UTAH
222FormsForms0andand
InstructionsInstructions
TC-65
Utah State Tax Commission • 210 North • 1950 West Salt Lake•tax.utah.govCity, Utah 84134
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UTAH
222FormsForms0andand
InstructionsInstructions
TC-65
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-65 – Utah Partnership / Limited Liability Partnership / Limited Liability Company Return ....................................................................5
Schedule A – Utah Taxable Income for Pass-through Entity Taxpayers .....................................................................................................8
TC-20, Schedule H – Nonbusiness Income Net of Expenses ....................................................................................................................9
TC-20, Schedule J – Apportionment Schedule ........................................................................................................................................11
Schedule K – Partners’ Distribution Share Items ......................................................................................................................................14
Schedule K-1 – Partner’s Share of Utah Income, Deductions and Credits ..............................................................................................18
Schedule N – Pass-through Entity Withholding Tax ..................................................................................................................................21
TC-250 – Credits Received from Upper-tier Pass-through Entities and Mineral Production Withholding Tax Credit on TC-675R ...........22
TC-544, Partnership Return Payment Coupon .........................................................................................................................................24
Cover photo: , by
E-Filing is Easier! Utah Taxpayer Advocate Service
E-fi ling is the easiest and most accurate way to fi le. Ask your tax The Taxpayer Advocate Service helps taxpayers who have made
preparer about e-fi ling your individual, fi duciary, partnership, C cor- multiple, unsuccessful attempts to resolve concerns with the Tax
poration and S corporation returns, or use commercial tax software. Commission. This service helps resolve problems when normal
agency processes break down, identifi es why problems occurred, and
suggests solutions. See tax.utah.gov/contact, or contact us to fi nd
Utah is Online out if you qualify for this service at 801-297-7562 or 1-800-662-4335,
Utah offers many online services for individual and business fi lers, ext. 7562, or by email at taxpayeradvocate@utah.gov.
including: Do not use the Taxpayer Advocate Service to bypass normal methods
tap.utah.gov for resolving issues or disputes.
• Pay by e-check or credit card.
• Manage your Utah tax account.
• Request payment plans. Need more information?
tax.utah.gov Questions 801-297-2200 or
1-800-662-4335 (outside the Salt Lake area)
• Download forms and instructions for all Utah tax types.
• Link to free business resources and other services. Research Utah rules, bulletins and Commission decisions:
tax.utah.gov
E-Verify for Employers Utah Code (UC): le.utah.gov
Employers can help prevent identity theft by verifying the Social Internal Revenue Code (IRC):
Security numbers of job applicants. E-Verify is a free service of law.cornell.edu/uscode/26
the U.S. Department of Homeland Security that verifi es employ-
ment eligibility through the Internet. Employers can use E-Verify at If you need an accommodation under the Americans with Disabili-
uscis.gov/e-verify. ties Act, email taxada@utah.gov, or call 801-297-3811 or TDD
801-297-2020. Please allow three working days for a response.
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2022 Utah TC-65 Instructions 1
General Instructions and Information
What’s New Filing Requirements
• Solar Energy Systems Phase-out: The maximum Re- A partnership or other entity treated as a partnership for
newable Residential Energy Systems Credit (credit 21) for federal tax purposes, all of whose partners or members are
solar power systems installed in 2022 is $800. Utah resident individuals, is not required to fi le a Utah return,
• Utah Tax Rate: The 2022 Utah Legislature passed SB TC-65, if:
59, lowering the state income tax rate from 4.95 percent • it is not a pass-through entity taxpayer, and
to 4.85 percent. • it maintains records that show each partner’s or member’s
• Payroll Protection Program Grant or Loan Addback: In share of income, losses, credits, and other distributive
certain situations you must add to your income the amount items, and those records are made available to the Tax
of PPP grants or loans forgiven in 2022. See page 8. Commission upon request.
A partnership or other entity treated as a partnership for
Reminder federal tax purposes with any partners or members who
are businesses, trusts, estates or nonresident individuals is
• TC-250: List all nonrefundable and refundable credits
required to fi le a TC-65.
received from an upper-tier pass-through entity on a Utah
Schedule K-1, and any mineral production withholding tax
credit received on a form TC-675R. Pass-through Entity Withholding
• Method of Apportioning Income: To determine if you Requirements
qualify as an optional apportionment taxpayer or a sales
factor weighted taxpayer, see Schedule J – Apportionment Partnerships and business entities treated as partnerships are
Schedule on page 11. considered pass-through entities (see UC §59-10-1402(10))
and must withhold Utah income tax on all business partners,
trust or estate partners, and nonresident individual partners.
Partnership Defi ned These partners are collectively referred to as pass-through entity
A “partnership” is any unincorporated entity that is treated as taxpayers (see UC §59-10-1402(11)). A partnership is not re-
a partnership under federal income tax law, including general quired to withhold on a partner that is exempt from tax under UC
partnerships, limited partnerships, limited liability partnerships, §59-7-102(1)(a) or §59-10-104.1, or if the pass-through entity is
and limited liability companies. A “partner” includes a partner a plan under IRC §§401, 408 or 457 and is not required to fi le a
or member of one of these entities. return under UC Chapter 7, or is a publicly traded partnership
as defi ned under UC §59-10-1403.2(1)(b)(iv).
Utah imposes a 4.85 percent withholding tax on all Utah busi-
Partnerships Not Subject to Tax ness and nonbusiness income derived from or connected with
A partnership is not subject to Utah income tax. However, Utah sources and attributable to pass-through entity taxpayers.
partners conducting business are liable for Utah income tax The partnership may reduce this withholding by any mineral
in their separate or individual capacities. A partnership must production withholding tax, previous pass-through entity with-
withhold Utah tax on all nonresident individual pass-through holding tax allocated to the partner, and taxes paid for this
entity taxpayers and all resident or nonresident business, es- partner with form TC-75 (Voluntary Taxable Income Election
tate, or trust pass-through entity taxpayers. See Pass-through for Pass-through Entities).
Entity Withholding Requirements below. Calculate Utah withholding tax on Schedule N. See the instruc-
tions for Schedule N on page 21 for more details.
Pass-through Entity The partnership must provide a Utah Schedule K-1 to each
A pass-through entity is an entity whose income, gains, losses, partner showing the amount of Utah withholding paid on be-
deductions and/or credits fl ow through to its partners (partner- half of the partner. This withholding tax is then claimed as a
ships), members (limited liability companies), shareholders (S credit by the partner on the partner’s Utah income tax return.
corporations) or benefi ciaries (estates and trusts) for federal If a partnership has an interest in another partnership, that
tax purposes. upper-tier partnership must withhold Utah income tax on Utah
income allocated to the lower-tier partnership. The upper-tier
partnership must provide a Utah Schedule K-1 showing the
Pass-through Entity Taxpayer amount of Utah withholding tax paid on behalf of the lower-tier
A pass-through entity taxpayer is any entity which has income, partnership. The lower-tier partnership must report this with-
gains, losses, deductions and/or credits passed to it from a holding tax on form TC-250 and then allocate it to its partners,
pass-through entity (e.g., an individual who is a partner in a who will claim the withholding tax on their returns. Enter this
partnership, or a partnership which is a partner in another previous pass-through entity withholding tax for each partner
partnership). on Schedules K and K-1.
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2022 Utah TC-65 Instructions 2
The partnership may request a waiver of withholding tax and (in addition to penalties due)
Interest
any associated penalty and interest for all or selected partners
who fi led and paid tax on the Utah income from this partner- Interest is assessed on underpayments from the due date
ship. The tax must be paid on or before the partnership’s return until the liability is paid in full. The interest rate for the 2023
due date, including extensions (see UC §59-10-1403.2(5)). calendar year is 5.0 percent.
For more information, get Pub 58, Utah Interest and Penalties,
at tax.utah.gov/forms.
Partnership Identifi cation Number
The partnership's federal Employer Identifi cation Number
(EIN) is the Utah identifi cation number. Enter the EIN in the Rounding Off to Whole Dollars
proper fi eld. Round off cents to the nearest whole dollar. Round down if cents
are under 50 cents; round up if cents are 50 cents and above.
Partnership Changes Do not enter cents on the return.
To report partnership changes (e.g., name change, physical
and/or mailing address changes, or ceasing to do business
in Utah) submit form TC-69C to: Negative Numbers
Master Records When reporting losses or other negative numbers, do not
Utah State Tax Commission use parentheses. Always indicate a negative number with a
210 N 1950 W minus sign (-).
SLC, UT 84134-3215
What to Attach and What to Keep
Where to File Include the following with your Utah TC-65. Also, keep copies
Mail your return to: of these with your tax records.
Utah State Tax Commission • Utah Partnership Return Schedules: Attach applicable
210 N 1950 W Utah schedules A, H, J, K, N, and/or TC-250. Also attach
SLC, UT 84134-0270 Utah Schedule K-1 for each partner.
You may also pay any tax due at tap.utah.gov. Do not send a copy of your federal return, federal Sched-
ules K-1, credit schedules, worksheets, or other docu-
mentation with your Utah return, unless otherwise stated
Due Date in these instructions. Keep these in your fi les. We may ask
The return is due on or before the 15th day of the fourth you to provide them later to verify entries on your Utah return.
month following the close of the taxable year or the due date
of the federal return, whichever is later. If the due date falls
on a Saturday, Sunday or legal holiday, the due date is the Federal Taxable Income (Loss)
next business day. Utah law defi nes federal taxable income as “taxable income as
currently defi ned in §63, Internal Revenue Code of 1986.” Since
Utah’s taxable income is based on federal taxable income, a
Filing Extension partner’s ability to carry forward and carry back partnership
Partnerships are automatically allowed an extension of up to losses is determined on the federal level. The loss taken by
fi ve months to fi le a return without fi ling an extension form. a partner in a given year must match the loss taken on the
This is NOT an extension of time to pay taxes – it is only federal return. Losses cannot be independently carried back
an extension of time to fi le your return. To avoid penalty, or forward in any given year on the partner’s Utah return.
the prepayment requirements must be met on or before the
original return due date and the return must be fi led within the
fi ve-month extension period. Utah Income
Note: All pass-through withholding tax from Schedule N, Complete Schedule A to determine Utah income or loss. If the
column J must be paid by the original due date of the return, partnership does business both within and outside of Utah,
without regard to extensions. the portion of the partnership income attributable to Utah is
determined by fi rst completing TC-20, Schedule J, and then
Schedule A.
Penalties
Utah law (UC §59-1-401) provides penalties for not fi ling Business Income
tax returns by the due date, not paying tax due on time, not
making suffi cient prepayment on extension returns, and Business income means income arising from transactions
not fi ling information returns or supporting schedules. See and activity in the regular course of the taxpayer’s trade or
tax.utah.gov/billing/penalties-interest and Pub 58, Utah business and includes income from tangible and intangible
Interest and Penalties, at tax.utah.gov/forms. property if the acquisition, management and disposition of
the property constitute integral parts of the taxpayer’s regular
trade or business operations. See UC §59-10-1402(2).
