is claimed on the return. the taxpayer was used in, or was otherwise included in the
property factor of the taxpayer’s trade or business. See Tax
Interest income is business income where the intangible Commission Rule R865-6F-8(2)(e)(ii).
with respect to which the interest was received arises out of
or was created in the regular course of the taxpayer’s trade or Rental income from real and tangible property is business
business operations, or where the purpose for acquiring and income if the property with respect to which the rental income
holding the intangible is an integral, functional, or operative was received is or was used in the taxpayer’s trade or busi-
component of the taxpayer’s trade or business operations, or ness and therefore is includable in the property factor. See
otherwise materially contributes to the production of business Tax Commission Rule R865-6F-8(2)(e)(i).
income of the trade or business operations. See Tax Commis- Complete Schedule H as follows:
sion Rule R865-6F-8(2)(e)(iii).
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2022 Utah TC-20S Instructions 10
• Complete lines 1a through 14 if you are claiming only Utah Line 10 – Average Asset Value
nonbusiness income.
Divide line 9 by 2 for each column.
• Complete lines 15a through 28 if you are claiming only
non-Utah nonbusiness income. Line 11 – Utah Nonbusiness Asset Ratio
• Complete lines 1a through 28 if you are claiming both Utah Divide line 10, column A by line 10, column B. Round the
and non-Utah nonbusiness income. result to four decimal places. Do not enter a decimal greater
Use additional pages or supporting schedules in the same than 1.0000, and do not enter a negative number.
format, if necessary, to provide complete information, including
a description of the business purpose for making the invest- Line 12 – Interest Expense
ment, the transactions creating the nonbusiness income, and Enter the total amount of interest deducted on federal form
the use of revenues generated by the nonbusiness investment. 1120S, line 13 and elsewhere on the federal return.
Line 13 – Indirect Related Expenses for Utah
Utah Nonbusiness Income Nonbusiness Income
Lines 1a-1e – Utah Nonbusiness Income Multiply line 12 by the ratio on line 11.
Complete the information in each column and enter the gross Line 14 – Total Utah Nonbusiness Income Net
Utah nonbusiness income from each class of income being
allocated. Use additional pages or supporting schedules in of Expenses
the same format, if necessary, to provide complete information Subtract line 13 from line 6. Enter the amount here and on
about additional sources of nonbusiness income. Schedule A, line 8.
Line 2 – Total of Columns C and D
Non-Utah Nonbusiness Income
Enter the total of the amounts on lines 1a through 1e in column
C and column D. Lines 15a-15e – Non-Utah Nonbusiness Income
Line 3 – Total Utah Nonbusiness Income Complete the information in each column and enter the gross
non-Utah nonbusiness income from each class of income
Enter the total of column E, lines 1a through 1e. being specifi cally allocated. Use additional pages or support-
ing schedules in the same format, if necessary, to provide
Lines 4a-4e – Direct Related Expenses
complete information about additional sources of non-Utah
Describe and enter amounts of direct expenses on the same nonbusiness income.
letter line as the corresponding Utah nonbusiness income is
listed on lines 1a through 1e. Direct related expenses include Line 16 – Total of Columns C and D
wages, interest, depreciation, etc. (UC §59-7-101). Enter the total of the amounts on lines 15a through 15e in
column C and column D.
Line 5 – Total Direct Related Expenses
Enter the sum of direct related expenses by adding lines 4a Line 17 – Total Non-Utah Nonbusiness Income
through 4e. Enter the total of the amounts on lines 15a through 15e in
column E.
Line 6 – Utah Nonbusiness Income Net of
Direct Related Expenses Lines 18a-18e – Direct Related Expenses
Subtract line 5 from line 3. Describe and enter amounts of direct expenses on the same
letter line as the corresponding non-Utah nonbusiness income
Line 7 – Beginning-of-Year Assets on lines 15a through 15e. Direct related expenses include
Enter in column A the total beginning-of-year value of assets wages, interest, depreciation, etc. (UC §59-7-101).
used to produce Utah nonbusiness income from line 2, column
C. Enter in column B the beginning-of-year value of your total Line 19 – Total Direct Related Expenses
assets. Include all assets in column B, including Utah assets. Enter the sum of direct related expenses by adding lines 18a
through 18e.
Line 8 – End-of-Year Assets
Enter in column A the total end-of-year value of assets used Line 20 – Non-Utah Nonbusiness Income Net of
to produce Utah nonbusiness income from line 2, column D. Direct Related Expenses
Enter in column B the end-of-year value of your total assets. Subtract line 19 from line 17.
Include all assets in column B, including Utah assets.
Line 21 – Beginning-of-Year Assets
Line 9 – Sum of Beginning and
Ending Asset Values Enter in column A the total beginning-of-year value of assets
used to produce non-Utah nonbusiness income from line 16,
Add lines 7 and 8 for each respective column. column C. Enter in column B the beginning-of-year value of
your total assets. Include all assets in column B, including
Utah assets.
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2022 Utah TC-20S Instructions 11
Line 22 – End-of-Year Assets Line 26 – Interest Expense
Enter in column A the total end-of-year value of assets used Enter the total amount of interest deducted on federal form
to produce non-Utah nonbusiness income from line 16, col- 1120S, line 13 and elsewhere on the federal return.
umn D. Enter in column B the end-of-year value of your total
assets. Include all assets in column B, including Utah assets. Line 27 – Indirect Related Expenses for Non-
Utah Nonbusiness Income
Line 23 – Sum of Beginning and Ending Asset
Multiply line 26 by the ratio on line 25.
Values
Add lines 21 and 22 for each respective column. Line 28 – Total Non-Utah Nonbusiness Income
Net of Expenses
Line 24 – Average Asset Values
Subtract line 27 from line 20. Enter amount here and on
Divide line 23 by 2 for each column. Schedule A, line 9.
Line 25 – Non-Utah Nonbusiness Asset Ratio
Divide line 24, column A by line 24, column B. Round the
result to four decimal places. Do not enter a decimal greater
than 1.0000, and do not enter a negative number.
TC-20, Schedule J – Apportionment Schedule
Use TC-20, Schedule J to calculate the portion of the taxpayer’s
income attributable to Utah, if the taxpayer does business both Pass-through Entity Taxpayers
within and outside of Utah. Partners, shareholders and benefi ciaries of pass-through
entities (an entity taxed as a partnership, s-corporation or
Complete TC-20, Schedule J to determine the apportionment
trust) must include their pro rata share of the pass-through
fraction (decimal). The factors express a ratio for property in
entity's property, payroll and sales in their calculation of the
Utah to total property everywhere, for wages and salaries in
apportionment factor on TC-20, Schedule J, page 1.
Utah to total wages and salaries everywhere, and for sales
in Utah to total sales everywhere. Use these factors or ratios If a corporation holds direct and indirect ownership interests in
to arrive at the Utah apportionment fraction calculated to six tiered pass-through entities, it must include its pro rata share
decimals. Then apply this fraction (decimal) to the apportion- of the apportionment factors (property, payroll and sales) of
able income (or loss) on Schedule A to arrive at the amount the pass-through entities, applying the respective ownership
of income (or loss) apportioned to Utah. In cases where one percentages. For example, a corporation that holds 50 percent
or more of the factors is omitted due to peculiar aspects of interest in Partnership A that in turn holds 20 percent interest
the business operations, use the number of factors present in Partnership B would include 50 percent of the factors of
to determine the Utah apportionment fraction. Partnership A, and 10 percent (50 percent of 20 percent) of
the factors of Partnership B.
Your economic activities, and your method of apportioning
income in the previous year, dictate the apportionment method
you may use. Apportionment Method
To determine if you must apportion income using the sales
factor formula or if you qualify as an optional apportionment
taxpayer, take into account the economic activities of each of
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2022 Utah TC-20S Instructions 12
the entities included in the return. Include the economic activi- economic activities in both excluded NAICS codes and
ties of any pass-through entities whose income and factors NAICS codes that are not excluded, or to providing man-
are included in the return. agement, information technology, fi nance, accounting,
legal or human resource services.
