UTAH
TC-65 Forms & InstructionsTC-65 Forms & Instructions
Utah State Tax Commission • 210 North •1950 West Salt Lake•City,tax.utah.govUtah 84134
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UTAH
TC-65 Forms & InstructionsTC-65 Forms & Instructions
Utah State Tax Commission • 210 North •1950 West Salt Lake•City,tax.utah.govUtah 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 ..............................................................................................19
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 ...........23
TC-544, Partnership Return Payment Coupon .........................................................................................................................................25
Cover photo: Big Cottonwood Canyon, by Colton Matheson
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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2021 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 2021 is $1,200. Utah resident individuals, is not required to fi le a Utah return,
• Special Needs Opportunity Scholarship Program: The TC-65, if:
2020 legislature passed HB 4003, creating a nonrefund- • it is not a pass-through entity taxpayer, and
able tax credit for donations made to the Special Needs • it maintains records that show each partner’s or member’s
Opportunity Scholarship Program. See page 17. share of income, losses, credits, and other distributive
• Payroll Protection Program Grant or Loan Addback: In items, and those records are made available to the Tax
certain situations you must add to your income the amount Commission upon request.
of PPP grants or loans forgiven in 2021. See page 8.
A partnership or other entity treated as a partnership for
federal tax purposes with any partners or members who
Reminder are businesses, trusts, estates or nonresident individuals is
required to fi le a TC-65.
• TC-250: List all nonrefundable and refundable credits
received from an upper-tier pass-through entity on a Utah
Schedule K-1, and any mineral production withholding tax Pass-through Entity Withholding
credit received on a form TC-675R.
Requirements
Partnerships and business entities treated as partnerships are
Partnership Defi ned considered pass-through entities (see UC §59-10-1402(10))
A “partnership” is any unincorporated entity that is treated as and must withhold Utah income tax on all business partners,
a partnership under federal income tax law, including general trust or estate partners, and nonresident individual partners.
partnerships, limited partnerships, limited liability partnerships, These partners are collectively referred to as pass-through entity
and limited liability companies. A “partner” includes a partner taxpayers (see UC §59-10-1402(11)). A partnership is not re-
or member of one of these entities. quired to withhold on a partner that is exempt from tax under UC
§59-7-102(1)(a) or §59-10-104.1, or if the pass-through entity is
a plan under IRC §§401, 408 or 457 and is not required to fi le a
Partnerships Not Subject to Tax return under UC Chapter 7, or is a publicly traded partnership
A partnership is not subject to Utah income tax. However, as defi ned under UC §59-10-1403.2(1)(b)(iv).
partners conducting business are liable for Utah income tax Utah imposes a 4.95 percent withholding tax on all Utah business
in their separate or individual capacities. A partnership must and nonbusiness income derived from or connected with Utah
withhold Utah tax on all nonresident individual pass-through sources and attributable to pass-through entity taxpayers. The
entity taxpayers and all resident or nonresident business, es- partnership may reduce this withholding by any mineral production
tate, or trust pass-through entity taxpayers. See Pass-through withholding tax and previous pass-through entity withholding tax
Entity Withholding Requirements below. allocated to the partner. This withholding tax must be paid to the
Tax Commission by the original due date of the return, without
regard to extensions.
Pass-through Entity
A pass-through entity is an entity whose income, gains, losses, Calculate Utah withholding tax on Schedule N. See the instruc-
deductions and/or credits fl ow through to its partners (partner- tions for Schedule N on page 20 for more details.
ships), members (limited liability companies), shareholders (S The partnership must provide a Utah Schedule K-1 to each
corporations) or benefi ciaries (estates and trusts) for federal partner showing the amount of Utah withholding paid on be-
tax purposes. half of the partner. This withholding tax is then claimed as a
credit by the partner on the partner’s Utah income tax return.
Pass-through Entity Taxpayer If a partnership has an interest in another partnership, that
upper-tier partnership must withhold Utah income tax on Utah
A pass-through entity taxpayer is any entity which has income, income allocated to the lower-tier partnership. The upper-tier
gains, losses, deductions and/or credits passed to it from a partnership must provide a Utah Schedule K-1 showing the
pass-through entity (e.g., an individual who is a partner in a amount of Utah withholding tax paid on behalf of the lower-tier
partnership, or a partnership which is a partner in another partnership. The lower-tier partnership must report this with-
partnership). holding tax on form TC-250 and then allocate it to its partners,
who will claim the withholding tax on their returns. Enter this
previous pass-through entity withholding tax for each partner
on Schedules K and K-1.
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2021 Utah TC-65 Instructions 2
The partnership may request a waiver of withholding tax and
any associated penalty and interest for all or selected partners Interest (in addition to penalties due)
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 2022
due date, including extensions (see UC §59-10-1403.2(5)). calendar year is 2 percent.
For more information, get Pub 58, Utah Interest and Penalties,
Partnership Identifi cation Number at tax.utah.gov/forms.
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: What to Attach and What to Keep
Exceptions Processing Include the following with your Utah TC-65. Also, keep copies
Utah State Tax Commission of these with your tax records.
210 N 1950 W
• Utah Partnership Return Schedules: Attach applicable
SLC, UT 84134-3215 Utah schedules A, H, J, K, N, and/or TC-250. Also attach
Utah Schedule K-1 for each partner.
Where to File Do not send a copy of your federal return, federal Sched-
Mail your return to: ules K-1, credit schedules, worksheets, or other docu-
Utah State Tax Commission mentation with your Utah return, unless otherwise stated
210 N 1950 W in these instructions. Keep these in your fi les. We may ask
SLC, UT 84134-0270 you to provide them later to verify entries on your Utah return.
You may also pay any tax due at tap.utah.gov.
Federal Taxable Income (Loss)
Utah law defi nes federal taxable income as “taxable income
Due Date
as currently defi ned in §63, Internal Revenue Code of 1986.”
The return is due on or before the 15th day of the fourth Since Utah’s taxable income is based on federal taxable
month following the close of the taxable year or the due date income, a partner’s ability to carry forward and carry back
of the federal return, whichever is later. If the due date falls partnership losses is determined on the federal level. The loss
on a Saturday, Sunday or legal holiday, the due date is the taken by a partner in a given year must match the loss taken
next business day. on the federal return. Losses cannot be independently carried
back or forward in any given year on the partner’s Utah return.
Filing Extension
Partnerships are automatically allowed an extension of up to Utah Income
fi ve months to fi le a return without fi ling an extension form. Complete Schedule A to determine Utah income or loss. If the
This is NOT an extension of time to pay taxes – it is only partnership does business both within and outside of Utah,
an extension of time to fi le your return. To avoid penalty, the portion of the partnership income attributable to Utah is
the prepayment requirements must be met on or before the determined by fi rst completing TC-20, Schedule J, and then
original return due date and the return must be fi led within the Schedule A.
fi ve-month extension period.
Note: All pass-through withholding tax from Schedule N,
column I must be paid by the original due date of the return, Business Income
without regard to extensions. Business income means income arising from transactions
and activity in the regular course of the taxpayer’s trade or
business and includes income from tangible and intangible
Penalties property if the acquisition, management and disposition of
Utah law (UC §59-1-401) provides penalties for not fi ling the property constitute integral parts of the taxpayer’s regular
tax returns by the due date, not paying tax due on time, not trade or business operations. See UC §59-10-1402(2).
making suffi cient prepayment on extension returns, and Business income apportioned to Utah is subject to the pass-
not fi ling information returns or supporting schedules. See through entity withholding requirements.
tax.utah.gov/billing/penalties-interest and Pub 58, Utah
Interest and Penalties, at tax.utah.gov/forms. The following are examples of business income:
• Interest income on loans and investments made in the
ordinary course of a trade or business of lending money.
• Interest income on accounts receivable arising from the
performance of services or sales of property.
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2021 Utah TC-65 Instructions 3
• Income from investments made in the ordinary course income tax purposes, determine the partner’s distributive
of a trade or business of furnishing insurance or annuity share of such item in accordance with his distributive share
contracts or reinsuring risks underwritten by insurance for federal income tax purposes of partnership income or loss
companies. generally.
• Income or gain derived in the ordinary course of an ac- 3. When a partner’s distributive share of an item of partnership
tivity of trading or dealing in any property if such activity income, gain, loss or deduction is determined for federal
constitutes a trade or business (unless the dealer held the income tax purposes by a special provision in the partner-
property for investment at any time before such income or ship agreement with respect to such item, and when the
gain is recognized). principal purpose of such provision is the avoidance or
• Royalties derived by the taxpayer in the ordinary course evasion of tax, determine the partner’s distributive share
of a trade or business of licensing intangible property. of such item and any modifi cation regarding it as if the
partnership agreement makes no special provision with
• Amounts included in gross income of a patron of a coopera- respect to that item.
tive by reason of any payment or allocation to the patron
based on patronage occurring with respect to a trade or
business of the patron. Nonresident or Part-year Resident
• Other income identifi ed by the IRS as income derived by Share of Partnership Items
the taxpayer in the ordinary course of a trade or business.