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2022 Utah TC-65 Instructions 3
Business income apportioned to Utah is subject to the pass- 2. In determining Utah taxable income of a partner, make any
through entity withholding requirements. modifi cation (such as U.S. government bond interest) that
The following are examples of business income: relates to an item of the partnership income, gain, loss or
deduction in accordance with the partner’s distributive share
• Interest income on loans and investments made in the for federal income tax purposes of the items to which the
ordinary course of a trade or business of lending money. modifi cation relates. Where a partner’s share of any such item
• Interest income on accounts receivable arising from the is not required to be taken into account separately for federal
performance of services or sales of property. income tax purposes, determine the partner’s distributive
• Income from investments made in the ordinary course share of such item in accordance with his distributive share
of a trade or business of furnishing insurance or annuity for federal income tax purposes of partnership income or loss
contracts or reinsuring risks underwritten by insurance generally.
companies. 3. When a partner’s distributive share of an item of partnership
• Income or gain derived in the ordinary course of an ac- income, gain, loss or deduction is determined for federal
tivity of trading or dealing in any property if such activity income tax purposes by a special provision in the partner-
constitutes a trade or business (unless the dealer held the ship agreement with respect to such item, and when the
property for investment at any time before such income or principal purpose of such provision is the avoidance or
gain is recognized). evasion of tax, determine the partner’s distributive share
of such item and any modifi cation regarding it as if the
• Royalties derived by the taxpayer in the ordinary course partnership agreement makes no special provision with
of a trade or business of licensing intangible property. respect to that item.
• Amounts included in gross income of a patron of a coopera-
tive by reason of any payment or allocation to the patron
based on patronage occurring with respect to a trade or Nonresident or Part-year Resident
business of the patron. Share of Partnership Items
• Other income identifi ed by the IRS as income derived by 1. In determining a nonresident partner's adjusted gross in-
the taxpayer in the ordinary course of a trade or business. come, include only the part derived from or connected with
sources in Utah of the partner’s distributive share of items of
partnership income, gain, loss or deduction entering into the
Nonbusiness Income partner’s federal adjusted gross income. (The Utah portion
Nonbusiness income means all income other than business in- is shown alongside the total for each item amount on Utah
come. See UC §59-10-1402(8). Nonbusiness income includes Schedule K.)
portfolio income that is not derived in the ordinary course of a 2. In determining the sources of a nonresident partner’s
pass-through entity’s trade or business. The burden of proof income:
is on the taxpayer to justify the manner in which income is
a. Do not give consideration to a provision in the partner-
claimed on the return.
ship agreement that characterizes payments to the
partner as being for services or for the use of capital,
Apportionable Income or allocates to the partner, as income or gain from
sources outside Utah, a greater portion of his distributive
The following types of income are apportionable business share of partnership income or gain than the ratio of
income: partnership income or gain from sources outside Utah
1. Interest, dividends, royalties, gains, etc., derived in the to partnership income or gain from all sources, except
ordinary course of a pass-through entity’s trade or business. as provided in 5 below.
2. Interest, dividends, gains, etc., of an entity whose primary b. Do not give consideration to a provision in the partnership
business activity is investing funds (such as with a broker- agreement that allocates to the partner a greater portion
age fi rm). of a partnership item, loss or deduction connected with
3. Income received from holdings in or the sale of partnership sources in Utah than his proportionate share, for federal
interests. income tax purposes, of partnership loss or deduction
generally, except as provided in 5 below.
3. Make any modifi cation (such as for U.S. government bond
Modifi cations interest) that relates to an item of partnership income, gain,
Modifi cations may be needed to determine the Utah taxable loss or deduction in accordance with the partner’s distributive
income of a partner. See Character of Partnership Items share for federal income tax purposes of the item to which
and Nonresident or Part-year Resident Share of Partnership the modifi cation relates, but limited to the portion of such
Items below. item derived from or connected with sources in Utah.
4. Determine a nonresident partner’s distributive share of
items of income, gain, loss or deduction as provided in
Character of Partnership Items Character of Partnership Items, above.
1. Each item of partnership income, gain, loss or deduction
5. The Tax Commission may authorize the use of other
has the same character for a partner as it has for federal
methods of determining a nonresident partner’s portion of
income tax purposes. When an item is not characterized for
a partnership item derived from or connected with sources
federal income tax purposes, it has the same character for
in Utah, and the modifi cation related to it, as may be ap-
a partner as if realized directly from the source realized by
propriate and equitable, on such terms and conditions as
the partnership, or incurred in the same manner as incurred
it may require.
by the partnership.
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2022 Utah TC-65 Instructions 4
form TC-675R to the partnership return. The amounts withheld
Mineral Producers or Payers
are distributed to each partner in proportion to each partner’s
If the partnership is a producer paying proceeds in connec- share of income and should be shown on Schedule N and on
tion with mineral properties located in Utah, the partnership Utah Schedules K and K-1.
must report to each recipient their share of mineral production
withholding tax withheld and paid to the Tax Commission. The If the partnership is itself a pass-through entity taxpayer and
producer must furnish a copy of form TC-675R to each recipi- receives a distribution of mineral production withholding tax
ent. The recipient will take credit for the amount withheld on from an upper-tier pass-through entity, enter the mineral
their Utah individual income tax return, fi duciary income tax production withholding tax allocated to this partnership on
return or corporation franchise or income tax return. TC-250, Part 2, using code 46. Do not attach Utah Schedule
K-1 the partnership receives to this partnership return.
If the partnership is the recipient of proceeds in connection
with mineral properties located within Utah, the partnership
should complete TC-250, Part 3, using code 46. Do not attach
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2022 Utah TC-65 Instructions 5
TC-65 – Utah Partnership / Limited Liability
Partnership / Limited Liability Company
Return
3 Your federal return was changed by an IRS audit or adjust-
Filing Period ment that affects your Utah return. Attach a copy of the
File the 2022 return for calendar year 2022 and fi scal years IRS adjustment.
beginning in 2022 and ending in 2023. If the return is for a
4 Other. Attach an explanation to your return.
fi scal year or a short tax year (less than 12 months), fi ll in the
tax year beginning and end dates at the top of the form using Enter the corrected fi gures on the return and/or schedules.
the format mm/dd/yyyy. 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
Partnership Name and Address any tax paid with the original return and/or subsequent pay-
Enter on the TC-65 the partnership name, address and ments of the tax prior to fi ling the amended return. Enter the
telephone number, including area code. If the address has net amount on line 7. Enter a net refund as a negative amount
changed, see Partnership Changes on page 2. (preceded by a minus sign).
ZIP Code Federal Form 8886
Enter your ZIP Code, including the “plus four” at the end, If you fi led federal Form 8886, Reportable Transaction Disclo-
without a hyphen. sure Statement, with the Internal Revenue Service, enter an
“X” at the top of your TC-65, where indicated.
Foreign Country
Entity Type
If your address is in a foreign country, enter the mailing ad-
dress where indicated. Enter the foreign city, state/province Mark “X” by the type of entity for which the return is being fi led:
and postal code in the City fi eld. Abbreviate if necessary. Leave • General partnership
the State and ZIP Code fi elds blank. Enter only the foreign • Limited partnership
country name in the Foreign country fi eld.
• Limited liability partnership
Employer Identifi cation Number • Limited liability company
Utah uses the federal EIN as the partnership’s taxpayer • Other (enter brief description)
identifi cation number with the state. Enter the EIN in the fi eld
indicated.
Line-by-Line Instructions
Amended Returns Line 1 – Date Registered in Utah
Note: Do not submit a copy of your original return with Enter the date the partnership was registered in Utah in the
your amended return. format mm/dd/yyyy.
To amend a previously fi led return, use the tax forms and in-
Line 2 – Date Dissolved
structions for the year you are amending. Get prior year forms
and instructions at tax.utah.gov/forms-pubs/previousyears. If the partnership was dissolved during the tax year, enter the
date of dissolution of the partnership in the format mm/dd/yyyy.
Amend your return if:
• you fi nd an error on your Utah or federal return after it has Line 3 – Total Pass-through Withholding Tax
been fi led, or Enter the total pass-through withholding tax from Schedule
• your federal return is audited or adjusted by the IRS and N, column J.
the audit or adjustment affects your Utah return. You must This pass-through withholding tax must be paid to the Tax
amend your Utah return within 90 days of the IRS’s fi nal Commission by the original due date of the return, without
determination. regard to extensions. Pay at tap.utah.gov or use form TC-559,
To amend a previously fi led return, at the top of page 1, on Corporation/Partnership Payment Coupon.
the “Amended Return” line, enter the code number from the Do not include on this line any pass-through withholding tax
following list that best describes your Reason for Amending: credit received from another pass-through entity as reported
on a Utah Schedule K-1 you received. Pass-through withhold-
Reason-for-Amending Codes ing tax credits received from other pass-through entities are
1 You fi led an amended federal return with the IRS. Attach entered on TC-250 and allocated to the partners/members
a copy of your amended federal return. on Utah Schedule K-1.
2 You made an error on your Utah return. Attach an explana-
tion of the error.
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2022 Utah TC-65 Instructions 6
Line 4 – Utah Use Tax
Use Tax Worksheet
Use tax is a tax on goods and taxable services purchased 1. Amount of purchases (except grocery food)
for use, storage or other consumption in Utah. Use tax ap- subject to use tax 1 _________
plies only if sales tax was not paid at the time of purchase. If
2. Use tax rate
you purchased an item from an out-of-state seller (including (decimal from Use Tax Rate Chart) 2 .__ __ __ __
Internet, catalog, radio and TV purchases) and the seller did
not collect sales tax on that purchase, you must pay the use 3. Multiply line 1 by line 2 3 _________
tax directly to the Tax Commission. 4. Amount of grocery food purchases
subject to use tax 4 _________
If you have a Utah sales tax license/account, report the use
tax on your sales tax return. If you do not have a Utah sales 5. Multiply line 4 by 3% (.03) 5 _________
tax license/account, report the use tax on line 4 of TC-65. 6. Add line 3 and line 5 6 _________
You may take a credit for sales or use tax paid to another state 7. Credit for sales tax paid to another state
(but not a foreign country). If the other state’s tax rate is lower on use tax purchases 7 _________
than Utah’s, you must pay the difference. If the other state’s tax 8. Use tax due (subtract line 7 from line 6) 8 _________
rate is more than Utah’s, no credit or refund is given. If sales (If less than zero, enter "0.")
tax was paid to more than one state, complete the Use Tax
Worksheet below for each state. Add lines 8 on all worksheets
and enter the total on line 4 of TC-65.