Sales Factor Weighted Taxpayers Add the property and payroll factor fractions and divide that
sum by two. If either the property factor fraction or payroll
A sales factor weighted taxpayer may only use the sales factor factor fraction has a denominator of zero, or is otherwise ex-
fraction to apportion income. cluded, divide by one. If the average is more than 50 percent,
You must use the sales factor formula if you: you are an optional apportionment taxpayer. If the average
1. apportioned income using the sales factor formula during is not more than than 50 percent, you are not an optional
the prior taxable year, apportionment taxpayer and must apportion income to Utah
using the sales factor.
2. do not meet the defi nition of an optional apportionment
taxpayer (see instructions below), or Optional apportionment taxpayers may calculate the ap-
portionment fraction using either the equally-weighted three
3. generate more than 50 percent of total sales everywhere factor formula (Schedule J, Part 1) or the sales factor formula
from economic activities in any NAICS codes OTHER (Schedule J, Part 2). If you choose to use the sales factor
THAN these identifi ed NAICS codes: formula, you must fi le using only the sales factor in the next
• Sector 21, Mining; taxable year.
• Industry Group 2212, Natural Gas Distribution; Excluded NAICS codes are NAICS codes of the 2017 North
• Sector 31-33, Manufacturing EXCEPT: American Industry Classifi cation System within:
• Industry Group 3254, Pharmaceutical and Medicine • Code 211120, Crude Petroleum Extraction
Manufacturing • Industry Group 2121, Coal Mining
• Industry Group 3333, Commercial and Service • Industry Group 2212, Natural Gas Distribution
Industry Machinery Manufacturing • Subsector 311, Food Manufacturing
• Subsector 334, Computer and Electronic Product • Industry Group 3121, Beverage Manufacturing
Manufacturing
• Code 327310, Cement Manufacturing
• Code 336111, Automobile Manufacturing
• Subsector 482, Rail Transportation
• Sector 48-49, Transportation and Warehousing
• Code 512110, Motion Picture and Video Production
• Sector 51, Information EXCEPT:
• Subsector 515, Broadcasting (except Internet)
• Subsector 519, Other Information Services
• Code 522110, Commercial Banking
• Sector 52, Finance and Insurance
Report property and payroll factors on Schedule J, page 1,
but do not use them to calculate the apportionment of sales Line Instructions
factor weighted taxpayers.
Business Activity
Sales factor weighted taxpayers must calculate the appor-
Briefl y describe the nature and location(s) of your Utah busi-
tionment fraction on Schedule J, Page 2 using Part 2 - Sales
ness activities in the space provided at the top of this schedule.
Factor Formula.
Lines 1a - 1f – Property Factor
Optional Apportionment Taxpayers Show the average cost value during the taxable year of real
If you did not use the sales factor fraction in the prior year, and tangible personal property used in the business within
and you do not generate more than 50 percent of total sales Utah (including leased property) in column A and overall
everywhere from economic activities in any NAICS codes (including Utah) in column B.
OTHER THAN the identifi ed NAICS codes listed above, Property you own is valued at its original cost. Property you
determine if you are an optional apportionment taxpayer by rent is valued at eight times the net annual rental rate. Net
fi rst calculating the following two fractions: annual rental rate is the annual rental rate you pay less the
• Property factor fraction: Add together the value of property annual rate you receive from sub-rentals.
in Utah attributable to economic activities that are classi- The average value of property must be determined by averag-
fi ed in an excluded NAICS code. Divide this number by ing the cost values at the beginning and end of the tax period.
the value of all property in Utah. Remove property from However, monthly values may be used or required if monthly
this calculation if the property is attributable to economic averaging more clearly refl ects your property’s average value.
activities in both excluded NAICS codes and non-excluded
NAICS codes. Attach a supporting schedule whenever you use monthly averaging.
• Payroll factor fraction: Add together the amount of payroll If you are a pass-through entity taxpayer, add to line 1e any
in Utah attributable to economic activities that are classi- amounts listed on line J of any TC-65 Schedule K-1 you have
fi ed in an excluded NAICS code. Divide this number by received.
the total amount of payroll in Utah. A taxpayer engaged Enter totals of lines 1a through 1e in the respective columns
in activities in an excluded NAICS code must remove an on line 1f.
individual’s payroll from this calculation of the payroll fac-
tor fraction if the individual’s payroll may be attributed to
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2022 Utah TC-20S Instructions 13
Line 2 – Property Factor Calculation If you are a pass-through entity taxpayer, add to line 5g any
amounts listed on line L of any TC-65 Schedule K-1 you have
Determine the property factor (decimal) by dividing line 1f, received.
column A by line 1f, column B.
Enter totals of lines 5a through 5g in their respective columns
Line 3 – Payroll Factor on line 5h.
Wages, salaries, commissions and other includable com- Line 6 – Sales Factor Calculation
pensation paid to employees for personal services must be
included in the Utah factor to the extent the services, for which Determine the sales factor (decimal) by dividing line 5h, column
the compensation was paid, were rendered in Utah. A by line 5h, column B.
Compensation is paid in Utah if:
1. the individual’s service is performed entirely within Utah; NAICS Code for Taxpayer
2. the individual’s service is performed both within and outside Line 7 – NAICS Code
Utah, but the service performed outside Utah is incidental
to the individual’s service within Utah; or This is a mandatory fi eld. Your NAICS code may dictate your
apportionment method.
3. some of the service is performed in Utah and:
Enter on line 7 the NAICS code for the primary business activ-
a. the base of operations or, if there is no base of operations,
ity. Do not use the holding company NAICS code.
the place where the service is directed or controlled, is
within Utah; or
b. the base of operations or the place where the service Apportionment Fraction
is directed or controlled is not in any state where some
part of the service is performed, but the individual’s
residence is in Utah. Part 1 – Equally-Weighted Three Factor
Amounts reportable for employment security purposes may Formula
ordinarily be used to determine the wage factor. If you are an optional apportionment taxpayer using the
Overall wages, including Utah, are listed in column B. equally-weighted three factor formula, complete lines 8 and
9. Otherwise, leave lines 8 and 9 blank.
If you are a pass-through entity taxpayer, add to line 3a any
amounts listed on line K of any TC-65 Schedule K-1 you have Line 8 – Total Factors
received. Enter the sum of the factors from lines 2, 4 and 6.
Line 4 – Payroll Factor Calculation Line 9 – Apportionment Fraction
Determine the payroll factor (decimal) by dividing line 3a, Calculate the apportionment fraction to six decimals by dividing
column A by line 3a, column B. line 8 by the number of factors used (typically 3 – property,
Lines 5a - 5h – Sales Factor payroll and sales).
• If one or more of the factors are not present (i.e., there is a
The sales factor is the fraction the sales or charges for ser-
zero in the denominator on lines 1f, 3a or 5h in column B),
vices within Utah for the taxable year bear to the overall sales
divide by the number of factors present.
for the taxable year. Gross receipts from the performance of
services in Utah are assigned to the Utah sales numerator if • If the numerator is zero, but a denominator is present,
the purchaser of the service receives a greater benefi t of the include that factor in the number of factors present.
service in Utah than in any other state. Enter the apportionment fraction (decimal) here and on
Taxpayers that perform a service both in and outside Utah Schedule A, line 12.
must include service income on line 5g in column A (Inside
Utah) if the purchaser of the service receives a greater
benefi t of the service in Utah than in any other state. The Part 2 – Sales Factor Formula
former “cost of performance” method no longer applies. (See See instructions above for the defi nition and qualifi cations
UC §59-7-319(3)(a).) of a taxpayer who must apportion income using the sales
Sales of tangible personal property are in Utah if the property factor formula.
is delivered or shipped to a purchaser within Utah regardless Leave line 10 blank if you are using the equally-weighted
of the F.O.B. point or other conditions of the sale, or if the three-factor formula.
property is shipped from an offi ce, store, warehouse, factory
or other place of storage in Utah and: Line 10 – Apportionment Fraction
1. the purchaser is the United States Government, or Enter the sales factor from line 6 of Schedule J, page 1. This
2. the taxpayer is not taxable in the state of the purchaser. is the apportionment fraction for this apportionment method.