1. In determining a nonresident partner's adjusted gross in-
come, include only the part derived from or connected with
Nonbusiness Income sources in Utah of the partner’s distributive share of items of
partnership income, gain, loss or deduction entering into the
Nonbusiness income means all income other than business in- partner’s federal adjusted gross income. (The Utah portion
come. See UC §59-10-1402(7). Nonbusiness income includes is shown alongside the total for each item amount on Utah
portfolio income that is not derived in the ordinary course of a Schedule K.)
pass-through entity’s trade or business. The burden of proof
is on the taxpayer to justify the manner in which income is 2. In determining the sources of a nonresident partner’s
claimed on the return. income:
a. Do not give consideration to a provision in the partner-
ship agreement that characterizes payments to the
Apportionable Income partner as being for services or for the use of capital,
The following types of income are apportionable business or allocates to the partner, as income or gain from
income: sources outside Utah, a greater portion of his distributive
share of partnership income or gain than the ratio of
1. Interest, dividends, royalties, gains, etc., derived in the
partnership income or gain from sources outside Utah
ordinary course of a pass-through entity’s trade or business.
to partnership income or gain from all sources, except
2. Interest, dividends, gains, etc., of an entity whose primary as provided in 5 below.
business activity is investing funds (such as with a broker- b. Do not give consideration to a provision in the partnership
age fi rm). agreement that allocates to the partner a greater portion
3. Income received from holdings in or the sale of partnership of a partnership item, loss or deduction connected with
interests. sources in Utah than his proportionate share, for federal
income tax purposes, of partnership loss or deduction
generally, except as provided in 5 below.
Modifi cations
3. Make any modifi cation (such as for U.S. government bond
Modifi cations may be needed to determine the Utah taxable interest) that relates to an item of partnership income, gain,
income of a partner. See Character of Partnership Items loss or deduction in accordance with the partner’s distributive
and Nonresident or Part-year Resident Share of Partnership share for federal income tax purposes of the item to which
Items below. the modifi cation relates, but limited to the portion of such
item derived from or connected with sources in Utah.
Character of Partnership Items 4. Determine a nonresident partner’s distributive share of
1. Each item of partnership income, gain, loss or deduction items of income, gain, loss or deduction as provided in
has the same character for a partner as it has for federal Character of Partnership Items, above.
income tax purposes. When an item is not characterized for 5. The Tax Commission may authorize the use of other
federal income tax purposes, it has the same character for methods of determining a nonresident partner’s portion of
a partner as if realized directly from the source realized by a partnership item derived from or connected with sources
the partnership, or incurred in the same manner as incurred in Utah, and the modifi cation related to it, as may be ap-
by the partnership. propriate and equitable, on such terms and conditions as
2. In determining Utah taxable income of a partner, make any it may require.
modifi cation (such as U.S. government bond interest) that
relates to an item of the partnership income, gain, loss or
deduction in accordance with the partner’s distributive share
for federal income tax purposes of the items to which the
modifi cation relates. Where a partner’s share of any such item
is not required to be taken into account separately for federal
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2021 Utah TC-65 Instructions 4
If the partnership is the recipient of proceeds in connection
Mineral Producers or Payers
with mineral properties located within Utah, the partnership
If the partnership is a producer paying proceeds in connec- should complete TC-250, Part 3, using code 46. Do not attach
tion with mineral properties located in Utah, the partnership form TC-675R to the partnership return. The amounts withheld
must report to each recipient their share of mineral production are distributed to each partner in proportion to each partner’s
withholding tax withheld and paid to the Tax Commission. The share of income and should be shown on Schedule N and on
producer must furnish a copy of form TC-675R to each recipi- Utah Schedules K and K-1.
ent. The recipient will take credit for the amount withheld on
their Utah individual income tax return, fi duciary income tax If the partnership is itself a pass-through entity taxpayer and
return or corporation franchise or income tax return. receives a distribution of mineral production withholding tax
from an upper-tier pass-through entity, enter the mineral
production withholding tax allocated to this partnership on
TC-250, Part 2, using code 46. Do not attach Utah Schedule
K-1 the partnership receives to this partnership return.
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2021 Utah TC-65 Instructions 5
TC-65 – Utah Partnership / Limited Liability
Partnership / Limited Liability Company
Return
Filing Period Reason-for-Amending Codes
File the 2021 return for calendar year 2021 and fi scal years 1 You fi led an amended federal return with the IRS. Attach
beginning in 2021 and ending in 2022. If the return is for a a copy of your amended federal return.
fi scal year or a short tax year (less than 12 months), fi ll in the 2 You made an error on your Utah return. Attach an explana-
tax year beginning and end dates at the top of the form using tion of the error.
the format mm/dd/yyyy. 3 Your federal return was changed by an IRS audit or adjust-
ment that affects your Utah return. Attach a copy of the
Partnership Name and Address IRS adjustment.
Enter on the TC-65 the partnership name, address and 4 Other. Attach an explanation to your return.
telephone number, including area code. If the address has Enter the corrected fi gures on the return and/or schedules.
changed, see Partnership Changes in the General Instructions. Enter all other amounts as shown on your original return. If
you received a refund on your original return, subtract the
previous refund (exclude refund interest) from the amount of
ZIP Code any tax paid with the original return and/or subsequent pay-
Enter your ZIP Code, including the “plus four” at the end, ments of the tax prior to fi ling the amended return. Enter the
without a hyphen. net amount on line 7. Enter a net refund as a negative amount
(preceded by a minus sign).
Foreign Country
If your address is in a foreign country, enter the mailing ad- Federal Form 8886
dress where indicated. Enter the foreign city, state/province If you fi led federal Form 8886, Reportable Transaction Disclo-
and postal code in the City fi eld. Abbreviate if necessary. Leave sure Statement, with the Internal Revenue Service, enter an
the State and ZIP Code fi elds blank. Enter only the foreign “X” at the top of your TC-65, where indicated.
country name in the Foreign country fi eld.
Employer Identifi cation Number Entity Type
Utah uses the Federal Employer Identifi cation Number (EIN) Mark “X” by the type of entity for which the return is being fi led:
as the partnership’s taxpayer identifi cation number with the • General partnership
state. Enter the EIN in the fi eld indicated. • Limited partnership
• Limited liability partnership
Amended Returns • Limited liability company
Note: Do not submit a copy of your original return with • Other (enter brief description)
your amended return.
To amend a previously fi led return, use the tax forms and in-
structions for the year you are amending. Get prior year forms Line-by-Line Instructions
and instructions at tax.utah.gov/forms-pubs/previousyears. Line 1 – Date Registered in Utah
Amend your return if: Enter the date the partnership was registered in Utah in the
• you fi nd an error on your Utah or federal return after it has format mm/dd/yyyy.
been fi led, or
• your federal return is audited or adjusted by the IRS and Line 2 – Date Dissolved
the audit or adjustment affects your Utah return. You must If the partnership was dissolved during the tax year, enter the
amend your Utah return within 90 days of the IRS’s fi nal date of dissolution of the partnership in the format mm/dd/yyyy.
determination.
Line 3 – Total Pass-through Withholding Tax
To amend a previously fi led return, at the top of page 1, on
the “Amended Return” line, enter the code number from the Enter the total pass-through withholding tax from Schedule
following list that best describes your Reason for Amending: N, column I.
This pass-through withholding tax must be paid to the Tax
Commission by the original due date of the return, without
regard to extensions. Pay at tap.utah.gov or use form TC-559,
Corporation/Partnership Payment Coupon.
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2021 Utah TC-65 Instructions 6
Do not include on this line any pass-through withholding tax Use Tax Rate Chart (Effective Dec. 31, 2021)
credit received from another pass-through entity as reported
on a Utah Schedule K-1 you received. Pass-through withhold- .0635 Beaver County .0635 Rich County
.0735 Beaver City .0795 Garden City
ing tax credits received from other pass-through entities are .0610 Box Elder County .0725 Salt Lake County
entered on TC-250 and allocated to the partners/members .0665 Brigham City, Perry, .0875 Alta
on Utah Schedule K-1. Willard .0835 Brighton
.0640 Mantua .0745 Murray, South Salt
Line 4 – Utah Use Tax .0710 Snowville Lake
.0670 Cache County .0775 Salt Lake City
Use tax is a tax on goods and taxable services purchased .0695 Cache Valley Transit, .0635 San Juan County
for use, storage or other consumption in Utah. Use tax ap- Hyde Park, Lewiston, .0675 Blanding, Monticello
Millville .0745 Bluff
plies only if sales tax was not paid at the time of purchase. If .0700 Hyrum, Logan, .0635 Sanpete County
you purchased an item from an out-of-state seller (including Nibley, N. Logan, .0645 Centerfi eld, Mayfi eld
Internet, catalog, radio and TV purchases) and the seller did Providence, Rich- .0675 Ephraim, Fairview,
not collect sales tax on that purchase, you must pay the use mond, River Heights, Gunnison
Smithfi eld
.0635 Carbon County .0665 Mt. Pleasant
tax directly to the Tax Commission. .0645 Helper .0635 Sevier County
If you have a Utah sales tax license/account, report the use .0675 Price .0645 Aurora, Redmond
tax on your sales tax return. If you do not have a Utah sales .0665 Wellington .0675 Richfi eld, Salina
.0735 Daggett County .0715 Summit County
tax license/account, report the use tax on line 4 of TC-65. .0845 Dutch John .0905 Mil. Rec. Park City, Park
You may take a credit for sales or use tax paid to another state .0715 Davis County City
.0725 Bountiful, Centerville, .0745 Snyderville Basin
(but not a foreign country). If the other state’s tax rate is lower Clearfi eld, Farming- Transit
than Utah’s, you must pay the difference. If the other state’s tax ton, Layton, N. Salt .0660 Tooele County
rate is more than Utah’s, no credit or refund is given. If sales Lake, Syracuse, W. .0690 Erda, Grantsville,
Bountiful, Woods Lakepoint, Lincoln,
tax was paid to more than one state, complete the Use Tax Cross Stansbury Park
Worksheet below for each state. Add lines 8 on all worksheets .0635 Duchesne County .0700 Tooele City
and enter the total on line 4 of TC-65. .0645 Duchesne City .0645 Uintah County
.0675 Roosevelt .0695 Naples, Vernal
Sales and use tax rates vary throughout Utah. Use the Use .0635 Emery County .0715 Utah County
Tax Rate Chart below to get the rate for the location where .0825 Green River .0725 American Fork, Cedar
the merchandise was delivered, stored, used or consumed. .0710 Garfi eld County Hills, Lindon, Orem,
.0810 Boulder, Panguitch, Payson, Pleasant
Use the county tax rate if the city is not listed. Tropic Grove, Provo, Santa-
quin, Spanish Fork,
Grocery food bought through the Internet or catalog is taxed .0830 Bryce Canyon Vineyard
at 3 percent. The grocery food must be sold for ingestion or .0820 Escalante .0610 Wasatch County
chewing by humans and consumed for the substance’s taste .0685 Grand County .0640 Heber
or nutritional value. The reduced rate does not apply to alco- .0885 Moab .0720 Independence
.0610 Iron County .0750 Midway
holic beverages or tobacco. See Pub 25, Sales and Use Tax, .0810 Brian Head .0800 Park City East
at tax.utah.gov/forms. .0620 Cedar City .0645 Washington County
.0610 Juab County .0675 Hurricane, Ivins, La
.0650 Nephi Verkin, St. George,
Use Tax Worksheet .0635 Santaquin South Santa Clara, Washing-
.0710 Kane County ton City
1. Amount of purchases (except grocery food) .0820 Kanab .0805 Springdale
subject to use tax 1 _________ .0810 Orderville .0745 Virgin
2. Use tax rate .0635 Millard County .0610 Wayne County
(decimal from Use Tax Rate Chart) 2 .__ __ __ __ .0645 Fillmore .0725 Weber County