Use Tax Rate Chart (Effective Dec. 31, 2022)
Sales and use tax rates vary throughout Utah. Use the Use .0635 Beaver County .0795 Garden City
Tax Rate Chart below to get the rate for the location where .0735 Beaver City .0725 Salt Lake County
the merchandise was delivered, stored, used or consumed. .0610 Box Elder County .0875 Alta
Use the county tax rate if the city is not listed. .0665 Brigham City, Perry, Willard .0835 Brighton
.0640 Mantua .0745 Murray, South Salt Lake
Grocery food bought through the Internet or catalog is taxed .0710 Snowville .0775 Salt Lake City,
at 3 percent. The grocery food must be sold for ingestion or .0670 Cache County Inland Port SLC
chewing by humans and consumed for the substance’s taste .0695 Cache Valley Transit, Hyde .0635 San Juan County
Park, Lewiston, Millville .0675 Blanding, Monticello
or nutritional value. The reduced rate does not apply to alco- .0700 Hyrum, Logan, Nibley, N. Logan, .0745 Bluff
holic beverages or tobacco. See Pub 25, Sales and Use Tax, Providence, Richmond, River .0635 Sanpete County
at tax.utah.gov/forms. Heights, Smithfield .0645 Centerfield, Mayfield
.0635 Carbon County .0675 Ephraim, Fairview, Gunnison,
Line 5 – Total Tax .0645 Helper Mt. Pleasant
.0675 Price .0665 Manti
Enter the total of lines 3 and 4. .0665 Wellington .0635 Sevier County
.0735 Daggett County .0645 Aurora, Redmond
Line 6 – Prepayments Made for the Year .0845 Dutch John .0665 Monroe
.0715 Davis County .0675 Richfield, Salina
Credit is allowed for advance payments made as quarterly .0725 Bountiful, Centerville, .0715 Summit County
estimated tax payments, prepayments and extension pay- Clearfield, Farmington, .0855 Mil. Rec. Park City
ments (form TC-559). Include any overpayments from a prior Kaysville, Layton, N. Salt .0905 Park City
Lake, S. Weber, Syracuse, .0745 Snyderville Basin Transit
year that were applied to this year. W. Bountiful, Woods Cross .0660 Tooele County
Do not include any pass-through withholding tax on this line. .0635 Duchesne County .0690 Erda, Grantsville, Lakepoint,
.0645 Duchesne City Lincoln, Stansbury Park
Pass-through withholding tax credit from a previous pass- .0675 Roosevelt .0700 Tooele City
through entity is entered on TC-250 and allocated to the .0635 Emery County .0645 Uintah County
partners/members on Utah Schedule K-1. .0825 Green River .0695 Naples, Vernal
.0710 Garfield County .0715 Utah County
Line 7 – Amended Returns Only .0810 Boulder, Panguitch, Tropic .0725 American Fork, Cedar Hills,
.0830 Bryce Canyon Highland, Lehi, Lindon, Orem,
This line is only for amended returns. Enter the amount of tax .0820 Escalante Payson, Pleasant Grove,
paid with the original return and subsequent payments made .0685 Grand County Provo, Santaquin, Spanish
prior to fi ling this amended return less any previous refunds .0885 Moab Fork, Springville, Vineyard
.0610 Iron County .0635 Wasatch County
(exclude refund interest). Enter a net refund as a negative .0810 Brian Head .0665 Heber
amount (preceded by a minus sign). .0620 Cedar City .0745 Independence, Mil. Rec.
.0610 Juab County Wasatch, Mil. Rec. Hideout
Line 8 – Total Payments .0620 Mona .0775 Midway
.0650 Nephi .0825 Park City East
Enter the total of lines 6 and 7. .0645 Santaquin South .0645 Washington County
.0710 Kane County .0675 Hurricane, Ivins, La Verkin,
Line 9 – Tax Due .0820 Kanab St. George, Santa Clara,
.0810 Orderville Washington City
If line 5 is larger than line 8, subtract line 8 from line 5. .0635 Millard County .0805 Springdale
.0645 Fillmore .0745 Virgin
Line 10 – Penalties and Interest .0620 Morgan County .0610 Wayne County
.0645 Morgan City .0725 Weber County
Enter any penalties and interest that apply to this return. See .0610 Piute County .0745 Falcon Hill Riverdale,
Pub 58, Utah Interest and Penalties. .0635 Rich County Riverdale
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2022 Utah TC-65 Instructions 7
Line 11 – Total Due - Pay This Amount the Tax Commission to call the paid preparer to answer any
questions that may arise during the processing of the return.
Add lines 9 and 10. Pay at tap.utah.gov. Or send a check The paid preparer is also authorized to:
or money order with your return (make payable to the Utah
State Tax Commission). Do not mail cash. The Tax Commis- • give the Tax Commission any information that is missing
sion assumes no liability for loss of cash placed in the mail. from the return;
Complete the TC-544 coupon (see the back of this book) and • call the Tax Commission for information about the processing
send it with your payment. of the return or the status of any refund or payment(s); and
Payments not received by the original due date are subject • respond to certain Tax Commission notices about math
to penalty and interest. errors, offsets, and return preparation.
See Payment Options, below. The partnership is not authorizing the preparer to receive any
refund, bind the entity to anything (including any additional
Line 12 – Overpayment tax liability), or otherwise represent the entity before the Tax
If line 8 is larger than the sum of line 5 and line 10, subtract the Commission. The authorization will automatically end no later
sum of line 5 and line 10 from line 8. than the due date (without regard to extensions) for fi ling next
year's tax return.
Line 13 – Amount of Overpayment to be If you want to expand the preparer’s authorization, complete
Applied to Next Taxable Year and submit form TC-737, Power of Attorney and Declaration
All or part of any overpayment shown on line 12 may be applied of Representative (tax.utah.gov/forms). If you want to revoke
as an advance payment for the next tax year. Enter the amount the authorization before it ends, submit your request in writ-
to be applied (may not exceed the overpayment on line 12). ing to the Utah State Tax Commission, attention Taxpayer
Services, 210 N 1950 W, SLC, UT 84134.
Line 14 – Refund
Paid Preparer
Subtract line 13 from line 12. This is your refund amount.
The paid preparer must enter his or her name, address, and
PTIN in the section below the authorized representative’s
Signature and Date Line signature on the return.
Sign and date the return. We will not issue a refund without
a signature. Preparer Penalties
(UC §§59-1-401(11)-(12))
In the case of a partnership, LP or LLP, a general partner must
sign the return. In the case of an LLC, a member must sign the The person who prepares, presents, procures, advises, aids,
return, or if the LLC has vested management in a manager or assists or counsels another on a return, affi davit, claim or
managers, a manager must sign the return. If receivers, trustees similar document administered by the Tax Commission, and
in bankruptcy or assignees are operating the property or busi- who knows or has reason to believe it may understate a tax,
ness of the partnership/LP/LLP/LLC, then the receiver, trustee fee or charge is subject to both a civil penalty ($500 per docu-
or assignee must sign the return. ment) and criminal penalty (second degree felony with a fi ne
from $1,500 to $25,000).
Paid Preparer Authorization Payment Agreement Request
If the partnership wants to allow the Tax Commission to discuss If you cannot pay the full amount you owe, you can request a
this return with the paid preparer who signed it, enter an “X” in payment plan. Go to tap.utah.gov and click "Request Waiver,
the box to the right of the signature area of the return where Payment Plan or e-Reminder."
indicated. This authorization applies only to the individual
You may also:
whose signature appears in the Paid Preparer's Section of the
return. It does not apply to the fi rm, if any, shown in that section. 1. complete form TC-804B, Business Tax Payment Agreement
If you enter an “X” in the box, the partnership is authorizing Request (tax.utah.gov/forms), or
2. call the Tax Commission at 801-297-7703 or 1-800-662-4335
ext. 7703.
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2022 Utah TC-65 Instructions 8
Schedule A – Utah Taxable Income for Pass-
through Entity Taxpayers
Line 1 – Net Income/Loss (including the partner’s spouse and dependents) and reported
on federal Schedule K line 13d and federal Schedule K-1, line
Enter line 1 (Net income (loss)) of "Analysis of Net Income 13, using code M.
(Loss) per Return," from federal form 1065, Schedule K.
Note: This is not Schedule K, line 1 (Ordinary business in- Line 10 – Net Guaranteed Payments to Partners
come (loss)). Subtract the health insurance on line 9 from the guaranteed
payments on line 8. This amount should agree with the amount
Line 2 – Contributions reported on federal form 1065, Schedule M-1, line 3.
Enter the charitable contributions shown on federal form 1065,
Schedule K, line 13a. Line 11 – Utah Net Nonbusiness Income
Enter the Utah nonbusiness income net of expenses.
Line 3 – Foreign Taxes
Sales of Utah property and rents received on Utah property,
Enter the amount of foreign taxes deducted on federal form if not part of the trade or business income of the partnership,
1065, Schedule K, line 21. are considered Utah nonbusiness income.
Line 4 – Recapture of Section 179 Deduction To calculate this amount, use form TC-20, Schedule H (get
Enter the gain or loss on the sale, exchange or other disposi- forms at tax.utah.gov/forms). Enter the amount from line 14
tion of property for which a §179 expense deduction has been of TC-20, Schedule H. Attach a copy of TC-20, Schedule H
passed through to partners and reported on federal 1065 to your partnership return.
Schedule K-1, line 20 (Other information), code M. Note: Do NOT include nonbusiness portfolio income on this
line.
Line 5 – Payroll Protection Program Grant or
Loan Addback Line 12 – Non-Utah Net Nonbusiness Income
If you received a COVID-19 Payroll Protection Program (PPP) Enter the non-Utah nonbusiness income net of expenses.
grant or loan, enter any amount that: To calculate this amount, use form TC-20, Schedule H (get
forms at tax.utah.gov/forms). Enter the amount from line 28
1. was forgiven during the 2022 tax year,
of TC-20, Schedule H. Attach a copy of TC-20, Schedule H
2. is exempt from federal income tax, and to your partnership return.
3. you used for expenses that you deducted on your federal Note: Include nonbusiness portfolio income on this line.
tax return.
Line 13 – Add Lines 10 through 12
Line 6 – RESERVED
Add the amounts on lines 10 through 12.
Line 7 – Total Income
Line 14 – Apportionable Income/Loss
Add the amounts on lines 1 through 6.
Subtract line 13 from line 7.
Line 8 – Total Guaranteed Payments to
Line 15 – Apportionment Fraction (Decimal)
Partners
Enter 1.000000, or the apportionment fraction (decimal) from
Enter the total guaranteed payments made to partners as
TC-20, Schedule J, line 9 or 10, if applicable.
reported on federal form 1065, Schedule K, line 4.
Line 16 – Utah Apportioned Business Income/
Line 9 – Health Insurance Included in
Loss
Guaranteed Payments
Multiply the amount on line 14 by the apportionment fraction
Enter the total of any health insurance included in the guar-
on line 15.
anteed payments reported on line 8. This amount should
equal the total of the amounts paid during the taxable year Line 17 – Total Utah Income Allocated to Pass-
for insurance that constitutes medical care for the partner
through Entity Taxpayers
Add line 11 and line 16.
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2022 Utah TC-65 Instructions 9
TC-20, Schedule H – Nonbusiness Income Net of
Expenses
Complete TC-20, Schedule H to determine nonbusiness
income allocated to Utah and outside Utah. Utah Nonbusiness Income
Business income is income arising from transactions and Lines 1a-1e – Utah Nonbusiness Income
activity in the regular course of a taxpayer's trade or business. Complete the information in each column and enter the gross
It includes income from tangible and intangible property if Utah nonbusiness income from each class of income being
the acquisition, management and disposition of the property allocated. Use additional pages or supporting schedules in
constitutes integral parts of the taxpayer’s regular trade or the same format, if necessary, to provide complete information
business operations. about additional sources of nonbusiness income.
Nonbusiness income is all income that does not arise from
a taxpayer’s trade or business operations. Intangible income Line 2 – Total of Columns C and D
must be properly classifi ed and based upon factual evidence. Enter the total of the amounts on lines 1a through 1e in column
The burden of proof is on the taxpayer to justify how the income C and column D.
is claimed on the return.
Interest income is business income where the intangible Line 3 – Total Utah Nonbusiness Income
with respect to which the interest was received arises out of Enter the total of column E, lines 1a through 1e.
or was created in the regular course of the taxpayer’s trade or
business operations, or where the purpose for acquiring and Lines 4a-4e – Direct Related Expenses
holding the intangible is an integral, functional, or operative Describe and enter amounts of direct expenses on the same
component of the taxpayer’s trade or business operations, or letter line as the corresponding Utah nonbusiness income is
otherwise materially contributes to the production of business listed on lines 1a through 1e. Direct related expenses include
income of the trade or business operations. See Tax Commis- wages, interest, depreciation, etc. (UC §59-7-101).
sion Rule R865-6F-8(2)(e)(iii).