(Property and payroll factors are not used in the calculation of
Overall sales, including Utah, are listed in column B. the apportionment fraction for taxpayers who must apportion
Note: Securities brokerage businesses must follow the provi- income using the sales factor formula.)
sions in UC §59-7-319(6). Enter the apportionment fraction (decimal) here and on
Schedule A, line 12.
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2022 Utah TC-20S Instructions 14
• Telecommunications (R865-6F-33)
Specialized Apportionment Laws
• Registered Securities or Commodities Broker or Dealer
and Rules (R865-6F-36)
Specialized apportionment procedures apply for: • Airlines (UC §§59-7-312 thru 319)
• Trucking Companies (R865-6F-19) • Sale of Management, Distribution or Administration Ser-
• Railroads (R865-6F-29) vices to or on Behalf of a Regulated Investment Company
• Publishing Companies (R865-6F-31) (UC §59-7-319(5))
• Financial Institutions (R865-6F-32)
Schedule K – ShareholdersÊ Pro Rata Share Items
Attach TC-20S, Schedule K to show the S corporation’s Line 4b – Municipal Bond Interest Income
income, gains, losses, deductions, and Utah credits that are
distributed to the shareholders. Enter in the federal column the total municipal bond interest
income reported on all federal Schedules K-1. Enter in the
Utah column the total Utah taxable portion reported on Utah
Number of Schedules K-1 attached to this
Schedules K-1.
return
For additional information on the Utah treatment of mu-
Enter the number of Utah Schedules K-1 that are attached to nicipal bond interest, go to incometax.utah.gov/additions/
this S corporation return and issued to shareholders. municipal-bond-interest.
Line 1 – Ordinary Business Income/Loss Line 4c – Other Interest Income
Enter in the fi rst column the federal ordinary business income/ Enter in the federal column the total other interest income
loss from line 1 of the federal Schedule K. Enter in the Utah (other than interest income shown on lines 4a and 4b above)
column the total reported on all Utah Schedules K-1. reported on all federal Schedules K-1. Enter in the Utah col-
umn the total Utah portion reported on Utah Schedules K-1.
Line 2 – Net Rental Real Estate Income/Loss
Enter in the fi rst column the federal net rental real estate in- Line 5 – Ordinary Dividends
come/loss from line 2 of the federal Schedule K. Enter in the Enter in the fi rst column the federal ordinary dividends from
Utah column the total reported on all Utah Schedules K-1. line 5a of the federal Schedule K. Enter in the Utah column
the total reported on all Utah Schedules K-1.
Line 3 – Other Net Rental Income/Loss
Enter in the fi rst column the federal other net rental income/ Line 6 – Royalties
loss from line 3c of the federal Schedule K. Enter in the Utah Enter in the fi rst column the federal royalties from line 6 of
column the total reported on all Utah Schedules K-1. the federal Schedule K. Enter in the Utah column the total
reported on all Utah Schedules K-1.
Line 4a – U.S. Government Interest Income
Enter in the federal column the total U.S. government interest Line 7 – Net Short-term Capital Gain/Loss
income reported on all federal Schedules K-1. Enter in the Utah Enter in the fi rst column the federal net short-term capital
column the total Utah portion reported on Utah Schedules K-1. gain/loss from line 7 of the federal Schedule K. Enter in the
Utah column the total reported on all Utah Schedules K-1.
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2022 Utah TC-20S Instructions 15
Line 8 – Net Long-term Capital Gain/Loss Line 18 – Utah Nonrefundable Credits
Enter in the fi rst column the federal net long-term capital gain/ Enter the Utah nonrefundable credits distributed to the share-
loss from lines 8a through 8c of the federal Schedule K. Enter in holders. Describe the nonrefundable credit in the space pro-
the Utah column the total reported on all Utah Schedules K-1. vided, and enter the Utah code for the credit (see Nonrefund-
able Credits, below). If a credit was received from an upper-tier
Line 9 – Net Section 1231 Gain/Loss pass-through entity, also complete and attach TC-250.
Enter in the fi rst column the federal net §1231 gain/loss from Note: If the S corporation elected to pay Utah taxes on form
line 9 of the federal Schedule K. Enter in the Utah column the TC-75 (State and Local Tax (SALT) Report), allocate the
total reported on all Utah Schedules K-1. amount paid for each individual shareholder on their K-1 as
a nonrefundable credit.
Line 10 – Recapture of Section 179 Deduction
Enter in the fi rst column the federal recapture of a benefi t Line 19 – Utah Refundable Credits
from a deduction under §179 from box 17, code L of federal In the Utah column, enter the Utah refundable credits dis-
Schedules K-1. Enter in the Utah column the total reported tributed to the shareholders. Describe the refundable credit
on all Utah Schedules K-1. in the space provided, and enter the Utah code for the credit
(see Refundable Credits, below). If a credit was received from
Line 11 – Other Income/Loss an upper-tier pass-through entity, also complete and attach
Enter in the fi rst column the federal other income/loss from TC-250.
line 10 of the federal Schedule K. Enter in the Utah column
the total reported on all Utah Schedules K-1. Line 20 – Total Utah Tax Withheld on Behalf of
Also use the federal column of line 11 for PPP grant or loan All Shareholders
amounts reported on Utah Schedule A, line 5. Enter in the In the Utah column, enter the total amount of Utah withholding tax
Utah column the total reported on all Utah Schedules K-1. withheld on behalf of all the shareholders who are pass-through
entity taxpayers by the S corporation, and for whom the waiver
Describe the type of income in the space provided.
from withholding was not requested. This amount must match
Line 12 – Section 179 Deduction the total pass-through withholding tax on Schedule N, column I
for all pass-through entity taxpayers who have Utah withholding
Enter in the fi rst column the federal §179 deduction from line tax withheld.
11 of the federal Schedule K. Enter in the Utah column the total
reported on all Utah Schedules K-1.
Nonrefundable Credits Passed-
Line 13 – Contributions
through on Schedule K
Enter in the fi rst column the federal contributions from line
12a of the federal Schedule K. Enter in the Utah column the Nonrefundable credits on an S corporation return are entered
total reported on all Utah Schedules K-1. on Schedule K and then allocated and passed-through to the
shareholders on Schedule K-1. Nonrefundable credits may not
Line 14 – Investment Interest Expense be used against any tax owed by the S corporation.