.0620 Morgan County .0745 Falcon Hill Riverdale,
3. Multiply line 1 by line 2 3 _________ .0645 Morgan City Riverdale
.0610 Piute County
4. Amount of grocery food purchases
subject to use tax 4 _________
Line 5 – Total Tax
5. Multiply line 4 by 3% (.03) 5 _________
6. Add line 3 and line 5 6 _________ Enter the total of lines 3 and 4.
7. Credit for sales tax paid to another state Line 6 – Prepayments Made for the Year
on use tax purchases 7 _________
Credit is allowed for advance payments made as quarterly
8. Use tax due (subtract line 7 from line 6) 8 _________ estimated tax payments, prepayments and extension pay-
(If less than zero, enter "0.") ments (form TC-559). Include any overpayments from a prior
year that were applied to this year.
Do not include any pass-through withholding tax on this line.
Pass-through withholding tax credit from a previous pass-
through entity is entered on TC-250 and allocated to the
partners/members on Utah Schedule K-1.
Line 7 – Amended Returns Only
This line is only for amended returns. Enter the amount of tax
paid with the original return and subsequent payments made
prior to fi ling this amended return less any previous refunds
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2021 Utah TC-65 Instructions 7
(exclude refund interest). Enter a net refund as a negative • give the Tax Commission any information that is missing
amount (preceded by a minus sign). from the return;
• call the Tax Commission for information about the processing
Line 8 – Total Payments of the return or the status of any refund or payment(s); and
Enter the total of lines 6 and 7. • respond to certain Tax Commission notices about math
errors, offsets, and return preparation.
Line 9 – Tax Due
If line 5 is larger than line 8, subtract line 8 from line 5. The partnership is not authorizing the preparer to receive any
refund, bind the entity to anything (including any additional
Line 10 – Penalties and Interest tax liability), or otherwise represent the entity before the Tax
Commission. The authorization will automatically end no later
Enter any penalties and interest that apply to this return. See than the due date (without regard to extensions) for fi ling next
Pub 58, Utah Interest and Penalties. year's tax return.
Line 11 – Total Due - Pay This Amount If you want to expand the preparer’s authorization, complete
and submit form TC-737, Power of Attorney and Declaration
Add lines 9 and 10. Pay at tap.utah.gov. Or send a check
of Representative (tax.utah.gov/forms). If you want to revoke
or money order with your return (make payable to the Utah
the authorization before it ends, submit your request in writ-
State Tax Commission). Do not mail cash. The Tax Commis-
ing to the Utah State Tax Commission, attention Taxpayer
sion assumes no liability for loss of cash placed in the mail.
Services, 210 N 1950 W, SLC, UT 84134.
Complete the TC-544 coupon (see the back of this book) and
send it with your payment.
Paid Preparer
Payments not received by the original due date are subject
The paid preparer must enter his or her name, address, and
to penalty and interest.
PTIN in the section below the authorized representative’s
See Payment Options, below. signature on the return.
Line 12 – Overpayment Preparer Penalties
If line 8 is larger than the sum of line 5 and line 10, subtract the (UC §59-1-401(11)-(12))
sum of line 5 and line 10 from line 8. The person who prepares, presents, procures, advises, aids,
assists or counsels another on a return, affi davit, claim or
Line 13 – Amount of Overpayment to be similar document administered by the Tax Commission, and
Applied to Next Taxable Year who knows or has reason to believe it may understate a tax,
All or part of any overpayment shown on line 12 may be applied fee or charge is subject to both a civil penalty ($500 per docu-
as an advance payment for the next tax year. Enter the amount ment) and criminal penalty (second degree felony with a fi ne
to be applied (may not exceed the overpayment on line 12). from $1,500 to $25,000).
Line 14 – Refund
Payment Options
Subtract line 13 from line 12. This is your refund amount.
You may pay your tax online with a credit card or an electronic
check (ACH debit). You may pay in full or make partial payments
Signature and Date Line throughout the year. Pay online at tap.utah.gov.
Sign and date the return. We will not issue a refund without You may also mail a check or money order payable to the Utah
a signature. State Tax Commission with your return. Write the partnership
In the case of a partnership, LP or LLP, a general partner must employer identifi cation number, daytime telephone number
sign the return. In the case of an LLC, a member must sign the and “2021 TC-65” on your check. DO NOT STAPLE check
return, or if the LLC has vested management in a manager or to return. Remove any check stub before sending. DO NOT
managers, a manager must sign the return. If receivers, trustees MAIL CASH with your return. The Tax Commission is not
in bankruptcy or assignees are operating the property or busi- liable for cash lost in the mail. Include the TC-544 payment
ness of the partnership/LP/LLP/LLC, then the receiver, trustee coupon (see the back of this book) with your payment.
or assignee must sign the return. Mail your return, payment and coupon (if applicable) to the Utah
State Tax Commission, 210 N 1950 W, SLC, UT 84134-0270.
If mailing your payment separate from your return, include
Paid Preparer Authorization form TC-544, Partnership Tax Payment Coupon, but do NOT
If the partnership wants to allow the Tax Commission to discuss send a copy of your tax return with your payment.
this return with the paid preparer who signed it, enter an “X” in
the box to the right of the signature area of the return where Payment Agreement Request
indicated. This authorization applies only to the individual If you cannot pay the full amount you owe, you can request a
whose signature appears in the Paid Preparer's Section of the payment plan. Go to tap.utah.gov and click "Request Waiver,
return. It does not apply to the fi rm, if any, shown in that section. Payment Plan or e-Reminder."
If you enter an “X” in the box, the partnership is authorizing
the Tax Commission to call the paid preparer to answer any You may also:
questions that may arise during the processing of the return. 1. complete form TC-804B, Business Tax Payment Agreement
The paid preparer is also authorized to: 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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2021 Utah TC-65 Instructions 8
Schedule A – Utah Taxable Income for Pass-
through Entity Taxpayers
Line 1 – Net Income (Loss) Line 10 – Net Guaranteed Payments to Partners
Enter the net income (loss) from page 4 of federal form 1065, Subtract the health insurance on line 9 from the guaranteed
Schedule K, Analysis of Net Income (Loss), line 1. payments on line 8. This amount should agree with the amount
Note: This is not line 1 of Schedule K for ordinary business reported on the federal partnership return, Form 1065, Sched-
income (loss). ule M-1, line 3.
Line 2 – Contributions Line 11 – Utah Net Nonbusiness Income
Enter the charitable contributions shown on federal form 1065, Enter the Utah nonbusiness income net of expenses.
Schedule K, line 13a. Sales of Utah property and rents received on Utah property,
if not part of the trade or business income of the partnership,
Line 3 – Foreign Taxes are considered Utah nonbusiness income.
Enter the amount of foreign taxes deducted on federal form To calculate this amount, use form TC-20, Schedule H (get
1065, Schedule K, line 16p. forms at tax.utah.gov/forms). Enter the amount from line 14
of TC-20, Schedule H. Attach a copy of TC-20, Schedule H to
Line 4 – Recapture of Section 179 Deduction your partnership return.
Enter the gain or loss on the sale, exchange or other disposi- Note: Do NOT include nonbusiness portfolio income on this
tion of property for which a §179 expense deduction has been line.
passed through to partners and reported on federal 1065
Schedule K-1, line 20 (Other information), code M. Line 12 – Non-Utah Net Nonbusiness Income
Line 5 – Payroll Protection Program Grant or Enter the non-Utah nonbusiness income net of expenses.
To calculate this amount, use form TC-20, Schedule H (get
Loan Addback
forms at tax.utah.gov/forms). Enter the amount from line 28
If you received a COVID-19 Payroll Protection Program (PPP) of TC-20, Schedule H. Attach a copy of TC-20, Schedule H to
grant or loan, enter any amount that: your partnership return.