Dividends are business income where the stock with re- Line 5 – Total Direct Related Expenses
spect to which the dividends were received arose out of or Enter the sum of direct related expenses by adding lines 4a
was acquired in the regular course of the taxpayer’s trade or through 4e.
business operations or where the acquiring and holding of
the stock is an integral, functional, or operative component Line 6 – Utah Nonbusiness Income Net of
of the taxpayer’s trade or business operations, or otherwise Direct Related Expenses
materially contributes to the production of business income of
Subtract line 5 from line 3.
the trade or business operations. See Tax Commission Rule
R865-6F-8(2)(e)(iv). Line 7 – Beginning-of-Year Assets
Gain or loss from the sale, exchange, or other disposition Enter in column A the total beginning-of-year value of assets
of real property or of tangible or intangible personal property used to produce Utah nonbusiness income from line 2, column
constitutes business income if the property while owned by C. Enter in column B the beginning-of-year value of your total
the taxpayer was used in, or was otherwise included in the assets. Include all assets in column B, including Utah assets.
property factor of the taxpayer’s trade or business. See Tax
Commission Rule R865-6F-8(2)(e)(ii). Line 8 – End-of-Year Assets
Rental income from real and tangible property is business Enter in column A the total end-of-year value of assets used
income if the property with respect to which the rental income to produce Utah nonbusiness income from line 2, column D.
was received is or was used in the taxpayer’s trade or busi- Enter in column B the end-of-year value of your total assets.
ness and therefore is includable in the property factor. See Include all assets in column B, including Utah assets.
Tax Commission Rule R865-6F-8(2)(e)(i).
Complete Schedule H as follows: Line 9 – Sum of Beginning and
Ending Asset Values
• Complete lines 1a through 14 if you are claiming only Utah
nonbusiness income. Add lines 7 and 8 for each respective column.
• Complete lines 15a through 28 if you are claiming only Line 10 – Average Asset Value
non-Utah nonbusiness income.
Divide line 9 by 2 for each column.
• Complete lines 1a through 28 if you are claiming both Utah
and non-Utah nonbusiness income. Line 11 – Utah Nonbusiness Asset Ratio
Use additional pages or supporting schedules in the same Divide line 10, column A by line 10, column B. Round the
format, if necessary, to provide complete information, including result to four decimal places. Do not enter a decimal greater
a description of the business purpose for making the invest- than 1.0000, and do not enter a negative number.
ment, the transactions creating the nonbusiness income, and
the use of revenues generated by the nonbusiness investment. Line 12 – Interest Expense
Enter the total amount of interest deducted on federal form
1065, line 15 and elsewhere on the federal return.
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2022 Utah TC-65 Instructions 10
Line 13 – Indirect Related Expenses for Utah Line 21 – Beginning-of-Year Assets
Nonbusiness Income Enter in column A the total beginning-of-year value of assets
Multiply line 12 by the ratio on line 11. used to produce non-Utah nonbusiness income from line 16,
column C. Enter in column B the beginning-of-year value of
Line 14 – Total Utah Nonbusiness Income Net your total assets. Include all assets in column B, including
of Expenses Utah assets.
Subtract line 13 from line 6. Enter the amount here and on Line 22 – End-of-Year Assets
Schedule A, line 11.
Enter in column A the total end-of-year value of assets used
to produce non-Utah nonbusiness income from line 16, col-
Non-Utah Nonbusiness Income umn D. Enter in column B the end-of-year value of your total
assets. Include all assets in column B, including Utah assets.
Lines 15a-15e – Non-Utah Nonbusiness Income
Complete the information in each column and enter the gross Line 23 – Sum of Beginning and Ending Asset
non-Utah nonbusiness income from each class of income Values
being specifi cally allocated. Use additional pages or support- Add lines 21 and 22 for each respective column.
ing schedules in the same format, if necessary, to provide
complete information about additional sources of non-Utah Line 24 – Average Asset Values
nonbusiness income. Divide line 23 by 2 for each column.
Line 16 – Total of Columns C and D Line 25 – Non-Utah Nonbusiness Asset Ratio
Enter the total of the amounts on lines 15a through 15e in Divide line 24, column A by line 24, column B. Round the
column C and column D. result to four decimal places. Do not enter a decimal greater
than 1.0000, and do not enter a negative number.
Line 17 – Total Non-Utah Nonbusiness Income
Enter the total of the amounts on lines 15a through 15e in Line 26 – Interest Expense
column E. Enter the total amount of interest deducted on federal form
1065, line 15 and elsewhere on the federal return.
Lines 18a-18e – Direct Related Expenses
Describe and enter amounts of direct expenses on the same Line 27 – Indirect Related Expenses for Non-
letter line as the corresponding non-Utah nonbusiness income Utah Nonbusiness Income
on lines 15a through 15e. Direct related expenses include
wages, interest, depreciation, etc. (UC §59-7-101). Multiply line 26 by the ratio on line 25.
Line 19 – Total Direct Related Expenses Line 28 – Total Non-Utah Nonbusiness Income
Net of Expenses
Enter the sum of direct related expenses by adding lines 18a
through 18e. Subtract line 27 from line 20. Enter amount here and on
Schedule A, line 12.
Line 20 – Non-Utah Nonbusiness Income Net of
Direct Related Expenses
Subtract line 19 from line 17.
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2022 Utah TC-65 Instructions 11
TC-20, Schedule J – Apportionment Schedule
Use TC-20, Schedule J to calculate the portion of the taxpayer’s • Sector 31-33, Manufacturing EXCEPT:
income attributable to Utah, if the taxpayer does business both • Industry Group 3254, Pharmaceutical and Medicine
within and outside of Utah. Manufacturing
Complete TC-20, Schedule J to determine the apportionment • Industry Group 3333, Commercial and Service
fraction (decimal). The factors express a ratio for property in Industry Machinery Manufacturing
Utah to total property everywhere, for wages and salaries in
Utah to total wages and salaries everywhere, and for sales • Subsector 334, Computer and Electronic Product
in Utah to total sales everywhere. Use these factors or ratios Manufacturing
to arrive at the Utah apportionment fraction calculated to six • Code 336111, Automobile Manufacturing
decimals. Then apply this fraction (decimal) to the apportion- • Sector 48-49, Transportation and Warehousing
able income (or loss) on Schedule A to arrive at the amount
of income (or loss) apportioned to Utah. In cases where one • Sector 51, Information EXCEPT:
or more of the factors is omitted due to peculiar aspects of • Subsector 519, Other Information Services
the business operations, use the number of factors present • Sector 52, Finance and Insurance
to determine the Utah apportionment fraction.
Report property and payroll factors on Schedule J, page 1,
Your economic activities, and your method of apportioning but do not use them to calculate the apportionment of sales
income in the previous year, dictate the apportionment method factor weighted taxpayers.
you may use.
Sales factor weighted taxpayers must calculate the appor-
tionment fraction on Schedule J, Page 2 using Part 2 - Sales
Pass-through Entity Taxpayers Factor Formula.
Partners, shareholders and benefi ciaries of pass-through
entities (an entity taxed as a partnership, s-corporation or Optional Apportionment Taxpayers
trust) must include their pro rata share of the pass-through
entity's property, payroll and sales in their calculation of the If you did not use the sales factor fraction in the prior year,
apportionment factor on TC-20, Schedule J, page 1. and you do not generate more than 50 percent of total sales
everywhere from economic activities in any NAICS codes
If a corporation holds direct and indirect ownership interests in OTHER THAN the identifi ed NAICS codes listed above,
tiered pass-through entities, it must include its pro rata share determine if you are an optional apportionment taxpayer by
of the apportionment factors (property, payroll and sales) of fi rst calculating the following two fractions:
the pass-through entities, applying the respective ownership
• Property factor fraction: Add together the value of property
percentages. For example, a corporation that holds 50 percent
in Utah attributable to economic activities that are classi-
interest in Partnership A that in turn holds 20 percent interest
fi ed in an excluded NAICS code. Divide this number by
in Partnership B would include 50 percent of the factors of
the value of all property in Utah. Remove property from
Partnership A, and 10 percent (50 percent of 20 percent) of
this calculation if the property is attributable to economic
the factors of Partnership B.
activities in both excluded NAICS codes and non-excluded
NAICS codes.
Apportionment Method • Payroll factor fraction: Add together the amount of payroll
To determine if you must apportion income using the sales in Utah attributable to economic activities that are classi-
factor formula or if you qualify as an optional apportionment fi ed in an excluded NAICS code. Divide this number by
taxpayer, take into account the economic activities of each of the total amount of payroll in Utah. A taxpayer engaged
the entities included in the return. Include the economic activi- in activities in an excluded NAICS code must remove an
ties of any pass-through entities whose income and factors individual’s payroll from this calculation of the payroll fac-
are included in the return. tor fraction if the individual’s payroll may be attributed to
economic activities in both excluded NAICS codes and
NAICS codes that are not excluded, or to providing man-
Sales Factor Weighted Taxpayers agement, information technology, fi nance, accounting,
A sales factor weighted taxpayer may only use the sales factor legal or human resource services.
fraction to apportion income. Add the property and payroll factor fractions and divide that
You must use the sales factor formula if you: sum by two. If either the property factor fraction or payroll
factor fraction has a denominator of zero, or is otherwise ex-
1. apportioned income using the sales factor formula during cluded, divide by one. If the average is more than 50 percent,
the prior taxable year, you are an optional apportionment taxpayer. If the average
2. do not meet the defi nition of an optional apportionment is not more than than 50 percent, you are not an optional
taxpayer (see instructions below), or apportionment taxpayer and must apportion income to Utah
3. generate more than 50 percent of total sales everywhere using the sales factor.
from economic activities in any NAICS codes OTHER Optional apportionment taxpayers may calculate the ap-
THAN these identifi ed NAICS codes: portionment fraction using either the equally-weighted three
• Sector 21, Mining; factor formula (Schedule J, Part 1) or the sales factor formula
• Industry Group 2212, Natural Gas Distribution;
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2022 Utah TC-65 Instructions 12
(Schedule J, Part 2). If you choose to use the sales factor 3. some of the service is performed in Utah and:
formula, you must fi le using only the sales factor in the next a. the base of operations or, if there is no base of operations,
taxable year. the place where the service is directed or controlled, is
Excluded NAICS codes are NAICS codes of the 2017 North within Utah; or
American Industry Classifi cation System within: b. the base of operations or the place where the service
• Code 211120, Crude Petroleum Extraction is directed or controlled is not in any state where some
part of the service is performed, but the individual’s
• Industry Group 2121, Coal Mining residence is in Utah.
• Industry Group 2212, Natural Gas Distribution Amounts reportable for employment security purposes may
• Subsector 311, Food Manufacturing ordinarily be used to determine the wage factor.
• Industry Group 3121, Beverage Manufacturing Overall wages, including Utah, are listed in column B.
• Code 327310, Cement Manufacturing If you are a pass-through entity taxpayer, add to line 3a any
• Subsector 482, Rail Transportation amounts listed on line K of any TC-65 Schedule K-1 you have
• Code 512110, Motion Picture and Video Production received.