Enter in the fi rst column the federal investment interest ex-
pense from line 12b of the federal Schedule K. Enter in the Nonrefundable Credit Codes
Utah column the total reported on all Utah Schedules K-1. 02 Qualifi ed Sheltered Workshop Cash Contribution
Credit
Line 15 – Section 59(e)(2) Expenditures 04 Capital Gain Transactions Credit
06 Historic Preservation Credit
Enter in the fi rst column the federal §59(e)(2) expenditures 08 Low-Income Housing Credit
from line 12c of the federal Schedule K. Enter in the Utah 12 Credit for Increasing Research Activities in Utah
column the total reported on all Utah Schedules K-1. 21 Renewable Residential Energy Systems Credit
(TC-40E)
Line 16 – Foreign Taxes Paid or Accrued 27 Veteran Employment Credit
Enter in the fi rst column the federal foreign taxes paid or ac- 28 Employing Persons Who are Homeless Credit
63 Achieving a Better Life Experience (ABLE)
crued from line 16f of the federal Schedule K. Enter in the Program Credit
Utah column the total reported on all Utah Schedules K-1. AG Special Needs Opportunity Scholarship
Program Credit
Line 17 – Other Deductions AP Pass-through Entity Taxpayer Income Tax Credit
Enter in the fi rst column the federal other deductions from line
12d of the federal Schedule K. Enter in the Utah column the
total reported on all Utah Schedules K-1. (02) Qualifi ed Sheltered Workshop Cash Contribution
Credit
Describe the type of deduction in the space provided. (UC §59-10-1004)
Cash contributions made in the taxable year to a qualifi ed
Utah nonprofi t rehabilitation sheltered workshop facility for
persons with disabilities are eligible for the credit. Check with
the workshop to make sure they have a current Day Training
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2022 Utah TC-20S Instructions 16
Provider License or Day Support Provider Certifi cate issued If you share in this credit, get form TC-40TCAC, Utah Low-
by the Department of Human Services. The credit is the lesser Income Housing Tax Credit Allocation Certifi cation, and com-
of $200 or 50 percent of the total cash contributions. plete form TC-40LI, Summary of Utah Low-Income Housing
There is no form for this credit. Keep all related documents Tax Credit. Do not send these forms with your return. Keep
with your records. The shareholder must list the qualifi ed the forms and all related documents with your records.
workshop name on their return to claim the credit. Enter this The building project owner must also complete and attach to
name on Schedules K and K-1. his/her return form TC-40LIS, Utah Credit Share Summary
For more information, contact: of Low-Income Housing Project.
Division of Services for People with Disabilities For more information, contact:
195 N 1950 W Utah Housing Corporation
Salt Lake City, UT 84116 2479 S Lake Park Blvd.
385-799-1842 West Valley City, UT 84120
dspd.utah.gov 801-902-8200
utahhousingcorp.org
(04) Capital Gain Transactions Credit
(UC §59-10-1022) (12) Credit for Increasing Research Activities in Utah
You may claim a credit for the short-term and long-term capital (UC §59-10-1012)
gain on a transaction if: The credit is:
a. the transaction occurs on or after Jan. 1, 2008; 1. 5 percent of your qualifi ed expenses for increasing research
b. at least 70 percent of the gross proceeds of the transaction activities in Utah above a base amount,
are used to buy stock in a qualifi ed Utah small business 2. 5 percent of certain payments made to a qualifi ed orga-
corporation within 12 months from when the capital gain nization increasing basic research in Utah above a base
transaction occurred; and amount, and
c. you did not have an ownership interest in the qualifi ed Utah 3. 7.5 percent of your qualifi ed research expenses in Utah
small business corporation at the time of investment. for the current taxable year.
See incometax.utah.gov/credits/capital-gains for more Note: You may carry forward for the next 14 years any credit
information. for 1 or 2 (above) that is more than your tax liability. You may
There is no form for this credit. Keep all related documents not carry forward any credit for 3 (above).
with your records. There is no form for this credit. Keep all related documents
with your records.
Calculation of Capital Gain Transactions Credit (21) Renewable Residential Energy Systems Credit
(UC §59-10-1014)
1. Eligible short-term or long-term capital gain $________
This credit is for reasonable costs, including installation, of a
2. Multiply line 1 by 4.85% (.0485).
This is the credit. $________ residential energy system that supplies energy to a residential
unit in Utah. If the residence is sold to a non-business entity
before claiming the credit, you may irrevocably transfer the
right to the credit to the new owner. Additional residential
(06) Historic Preservation Credit energy systems or parts may be claimed in following years
(UC §59-10-1006) as long as the total amount claimed does not exceed certain
limits. Contact the Governor’s Offi ce of Energy Development
The credit is for costs to restore any residential certifi ed
for more information. The principal portion of the lease pay-
historic building.
ments may qualify for the credit if the lessor irrevocably elects
Complete form TC-40H, Historic Preservation Tax Credit, with not to claim the credit.
the State Historic Preservation Offi ce certifi cation, verifying the
Note: Any credit that is more than the tax liability may be
credit is approved. Do not send form TC-40H with your return.
carried forward for the next four years.
Keep the form and all related documents with your records to
provide the Tax Commission upon request. Get form TC-40E, Renewable Residential and Commercial
Energy Systems Tax Credits, from the Governor's Offi ce of
For more information, contact:
Energy Development with their certifi cation stamp showing
Utah State Historic Preservation Offi ce the amount of the credit. Do not send form TC-40E with your
3760 S Highland Drive return. Keep the form and all related documents with your
Salt Lake City, UT 84106 records to provide the Tax Commission upon request.
801-245-7277
ushpo.utah.gov/shpo/fi nancial-incentives/ For more information, contact:
Governor's Offi ce of Energy Development (OED)
(08) Low-Income Housing Credit PO Box 144845
(UC §59-10-1010) Salt Lake City, UT 84114
This credit is determined by the Utah Housing Corporation for 801-538-8732 or 801-538-8682
owners of a low-income housing project who also received part energy.utah.gov/renewable-energy-systems-tax-credit
of the federal low-income housing credit. When this credit ap-
plies, the project owner will provide you with form TC-40TCAC
(issued by the Utah Housing Corporation).
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2022 Utah TC-20S Instructions 17
(27) Veteran Employment Credit (28) Employing Persons Who Are Homeless Credit
(UC §59-10-1031) (UC §59-10-1032)
A nonrefundable credit is available to taxpayers who hire a You may claim a credit for hiring a homeless person if you
qualifi ed, recently deployed veteran. receive a credit certifi cate from the Department of Workforce
A qualifi ed, recently deployed veteran is an individual who Services.
was mobilized to active federal military service in an active Do not send the certifi cate with your return. Keep the certifi cate
or reserve component of the United States Armed Forces, and all related documents with your records.
and received an honorable or general discharge within the Note: You may carry forward for the next fi ve years any credit
two-year period before the employment begins. that is more than your tax liability.
To qualify for the credit, the qualifi ed veteran must meet all of For more information contact:
the following conditions:
Department of Workforce Services
1. received an honorable or general discharge within the 140 E 300 S
two-year period before the employment begins; PO Box 142503
2. was collecting or was eligible to collect unemployment Salt Lake City, UT 84111-2503
benefi ts, or has exhausted their unemployment benefi ts 385-272-7798
within the last two years, under Title 35A, Chapter 4, Part jobs.utah.gov/employer/business/htc.html
4, Benefi ts and Eligibility; and
3. worked for the taxpayer for at least 35 hours per week for
not less than 45 of the next 52 weeks following the veteran’s (63) Achieving a Better Life Experience (ABLE)
employment start date. Program Credit
(UC §59-10-1035)
The credit is claimed beginning in the year the 45 consecutive
weeks in paragraph 3 above are met. You may claim a credit for 4.85 percent of the total qualifi ed
contributions you made to a Utah resident's Achieving a
Calculate the credit as follows: Better Life Experience Program account. You must make the
contributions during the taxable year and have an itemized
statement from the qualifi ed ABLE program.
First Year Credit
You may not claim a credit for an amount greater than the
(count all months in the year the 45-week requirement is met): federal gift tax exclusion (IRC §2503) or an amount already
1. Number of months or partial months the deducted on your federal income tax return.
veteran was employed in the fi rst year 1 _________
2. Monthly credit allowable in fi rst year 2 200
3. First year credit – Credit calculation
multiply line 1 by line 2 (maximum $2,400) 3 _________ Contributions _______ x .0485 = Credit _________
Second Year Credit:
4. Number of months or partial months the Note: Any credit that is more than the tax liability may not be
veteran was employed in the 2nd year 4 _________ carried back or forward.
