PDF document

- 1 -

tax.utah.gov

Publication 57
Revised 10/19

Military Personnel Instructions

Individual income tax information for
service members and their spouses

Utah State Tax Commission
210 North 1950 West
Salt Lake City, Utah 84134 If you need an accommodation under the Americans
801-297-7705 with Disabilities Act, email taxada@utah.gov, or
1-800-662-4335 ext. 7705 call 801-297-3811 or TDD 801-297-2020. Please
tax.utah.gov allow three working days for a response.

General Information Residency
Active members of the U.S. Armed Forces, including those Federal law deﬁ nes the residency of service members and
serving in combat zones, and their spouses receive special their spouses. See 50 U.S.C. 4001(a).
tax beneﬁ ts. This publication explains those beneﬁ ts as they
apply to Utah income tax. Service Member
Residency issues addressed in this publication are effective For Utah income tax purposes, a service member’s resi-
for tax years beginning January 2018. dency is their state of legal residence as recognized by the
U.S. Department of Defense. Contact your ﬁ nancial ofﬁ cer
with any questions.
Definitions
Nonresident Service Member. A service member whose
state of legal residence is not Utah, even if stationed in Utah. Service MemberÊs Spouse
For income tax purposes, a service member’s spouse may
Resident Service Member. A service member whose state choose to:
of legal residence is Utah, even if stationed outside of Utah.
1. use their natural state of residency, or
Active Duty Military Wages. Active duty income received
for military service. This type of income is taxable only in the 2. use the service member’s state of residence.
state of legal residence. The spouse may choose the service member’s state of resi-
Service Member. An active duty member of the U.S. Armed dence even if the spouse does not live in that state.
Forces, including those serving overseas or in a combat
zone. This includes National Guard members who are called
to active service by the President of the United States or the Utah-taxable Income
Utah treats military pay the same as the IRS. All income
Secretary of Defense for a period of more than 30 consecu-
included in federal adjusted gross income is automatically
tive days and supported by federal funds.
included in Utah income. Income that is exempt from federal
Spouse of a Service Member. The spouse of an active duty taxation is also exempt for Utah purposes.
member of the U.S. Armed Forces. If the spouse is also a
military service member, then the spouse is entitled to the
tax beneﬁ ts of a service member. Utah Resident Service Members
and Spouses
State of Legal Residence. The state of residence the mili- Utah residents must ﬁ le a Utah income tax return if they
tary has recorded as a service member’s tax home, regard- are required to ﬁ le a federal income tax return. All of a Utah
less of where the service member is stationed or deployed. resident’s income is taxable in Utah. A Utah resident’s active
U.S. Armed Forces. Commissioned ofﬁ cers, warrant ofﬁ cers duty military pay is only taxable in Utah. A Utah resident with
and enlisted personnel in all regular and reserve units under other sources of income taxed by another state may claim
control of the Secretaries of Defense, Army, Navy, Air Force a credit for those taxes on their Utah return. See Utah form
and the Coast Guard. Does not include members of the U.S. TC-40S.
Merchant Marine or the American Red Cross.