• Subsector 515, Broadcasting (except Internet) Line 4 – Payroll Factor Calculation
• Code 522110, Commercial Banking Determine the payroll factor (decimal) by dividing line 3a,
column A by line 3a, column B.
Line Instructions Lines 5a - 5h – Sales Factor
Business Activity The sales factor is the fraction the sales or charges for ser-
vices within Utah for the taxable year bear to the overall sales
Briefl y describe the nature and location(s) of your Utah busi-
for the taxable year. Gross receipts from the performance of
ness activities in the space provided at the top of this schedule.
services in Utah are assigned to the Utah sales numerator if
Lines 1a - 1f – Property Factor the purchaser of the service receives a greater benefi t of the
service in Utah than in any other state.
Show the average cost value during the taxable year of real
and tangible personal property used in the business within Taxpayers that perform a service both in and outside Utah
Utah (including leased property) in column A and overall must include service income on line 5g in column A (Inside
(including Utah) in column B. Utah) if the purchaser of the service receives a greater
benefi t of the service in Utah than in any other state. The
Property you own is valued at its original cost. Property you former “cost of performance” method no longer applies. (See
rent is valued at eight times the net annual rental rate. Net UC §59-7-319(3)(a).)
annual rental rate is the annual rental rate you pay less the
annual rate you receive from sub-rentals. Sales of tangible personal property are in Utah if the property
is delivered or shipped to a purchaser within Utah regardless
The average value of property must be determined by averag- of the F.O.B. point or other conditions of the sale, or if the
ing the cost values at the beginning and end of the tax period. property is shipped from an offi ce, store, warehouse, factory
However, monthly values may be used or required if monthly or other place of storage in Utah and:
averaging more clearly refl ects your property’s average value.
1. the purchaser is the United States Government, or
Attach a supporting schedule whenever you use monthly averaging.
2. the taxpayer is not taxable in the state of the purchaser.
If you are a pass-through entity taxpayer, add to line 1e any
Overall sales, including Utah, are listed in column B.
amounts listed on line J of any TC-65 Schedule K-1 you have
received. Note: Securities brokerage businesses must follow the provi-
sions in UC §59-7-319(6).
Enter totals of lines 1a through 1e in the respective columns
on line 1f. 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
Line 2 – Property Factor Calculation received.
Determine the property factor (decimal) by dividing line 1f, Enter totals of lines 5a through 5g in their respective columns
column A by line 1f, column B. on line 5h.
Line 3 – Payroll Factor Line 6 – Sales Factor Calculation
Wages, salaries, commissions and other includable com- Determine the sales factor (decimal) by dividing line 5h, column
pensation paid to employees for personal services must be A by line 5h, column B.
included in the Utah factor to the extent the services, for which
the compensation was paid, were rendered in Utah.
NAICS Code for Taxpayer
Compensation is paid in Utah if:
1. the individual’s service is performed entirely within Utah; Line 7 – NAICS Code
2. the individual’s service is performed both within and outside This is a mandatory fi eld. Your NAICS code may dictate your
Utah, but the service performed outside Utah is incidental apportionment method.
to the individual’s service within Utah; or
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2022 Utah TC-65 Instructions 13
Enter on line 7 the NAICS code for the primary business activ- Leave line 10 blank if you are using the equally-weighted
ity. Do not use the holding company NAICS code. three-factor formula.
Line 10 – Apportionment Fraction
Apportionment Fraction Enter the sales factor from line 6 of Schedule J, page 1. This
is the apportionment fraction for this apportionment method.
Part 1 – Equally-Weighted Three Factor (Property and payroll factors are not used in the calculation of
the apportionment fraction for taxpayers who must apportion
Formula
income using the sales factor formula.)
If you are an optional apportionment taxpayer using the
equally-weighted three factor formula, complete lines 8 and Enter the apportionment fraction (decimal) here and on
9. Otherwise, leave lines 8 and 9 blank. Schedule A, line 15.
Line 8 – Total Factors
Specialized Apportionment Laws
Enter the sum of the factors from lines 2, 4 and 6.
and Rules
Line 9 – Apportionment Fraction Specialized apportionment procedures apply for:
Calculate the apportionment fraction to six decimals by dividing • Trucking Companies (R865-6F-19)
line 8 by the number of factors used (typically 3 – property, • Railroads (R865-6F-29)
payroll and sales).
• Publishing Companies (R865-6F-31)
• If one or more of the factors are not present (i.e., there is a
zero in the denominator on lines 1f, 3a or 5h in column B), • Financial Institutions (R865-6F-32)
divide by the number of factors present. • Telecommunications (R865-6F-33)
• If the numerator is zero, but a denominator is present, • Registered Securities or Commodities Broker or Dealer
include that factor in the number of factors present. (R865-6F-36)
Enter the apportionment fraction (decimal) here and on • Airlines (UC §§59-7-312 thru 319)
Schedule A, line 15. • Sale of Management, Distribution or Administration Ser-
vices to or on Behalf of a Regulated Investment Company
(UC §59-7-319(5))
Part 2 – Sales Factor Formula
See instructions above for the defi nition and qualifi cations
of a taxpayer who must apportion income using the sales
factor formula.
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2022 Utah TC-65 Instructions 14
Schedule K – PartnersÊ Distribution Share Items
Attach Utah TC-65, Schedule K to show the partnership’s Line 8 – Net Short-term Capital Gain/Loss
income, gains, losses, deductions, and Utah credits that are
distributed to the partners. Enter in the fi rst column the federal net short-term capital
gain/loss from line 8 of federal Schedule K. Enter in the Utah
Number of Schedules K-1 attached to this return column the total reported on all Utah Schedules K-1.
Enter the number of Utah Schedules K-1 that are attached to Line 9 – Net Long-term Capital Gain/Loss
this return and issued to partners or members.
Enter in the fi rst column the federal net long-term capital gain/
Line 1 – Ordinary Business Income/Loss loss from line 9a of federal Schedule K. Enter in the Utah
column the total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal ordinary business income/
loss from line 1 of federal Schedule K. Enter in the Utah column Line 10 – Net Section 1231 Gain/Loss
the total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal net §1231 gain/loss from
Line 2 – Net Rental Real Estate Income/Loss line 10 of federal Schedule K. Enter in the Utah column the total
reported on all Utah Schedules K-1.
Enter in the fi rst column the federal net rental real estate
income/loss from line 2 of federal Schedule K. Enter in the Line 11 – Recapture of Section 179 Deduction
Utah column the total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal recapture of a benefi t
Line 3 – Other Net Rental Income/Loss from a deduction under §179 from box 20, codes L and M
of federal Schedules K-1. Enter in the Utah column the total
Enter in the fi rst column the federal other net rental income/loss reported on all Utah Schedules K-1.
from line 3c of federal Schedule K. Enter in the Utah column
the total reported on all Utah Schedules K-1. Line 12 – Other Income/Loss
Line 4 – Guaranteed Payments Enter in the fi rst column the federal other income/loss from
line 11 of federal Schedule K. Enter in the Utah column the
Enter in the fi rst column the total federal guaranteed payments total reported on all Utah Schedules K-1.
from line 4 of the federal Schedule K. Enter in the Utah column
the total reported on all Utah Schedules K-1. Also use the federal column of line 12 for PPP grant or loan
amounts reported on Utah Schedule A, line 5. Enter in the
Line 5a – U.S. Government Interest Income Utah column the total reported on all Utah Schedules K-1.
Describe the type of income in the space provided.
Enter in the federal column the total U.S. government interest
income reported on all federal Schedules K-1. Enter in the Utah Line 13 – Section 179 Deduction
column the total Utah portion reported on Utah Schedules K-1.
Enter in the fi rst column the federal §179 deduction from line
Line 5b – Municipal Bond Interest Income 12 of federal Schedule K. Enter in the Utah column the total
reported on all Utah Schedules K-1.
Enter in the federal column the total municipal bond interest
income reported on all federal Schedules K-1. Enter in the Line 14 – Contributions
Utah column the total Utah taxable portion reported on Utah
Schedules K-1. Enter in the fi rst column the federal contributions from line
13a of federal Schedule K. Enter in the Utah column the total
For additional information on the Utah treatment of mu- reported on all Utah Schedules K-1.
nicipal bond interest, go to incometax.utah.gov/additions/
municipal-bond-interest. Line 15 – Foreign Taxes Paid or Accrued
Line 5c – Other Interest Income Enter in the fi rst column the federal foreign taxes paid or accrued
from line 21 of federal Schedule K. Enter in the Utah column the
Enter in the federal column the total other interest income total reported on all Utah Schedules K-1.
(other than interest income shown on lines 5a and 5b above)
reported on all federal Schedules K-1. Enter in the Utah col- Line 16 – Other Deductions
umn the total Utah portion reported on Utah Schedules K-1.
Enter in the fi rst column the federal other deductions from
Line 6 – Ordinary Dividends lines 13b, 13c and 13d of federal Schedule K. Enter in the
Utah column the total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal ordinary dividends from
line 6a of federal Schedule K. Enter in the Utah column the Describe the type of deduction in the space provided.
total reported on all Utah Schedules K-1.
Line 17 – Utah Nonrefundable Credits
Line 7 – Royalties Enter the Utah nonrefundable credits being distributed to the
Enter in the fi rst column the federal royalties from line 7 of partners. Describe the nonrefundable credit in the space pro-
federal Schedule K. Enter in the Utah column the total reported vided, and enter the Utah code for the credit (see Nonrefund-
on all Utah Schedules K-1. able Credits, below). If a credit was received from an upper-tier
pass-through entity, also complete and attach TC-250.
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2022 Utah TC-65 Instructions 15
Note: If the partnership elected to pay Utah taxes on form For more information, contact:
TC-75 (State and Local Tax (SALT) Report), allocate the Division of Services for People with Disabilities
amount paid for each individual partner on their K-1 as a 195 N 1950 W
nonrefundable credit. Salt Lake City, UT 84116
385-799-1842
Line 18 – Utah Refundable Credits dspd.utah.gov
In the Utah column, enter the Utah refundable credits being
distributed to the partners. Describe the refundable credit in (04) Capital Gain Transactions Credit
the space provided, and enter the Utah code for the credit (see (UC §59-10-1022)
Refundable Credits, below). If a credit was received from an You may claim a credit for the short-term and long-term capital
upper-tier pass-through entity, also complete and attach TC-250. gain on a transaction if:
a. the transaction occurs on or after Jan. 1, 2008;
Line 19 – Total Utah Tax Withheld on Behalf of
All Partners b. at least 70 percent of the gross proceeds of the transaction
are used to buy stock in a qualifi ed Utah small business
In the Utah column, enter the total amount of Utah withholding corporation within 12 months from when the capital gain
tax withheld on behalf of all the partners who are pass-through transaction occurred; and
entity taxpayers by the partnership, and for whom the waiver
from withholding was not requested. This amount must match c. you did not have an ownership interest in the qualifi ed Utah
the total pass-through withholding tax on Schedule N, column small business corporation at the time of investment.
J for all pass-through entity taxpayers who have Utah with- See incometax.utah.gov/credits/capital-gains for more
holding tax withheld. information.
There is no form for this credit. Keep all related documents
Nonrefundable Credits Passed with your records.