5. Monthly credit allowable in second year 5 400 For more information, contact:
Department of Workforce Services - ABLEUtah
6. Second year credit –
multiply line 4 by line 5 (maximum ($4,800) 6 _________ 1595 West 500 South
Salt Lake City, Utah 84104-5238
1-800-439-1653
ableut.com
We will not refund any credit greater than your tax due, but
you may carry it forward to offset tax for up to fi ve years. (AG) Special Needs Opportunity Scholarship Program
If taking this credit, you must keep the following documentation Credit
and make it available to the Tax Commission upon request: (UC §59-10-1041)
1. the veteran’s name, last known address, and taxpayer You may claim a credit for a donation made to the Special
identifi cation or Social Security number; Needs Opportunity Scholarship Program. You will receive a tax
credit certifi cate from the program, listing the amount of the
2. the start date of employment; credit. You may not claim this credit if you claimed the donation
3. documentation establishing that the veteran was employed as an itemized deduction on your federal income tax return.
45 out of the 52 weeks after the date of employment; Do not send the certifi cate with your return. Keep the certifi cate
4. documentation from the veteran’s military service unit and all related documents with your records.
showing that the veteran was recently deployed; and
Note: You may carry back one year or forward for the next
5. a signed statement from the Department of Workforce three years any credit that is more than your tax liability.
Services that the veteran was collecting, was eligible to
collect, or exhausted their unemployment benefi ts within
the last two years.
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2022 Utah TC-20S Instructions 18
(AP) Pass-through Entity Taxpayer Income Tax Credit For more information, contact:
(UC §59-10-1045) Governor's Offi ce of Energy Development (OED)
A shareholder who is an individual may claim a credit equal to PO Box 144845
the amount of Utah tax paid on their behalf by this S corporation Salt Lake City, UT 84114
under §59-10-1043.2(2). This amount must be refl ected on 801-538-8732 or 801-538-8682
the K-1 issued to the shareholder. There is no form for this energy.utah.gov/renewable-energy-systems-tax-credit
credit. Each shareholder must keep all related documents (46) Mineral Production Withholding Tax Credit
with their records. (UC §59-6-102)
Note: The shareholder receiving this credit may carry forward Enter the total of the mineral production tax withheld as shown
for the next fi ve years any credit that is more than the share- on forms TC-675R or Utah Schedule K-1(s) for the tax year.
holders's tax liability. For a fi scal year corporation, the credit is reported on the
corporate return that is required to be fi led during the year
Refundable Credits Passed- following the December closing period of the form TC-675R.
through on Schedule K Enter the mineral production withholding tax on TC-250. Enter
the credit in Part 2 if received from an upper-tier pass-through
Refundable credits on an S corporation return are entered entity, or in Part 3 if received on a TC-675R from the mineral
on Schedule K and then allocated and passed-through to the producer.
shareholders on Schedule K-1. Refundable credits may not
be claimed on an S corporation return. Do not attach the TC-675R or Utah Schedule K-1 to the
corporation return.
Refundable Credit Codes (47) Agricultural Off-Highway Gas/Undyed
36 Upper-tier Pass-through Entity Withholding Tax Diesel Fuel Credit
39 Renewable Commercial Energy Systems Credit (UC §59-13-202)
(TC-40E) You may claim a credit of 31.9 cents per gallon for motor fuel
46 Mineral Production Withholding Tax Credit
(TC-675R) and undyed diesel fuel bought in Utah during 2021 and used
47 Agricultural Off-highway Gas/Undyed Diesel Fuel to operate stationary farm engines and self-propelled farm
Credit machinery used solely for commercial non-highway agricultural
48 Farm Operation Hand Tools Credit use if the fuel was taxed at the time it was bought.
This does not include golf courses, horse racing, boat opera-
tions, highway seeding, vehicles registered for highway use,
(36) Upper-tier Pass-through Entity Withholding Tax hobbies, personal farming and other non-agricultural use.
(UC §59-10-1103)
If this S corporation owns an interest in another pass-through
entity, that pass-through entity is required to withhold Utah Credit calculation:
income tax on any income attributable to this S corporation. Gallons _______ x .319 = Credit _______
The pass-through entity must provide a Utah Schedule K-1
showing the amount of Utah withholding paid on behalf of
this S corporation.
There is no form for this credit. Keep all related documents
This S corporation then distributes the credit for the pass- with your records to provide the Tax Commission upon request.
through entity withholding tax to its shareholders.
Complete TC-250, Part 2, and then enter and allocate the (48) Farm Operation Hand Tools Credit
total upper-tier (previous) pass-through entity withholding (UC §59-10-1105)
tax using code 36. This credit is for sales and use tax paid on hand tools pur-
Do not include Utah Schedule K-1 the corporation received chased and used or consumed primarily and directly in a farm-
showing this credit when fi ling this corporation’s return. ing operation in Utah. The credit only applies if the purchase
price of a tool is more than $250.
(39) Renewable Commercial Energy Systems Credit There is no form for this credit. Keep all related documents
(UC §59-10-1106) with your records to provide the Tax Commission upon request.
Get form TC-40E, Renewable Residential and Commercial
Energy Systems Tax Credits, from the Governor's Offi ce of
Energy Development with their certifi cation stamp. Do not
send this form with your return. Keep the form and all related
documents with your records to provide the Tax Commission
upon request.
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2022 Utah TC-20S Instructions 19
Schedule K-1 – ShareholderÊs Share of Utah
Income, Deductions and Credits
Complete a Utah TC-20S, Schedule K-1 for each shareholder, For a nonresident shareholder, enter the pro rata share of
showing the share of income, gains, losses, deductions, and apportioned Utah ordinary business income/loss reported on
Utah credits that are distributed to the shareholder. Utah Schedule A, line 14.
S Corporation Information Line 2 – Utah Net Rental Real Estate Income/
Line A. Enter the S corporation’s federal EIN. Loss
Line B. Enter the complete name and address of the S corporation. For a Utah resident shareholder, enter the amount from their
federal Schedule K-1, box 2.
Shareholder Information For a nonresident shareholder, enter the pro rata share of
Line C. Enter the shareholder’s Social Security or federal apportioned Utah net rental real estate income/loss included
EIN. in the amount reported on Utah Schedule A, line 14.
Line D. Enter the shareholder’s complete name and address. Line 3 – Utah Other Net Rental Income/Loss
Line E. Enter the percent of ownership the shareholder has in For a Utah resident shareholder, enter the amount from their
the S corporation. Enter the same percentage of stock federal Schedule K-1, box 3.
ownership as entered on line G of the shareholder’s
federal Schedule K-1. For a nonresident shareholder, enter the pro rata share of
apportioned Utah other net rental income/loss included in the
Shareholder's Share of Apportionment amount reported on Utah Schedule A, line 14.
Factors
Line 4a – Utah U.S. Government Interest
Line F. Enter the shareholder’s share of the S corporation’s Income
property apportionment factor. Multiply both Column
A and Column B of Schedule J, line 1f, by the share- For a Utah resident shareholder, enter the amount of U.S. gov-
holder’s percent of ownership (line E, above). ernment income included in box 4 of their federal Schedule K-1.
Line G. Enter the shareholder’s share of the S corporation’s For a nonresident shareholder, enter the pro rata share of
payroll apportionment factor. Multiply both Column A apportioned Utah U.S. government interest income included
and Column B of Schedule J, line 3a, by the share- in the amount reported on Utah Schedule A, line 14.
holder’s percent of ownership (line E, above).
Line 4b – Utah Municipal Bond Interest Income
Line H. Enter the shareholder’s share of the S corporation’s
sales apportionment factor. Multiply both Column A For a Utah resident shareholder, enter the amount of Utah
and Column B of Schedule J, line 5h, by the share- taxable municipal bond interest income included on their
holder’s percent of ownership (line E, above). federal Schedule K-1, line 16.
For a nonresident shareholder, enter the pro rata share of
Other Information apportioned Utah taxable municipal bond interest income.