1. was forgiven during the 2021 tax year, Note: Include nonbusiness portfolio income on this line.
2. is exempt from federal income tax, and
Line 13 – Add Lines 10 through 12
3. you used for expenses that you deducted on your federal
tax return. Add the amounts on lines 10 through 12.
Line 6 – RESERVED Line 14 – Apportionable Income (Loss)
Subtract line 13 from line 7.
Line 7 – Total Income
Add the amounts on lines 1 through 6. Line 15 – Apportionment Fraction (Decimal)
Enter 1.000000, or the apportionment fraction (decimal) from
Line 8 – Total Guaranteed Payments to TC-20, Schedule J, line 9 or 10, if applicable.
Partners
Enter the total guaranteed payments made to partners as Line 16 – Utah Apportioned Business Income
reported on the federal partnership return, Form 1065, (Loss)
Schedule K, line 4. Multiply the amount on line 14 by the apportionment fraction
on line 15.
Line 9 – Health Insurance Included in
Guaranteed Payments Line 17 – Total Utah Income Allocated to Pass-
Enter the total of any health insurance included in the guar- through Entity Taxpayers
anteed payments reported on line 8. This amount should Add line 11 and line 16.
equal the total of the amounts paid during the taxable year
for insurance that constitutes medical care for the partner
(including the partner’s spouse and dependents) and reported
on federal Schedule K line 13d and federal Schedule K-1, line
13, using code M.
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2021 Utah TC-65 Instructions 9
TC-20, Schedule H – Nonbusiness Income Net of
Expenses
Complete TC-20, Schedule H to determine nonbusiness
Utah Nonbusiness Income
income allocated to Utah and outside Utah.
Nonbusiness income is all income that does not arise from Lines 1a-1e – Utah Nonbusiness Income
the conduct of a taxpayer's trade or business operations. In- Complete the information in each column and enter the gross
tangible income must be properly classifi ed and based upon Utah nonbusiness income from each class of income being
factual evidence. The burden of proof is on the taxpayer to allocated. Use additional pages or supporting schedules in
justify the manner in which the income is claimed on the return. the same format, if necessary, to provide complete information
Interest income is business income where the intangible about additional sources of nonbusiness income.
with respect to which the interest was received arises out of
or was created in the regular course of the taxpayer’s trade or Line 2 – Total of Columns C and D
business operations, or where the purpose for acquiring and Enter the total of the amounts on lines 1a through 1e in column
holding the intangible is an integral, functional, or operative C and column D.
component of the taxpayer’s trade or business operations, or
otherwise materially contributes to the production of business Line 3 – Total Utah Nonbusiness Income
income of the trade or business operations. See Tax Commis- Enter the total of column E, lines 1a through 1e.
sion Rule R865-6F-8(2)(e)(iii).
Dividends are business income where the stock with re- Lines 4a-4e – Direct Related Expenses
spect to which the dividends were received arose out of or Describe and enter amounts of direct expenses on the same
was acquired in the regular course of the taxpayer’s trade or letter line as the corresponding Utah nonbusiness income is
business operations or where the acquiring and holding of listed on lines 1a through 1e. Direct related expenses include
the stock is an integral, functional, or operative component wages, interest, depreciation, etc. (UC §59-7-101).
of the taxpayer’s trade or business operations, or otherwise
materially contributes to the production of business income of Line 5 – Total Direct Related Expenses
the trade or business operations. See Tax Commission Rule Enter the sum of direct related expenses by adding lines 4a
R865-6F-8(2)(e)(iv). through 4e.
Gain or loss from the sale, exchange, or other disposition
of real property or of tangible or intangible personal property Line 6 – Utah Nonbusiness Income Net of
constitutes business income if the property while owned by Direct Related Expenses
the taxpayer was used in, or was otherwise included in the Subtract line 5 from line 3.
property factor of the taxpayer’s trade or business. See Tax
Commission Rule R865-6F-8(2)(e)(ii). Line 7 – Beginning-of-Year Assets
Rental income from real and tangible property is business Enter in column A the total beginning-of-year value of assets
income if the property with respect to which the rental income used to produce Utah nonbusiness income from line 2, column
was received is or was used in the taxpayer’s trade or busi- C. Enter in column B the beginning-of-year value of your total
ness and therefore is includable in the property factor. See assets. Include all assets in column B, including Utah assets.
Tax Commission Rule R865-6F-8(2)(e)(i).
Complete Schedule H as follows: Line 8 – End-of-Year Assets
• Complete lines 1a through 14 if you are claiming only Utah Enter in column A the total end-of-year value of assets used
nonbusiness income. to produce Utah nonbusiness income from line 2, column D.
Enter in column B the end-of-year value of your total assets.
• Complete lines 15a through 28 if you are claiming only
Include all assets in column B, including Utah assets.
non-Utah nonbusiness income.
• Complete lines 1a through 28 if you are claiming both Utah Line 9 – Sum of Beginning and
and non-Utah nonbusiness income. Ending Asset Values
Use additional pages or supporting schedules in the same Add lines 7 and 8 for each respective column.
format, if necessary, to provide complete information, including
a description of the business purpose for making the invest- Line 10 – Average Asset Value
ment, the transactions creating the nonbusiness income, and Divide line 9 by 2 for each column.
the use of revenues generated by the nonbusiness investment.
Line 11 – Utah Nonbusiness Asset Ratio
Divide line 10, column A by line 10, column B. Round the
result to four decimal places. Do not enter a decimal greater
than 1.0000, and do not enter a negative number.
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2021 Utah TC-65 Instructions 10
Line 12 – Interest Expense Line 20 – Non-Utah Nonbusiness Income Net of
Enter the total amount of interest deducted on federal form Direct Related Expenses
1065, line 15 and elsewhere on the federal return. Subtract line 19 from line 17.
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 amount here and on Sched-
Line 22 – End-of-Year Assets
ule 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
column C and column D. Divide line 24, column A by line 24, column B. Round the
result to four decimal places. Do not enter a decimal greater
Line 17 – Total Non-Utah Nonbusiness Income than 1.0000, and do not enter a negative number.
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
Lines 18a-18e – Direct Related Expenses 1065, line 15 and elsewhere on the federal return.
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
Enter the sum of direct related expenses by adding lines 18a Net of Expenses
through 18e. Subtract line 27 from line 20. Enter amount here and on
Schedule A, line 12.
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2021 Utah TC-65 Instructions 11
TC-20, Schedule J – Apportionment Schedule
Use TC-20, Schedule J to calculate the portion of the tax-
payer’s income attributable to Utah, if the taxpayer does Optional Apportionment or Sales Factor Weighted?
business both within and outside of Utah.
Complete TC-20, Schedule J to determine the apportionment Did the taxpayer apportion income using the phased-in
fraction (decimal). The factors express a ratio for property in sales factor weighted fraction during the prior taxable year?
Utah to total property everywhere, for wages and salaries in
Utah to total wages and salaries everywhere, and for sales YES NO
in Utah to total sales everywhere. Use these factors or ratios
to arrive at the Utah apportionment fraction calculated to six Did the taxpayer apportion income using single
decimals. Then apply this fraction (decimal) to the apportion- sales factor during the prior taxable year?
able income (or loss) on Schedule A to arrive at the amount
of income (or loss) apportioned to Utah. In cases where one YES NO
or more of the factors is omitted due to peculiar aspects of
the business operations, use the number of factors present
to determine the Utah apportionment fraction. Does the taxpayer generate greater than
50 percent of total sales everywhere from
Your economic activities, and your method of apportioning economic activities in NAICS codes
income in the previous year, dictate the apportionment method OTHER THAN the identified NAICS codes?
you may use.
YES NO
Pass-through Entity Taxpayers
Partners, shareholders and benefi ciaries of pass-through Does average value of the taxpayer’s
entities (an entity taxed as a partnership, s-corporation or property and payroll in Utah attributable
trust) must include their pro rata share of the pass-through to the excluded NAICS codes exceed
entity's property, payroll and sales in their calculation of the 50 percent of the average value of all the
apportionment factor on TC-20, Schedule J, page 1. taxpayer’s property and payroll in Utah?
If a corporation holds direct and indirect ownership interests in NO YES
tiered pass-through entities, it must include its pro rata share
of the apportionment factors (property, payroll and sales) of
the pass-through entities, applying the respective ownership Single Sales Factor Optional Apportionment
percentages. For example, a corporation that holds 50 percent Can choose:
interest in Partnership A that in turn holds 20 percent interest 1. equally-weighted; or
in Partnership B would include 50 percent of the factors of 2. single sales factor
Partnership A, and 10 percent (50 percent of 20 percent) of
the factors of Partnership B. Excluded NAICS Codes:
Code 211120 Crude Petroleum Extraction
Apportionment Method Industry Group 2121 Coal Mining
To determine if you must apportion income using the single Industry Group 2212 Natural Gas Distribution
Subsector 311 Food Manufacturing
sales factor formula or if you qualify as an optional apportion-
Industry Group 3121 Beverage Manufacturing
ment taxpayer, take into account the economic activities of Code 327310 Cement Manufacturing
each of the entities included in the return. Include the eco- Subsector 482 Rail Transportation
nomic activities of any pass-through entities whose income Code 512110 Motion Picture and Video Production
and factors are included in the return. Subsector 515 Broadcasting (except internet)
Use the fl owchart (below) to determine the method you must Code 522110 Commercial Banking
use to apportion business income.