-through on Schedule K
Nonrefundable credits on a partnership return are entered Calculation of Capital Gain Transactions Tax Credit
on Schedule K and then allocated and passed-through to the 1. Eligible short-term or long-term capital gain $________
partners on Schedule K-1. Nonrefundable credits may not be
2. Multiply line 1 by 4.85% (.0485).
used against any tax owed by the partnership. This is the credit. $________
Nonrefundable Credit Codes
02 Qualifi ed Sheltered Workshop Cash Contribution
Credit (06) Historic Preservation Tax Credit
04 Capital Gain Transactions Credit (UC §59-10-1006)
06 Historic Preservation Tax Credit The credit is for costs to restore any residential certifi ed
08 Low-Income Housing Tax Credit historic building.
12 Credit for Increasing Research Activities in Utah
21 Renewable Residential Energy Systems Credit Complete form TC-40H, Historic Preservation Tax Credit, with
(TC-40E) the State Historic Preservation Offi ce certifi cation, verifying the
27 Veteran Employment Credit credit is approved. Do not send form TC-40H with your return.
28 Employing Persons Who are Homeless Credit Keep the form and all related documents with your records to
63 Achieving a Better Life Experience (ABLE) provide the Tax Commission upon request.
Program Credit
AG Special Needs Opportunity Scholarship Program For more information, contact:
Credit Utah State Historic Preservation Offi ce
AP Pass-through Entity Taxpayer Income Tax Credit 3760 S Highland Drive
Salt Lake City, UT 84106
801-245-7277
(02) Qualifi ed Sheltered Workshop Cash Contribution ushpo.utah.gov/shpo/fi nancial-incentives/
Credit
(UC §59-10-1004) (08) Low-Income Housing Credit
Cash contributions made in the taxable year to a qualifi ed (UC §59-10-1010)
Utah nonprofi t rehabilitation sheltered workshop facility for This credit is determined by the Utah Housing Corporation for
persons with disabilities are eligible for the credit. Check with owners of a low-income housing project who also received
the workshop to make sure they have a current Day Training part of the federal low-income housing tax credit. When this
Provider License or Day Support Provider Certifi cate issued credit applies, the project owner will provide you with form
by the Department of Human Services. The credit is the lesser TC-40TCAC (issued by the Utah Housing Corporation).
of $200 or 50 percent of the total cash contributions.
If you share in this credit, get form TC-40TCAC, Utah Low-
There is no form for this credit. Keep all related documents Income Housing Tax Credit Allocation Certifi cation, and com-
with your records. The partner must list the qualifi ed workshop plete form TC-40LI, Summary of Utah Low-Income Housing
name on their return to claim the credit. Enter this name on Tax Credit. Do not send these forms with your return. Keep
Schedules K and K-1. the forms and all related documents with your records.
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2022 Utah TC-65 Instructions 16
The building project owner must also complete and attach to A qualifi ed, recently deployed veteran is an individual who
his/her return form TC-40LIS, Utah Credit Share Summary was mobilized to active federal military service in an active
of Low-Income Housing Project. or reserve component of the United States Armed Forces,
For more information, contact: and received an honorable or general discharge within the
two-year period before the employment begins.
Utah Housing Corporation
2479 S Lake Park Blvd. To qualify for the credit, the qualifi ed veteran must meet all of
West Valley City, UT 84120 the following conditions:
801-902-8200 1. received an honorable or general discharge within the
utahhousingcorp.org two-year period before the employment begins;
(12) Credit for Increasing Research Activities in Utah 2. was collecting or was eligible to collect unemployment
(UC §59-10-1012) benefi ts, or has exhausted their unemployment benefi ts
within the last two years, under Title 35A, Chapter 4, Part
The credit is: 4, Benefi ts and Eligibility; and
1. 5 percent of your qualifi ed expenses for increasing research 3. worked for the taxpayer for at least 35 hours per week for
activities in Utah above a base amount, not less than 45 of the next 52 weeks following the veteran’s
2. 5 percent of certain payments made to a qualifi ed orga- employment start date.
nization increasing basic research in Utah above a base The credit is claimed beginning in the year the 45 consecutive
amount, and weeks in paragraph 3 above are met.
3. 7.5 percent of your qualifi ed research expenses in Utah
Calculate the credit as follows:
for the current taxable year.
Note: You may carry forward for the next 14 years any credit
for 1 or 2 (above) that is more than your tax liability. You may First Year Credit
not carry forward any credit for 3 (above). (count all months in the year the 45 week requirement is met):
There is no form for this credit. Keep all related documents 1. Number of months or partial _____
with your records. months veteran employed in
fi rst year
(21) Renewable Residential Energy Systems
Credit 2. Monthly credit allowable in 200
(UC §59-10-1014) fi rst year
This credit is for reasonable costs, including installation, of a 3. First year credit – line 1 times $_____
residential energy system that supplies energy to a residential line 2 (maximum $2,400)
unit in Utah. If the residence is sold to a non-business entity
before claiming the credit, you may irrevocably transfer the Second Year Credit:
right to the credit to the new owner. Additional residential 4. Number of months or partial _____
energy systems or parts may be claimed in following years months veteran employed in
as long as the total amount claimed does not exceed certain second year
limits. Contact the Governor’s Offi ce of Energy Development
for more information. The principal portion of the lease pay- 5. Monthly credit allowable in 400
second year
ments may qualify for the credit if the lessor irrevocably elects
not to claim the credit. 6. Second year credit – line 4 $_____
times line 5 (maximum $4,800)
Note: Any credit that is more than the tax liability may be
carried forward for the next four years
Get form TC-40E, Renewable Residential and Commercial We will not refund any credit greater than your tax due, but
Energy Systems Tax Credits, from the Governor's Offi ce of you may carry it forward to offset tax for up to fi ve years.
Energy Development with their certifi cation stamp showing
the amount of the credit. Do not send form TC-40E with your If taking this credit, you must keep the following documentation
return. Keep the form and all related documents with your and make it available to the Tax Commission upon request:
records to provide the Tax Commission upon request. 1. the veteran’s name, last known address, and taxpayer
For more information, contact: identifi cation or Social Security number;
Governor's Offi ce of Energy Development (OED) 2. the start date of employment;
PO Box 144845 3. documentation establishing that the veteran was employed
Salt Lake City, UT 84114 45 out of the 52 weeks after the date of employment;
801-538-8732 or 801-538-8682
4. documentation from the veteran’s military service unit
energy.utah.gov/renewable-energy-systems-tax-credit showing that the veteran was recently deployed; and
(27) Veteran Employment Credit 5. a signed statement from the Department of Workforce
(UC §59-10-1031) Services that the veteran was collecting, was eligible to
A non-refundable credit is available to taxpayers who hire a collect, or exhausted their unemployment benefi ts within
qualifi ed, recently deployed veteran. the last two years.
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2022 Utah TC-65 Instructions 17
(28) Employing Persons Who Are Homeless Credit (AP) Pass-through Entity Taxpayer Income Tax Credit
(UC §59-10-1032) (UC §59-10-1045)
You may claim a credit for hiring a homeless person if you A partner who is an individual may claim a credit equal to the
receive a credit certifi cate from the Department of Workforce amount of Utah tax paid on their behalf by this partnership
Services. under §59-10-1043.2(2). This amount must be refl ected on the
Do not send the certifi cate with your return. Keep the certifi cate K-1 issued to the partner. There is no form for this credit. Each
and all related documents with your records. partner must keep all related documents with their records.
Note: You may carry forward for the next fi ve years any credit Note: The partner receiving this credit may carry forward for
that is more than your tax liability. the next fi ve years any credit that is more than the partner's
tax liability.
For more information contact:
Department of Workforce Services
140 E 300 S Refundable Credits Passed-through
PO Box 142503 on Schedule K
Salt Lake City, UT 84111-2503
Refundable credits on a partnership return are entered on
385-272-7798
Schedule K and then allocated and passed-through to the
jobs.utah.gov/employer/business/htc.html partners on Schedule K-1. Refundable credits may not be
(63) Achieving a Better Life Experience (ABLE) claimed on a partnership return.
Program Credit
(UC §59-10-1035) Refundable Credit Codes
You may claim a credit for 4.85 percent of the total qualifi ed 36 Upper-tier Pass-through Entity Withholding Tax
contributions you made to a Utah resident's Achieving a 39 Renewable Commercial Energy Systems Credit
Better Life Experience Program account. You must make the (TC-40E)
contributions during the taxable year and have an itemized 46 Mineral Production Withholding Tax Credit
statement from the qualifi ed ABLE program. (TC-675R)
47 Agricultural Off-highway Gas/Undyed Diesel Fuel
You may not claim a credit for an amount greater than the Credit
federal gift tax exclusion (IRC §2503) or an amount already 48 Farm Operation Hand Tools Credit
deducted on your federal income tax return.
(36) Upper-tier Pass-through Entity Withholding Tax
Credit calculation (UC §59-10-1103)
Contributions _______ x .0485 = Credit _________ If this partnership owns an interest in another pass-through
entity, that pass-through entity must withhold Utah income
tax on any income attributable to this partnership. The pass-
through entity must provide a Utah Schedule K-1 showing the
Note: Any credit that is more than the tax liability may not be amount of Utah withholding paid on behalf of this partnership.
carried back or forward.
This partnership then distributes the credit for the pass-through
For more information, contact: entity withholding tax to its partners. Complete TC-250, Part
Department of Workforce Services - ABLEUtah 2, and then enter and allocate the total upper-tier (previous)
1595 West 500 South pass-through entity withholding tax using code 36.
Salt Lake City, Utah 84104-5238
1-800-439-1653 Do not include Utah Schedule K-1 the partnership received
ableut.com showing this credit when fi ling this partnership’s return.
(AG) Special Needs Opportunity Scholarship Program (39) Renewable Commercial Energy Systems Credit
Credit (UC §59-10-1106)
(UC §59-10-1041) Get form TC-40E, Renewable Residential and Commercial
You may claim a credit for a donation made to the Special Energy Systems Tax Credits, from the Governor's Offi ce of
Needs Opportunity Scholarship Program. You will receive a tax Energy Development with their certifi cation stamp. Do not
credit certifi cate from the program, listing the amount of the send this form with your return. Keep the form and all related
credit. You may not claim this credit if you claimed the donation documents with your records to provide the Tax Commission
as an itemized deduction on your federal income tax return. upon request.
Do not send the certifi cate with your return. Keep the certifi cate For more information, contact:
and all related documents with your records. Governor's Offi ce of Energy Development (OED)
PO Box 144845
Note: You may carry back one year or forward for the next Salt Lake City, UT 84114
three years any credit that is more than your tax liability. 801-538-8732 or 801-538-8682
energy.utah.gov/renewable-energy-systems-tax-credit
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2022 Utah TC-65 Instructions 18
(46) Mineral Production Withholding Tax Credit This does not include golf courses, horse racing, boat opera-
(UC §59-6-102) tions, highway seeding, vehicles registered for highway use,
hobbies, personal farming and other non-agricultural use.
Enter the total of the mineral production tax withheld as shown
on forms TC-675R or Utah Schedule K-1(s) for the tax year.
For a fi scal year partnership, the credit is reported on the
partnership return that is required to be fi led during the year Credit calculation:
following the December closing period of the form TC-675R. Gallons _______ x .319 = Credit _______
Enter the mineral production withholding tax on TC-250. Enter
the credit in Part 2 if received from an upper-tier pass-through
entity, or in Part 3 if received on a TC-675R from the mineral There is no form for this credit. Keep all related documents
producer. with your records to provide the Tax Commission upon request.