Enter any additional information or explanation of entries
needed by the shareholder in order to complete the share- Line 4c – Utah Other Interest Income
holder’s individual Utah return. For a Utah resident shareholder, enter the amount of other
interest income (other than interest income shown on lines 4a
Reminder: and 4b, above) included in box 4 of their federal Schedule K-1.
For a Utah resident shareholder, report the same information For a nonresident shareholder, enter the pro rata share of ap-
on their Utah Schedule K-1 for income, losses and deductions portioned Utah other interest income included in the amount
that was reported on their federal Schedule K-1. reported on Utah Schedule A, line 14.
For a Utah nonresident shareholder, report the apportioned
Line 5 – Utah Ordinary Dividends
Utah income, losses and deductions multiplied by their own-
ership interest in the S corporation. Use the apportionment For a Utah resident shareholder, enter the amount from their
fraction from Schedule A, line 12. Expenses directly attributable federal Schedule K-1, box 5a.
to Utah sources should be deducted against Utah income in For a nonresident shareholder, enter the pro rata share of
total and not apportioned. apportioned Utah ordinary dividends included in the amount
Utah nonrefundable and refundable credits passed through reported on Utah Schedule A, line 14.
from the S corporation to both Utah resident and nonresident
shareholders are reported on Utah Schedule K-1. Line 6 – Utah Royalties
For a Utah resident shareholder, enter the amount from their
Line 1 – Utah Ordinary Business Income/Loss federal Schedule K-1, box 6.
For a Utah resident shareholder, enter the amount from their For a nonresident shareholder, enter the pro rata share of
federal Schedule K-1, box 1. apportioned Utah royalties included in the amount reported
on Utah Schedule A, line 14.
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2022 Utah TC-20S Instructions 20
Line 7 – Utah Net Short-term Capital Gain/Loss Line 14 – Utah Investment Interest Expense
For a Utah resident shareholder, enter the amount from their For a Utah resident shareholder, enter the amount from their
federal Schedule K-1, box 7. federal Schedule K-1, box 12, code H.
For a nonresident shareholder, enter the pro rata share of For a nonresident shareholder, enter the pro rata share of
apportioned Utah net short-term capital gain/loss included in apportioned Utah investment interest expense included in the
the amount reported on Utah Schedule A, line 14. amount reported on Utah Schedule A, line 14.
Line 8 – Utah Net Long-term Capital Gain/Loss Line 15 – Utah Section 59(e)(2) Expenditures
For a Utah resident shareholder, enter the amount from their For a Utah resident shareholder, enter the amount from their
federal Schedule K-1, boxes 8a through 8c. federal Schedule K-1, box 12, code J.
For a nonresident shareholder, enter the pro rata share of For a nonresident shareholder, enter the pro rata share of ap-
apportioned Utah net long-term capital gain/loss included in portioned Utah §59(e)(2) expenditures included in the amount
the amount reported on Utah Schedule A, line 14. reported on Utah Schedule A, line 14.
Line 9 – Utah Net Section 1231 Gain/Loss Line 16 – Foreign Taxes Paid or Accrued
For a Utah resident shareholder, enter the amount from their For a Utah resident shareholder, enter the amount from their
federal Schedule K-1, box 9. federal Schedule K-1, box 16, code F.
For a nonresident shareholder, enter the pro rata share of For a nonresident shareholder, enter the pro rata share of
apportioned Utah net §1231 gain/loss included in the amount apportioned Utah foreign taxes paid or accrued included in
reported on Utah Schedule A, line 14. the amount reported on Utah Schedule A, line 14.
Line 10 – Recapture of Section 179 Deduction Line 17 – Utah Other Deductions
For a Utah resident shareholder, enter the amount from their For a Utah resident shareholder, enter the amount from their
federal Schedule K-1, box 17, code L. federal Schedule K-1, box 12, except codes A through H and J.
For a nonresident shareholder, enter the pro rata share of any For a nonresident shareholder, enter the pro rata share of
apportioned Utah recapture of a §179 deduction included in apportioned Utah other deductions included in the amount
the amount reported on Utah Schedule A, line 14. reported on Utah Schedule A, line 14.
Enter the description as shown on Schedule K in the space
Line 11 – Utah Other Income/Loss
provided.
For a Utah resident shareholder, enter:
1. the amount from their federal Schedule K-1, box 10, Line 18 – Utah Nonrefundable Credits
and Enter each shareholder’s pro rata share of Utah nonrefund-
2. the shareholder's distributive share of COVID-19 PPP able credits reported on Utah Schedule K, line 18. Also enter
grant or loan income reported on Utah Schedule A, line the description and the Utah nonrefundable credit code as
5. shown on Schedule K.
For a nonresident shareholder, enter: For each individual shareholder for whom you made a vol-
1. the pro rata share of apportioned Utah other income/ untary taxable income election (TC-75, State and Local Lax
loss included in the amount reported on Utah Schedule (SALT) Report), enter the amount of taxes paid. Allocate this
A, line 14, and amount directly to the individual as reported on form TC-75.
2. the amount of COVID-19 PPP grant or loan income Use code AP.
reported on Utah Schedule A, line 5.
Line 19 – Utah Refundable Credits
For all entries on line 11, enter the description shown on Utah
Enter each shareholder’s pro rata share of Utah refundable
Schedule K, line 11, in the space provided.
credits reported on Utah Schedule K, line 19. Also enter the
Line 12 – Utah Section 179 Deduction description and the Utah refundable credit code as shown
on Schedule K.
For a Utah resident shareholder, enter the amount from their
federal Schedule K-1, box 11. Line 20 – Utah Tax Withheld on Behalf of
For a nonresident shareholder, enter the pro rata share of Shareholder
apportioned Utah §179 deduction included in the amount Enter the amount of Utah withholding tax withheld by this
reported on Utah Schedule A, line 14. corporation on behalf of this shareholder. The shareholder
will claim this amount on their individual Utah return.
Line 13 – Utah Contributions
Enter an “X” if the S corporation entered a “1” in the Withholding
For a Utah resident shareholder, enter the amount from their Waiver Request box at the top of Schedule N to not withhold
federal Schedule K-1, box 12, codes A through G. Utah tax on all pass-through entity taxpayers, or if the S corpora-
For a nonresident shareholder, enter the pro rata share of ap- tion entered a “2” in the Withholding Waiver Request box at the
portioned Utah contributions included in the amount reported top of Schedule N and entered an “X” on line B of Schedule N for
on Utah Schedule A, line 14. this specifi c shareholder.
Provide each shareholder a copy of their Utah Schedule
K-1.
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2022 Utah TC-20S Instructions 21
Schedule M – Qualified Subchapter S Subsidiaries
An S corporation that has made a Qualifi ed Subchapter S You may not use any other form as a substitute for
Subsidiary (QSSS) election under IRC §1361(b) must com- Schedule M without prior approval from the Tax Commis-
plete Schedule M if any subsidiaries for which such election sion. See Guidelines for Substitute Utah Tax Forms, at
was made are incorporated, qualifi ed or doing business in tax.utah.gov/developers/substitute-forms.
Utah. Federal schedules are not acceptable as substitutes. List only corporations incorporated, qualifi ed or doing busi-
ness in Utah. Corporations not listed on Schedule M will not
be considered to have met the Utah fi ling requirements.