Identified NAICS Codes:
Sector 21 Mining;
Sales Factor Weighted Taxpayers Industry Group 2212 Natural Gas Distribution
A sales factor weighted taxpayer may only use the sales factor Sector 31-33 Manufacturing EXCEPT:
weighted apportionment formula. • Industry Group 3254 Pharmaceutical & Medicine
Manufacturing
You must use the single sales factor formula if you either: • Industry Group 3333 Commercial & Service Industry
1. apportioned income using the sales factor weighted frac- Machinery Manufacturing
tion during the prior taxable year, • Subsector 334 Computer & Electronic Manufacturing
• Code 336111 Automobile Manufacturing
2. apportioned income using the phased-in sales factor for-
Sector 48-49 Transportation & Warehousing
mula during the prior taxable year, or Sector 51 Information EXCEPT:
• Subsector 519 Other Information Services
Sector 52 Finance & Insurance
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2021 Utah TC-65 Instructions 12
3. generate more than 50 percent of total sales everywhere • Industry Group 2121, Coal Mining
from economic activities in any NAICS codes OTHER • Industry Group 2212, Natural Gas Distribution
THAN these identifi ed NAICS codes:
• Subsector 311, Food Manufacturing
• Sector 21, Mining;
• Industry Group 3121, Beverage Manufacturing
• Industry Group 2212, Natural Gas Distribution;
• Code 327310, Cement Manufacturing
• Sector 31-33, Manufacturing EXCEPT:
• Subsector 482, Rail Transportation
• Industry Group 3254, Pharmaceutical and Medicine
Manufacturing • Code 512110, Motion Picture and Video Production
• Industry Group 3333, Commercial and Service • Subsector 515, Broadcasting (except Internet)
Industry Machinery Manufacturing • Code 522110, Commercial Banking
• Subsector 334, Computer and Electronic Product
Manufacturing Line Instructions
• Code 336111, Automobile Manufacturing
• Sector 48-49, Transportation and Warehousing Business Activity
• Sector 51, Information EXCEPT: Briefl y describe the nature and location(s) of your Utah busi-
ness activities in the space provided at the top of this schedule.
• Subsector 519, Other Information Services
• Sector 52, Finance and Insurance Lines 1a - 1f – Property Factor
Report property and payroll factors on Schedule J, page 1, Show the average cost value during the taxable year of real
but do not use them to calculate the apportionment of sales and tangible personal property used in the business within
factor weighted taxpayers. Utah (including leased property) in column A and overall
(including Utah) in column B.
Sales factor weighted taxpayers must calculate the appor-
tionment fraction on Schedule J, Page 2 using Part 2 - Sales Property you own is valued at its original cost. Property you
Factor Formula. rent is valued at eight times the net annual rental rate. Net
annual rental rate is the annual rental rate you pay less the
annual rate you receive from sub-rentals.
Optional Apportionment Taxpayers The average value of property must be determined by averag-
To determine if you are an optional apportionment taxpayer, ing the cost values at the beginning and end of the tax period.
fi rst calculate the following property and payroll factor fractions: However, monthly values may be used or required if monthly
• Property factor fraction: Add together the value of prop- averaging more clearly refl ects your property’s average value.
erty in Utah attributable to economic activities that are Attach a supporting schedule whenever you use monthly
classifi ed in an excluded NAICS code. Divide this number averaging.
by the value of all property in Utah. Remove property from
this calculation if the property is attributable to economic If you are a pass-through entity taxpayer, add to line 1e any
activities in both excluded NAICS codes and non-excluded amounts listed on line J of any TC-65 Schedule K-1 you have
NAICS codes. received.
• Payroll factor fraction: Add together the amount of payroll Enter totals of lines 1a through 1e in the respective columns
in Utah attributable to economic activities that are classi- on line 1f.
fi ed in an excluded NAICS code. Divide this number by
the total amount of payroll in Utah. A taxpayer engaged Line 2 – Property Factor Calculation
in activities in an excluded NAICS code must remove an Determine the property factor (decimal) by dividing line 1f,
individual’s payroll from this calculation of the payroll fac- column A by line 1f, column B.
tor fraction if the individual’s payroll may be attributed to
economic activities in both excluded NAICS codes and Line 3 – Payroll Factor
NAICS codes that are not excluded, or to providing man- Wages, salaries, commissions and other includable com-
agement, information technology, fi nance, accounting, pensation paid to employees for personal services must be
legal or human resource services. included in the Utah factor to the extent the services, for which
Add the property and payroll factor fractions and divide that the compensation was paid, were rendered in Utah.
sum by two. If either the property factor fraction or payroll factor Compensation is paid in Utah if:
fraction has a denominator of zero, or is otherwise excluded,
1. the individual’s service is performed entirely within Utah;
divide by one. If the average is greater than 50 percent, you
are an optional apportionment taxpayer. 2. the individual’s service is performed both within and outside
Utah, but the service performed outside Utah is incidental
Optional apportionment taxpayers may calculate the ap- to the individual’s service within Utah; or
portionment fraction using either the equally-weighted three
factor formula (Schedule J, Part 1) or the sales factor formula 3. some of the service is performed in Utah and:
(Schedule J, Part 2). a. the base of operations or, if there is no base of operations,
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
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2021 Utah TC-65 Instructions 13
residence is in Utah.
Apportionment Fraction
Amounts reportable for employment security purposes may
ordinarily be used to determine the wage factor.
Part 1 – Equally-Weighted Three Factor
Overall wages, including Utah, are listed in column B.
Formula
If you are a pass-through entity taxpayer, add to line 3a any
amounts listed on line K of any TC-65 Schedule K-1 you have If you are an optional apportionment taxpayer using the
received. equally-weighted three factor formula, complete lines 8 and
9. Otherwise, leave lines 8 and 9 blank.
Line 4 – Payroll Factor Calculation
Line 8 – Total Factors
Determine the payroll factor (decimal) by dividing line 3a,
column A by line 3a, column B. Enter the sum of the factors from lines 2, 4 and 6.
Lines 5a - 5h – Sales Factor Line 9 – Apportionment Fraction
The sales factor is the fraction the sales or charges for ser- Calculate the apportionment fraction to six decimals by dividing
vices within Utah for the taxable year bear to the overall sales line 8 by the number of factors used (typically 3 – property,
for the taxable year. Gross receipts from the performance of payroll and sales).
services in Utah are assigned to the Utah sales numerator if • If one or more of the factors are not present (i.e., there is a
the purchaser of the service receives a greater benefi t of the zero in the denominator on lines 1f, 3a or 5h in column B),
service in Utah than in any other state. divide by the number of factors present.
Taxpayers that perform a service both in and outside Utah • If the numerator is zero, but a denominator is present,
must include service income on line 5g in column A (Inside include that factor in the number of factors present.
Utah) if the purchaser of the service receives a greater Enter the apportionment fraction (decimal) here and on
benefi t of the service in Utah than in any other state. The Schedule A, line 15.
former “cost of performance” method no longer applies. (See
UC §59-7-319(3)(a).)
Sales of tangible personal property are in Utah if the property Part 2 – Sales Factor Formula
is delivered or shipped to a purchaser within Utah regardless See instructions above for the defi nition and qualifi cations
of the F.O.B. point or other conditions of the sale, or if the of a taxpayer who must apportion income using the sales
property is shipped from an offi ce, store, warehouse, factory factor formula.
or other place of storage in Utah and:
Leave line 10 blank if you are using the equally-weighted
1. the purchaser is the United States Government, or three-factor formula.
2. the taxpayer is not taxable in the state of the purchaser.
Line 10 – Apportionment Fraction
Overall sales, including Utah, are listed in column B.
Enter the sales factor from line 6 of Schedule J, page 1. This
Note: Securities brokerage businesses must follow the provi- is the apportionment fraction for this apportionment method.
sions in UC §59-7-319(6). (Property and payroll factors are not used in the calculation of
If you are a pass-through entity taxpayer, add to line 5g any the apportionment fraction for taxpayers who must apportion
amounts listed on line L of any TC-65 Schedule K-1 you have income using the single sales factor formula.)
received. Enter the apportionment fraction (decimal) here and on
Enter totals of lines 5a through 5g in their respective columns Schedule A, line 15.
on line 5h.
Line 6 – Sales Factor Calculation Specialized Apportionment Laws
Determine the sales factor (decimal) by dividing line 5h, column and Rules
A by line 5h, column B. Specialized apportionment procedures apply for:
• Trucking Companies (R865-6F-19)
NAICS Code for Taxpayer • Railroads (R865-6F-29)
Line 7 – NAICS Code • Publishing Companies (R865-6F-31)
• Financial Institutions (R865-6F-32)
This is a mandatory fi eld. Your NAICS code may dictate your
apportionment method. • Telecommunications (R865-6F-33)
Enter on line 7 the NAICS code for the primary business activ- • Registered Securities or Commodities Broker or Dealer
ity. Do not use the holding company NAICS code. (R865-6F-36)
If multiple NAICS codes apply to this fi ling, attach an explana- • Airlines (UC §§59-7-312 thru 319)
tion showing the percentage of business activity associated • Sale of Management, Distribution or Administration Ser-
with each NAICS code. vices to or on Behalf of a Regulated Investment Company
(UC §59-7-319(5))
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2021 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 the 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 the 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 the federal Schedule K. Enter in the Utah Line 10 – Net Section 1231 Gain (Loss)
column 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 the 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 the federal Schedule K. Enter in Line 11 – Recapture of Section 179 Deduction
the 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 reported on all Utah Schedules K-1.