- 2 -

Nonresident Service Members Utah Combat-related
Nonresident service members do not pay Utah income tax
on active duty military pay, even if earned while stationed in Death Tax Credit
Utah. For tax years beginning on or after Jan. 1, 2010, a military
service member who dies as a result of military service in a
Nonresidents must ﬁ le a Utah income tax return only if they combat zone may claim a nonrefundable tax credit equal to
have Utah-taxable income. Examples include non-military their tax liability in the year of death.
wages earned in Utah, income from rentals or sales of prop-
erty in Utah, and Utah investment income. See Utah Code See instructions and worksheet in the Individual Income Tax
§59-10-117. book.
To ﬁ le a Utah individual income tax return as a nonresident
service member: Native Americans
1. Enter “N” on the “Full-year Resident?” line at the top of The active duty military wages of a Native American Utah
the Utah TC-40 return. resident are exempt from Utah tax if the service member
joined the military while living on their tribe’s reservation.
2. On line 4, report your total federal adjusted gross in-
come, including all military and nonmilitary income. Claim this income as a subtraction from income on TC-40,
Schedule A, Part 2, using code 77. See instructions in the
3. Report your non-Utah active duty military wages on Utah Individual Income Tax book.
form TC-40A, Part 2, using subtraction code 82 (non-
resident active duty militar pay).
4. Enter the total from TC-40A, Part 2 on line 8 of the TC-40 Service that Qualifies for a
return. Filing Extension
5. Follow the instructions to complete Utah form TC-40B Utah allows personnel serving in a combat zone or con-
and attach it to your return. tingency operation the same ﬁ ling extension allowed by
the IRS. See IRS Publication 3, Armed Forces’ Tax Guide
(irs.gov/publications/p3/index.html).
Nonresident Spouses
All income of a service member’s nonresident spouse is If you qualify for combat zone relief, email your status to us
exempt from Utah income tax ONLY IF: at combatzone@utah.gov. Provide your name, stateside
address, date of birth and date of deployment to the combat
1. the spouse and the service member are residents of the zone. You, your spouse or an authorized representative may
same state outside Utah, make this notiﬁ cation.
2. the service member is in Utah under military orders, and The Tax Commission cannot provide tax account information
3. the spouse is in Utah solely to be with the service by e-mail. Therefore, we will reply to any questions within two
member. business days by regular mail to the address we have on re-
NOTE: A qualiﬁ ed nonresident spouse should ﬁ le a federal cord. We may provide general answers to questions regard-
W-4 form with their employer marked “Utah Only - ing the status of individual combat zone updates via e-mail.
Exempt military spouse” to end Utah withholding on
their income.
Signing Returns
When reporting a qualiﬁ ed nonresident spouse’s income: You (and your spouse, if ﬁ ling a joint return) must sign the
1. Enter “N” on the “Full-year Resident?” line next to the return. You may also authorize someone to sign for you by
spouse’s name at the top of the Utah TC-40 return. granting a power of attorney.
2. On line 4, include your spouse’s federal adjusted gross Rules about ﬁ ling Utah returns follow federal rules for a military
income, wherever it was earned. spouse who is serving overseas, in a combat zone or in a quali-
ﬁ ed hazardous duty area, or is in missing status or incapacitated,
3. Include all your spouse’s income on Utah form TC-40A,
or who died during the year. See IRS Publication 3 for details.
Part 2, using subtraction code 88 (nonresident military
spouse income).
4. Include the total from TC-40A, Part 2 on line 8 of the Where to Get Help
TC-40 return. If you have other questions about Utah’s treatment of military
5. Follow the instructions to complete Utah form TC-40B personnel, please contact:
and attach it to your return. Utah State Tax Commission
210 N 1950 W
Salt Lake City UT 84134
One Spouse is a Utah Resident
801-297-7705, phone
and the Other is a Nonresident
If one spouse is a full-year Utah resident and the other is a 1-800-662-4335, ext. 7705 (outside the Salt Lake area)
full-year nonresident, they may ﬁ le separate Utah income tax 801-297-6357, fax
returns even if they ﬁ le a joint federal return. The nonresident taxmaster@utah.gov
spouse is not required to ﬁ le a Utah return unless they have See ﬁ ling examples online at incometax.utah.gov.
Utah income. Find federal tax information in:
See Special Instructions in the TC-40 instructions. • Soldiers’ and Sailors’ Civil Relief Act of 1940, United States
NOTE: If either you or your spouse is a part-year resident, Code, Title 50, Section 573.
you may not use Special Instructions. • Utah Service Members’ Civil Relief Act, Utah Code, Title
39, Chapter 7.
57 page 2

PDF file checksum: 3890805340

(Plugin #1/9.12/13.0)