Schedule N – Pass-through Entity Withholding Tax
The S corporation, as a pass-through entity, must pay or with- If the shareholder is a pass-through entity, it must fi le a Utah
hold tax on behalf of each nonresident individual shareholder, return to report its income/loss and withholding allocations to
each resident or nonresident business shareholder, and each its partners/members/shareholders/benefi ciaries.
resident or nonresident trust or estate shareholder (collectively S corporations having shareholders for whom withholding is
referred to as pass-through entity taxpayers) unless a with- required must complete Schedule N showing the amount of
holding waiver request is made (see below). An S corporation Utah income attributable to the shareholders, the amount of
is not required to withhold Utah tax on a shareholder if: Utah tax on such income (4.85 percent), any Utah mineral
• the shareholder is exempt from taxation under UC production withholding tax, upper-tier Utah pass-through entity
§59-7-102(1)(a) or §59-10-104.1; withholding tax credited to the shareholders, taxes paid with
• this corporation is a plan under IRC §§401, 408 or 457 form TC-75 (Voluntary Taxable Income Election for Pass-
and is not required to fi le a return under UC Chapter 7; or through Entities), and the net amount of withholding tax this
S corporation must pay on behalf of such shareholders. Use
• this corporation is a publicly traded partnership as defi ned additional forms TC-20S, Schedule N, if needed.
under UC §59-10-1403.2(1)(b)(iv).
Ownership Percent: A shareholder’s share of taxable income
is based on the ratio of stock held by the shareholder to the Withholding Waiver Claim
total outstanding stock on the last day of the corporate fi ling
(UC §59-10-1403.2(5))
period, unless there was a change in ownership during the fi ling
period. If there was a change in shareholders or in the relative You may claim a waiver from the requirement to withhold Utah
interest in stock the shareholders owned, each shareholder’s income tax on pass-through entity taxpayers by entering a1“ ”
percentage of ownership is prorated by the number of days in the box if the waiver is for all shareholders, or a “2” if the
the stock was owned during the fi ling period. waiver is for only certain shareholders. Also enter an “X” on
line B and a “0” in column F for each shareholder for whom
Shareholders may take a credit for the amount of tax paid by the waiver is claimed.
the S corporation on their behalf. To claim the credit, the share-
holder must fi le a Utah income tax return for the taxable year. A Claiming the waiver for all or specifi c shareholders does not
shareholder subject to withholding by the S corporation and who relieve the S corporation from the responsibility for the pay-
has no other Utah source income may elect to forego the credit ment of Utah tax on the income allocated to shareholders if
and not fi le a Utah income tax return. However, shareholders the shareholders do not pay. If the shareholder or shareholders
with income or loss from other Utah sources must fi le a Utah for whom you claimed a waiver fail to fi le a return and make
income tax return. A shareholder who is eligible for Utah tax the required payment in a timely manner, you will be liable for
credits, in addition to the pass-through tax withheld, must fi le the withholding, plus any penalties and interest.
a Utah income tax return to claim those credits.
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2022 Utah TC-20S Instructions 22
Line A – Name of Shareholder (Pass-through withholding tax reduces the amount of Utah withholding tax
Entity Taxpayer) calculated for this shareholder on Schedule N. Also report the
credit on line 20 of Schedule K-1 for this shareholder.
Enter the name of each nonresident individual shareholder,
resident/nonresident business shareholder, or resident/ Line I – Tax Paid by Pass-through Entity (PTE)
nonresident trust shareholder (referred to as a pass-through Enter the amount of taxes paid for this shareholder with form
entity taxpayer). TC-75, Voluntary Taxable Income Election for Pass-through
Line B – Withholding Waiver for this Entities (TC-75 is fi led electronically on or before the last
day of the corporation's taxable year). This amount reduces
Shareholder the Utah withholding tax calculated for this shareholder on
If you entered either a “1” or a “2” in the Withholding Waiver Schedule N. Also report the credit on line 18 of Schedule K-1
Claim box at the top of Schedule N, enter an “X” on line B if for this shareholder.
this shareholder is included in the waiver claim.
Line J – Withholding Tax to be Paid
If you check this box, enter a “0” on line F for the shareholder.
by This Corporation
Line C – SSN/EIN of Shareholder Subtract the total of the credits on lines G, H and I from the
Enter the Social Security number of each nonresident individ- tax calculated on line F for each pass-through entity taxpayer.
ual shareholder, the federal EIN of each resident/nonresident Do not enter an amount less than zero.
business shareholder, or the federal EIN of each resident/ The withholding tax shown in column J is the withholding tax
nonresident trust or estate shareholder. this corporation must withhold or pay on behalf of the pass-
through entity taxpayer. Report this withholding tax on line 20
Line D – Percent of Ownership in S of Utah Schedule K-1 for this shareholder.
Corporation by Shareholder
This withholding tax is to be paid to the Tax Commission by
Enter the percent of the S corporation the pass-through entity the original due date of the return. If the return is being fi led
taxpayer owns, to four decimal places. on extension, this withholding tax must be prepaid by the
original due date.
Line E – Income/Loss Attributable to Utah
Enter the income/loss attributable to Utah and taxable to the Total Pass-through Entity Withholding
pass-through entity taxpayer. Add the pass-through withholding in column I for all sharehold-
Calculate this income for a pass-through entity taxpayer by ers. Enter this total at the bottom of Schedule N and carry it
multiplying the amount on Schedule A, line 14 by each pass- over to Schedule A, line 15 and to Schedule K, line 20.
through entity taxpayer’s percentage shown on line D.
Line F – 4.85% of Income Pass-through Withholding Tax
Multiply the amount of income attributable to Utah for each Calculation Summary
pass-through entity taxpayer (line E) by 4.85 percent (.0485). The Utah withholding tax for shareholders who are pass-
If the amount on line E is a loss, enter “0.” Also enter “0” if through entity taxpayers for whom the waiver is not requested
the waiver request has been requested for this shareholder is calculated as follows:
(box B checked). 1. Line E – Enter the income allocated to Utah for the
shareholder.
Line G – Mineral Production Withholding Credit
2. Line F – Multiply the income on line E by the Utah tax rate
Enter the amount of any mineral production withholding tax
of 4.85 percent (.0485).
allocated to the pass-through entity taxpayer. The credit for
mineral production withholding tax reduces the amount of 3. Line G – Enter any Utah mineral production withholding
Utah withholding tax that is calculated for this shareholder tax allocated to this shareholder.
on Schedule N. Also report the credit on line 19 of Schedule 4. Line H – Enter any previous Utah withholding tax passed-
K-1 for this shareholder. through to this corporation by an upper-tier pass-through
entity and allocated to this shareholder.
Line H – Upper-tier Pass-through
5. Line I – Enter any tax paid for this shareholder with form
Withholding Tax TC-75.
Enter the amount of any pass-through entity withholding tax 6. Line J – Subtract lines G, H and I from line F. Do not enter
paid by an upper-tier (previous) pass-through entity, attribut- an amount less than zero. This is the pass-through with-
able to this S corporation, and allocated to the pass-through holding tax that must be paid by the corporation on behalf
entity taxpayer. The credit for upper-tier pass-through entity of the shareholder.
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2022 Utah TC-20S Instructions 23
TC-250 – Credits Received from Upper-tier Pass-
through Entities and Mineral Production
Withholding Tax Credit on TC-675R
Use TC-250 to report Utah nonrefundable and refundable tax Part 2 – Utah Refundable Credits Received
credits allocated on a Utah Schedule K-1 to this corporation from Other Pass-through Entities
by an upper-tier pass-through entity in which this corporation
owns an interest, as well as mineral production withholding Utah refundable tax credits allocated to this corporation by an
tax credits received on a form TC-675R. upper-tier pass-through entity and shown on Utah Schedule
K-1 received from the upper-tier pass-through entity must be
Attach form TC-250 to your S corporation return if the reported in Part 2. These credits are found on Utah Schedule
corporation received an allocation of nonrefundable and/ K-1 under refundable credits with a credit code. Do not include
or refundable credits from an upper-tier pass-through Utah Schedule K-1 the corporation received showing these
entity on a Utah Schedule K-1. credits when fi ling this corporation’s return.