(loss) from line 3c of the 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 the federal Schedule K. Enter in the Utah column
Enter in the fi rst column the total federal guaranteed payments the 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 the 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 the federal Schedule K. Enter in the Utah column the
For additional information on the Utah treatment of mu- total 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 16p of the federal Schedule K. Enter in the Utah column
Enter in the federal column the total other interest income the 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 the 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 the federal Schedule K. Enter in the Utah column Describe the type of deduction in the space provided.
the total reported on all Utah Schedules K-1.
Line 17 – Utah Nonrefundable Credits
Line 7 – Royalties In the Utah column, enter the Utah nonrefundable credits being
Enter in the fi rst column the federal royalties from line 7 of distributed to the partners. Describe the nonrefundable credit
the federal Schedule K. Enter in the Utah column the total in the space provided, and enter the Utah code for the credit
reported on all Utah Schedules K-1. (see Nonrefundable Credits, below). If a credit was received
from an upper-tier pass-through entity, also complete and
attach TC-250.
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2021 Utah TC-65 Instructions 15
Line 18 – Utah Refundable Credits (04) Capital Gain Transactions Credit
(UC §59-10-1022)
In the Utah column, enter the Utah refundable credits being
distributed to the partners. Describe the refundable credit in You may claim a credit for the short-term and long-term capital
the space provided, and enter the Utah code for the credit (see gain on a transaction if:
Refundable Credits, below). If a credit was received from an a. the transaction occurs on or after Jan. 1, 2008;
upper-tier pass-through entity, also complete and attach TC-250.
b. at least 70 percent of the gross proceeds of the transaction
Line 19 – Total Utah Tax Withheld on Behalf of are used to buy stock in a qualifi ed Utah small business
corporation within 12 months from when the capital gain
All Partners transaction occurred; and
In the Utah column, enter the total amount of Utah withhold- c. you did not have an ownership interest in the qualifi ed Utah
ing tax withheld on behalf of all the partners who are pass- small business corporation at the time of investment.
through entity taxpayers by the partnership, and for whom the
waiver from withholding was not requested. This amount must See incometax.utah.gov/credits/capital-gains for more
match the total pass-through withholding tax on Schedule N, information.
column I for all pass-through entity taxpayers who have Utah There is no form for this credit. Keep all related documents
withholding tax withheld. with your records.
Nonrefundable Credits Passed Calculation of Capital Gain Transactions Tax Credit
-through on Schedule K 1. Eligible short-term or long-term capital gain $________
Nonrefundable credits on a partnership return are entered 2. Multiply line 1 by 4.95% (.0495).
on Schedule K and then allocated and passed-through to the This is the credit. $________
partners on Schedule K-1. Nonrefundable credits may not be
used against any tax owed by the partnership.
(05) Carryforward of Clean Fuel Vehicle Credit
(UC §59-10-1009)
Nonrefundable Credit Codes
02 Qualifi ed Sheltered Workshop Cash Contribution The clean fuel vehicle credit is no longer available. The fi ve-year
Credit carryforward remains for credit earned before 2017. If you have
04 Capital Gain Transactions Credit unused credit from a year prior to 2017, you may carry it forward
05 Carryforward of Clean Fuel Vehicle Credit (TC-40V) through tax year 2021 or until the credit is used up (whichever
06 Historic Preservation Tax Credit comes fi rst). The carryforward must not be more than your tax
08 Low-Income Housing Tax Credit liability in the year you claim it.
12 Credit for Increasing Research Activities in Utah
21 Renewable Residential Energy Systems Credit (06) Historic Preservation Tax Credit
(TC-40E) (UC §59-10-1006)
27 Veteran Employment Credit
63 Achieving a Better Life Experience (ABLE) The credit is for costs to restore any residential certifi ed his-
Program Credit toric building.
AG Special Needs Opportunity Scholarship Program Complete form TC-40H, Historic Preservation Tax Credit, with
Credit
the State Historic Preservation Offi ce certifi cation, verifying the
credit is approved. Do not send form TC-40H with your return.
Keep the form and all related documents with your records to
(02) Qualifi ed Sheltered Workshop Cash Contribution
provide the Tax Commission upon request.
Credit
(UC §59-10-1004) For more information, contact:
Cash contributions made in the taxable year to a qualifi ed Utah Division of State History
Utah nonprofi t rehabilitation sheltered workshop facility for 3760 S Highland Drive
persons with disabilities are eligible for the credit. Check with Salt Lake City, UT 84106
the workshop to make sure they have a current Day Training 801-245-7277
Provider License or Day Support Provider Certifi cate issued history.utah.gov/shpo/fi nancial-incentives/
by the Department of Human Services. The credit is the lesser
(08) Low-Income Housing Credit
of $200 or 50 percent of the total cash contributions. (UC §59-10-1010)
There is no form for this credit. Keep all related documents This credit is determined by the Utah Housing Corporation for
with your records. The partner must list the qualifi ed workshop owners of a low-income housing project who also received
name on their return to claim the credit. Enter this name on part of the federal low-income housing tax credit. When this
Schedules K and K-1. credit applies, the project owner will provide you with form
For more information, contact: TC-40TCAC (issued by the Utah Housing Corporation).
Division of Services for People with Disabilities If you share in this credit, get form TC-40TCAC, Utah Low-
195 N 1950 W Income Housing Tax Credit Allocation Certifi cation, and com-
Salt Lake City, UT 84116 plete form TC-40LI, Summary of Utah Low-Income Housing
1-844-275-3773 Tax Credit. Do not send these forms with your return. Keep the
dspd.utah.gov forms and all related documents with your records.
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2021 Utah TC-65 Instructions 16
The building project owner must also complete and attach to To qualify for the credit, the qualifi ed veteran must meet all of
his/her return form TC-40LIS, Utah Credit Share Summary the following conditions:
of Low-Income Housing Project. 1. received an honorable or general discharge within the
For more information, contact: two-year period before the employment begins;
Utah Housing Corporation 2. was collecting or was eligible to collect unemployment
2479 S Lake Park Blvd. benefi ts, or has exhausted their unemployment benefi ts
West Valley City, UT 84120 within the last two years, under Title 35A, Chapter 4, Part
801-902-8200 4, Benefi ts and Eligibility; and
utahhousingcorp.org 3. worked for the taxpayer for at least 35 hours per week for
(12) Credit for Increasing Research Activities in Utah not less than 45 of the next 52 weeks following the veteran’s
(UC §59-10-1012) employment start date.
The credit is: The credit is claimed beginning in the year the 45 consecutive
weeks in paragraph 3 above are met.
1. 5 percent of your qualifi ed expenses for increasing research
activities in Utah above a base amount, Calculate the credit as follows:
2. 5 percent of certain payments made to a qualifi ed orga-
nization increasing basic research in Utah above a base First Year Credit
amount, and (count all months in the year the 45 week requirement is met):
3. 7.5 percent of your qualifi ed research expenses in Utah 1. Number of months or partial _____
for the current taxable year. months veteran employed in
There is no form for this credit. Keep all related documents fi rst year
with your records. 2. Monthly credit allowable in 200
fi rst year
(21) Renewable Residential Energy Systems
Credit 3. First year credit – line 1 times $_____
line 2 (maximum $2,400)
(UC §59-10-1014)
This credit is for reasonable costs, including installation, of a
residential energy system that supplies energy to a residential Second Year Credit:
unit in Utah. If the residence is sold to a non-business entity 4. Number of months or partial _____
before claiming the credit, you may irrevocably transfer the months veteran employed in
right to the credit to the new owner. Additional residential second year
energy systems or parts may be claimed in following years 5. Monthly credit allowable in 400
as long as the total amount claimed does not exceed certain second year
limits. Contact the Governor’s Offi ce of Energy Development 6. Second year credit – line 4 $_____
for more information. The principal portion of the lease pay- times line 5 (maximum $4,800)
ments may qualify for the credit if the lessor irrevocably elects
not to claim the credit.
We will not refund any credit greater than your tax due, but
Note: Any credit that is more than the tax liability may be
you may carry it forward to offset tax for up to fi ve years.
carried forward for the next four years
If taking this credit, you must keep the following documentation
Get form TC-40E, Renewable Residential and Commercial
and make it available to the Tax Commission upon request:
Energy Systems Tax Credits, from the Governor's Offi ce of
Energy Development with their certifi cation stamp showing 1. the veteran’s name, last known address, and taxpayer
the amount of the credit. Do not send form TC-40E with your identifi cation or Social Security number;
return. Keep the form and all related documents with your 2. the start date of employment;
records to provide the Tax Commission upon request. 3. documentation establishing that the veteran was employed
For more information, contact: 45 out of the 52 weeks after the date of employment;
Governor's Offi ce of Energy Development (OED) 4. documentation from the veteran’s military service unit
PO Box 144845 showing that the veteran was recently deployed; and
Salt Lake City, UT 84114
5. a signed statement from the Department of Workforce
801-538-8732 or 801-538-8702
Services that the veteran was collecting, was eligible to
energy.utah.gov/renewable-energy-systems-tax-credit
collect, or exhausted their unemployment benefi ts within
(27) Veteran Employment Credit the last two years.
(UC §59-10-1031) (63) Achieving a Better Life Experience (ABLE) Program
A non-refundable credit is available to taxpayers who hire a Credit
qualifi ed, recently deployed veteran. (UC §59-10-1035)
A qualifi ed, recently deployed veteran is an individual who You may claim a credit for 4.95 percent of the total qualifi ed
was mobilized to active federal military service in an active contributions you made to a Utah resident's Achieving a
or reserve component of the United States Armed Forces, Better Life Experience Program account. You must make the
and received an honorable or general discharge within the contributions during the taxable year and have an itemized
two-year period before the employment begins. statement from the qualifi ed ABLE program.