Do not attach the TC-675R or Utah Schedule K-1 to the (48) Farm Operation Hand Tools Credit
partnership return. (UC §59-10-1105)
(47) Agricultural Off-Highway Gas/Undyed This credit is for sales and use tax paid on hand tools pur-
Diesel Fuel Credit chased and used or consumed primarily and directly in a farm-
(UC §59-13-202) ing operation in Utah. The credit only applies if the purchase
price of a tool is more than $250.
You may claim a credit of 31.9 cents per gallon for motor fuel
and undyed diesel fuel bought in Utah during 2022 and used There is no form for this credit. Keep all related documents
to operate stationary farm engines and self-propelled farm with your records to provide the Tax Commission upon request.
machinery used solely for commercial nonhighway agricultural
use if the fuel was taxed at the time it was bought.
Schedule K-1 – PartnerÊs Share of Utah Income,
Deductions and Credits
Complete a Utah TC-65, Schedule K-1 for each partner, show- Line F. Enter the percent of ownership the partner has in the
ing the share of income, gains, losses, deductions, and Utah partnership.
credits that are distributed to the partner. Line G. Enter an “X” if the partner is a limited partner or limited
member.
Partnership Information
Line H. Enter the code identifying the type of entity the partner
Line A. Enter the partnership’s federal EIN.
is. The codes are printed on Schedule K-1.
Line B. Enter the complete name and address of the
Line I. Enter the date the partner affi liated with this partner-
partnership.
ship, and the date of withdrawal if the partner is no
Partner Information longer a member of this partnership, if applicable.
Line C. Enter the partner’s Social Security or federal employer Partner’s Share of Apportionment Factors
identifi cation number.
Line J. Enter the partner’s share of the partnership’s property
Line D. Enter the partner’s complete name and address. apportionment factor. Multiply both Column A and
Line E. Enter the partner’s telephone number. Column B of Schedule J, line 1f, by the partner’s
percent of ownership (line F, above).
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2022 Utah TC-65 Instructions 19
Line K. Enter the partner’s share of the partnership’s payroll For a nonresident partner, enter the distributive share of ap-
apportionment factor. Multiply both Column A and portioned Utah U.S. government interest income included in
Column B of Schedule J, line 3a, by the partner’s the amount reported on Utah Schedule A, line 17.
percent of ownership (line F, above).
Line L. Enter the partner’s share of the partnership’s sales Line 5b – Utah Municipal Bond Interest Income
apportionment factor. Multiply both Column A and For a Utah resident partner, enter the amount of Utah tax-
Column B of Schedule J, line 5h, by the partner’s able municipal bond interest income included on their federal
percent of ownership (line F, above). Schedule K-1, line 18.
For a nonresident partner, enter the distributive share of ap-
Other Information portioned Utah taxable municipal bond interest income.
Enter any additional information or explanation of entries
needed by the partner in order to complete the partner’s Line 5c – Utah Other Interest Income
individual Utah return. For a Utah resident partner, enter the amount of other interest
income (other than interest income shown on line 5a and 5b
Reminder: above) included in box 5 of their federal Schedule K-1.
For a Utah resident partner, report the same information on
For a nonresident partner, enter the distributive share of ap-
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 17.
For a Utah nonresident partner, report the apportioned Utah
income, losses and deductions multiplied by their ownership Line 6 – Utah Ordinary Dividends
interest in the partnership. Use the apportionment fraction For a Utah resident partner, enter the amount from their federal
from Schedule A, line 15. Expenses directly attributable to Schedule K-1, box 6a.
Utah sources should be deducted against Utah income in
total and not apportioned. For a nonresident partner, enter the distributive share of ap-
portioned Utah ordinary dividends included in the amount
Utah nonrefundable and refundable credits passed through reported on Utah Schedule A, line 17.
from the partnership to both Utah resident and nonresident
partners are reported on Utah Schedule K-1. Line 7 – Utah Royalties
Line 1 – Utah Ordinary Business Income/Loss For a Utah resident partner, enter the amount from their federal
Schedule K-1, box 7.
For a Utah resident partner, enter the amount from their federal
Schedule K-1, box 1. For a nonresident partner, enter the distributive share of ap-
portioned Utah royalties included in the amount reported on
For a nonresident partner, enter the distributive share of Utah Schedule A, line 17.
apportioned Utah ordinary business income/loss and Utah
nonbusiness income which is included in the amount reported Line 8 – Utah Net Short-term Capital Gain/Loss
on Utah Schedule A, line 17.
For a Utah resident partner, enter the amount from their federal
Line 2 – Utah Net Rental Real Estate Income/ Schedule K-1, box 8.
Loss For a nonresident partner, enter the distributive share of ap-
For a Utah resident partner, enter the amount from their federal portioned Utah net short-term capital gain/loss included in the
Schedule K-1, box 2. amount reported on Utah Schedule A, line 17.
For a nonresident partner, enter the distributive share of ap- Line 9 – Utah Net Long-term Capital Gain/Loss
portioned Utah net rental real estate income/loss included in For a Utah resident partner, enter the amount from their federal
the amount reported on Utah Schedule A, line 17. Schedule K-1, boxes 9a through 9c.
Line 3 – Utah Other Net Rental Income/Loss For a nonresident partner, enter the distributive share of ap-
For a Utah resident partner, enter the amount from their federal portioned Utah net long-term capital gain/loss included in the
Schedule K-1, box 3. amount reported on Utah Schedule A, line 17.
For a nonresident partner, enter the distributive share of ap- Line 10 – Utah Net Section 1231 Gain/Loss
portioned Utah other net rental income/loss included in the For a Utah resident partner, enter the amount from their federal
amount reported on Utah Schedule A, line 17. Schedule K-1, box 10.
Line 4 – Utah Guaranteed Payments For a nonresident partner, enter the distributive share of ap-
Enter the partner’s guaranteed payment, if any, from their portioned Utah net §1231 gain/loss included in the amount
federal Schedule K-1, box 4. If the partner is a nonresident, reported on Utah Schedule A, line 17.
enter the guaranteed payment attributable to Utah source Line 11 – Recapture of Section 179 Deduction
income, if any.
For a Utah resident partner, enter the amount from their federal
Line 5a – Utah U.S. Government Interest Income Schedule K-1, box 20, code M.
For a Utah resident partner, enter the amount of U.S. gov- For a nonresident partner, enter the distributive share of any
ernment interest income included in box 5 of their federal apportioned Utah recapture of a §179 deduction included in
Schedule K-1. the amount reported on Utah Schedule A, line 17.
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2022 Utah TC-65 Instructions 20
Line 12 – Utah Other Income/Loss For a nonresident partner, enter the distributive share of
apportioned Utah other deductions included in the amount
For a Utah resident partner, enter: reported on Utah Schedule A, line 17.
1. the amount from their federal Schedule K-1, box 11,
and Enter the description as shown on Schedule K in the space
provided.
2. the partner’s distributive share of COVID-19 PPP grant
or loan income reported on Utah Schedule A, line 5. Line 17 – Utah Nonrefundable Credits
For a nonresident partner, enter: Enter each partner’s distributive share of Utah nonrefundable
1. the distributive share of apportioned Utah other income/ credits as reported on Utah Schedule K, line 17. Also enter
loss included in the amount reported on Utah Schedule the description and Utah nonrefundable credit code as shown
A, line 17, and on Schedule K.
2. the amount of COVID-19 PPP grant or loan income For each individual partner for whom you made a voluntary
reported on Utah Schedule A, line 5. taxable income election (TC-75, State and Local Tax (SALT)
For all entries on line 12, enter the description shown on Utah Report), enter the amount of taxes paid. Allocate this amount
Schedule K, line 12, in the space provided. directly to the individual as reported on form TC-75. Use code
AP.
Line 13 – Utah Section 179 Deduction
Line 18 – Utah Refundable Credits
For a Utah resident partner, enter the amount from their federal
Schedule K-1, box 12. Enter each partner’s distributive share of Utah refundable
credits as reported on Utah Schedule K, line 18. Also enter
For a nonresident partner, enter the distributive share of the description and Utah refundable credit code as shown
apportioned Utah §179 deduction included in the amount on Schedule K.
reported on Utah Schedule A, line 17.
Line 19 – Utah Tax Withheld on Behalf of Partner
Line 14 – Utah Contributions
Enter the amount of Utah withholding tax withheld by this
For a Utah resident partner, enter the amount from their federal partnership on behalf of this partner if treated as a pass-
Schedule K-1, box 13, codes A through G. through entity taxpayer and calculated on Schedule N, and
For a nonresident partner, enter the distributive share of for whom the waiver from withholding was not requested (see
any apportioned Utah contributions included in the amount instructions below). The partner will claim this amount on their
reported on Utah Schedule A, line 17. individual Utah return.
Enter an “X” if the partnership entered a “1” in the Withholding
Line 15 – Foreign Taxes Paid or Accrued
Waiver Request box at the top of Schedule N to not with-
For a Utah resident partner, enter the amount from their federal hold Utah tax on all pass-through entity taxpayers, or if the
Schedule K-1, box 21. partnership entered a “2” in the Withholding Waiver Request
For a nonresident partner, enter the distributive share of any box at the top of Schedule N and entered an “X” on line B of
apportioned Utah foreign taxes paid or accrued included in Schedule N for this specifi c partner.
the amount reported on Utah Schedule A, line 17. Provide each partner/member a copy of their Utah Sched-
ule K-1.
Line 16 – Utah Other Deductions
For a Utah resident partner, enter the amount from their federal
Schedule K-1, box 13, except codes A through G.
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2022 Utah TC-65 Instructions 21
Schedule N – Pass-through Entity Withholding Tax
The partnership, as a pass-through entity, must pay or withhold Line A – Name of Partner
tax on behalf of each nonresident individual partner and each (Pass-through Entity Taxpayer)
resident or nonresident business partner, and each resident
or nonresident trust or estate partner (collectively referred to Enter the name of each nonresident individual partner, resi-
as pass-through entity taxpayers) unless a withholding waiver dent/nonresident business partner, or resident/nonresident
request is made (see below). A partnership is not required to trust or estate partner (referred to as a pass-through entity
withhold Utah tax on a partner if: taxpayer).
• the partner is exempt from taxation under Line B – Withholding Waiver for this Partner
UC §59-7-102(1)(a) or §59-10-104.1,
If you entered either a “1” or a “2” in the Withholding Waiver
• the partnership is a plan under IRC §§401, 408 or 457 Claim box at the top of Schedule N, enter an “X” on line B if
and is not required to fi le a return under UC Chapter 7, or this partner is included in the waiver claim.
• the partnership is a publicly traded partnership as defi ned If you check this box, enter a “0” on line F for the partner.
under UC §59-10-1403.2(1)(b)(iv).
A partner’s share of taxable income is based on the percent Line C – SSN/EIN of Partner
determined in the partnership agreement for the partner on Enter the Social Security number of each nonresident indi-
the last day of the partnership fi ling period, unless there was vidual partner, the federal EIN of each resident/nonresident
a change in ownership during the fi ling period. If there was a business partner, or the federal EIN of each resident/nonresi-
change in partners during the year, each partner’s percentage dent trust or estate partner.
of income is prorated by the number of days the interest was
owned during the fi ling period. Line D – Percent of Income or Ownership for
Partners may take a credit for the amount of tax paid by the Partner
partnership on their behalf. To claim the credit, the partner must Enter the percent of income for each partner based on the
fi le a Utah income tax return for the taxable year. A partner partnership agreement, or the percent of ownership in the
subject to withholding by the partnership and who has no other partnership by each partner, to four decimal places. You must
Utah source income may elect to forego the credit and not enter either the percent of income or the percent of ownership
fi le a Utah income tax return. However, partners with income in the partnership for all partners; do not mix the percentages.
or loss from other Utah sources must fi le a Utah income tax See Utah Rule R865-9I-13.
return. A partner who is eligible for Utah tax credits, in addition
to the pass-through tax withheld, must fi le a Utah income tax Line E – Income/Loss Attributable to Utah
return to claim those credits.