Upper-tier Pass-through Entity. An upper-tier pass-through
entity is a pass-through entity in which this corporation has an First Column
ownership interest and from whom this corporation receives Enter in the fi rst column the federal EIN shown in box “A”
an allocation of income, gain, loss, deduction, or credit on a of Utah Schedule K-1 received by this corporation from the
Utah Schedule K-1. upper-tier pass-through entity.
Use additional copies of form TC-250 if you need more lines
to report any category. Second Column
Enter in the second column the name shown in box “B” of Utah
Schedule K-1 received by this corporation from the upper-tier
Part 1 – Utah Nonrefundable Credits pass-through entity.
Received from Other Pass-through
Entities Third Column
Utah nonrefundable tax credits allocated to this corporation by Enter in the third column the refundable credit code shown
an upper-tier pass-through entity and shown on Utah Schedule on Utah Schedule K-1 received by this corporation from the
K-1 received from the upper-tier pass-through entity must be upper-tier pass-through entity.
reported in Part 1. These credits are found on Utah Schedule
K-1 under nonrefundable credits with a credit code. Do not Fourth Column
include Utah Schedule K-1 the corporation received showing Enter in the fourth column the amount of the allocated Utah
these credits when fi ling this corporation’s return. refundable credit shown on Utah Schedule K-1 received by
this corporation from the upper-tier pass-through entity.
First Column Carry the refundable credits to Utah Schedule K, line 19 for
Enter in the fi rst column the federal EIN shown in box “A” this return. If you have multiple credits for the same credit
of Utah Schedule K-1 received by this corporation from the code, combine the credit amounts before entering on Schedule
upper-tier pass-through entity. K. Allocate the credit to the shareholders on their individual
Schedule K-1 based on their ownership percentage.
Second Column
Enter in the second column the name shown in box “B” of Utah
Schedule K-1 received by this corporation from the upper-tier Part 3 – Utah Mineral Production
pass-through entity. Withholding Tax Credit Received on
TC-675R
Third Column
Utah mineral production tax withheld on production income
Enter in the third column the nonrefundable credit code shown received by this corporation from the producer shown on form
on Utah Schedule K-1 received by this corporation from the TC-675R must be reported in Part 3. Do not include the TC-
upper-tier pass-through entity. 675R with your corporation return.
Fourth Column First Column
Enter in the fourth column the amount of the distributed Utah Enter in the fi rst column the federal EIN shown in box “2” of
nonrefundable credit shown on Utah Schedule K-1 received the form TC-675R received by this corporation.
by this corporation from the upper-tier pass-through entity.
Carry the nonrefundable credits to Utah Schedule K, line 18 Second Column
for this return. If you have multiple credits for the same credit Enter in the second column the producer’s name shown in box
code, combine the credit amounts before entering on Schedule “1” of the form TC-675R received by this corporation.
K. Allocate the credit to the shareholders on their individual
Schedule K-1 based on their ownership percentage.
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| 2022 Utah TC-20S Instructions 24 Third Column Enter in the third column the amount of the mineral production withholding tax shown in box “6” of the form TC-675R received by this corporation. Total the mineral production withholding amounts shown in the third column. Carry this total to Utah Schedule K for this return and enter it on line 19 using code “46.” Distribute this amount to the shareholders on their individual Schedule K-1 based on their ownership percentage. |
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2022 Utah TC-20S Instructions 25
Utah State Tax Commission
TC-559
Corporate/Partnership Payment Coupon Rev. 11/16
Payment Coupon Penalties and Interest
Use payment coupon TC-559 to make the following corporate/partnership If your tax payments do not equal the lesser of 90 percent of the
tax payments: current-year tax liability ($100 minimum tax for corporations) or 100
1) Estimated tax payments percent of the previous-year tax liability, we will assess a penalty of 2
percent of the unpaid tax for each month of the extension period. We will
2) Extension payments assess a late filing penalty if you file the return after the extension due
3) Return payments date.
Mark the circle on the coupon that shows the type of payment you are making. We will assess interest at the legal rate from the original due date until paid
in full.
Corporation Estimated Tax Requirements See Pub 58, Utah Interest and Penalties, at tax.utah.gov/forms.
Every corporation with a tax liability of $3,000 or more in the current or
previous tax year must make quarterly estimated tax payments. A parent Where to File
company filing a combined report must make the payment when the total Send your payment coupon and payment to :
tax is $3,000 or more for all affiliated companies, including those that pay
only the minimum tax. Corporate/Partnership Tax Payment
Utah State Tax Commission
A corporation does not have to make estimated tax payments the first year 210 N 1950 W
it is required to file a Utah return if it makes a payment on or before the due Salt Lake City, UT 84134-0180
date, without extension, equal to or greater than the minimum tax.
Estimated tax payments are due in four equal payments on the 15th day of
the 4th, 6th, 9th and 12th months of the entity’s taxable year. You may Electronic Payment
make quarterly payments equal to 90 percent of the current year tax or 100 You may make estimated tax, extension and return payments at
percent of the previous year tax. A corporation that had a tax liability of tap.utah.gov.
$100 (the minimum tax) for the previous year may prepay the minimum tax
amount of $100 on the 15th day of the 12th month instead of making four
$25 payments.
The Tax Commission will charge an underpayment penalty to entities that
fail to make or underpay the required estimated tax.
Extension Payment Requirements
A corporation/partnership has an automatic filing extension if it makes the
necessary extension payment by the return due date. The estimated tax
payments must equal at least the lesser of:
1) 90 percent of the current year tax liability
(or the $100 corporation minimum tax, if greater), or
2) 100 percent of the previous-year tax liability.
The remaining tax, plus any penalty and interest, is due when the return is filed.
Note: A pass-through entity (partnership or S corporation) must pay 100
percent of any pass-through withholding by the original due date to avoid
penalties and interest.
SEPARATE AND RETURN ONLY THE BOTTOM COUPON WITH PAYMENT. KEEP TOP PORTION FOR YOUR RECORDS.
TC-559
Corporation/Partnership Mail to: Utah State Tax Commission, 210 N 1950 W, SLC UT 84134-0180 Rev. 11/16
Estimated payment:
Payment Coupon
1st qtr. 3rd qtr. Extension payment
Tax year ending (mm/dd/yyyy) 2nd qtr. 4th qtr. Return payment
Name of corporation/partnership EIN
C
P
Address
T
City State Zip code
Payment amount enclosed $ 00
Make check or money order payable to the Utah State Tax Commission.Make check or money order payable to the Utah State Tax Commission.
Do not send cash. Do not staple check to coupon. Detach check stub.Do not send cash. Do not staple check to coupon. Detach check stub.
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2022 Utah TC-20S Instructions 26
Common Return Errors
1. Utah sales factor on TC-20, Schedule J – Out-of-state
corporations qualifi ed in Utah, but not doing business in
Utah, are required to fi le a Utah corporate return. How-
ever, sales into Utah are not required to be included in the
gross receipts numerator, except as provided under Rule
R865-6F-24. Conversely, corporations making sales from
Utah into a state where they are qualifi ed but not doing Please arrange your return in the
business are required to include such sales in the Utah following order:
gross receipts numerator as throwback sales, except as 1. Utah form TC-20S
provided under Utah Rule R865-6F-24.
2. Utah Schedules A through N (if required) in alphabetical
2. Dissolution or withdrawal – Corporations no longer in order, except Schedules K-1
business or no longer doing business in Utah are required 3. Utah form TC-250
to legally dissolve or withdraw the corporation. See instruc-
4. Utah Schedules K-1 for each shareholder
tions on page 1.
5. Federal extension form, if applicable
3. Pass-through entity income and factors – Income or
loss from partnership or joint venture interests must be 6. A copy of the Federal form 1120S, pages 1 through 5 only
included in income and apportioned to Utah. (plus Schedule M-3 and IRS form 1125-A, if applicable)
7. Do not attach federal Schedules K-1
8. Other supporting documentation only as requested in
these instructions
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