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2021 Utah TC-65 Instructions 17
You may not claim a credit for an amount greater than the Do not include Utah Schedule K-1 the partnership received
federal gift tax exclusion (IRC §2503) or an amount already showing this credit when fi ling this partnership’s return.
deducted on your federal income tax return.
(39) Renewable Commercial Energy Systems Credit
(UC §59-10-1106)
Credit calculation
Get form TC-40E, Renewable Residential and Commercial
Contributions _______ x .0495 = Credit _________ Energy Systems Tax Credits, from the Governor's Offi ce of
Energy Development with their certifi cation stamp. Do not
Note: Any credit that is more than the tax liability may not be send this form with your return. Keep the form and all related
carried back or forward. documents with your records to provide the Tax Commission
upon request.
For more information, contact:
For more information, contact:
Department of Workforce Services
Governor's Offi ce of Energy Development (OED)
140 E 300 S
PO Box 144845
PO Box 45249
Salt Lake City, UT 84114
Salt Lake City, UT 84145-0249
801-538-8732 or 801-538-8702
801-526-9675
energy.utah.gov/renewable-energy-systems-tax-credit
jobs.utah.gov
(46) Mineral Production Withholding Tax Credit
(AG) Special Needs Opportunity Scholarship Program
(UC §59-6-102)
Credit
(UC §59-10-1041) 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.
You may claim a credit for a donation made to the Special
For a fi scal year partnership, the credit is reported on the
Needs Opportunity Scholarship Program. You will receive a tax
partnership return that is required to be fi led during the year
credit certifi cate from the program, listing the amount of the
following the December closing period of the form TC-675R.
credit. You may not claim this credit if you claimed the donation
as an itemized deduction on your federal income tax return. Enter the mineral production withholding tax on TC-250. Enter
the credit in Part 2 if received from an upper-tier pass-through
Do not send the certifi cate with your return. Keep the certifi cate
entity, or in Part 3 if received on a TC-675R from the mineral
and all related documents with your records.
producer.
Note: You may carry forward for the next three years any
Do not attach the TC-675R or Utah Schedule K-1 to the
credit that is more than your tax liability.
partnership return.
(47) Agricultural Off-Highway Gas/Undyed
Refundable Credits Passed-through Diesel Fuel Credit
on Schedule K (UC §59-13-202)
Refundable credits on a partnership return are entered on You may claim a credit of 31.4 cents per gallon for motor fuel
Schedule K and then allocated and passed-through to the and undyed diesel fuel bought in Utah during 2021 and used
partners on Schedule K-1. Refundable credits may not be to operate stationary farm engines and self-propelled farm
claimed on a partnership return. machinery used solely for commercial nonhighway agricultural
use if the fuel was taxed at the time it was bought.
Refundable Credit Codes This does not include golf courses, horse racing, boat opera-
36 Upper-tier Pass-through Entity Withholding Tax tions, highway seeding, vehicles registered for highway use,
39 Renewable Commercial Energy Systems Credit hobbies, personal farming and other non-agricultural use.
(TC-40E)
46 Mineral Production Withholding Tax Credit
(TC-675R) Credit calculation:
47 Agricultural Off-highway Gas/Undyed Diesel Fuel Gallons _______ x .314 = Credit _______
Credit
48 Farm Operation Hand Tools Credit
There is no form for this credit. Keep all related documents
with your records to provide the Tax Commission upon request.
(36) Upper-tier Pass-through Entity Withholding Tax
(UC §59-10-1103) (48) Farm Operation Hand Tools Credit
If this partnership owns an interest in another pass-through (UC §59-10-1105)
entity, that pass-through entity must withhold Utah income This credit is for sales and use tax paid on hand tools pur-
tax on any income attributable to this partnership. The pass- chased and used or consumed primarily and directly in a farm-
through entity must provide a Utah Schedule K-1 showing the ing operation in Utah. The credit only applies if the purchase
amount of Utah withholding paid on behalf of this partnership. price of a tool is more than $250.
This partnership then distributes the credit for the pass-through There is no form for this credit. Keep all related documents
entity withholding tax to its partners. Complete TC-250, Part with your records to provide the Tax Commission upon request.
2, and then enter and allocate the total upper-tier (previous)
pass-through entity withholding tax using code 36.
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2021 Utah TC-65 Instructions 18
Schedule K-1 – PartnerÊs Share of Utah Income,
Deductions and Credits
Complete a Utah TC-65, Schedule K-1 for each partner, show- Utah nonrefundable and refundable credits passed through
ing the share of income, gains, losses, deductions, and Utah from the partnership to both Utah resident and nonresident
credits that are distributed to the partner. partners are reported on Utah Schedule K-1.
Partnership Information Line 1 – Utah Ordinary Business Income
Line A. Enter the partnership’s federal employer identifi cation (Loss)
number For a Utah resident partner, enter the amount from their federal
Line B. Enter the complete name and address of the Schedule K-1, box 1.
partnership For a nonresident partner, enter the distributive share of ap-
portioned Utah ordinary business income (loss) and Utah
Partner Information nonbusiness income which is included in the amount reported
Line C. Enter the partner’s Social Security or federal employer on Utah Schedule A, line 17.
identifi cation number
Line D. Enter the partner’s complete name and address Line 2 – Utah Net Rental Real Estate Income
Line E. Enter the partner’s telephone number (Loss)
Line F. Enter the percent of ownership the partner has in the For a Utah resident partner, enter the amount from their federal
partnership Schedule K-1, box 2.
Line G. Enter an “X” if the partner is a limited partner or limited For a nonresident partner, enter the distributive share of ap-
member. portioned Utah net rental real estate income (loss) included
in the amount reported on Utah Schedule A, line 17.
Line H. Enter the code identifying the type of entity the partner
is. The codes are printed on Schedule K-1. Line 3 – Utah Other Net Rental Income (Loss)
Line I. Enter the date the partner affi liated with this partner- For a Utah resident partner, enter the amount from their federal
ship, and the date of withdrawal if the partner is no Schedule K-1, box 3.
longer a member of this partnership, if applicable.
For a nonresident partner, enter the distributive share of ap-
Partner’s Share of Apportionment Factors portioned Utah other net rental income (loss) included in the
amount reported on Utah Schedule A, line 17.
Line J. Enter the partner’s share of the partnership’s property
apportionment factor. Multiply both Column A and Line 4 – Utah Guaranteed Payments
Column B of Schedule J, line 1f, by the partner’s
percent of ownership (line F, above). Enter the partner’s guaranteed payment, if any, from their
federal Schedule K-1, box 4. If the partner is a nonresident,
Line K. Enter the partner’s share of the partnership’s payroll
enter the guaranteed payment attributable to Utah source
apportionment factor. Multiply both Column A and
income, if any.
Column B of Schedule J, line 3a, by the partner’s
percent of ownership (line F, above). Line 5a – Utah U.S. Government Interest Income
Line L. Enter the partner’s share of the partnership’s sales For a Utah resident partner, enter the amount of U.S. gov-
apportionment factor. Multiply both Column A and ernment interest income included in box 5 of their federal
Column B of Schedule J, line 5h, by the partner’s Schedule K-1.
percent of ownership (line F, above).
For a nonresident partner, enter the distributive share of ap-
Other Information portioned Utah U.S. government interest income included in
the amount reported on Utah Schedule A, line 17.
Enter any additional information or explanation of entries
needed by the partner in order to complete the partner’s Line 5b – Utah Municipal Bond Interest Income
individual Utah return.
For a Utah resident partner, enter the amount of Utah tax-
Reminder: able municipal bond interest income included on their federal
Schedule K-1, line 18.
For a Utah resident partner, report the same information on
their Utah Schedule K-1 for income, losses and deductions For a nonresident partner, enter the distributive share of ap-
that was reported on their federal Schedule K-1. portioned Utah taxable municipal bond interest income.
For a Utah nonresident partner, report the apportioned Utah Line 5c – Utah Other Interest Income
income, losses and deductions multiplied by their ownership
interest in the partnership. Use the apportionment fraction For a Utah resident partner, enter the amount of other interest
from Schedule A, line 15. Expenses directly attributable to income (other than interest income shown on line 5a and 5b
Utah sources should be deducted against Utah income in above) included in box 5 of their federal Schedule K-1.
total and not apportioned.
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2021 Utah TC-65 Instructions 19
For a nonresident partner, enter the distributive share of ap- For all entries on line 12, enter the description shown on Utah
portioned Utah other interest income included in the amount Schedule K, line 12, in the space provided.
reported on Utah Schedule A, line 17.
Line 13 – Utah Section 179 Deduction
Line 6 – Utah Ordinary Dividends For a Utah resident partner, enter the amount from their federal
For a Utah resident partner, enter the amount from their federal Schedule K-1, box 12.
Schedule K-1, box 6a. For a nonresident partner, enter the distributive share of
For a nonresident partner, enter the distributive share of ap- apportioned Utah §179 deduction included in the amount
portioned Utah ordinary dividends included in the amount reported on Utah Schedule A, line 17.
reported on Utah Schedule A, line 17.
Line 14 – Utah Contributions
Line 7 – Utah Royalties For a Utah resident partner, enter the amount from their federal
For a Utah resident partner, enter the amount from their federal Schedule K-1, box 13, codes A through G.
Schedule K-1, box 7. For a nonresident partner, enter the distributive share of
For a nonresident partner, enter the distributive share of ap- any apportioned Utah contributions included in the amount
portioned Utah royalties included in the amount reported on reported on Utah Schedule A, line 17.
Utah Schedule A, line 17.