Enter the income/loss attributable to Utah and taxable to the
If the partner is a pass-through entity, it must fi le a Utah return pass-through entity taxpayer.
to report its income/loss and withholding allocations to its
partners/members/shareholders or benefi ciaries. Calculate this income for a pass-through entity taxpayer by
multiplying the amount on Schedule A, line 17 by each pass-
Partnerships having partners for whom withholding is re- through entity taxpayer’s percentage shown on line D (or in
quired must complete Schedule N showing the amount of accordance with the partnership agreement, if different).
Utah income attributable to the partner, the amount of Utah
tax on such income (4.85 percent), any Utah mineral pro- If the partner received a guaranteed payment attributable to Utah
duction withholding tax, upper-tier Utah pass-through entity source income, include that guaranteed payment (other than
withholding tax credited to the partners, taxes paid with form any health insurance included in the guaranteed payment) in the
TC-75 (Voluntary Taxable Income Election for Pass-through amount reported on line E. Utah pass-through withholding tax
Entities),and the net amount of withholding tax this partnership must include that payment. Guaranteed payments are sourced to
must pay on behalf of such partners. Use additional forms the state or country where the income was generated, regardless
TC-65, Schedule N, if needed. of provisions which are contrary in the partnership agreement.
Line F – 4.85% of Income
Withholding Waiver Claim Multiply the amount of income attributable to Utah for each pass-
(UC §59-10-1403.2(5)) through entity taxpayer (line E) by 4.85 percent (.0485). If the
amount on line E is a loss, enter “0”. Also enter “0” if the waiver
You may claim a waiver from the requirement to withhold Utah request has been requested for this partner (box B checked).
income tax on pass-through entity taxpayers by entering a “ ” 1
in the box if the waiver is for all partners, or a “ ” if the waiver 2 Line G – Mineral Production Withholding Credit
is for only certain partners. Also enter an “X” on line B and a “0”
Enter the amount of any mineral production withholding tax
in column F for each partner for whom the waiver is claimed.
allocated to the pass-through entity taxpayer. The credit for
Claiming the waiver for all or specifi c partners does not relieve mineral production withholding tax reduces the amount of
the partnership from the responsibility for the payment of Utah tax Utah withholding tax that is calculated for this partner on
on the income allocated to partners if the partners do not pay. If Schedule N. Also report the credit on line 18 of Schedule
the partner or partners for whom you claimed a waiver fail to fi le K-1 for this partner.
a return and make the required payment in a timely manner, you
will be liable for the withholding, plus any penalties and interest.
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2022 Utah TC-65 Instructions 22
Line H – Upper-tier Pass-through This withholding tax is to be paid to the Tax Commission by
Withholding Tax the original due date of the return. If the return is being fi led
on extension, this withholding tax must be prepaid by the
Enter the amount of any pass-through entity withholding tax original due date.
paid by an upper-tier (previous) pass-through entity, attribut-
able to this partnership, and allocated to the pass-through Total Pass-through Entity Withholding
entity taxpayer. The credit for upper-tier pass-through entity Add the pass-through withholding in column J for all partners.
withholding tax reduces the amount of Utah withholding tax Enter this total at the bottom of Schedule N and carry it over
calculated for this partner on Schedule N. Also report the to TC-65, line 3 and to Schedule K, line 19.
credit on line 19 of Schedule K-1 for this partner.
Line I – Tax Paid by Pass-through Pass-through Withholding Tax
Entity (PTE)
Calculation Summary
Enter the amount of taxes paid for this partner with form TC-75,
Voluntary Taxable Income Election for Pass-through Entities The Utah withholding tax for partners who are pass-through
(TC-75 is fi led electronically on or before the last day of the entity taxpayers for whom the waiver is not requested is cal-
partnership's taxable year). This amount reduces the Utah culated as follows:
withholding tax calculated for this partner on Schedule N. Also 1. Line E – Enter the income attributable to Utah for the
report the credit on line 17 of Schedule K-1 for this partner. partner and any Utah-source guaranteed payment (other
than health insurance).
Line J – Withholding Tax to be Paid 2. Line F – Multiply the income on line E by the Utah tax rate
by This Partnership of 4.85% (.0485).
Subtract the total of the credits on lines G, H and I from the 3. Line G – Enter any Utah mineral production withholding
tax calculated on line F for each pass-through entity taxpayer. tax allocated to this partner.
Do not enter an amount less than zero. 4. Line H – Enter any previous Utah withholding tax passed-
The withholding tax shown in column J is the withholding tax through to this partnership by an upper-tier pass-through
this partnership must withhold or pay on behalf of the pass- entity and allocated to this partner.
through entity taxpayer. Report this withholding tax on line 19 5. Line I – Enter any tax paid for this partner with form TC-75.
of Utah Schedule K-1 for this partner.
6. Line J – Subtract lines G, H and I from line F. Do not enter
an amount less than zero. This is the pass-through with-
holding tax that must be paid by the partnership on behalf
of the partner.
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 Attach form TC-250 to your partnership return if the part-
credits allocated on a Utah Schedule K-1 to this partnership nership received an allocation of nonrefundable and/or
by an upper-tier pass-through entity in which this partnership refundable credits from an upper-tier pass-through entity
owns an interest, as well as mineral production withholding on a Utah Schedule K-1.
tax credits received on a form TC-675R.
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2022 Utah TC-65 Instructions 23
Upper-tier Pass-through Entity. An upper-tier pass-through First Column
entity is a pass-through entity in which this partnership has an
ownership interest and from whom this partnership 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 partnership from the
Utah Schedule K-1. upper-tier pass-through entity.
If additional lines are needed to report any category, you may Second Column
use additional forms TC-250. Enter in the second column the name shown in box “B” of Utah
Schedule K-1 received by this partnership from the upper-tier
Part 1 – Utah Nonrefundable Credits pass-through entity.
Received from Other Pass-through Third Column
Entities
Enter in the third column the refundable credit code shown
Utah nonrefundable tax credits allocated to this partnership by on Utah Schedule K-1 received by this partnership from the
an upper-tier pass-through entity and shown on Utah Schedule upper-tier pass-through entity.
K-1 received from the upper-tier pass-through entity must be
reported in Part 1. These credits are found on Utah Schedule Fourth Column
K-1 under nonrefundable credits with a credit code. Do not Enter in the fourth column the amount of the allocated Utah
include Utah Schedule K-1 the partnership received showing refundable credit shown on Utah Schedule K-1 received by
these credits when fi ling this partnership’s return. this partnership from the upper-tier pass-through entity.
First Column Carry the refundable credits over to Utah Schedule K, line
18 for this return. If you have multiple credits for the same
Enter in the fi rst column the federal EIN shown in box “A”
credit code, combine the credit amounts before entering on
of Utah Schedule K-1 received by this partnership from the
Schedule K. Allocate the credit to the partners on their indi-
upper-tier pass-through entity.
vidual Schedule K-1 based on their ownership percentage or
Second Column the partnership agreement.
Enter in the second column the name shown in box “B” of Utah
Schedule K-1 received by this partnership from the upper-tier Part 3 – Utah Mineral Production
pass-through entity. Withholding Tax Credit Received on
Third Column TC-675R
Enter in the third column the nonrefundable credit code shown Utah mineral production tax withheld on production income
on Utah Schedule K-1 received by this partnership from the received by this partnership from the producer shown on form
upper-tier pass-through entity. TC-675R must be reported in Part 3. Do not include the TC-
675R with your partnership return.
Fourth Column
First Column
Enter in the fourth column the amount of the distributed Utah
nonrefundable credit shown on Utah Schedule K-1 received Enter in the fi rst column the federal EIN shown in box “2” of
by this partnership from the upper-tier pass-through entity. the form TC-675R received by this partnership.
Carry the nonrefundable credits to Utah Schedule K, line 17 for this Second Column
return. If you have multiple credits for the same credit code, combine Enter in the second column the producer’s name shown in box
the credit amounts before entering on Schedule K. Allocate the “1” of the form TC-675R received by this partnership.
credit to the partners on their individual Schedule K-1 based on
their ownership percentage or the partnership agreement. Third Column
Enter in the third column the amount of the mineral production
Part 2 – Utah Refundable Credits Received withholding tax shown in box “6” of the form TC-675R received
from Other Pass-through Entities by this partnership.
Utah refundable tax credits allocated to this partnership by an Total the mineral production withholding amounts shown in
upper-tier pass-through entity and shown on Utah Schedule the third column. Carry this total to Utah Schedule K for this
K-1 received from the upper-tier pass-through entity must be return and enter it on line 18 using code “46.” Allocate this
reported in Part 2. These credits are found on Utah Schedule amount to the partners on their individual Schedule K-1 based
K-1 under refundable credits with a credit code. Do not include on their ownership percentage or the partnership agreement.
Utah Schedule K-1 the partnership received showing these
credits when fi ling this partnership’s return.
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2022 Utah TC-65 Instructions 24
Utah State Tax Commission
TC-544
Patnership Return Payment Coupon Rev. 12/11
Use of Payment Coupon How to Prepare the Payment
If you have a tax due balance on your Utah partnership return and you Make your check or money order payable to the Utah State Tax
have previously filed your return (either electronically or by paper) Commission. Do not send cash. The Tax Commission does not
without a payment, include the payment coupon below with your check assume liability for loss of cash placed in the mail.
or money order to insure proper credit to your account. Do not mail
Print the name of the partnership, address, daytime telephone number
another copy of your partnership return with this payment. Sending a
and the year the payment is for on your check or money order.
duplicate of your return may delay posting of the payment.
If you are sending a payment with your paper Utah partnership return, Sending the Payment Coupon
include the payment coupon below with your check or money order, to
insure proper credit to your account. If sending this payment coupon separate from your partnership return,
do NOT mail another copy of your return with this payment.
Do not use this return payment coupon to prepay future partnership
taxes. Use form TC-559. Complete and detach the payment coupon below.
Do not attach (staple, paper clip, etc.) the check or money order to the
Electronic Payment payment coupon.
You may pay your tax online at tap.utah.gov. Send the payment coupon and payment to:
Utah State Tax Commission
When to Pay 210 N 1950 W
If you are paying the withholding tax withheld or paid on behalf of Salt Lake City, UT 84134-0270
pass-through entity taxpayers (partners/members), you must pay by
the original due date of the return (without regard to extensions) to
avoid penalties and interest.
SEPARATE AND RETURN ONLY THE BOTTOM COUPON WITH PAYMENT. KEEP TOP PORTION FOR YOUR RECORDS.
TC-544
Partnership Return Mail to: Utah State Tax Commission, 210 N 1950 W, SLC UT 84134-0270 Rev. 12/11
Payment Coupon Name of partnership EIN
0
Tax year ending (mm/dd/yyyy)
!
Address 2
USTC Use Only City State ZIP code
Prepayment amount enclosed $ 00
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.
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