Line 15 – Foreign Taxes Paid or Accrued
Line 8 – Utah Net Short-term Capital For a Utah resident partner, enter the amount from their federal
Gain(Loss) Schedule K-1, box 16, codes L and M.
For a Utah resident partner, enter the amount from their federal For a nonresident partner, enter the distributive share of any
Schedule K-1, box 8. apportioned Utah foreign taxes paid or accrued included in
For a nonresident partner, enter the distributive share of ap- the amount reported on Utah Schedule A, line 17.
portioned Utah net short-term capital gain (loss) included in
the amount reported on Utah Schedule A, line 17. Line 16 – Utah Other Deductions
For a Utah resident partner, enter the amount from their federal
Line 9 – Utah Net Long-term Capital Schedule K-1, box 13, except codes A through G.
Gain(Loss) For a nonresident partner, enter the distributive share of
For a Utah resident partner, enter the amount from their federal apportioned Utah other deductions included in the amount
Schedule K-1, boxes 9a through 9c. reported on Utah Schedule A, line 17.
For a nonresident partner, enter the distributive share of ap- Enter the description as shown on Schedule K in the space
portioned Utah net long-term capital gain (loss) included in the provided.
amount reported on Utah Schedule A, line 17.
Line 17 – Utah Nonrefundable Credits
Line 10 – Utah Net Section 1231 Gain (Loss) Enter each partner’s distributive share of Utah nonrefundable
For a Utah resident partner, enter the amount from their federal credits as reported on Utah Schedule K, line 17. Also enter
Schedule K-1, box 10. the description and Utah nonrefundable credit code as shown
For a nonresident partner, enter the distributive share of ap- on Schedule K.
portioned Utah net §1231 gain (loss) included in the amount
Line 18 – Utah Refundable Credits
reported on Utah Schedule A, line 17.
Enter each partner’s distributive share of Utah refundable
Line 11 – Recapture of Section 179 Deduction credits as reported on Utah Schedule K, line 18. Also enter
For a Utah resident partner, enter the amount from their federal the description and Utah refundable credit code as shown
Schedule K-1, box 20, code M. on Schedule K.
For a nonresident partner, enter the distributive share of any Line 19 – Utah Tax Withheld on Behalf of Partner
apportioned Utah recapture of a §179 deduction included in
Enter the amount of Utah withholding tax withheld by this part-
the amount reported on Utah Schedule A, line 17.
nership on behalf of this partner if treated as a pass-through
Line 12 – Utah Other Income (Loss) entity taxpayer and calculated on Schedule N, and for whom
the waiver from withholding was not requested (see instruc-
For a Utah resident partner, enter: tions below). This amount will be claimed on the partner’s
1. the amount from their federal Schedule K-1, box 11, individual Utah return.
and Enter an “X” if the partnership entered a “1” in the Withholding
2. the partner’s distributive share of PPP grant or loan Waiver Request box at the top of Schedule N to not with-
income reported on Utah Schedule A, line 5. hold Utah tax on all pass-through entity taxpayers, or if the
For a nonresident partner, enter: partnership entered a “2” in the Withholding Waiver Request
1. the distributive share of apportioned Utah other income box at the top of Schedule N and entered an “X” on line B of
(loss) included in the amount reported on Utah Schedule Schedule N for this specifi c partner.
A, line 17, and Provide each partner/member a copy of their Utah Sched-
2. the amount of PPP grant or loan income reported on ule K-1.
Utah Schedule A, line 5.
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2021 Utah TC-65 Instructions 20
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 (SSN) of each nonresident
the last day of the partnership fi ling period, unless there was individual partner, the federal employer identifi cation number
a change in ownership during the fi ling period. If there was a (EIN) of each resident/nonresident business partner, or the
change in partners during the year, each partner’s percentage EIN of each resident/nonresident 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 required through entity taxpayer’s percentage shown on line D (or in
must complete Schedule N showing the amount of Utah in- accordance with the partnership agreement, if different).
come attributable to the partner, the amount of Utah tax on
such income (4.95%), any Utah mineral production withholding If the partner received a guaranteed payment attributable to Utah
tax and upper-tier Utah pass-through entity withholding tax source income, include that guaranteed payment (other than
credited to the partners, and the net amount of withholding any health insurance included in the guaranteed payment) in the
tax this partnership must pay on behalf of such partners. Use amount reported on line E. Utah pass-through withholding tax
additional forms TC-65, Schedule N, if needed. must include that payment. Guaranteed payments are sourced to
the state or country where the income was generated, regardless
of provisions which are contrary in the partnership agreement.
Withholding Waiver Claim
Line F – 4.95% of Income
(UC §59-10-1403.2(5))
Multiply the amount of income attributable to Utah for each pass-
You may claim a waiver from the requirement to withhold Utah through entity taxpayer (line E) by 4.95 percent (.0495). If the
income tax on pass-through entity taxpayers by entering a “ ” 1 amount on line E is a loss, enter “0”. Also enter “0” if the waiver
in the box if the waiver is for all partners, or a “ ” if the waiver 2 request has been requested for this partner (box B checked).
is for only certain partners. Also enter an “X” on line B and a “0”
in column F for each partner for whom the waiver is claimed. Line G – Mineral Production Withholding Credit
Claiming the waiver for all or specifi c partners does not relieve Enter the amount of any mineral production withholding tax al-
the partnership from the responsibility for the payment of Utah tax located by the partnership to the pass-through entity taxpayer.
on the income allocated to partners if the partners do not pay. If The credit for mineral production withholding tax reduces
the partner or partners for whom you claimed a waiver fail to fi le the amount of Utah withholding tax that is calculated for this
a return and make the required payment in a timely manner, you partner on Schedule N. Also report the credit on line 18 of
will be liable for the withholding, plus any penalties and interest. Schedule K-1 for this partner.
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2021 Utah TC-65 Instructions 21
Line H – Upper-tier Pass-through Total Pass-through Entity Withholding
Withholding Tax Add the pass-through withholding in column I for all partners.
Enter the amount of any pass-through entity withholding tax Enter this total at the bottom of Schedule N and carry it over
paid by an upper-tier (previous) pass-through entity, attribut- to TC-65, line 3 and to Schedule K, line 19.
able to this partnership, and allocated to the pass-through
entity taxpayer of this partnership. The credit for upper-tier
pass-through entity withholding tax reduces the amount of Pass-through Withholding Tax
Utah withholding tax calculated for this partner on Schedule Calculation Summary
N. Also report the credit on line 19 of Schedule K-1 for this The Utah withholding tax for partners who are pass-through
partner. entity taxpayers for whom the waiver is not requested is cal-
culated as follows:
Line I – Withholding Tax to be Paid
by This Partnership 1. Line E – Enter the income attributable to Utah for the
partner and any Utah-source guaranteed payment (other
Subtract the total of the credits on lines G and H from the tax than health insurance).
calculated on line F for each pass-through entity taxpayer. Do
not enter an amount less than zero. 2. Line F – Multiply the income on line E by the Utah tax rate
of 4.95% (.0495).
The withholding tax shown in column I is the withholding tax
3. Line G – Enter any Utah mineral production withholding tax
this partnership must withhold or pay on behalf of the pass-
allocated to this partner that is used to reduce the amount
through entity taxpayer. Report this withholding tax on line 19
of Utah withholding tax calculated.
of Utah Schedule K-1 given to the partner.
4. Line H – Enter any previous Utah withholding tax passed-
This withholding tax is to be paid to the Tax Commission by through to this partnership by an upper-tier pass-through
the original due date of the return. If the return is being fi led entity and allocated to this partner that is used to reduce
on extension, this withholding tax must be prepaid by the the amount of Utah withholding tax calculated.
original due date.
5. Line I – Enter the tax in column F less the sum of the allo-
cated Utah mineral production withholding tax in column G
and the upper-tier pass-through withholding tax in column
H. This is the pass-through withholding tax that must be
paid by the partnership on behalf of the partner. Do not
enter an amount less than zero.
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2021 Utah TC-65 Instructions 22
TC-250 – Credits Received from Upper-tier
Pass-through Entities and Mineral
Production Withholding Tax Credit on
TC-675R
Use TC-250 to report Utah nonrefundable and refundable tax Part 2 – Utah Refundable Credits Received
credits allocated on a Utah Schedule K-1 to this partnership from Other Pass-through Entities
by an upper-tier pass-through entity in which this partnership
owns an interest, as well as mineral production withholding Utah refundable tax credits allocated to this partnership by an
tax credits received on a form TC-675R. upper-tier pass-through entity and shown on Utah Schedule
K-1 received from the upper-tier pass-through entity must be
Attach form TC-250 to your partnership return if the part- reported in Part 2. These credits are found on Utah Schedule
nership received an allocation of nonrefundable and/or K-1 under refundable credits with a credit code. Do not include
refundable credits from an upper-tier pass-through entity Utah Schedule K-1 the partnership received showing these
on a Utah Schedule K-1. credits when fi ling this partnership’s return.
Upper-tier Pass-through Entity. An upper-tier pass-through
entity is a pass-through entity in which this partnership has an First Column
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
use additional forms TC-250. Second Column
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
Entities Third Column
Utah nonrefundable tax credits allocated to this partnership by Enter in the third column the refundable credit code shown
an upper-tier pass-through entity and shown on Utah Schedule on Utah Schedule K-1 received by this partnership from the
K-1 received from the upper-tier pass-through entity must be upper-tier pass-through entity.
reported in Part 1. These credits are found on Utah Schedule
K-1 under nonrefundable credits with a credit code. Do not Fourth Column
include Utah Schedule K-1 the partnership received showing Enter in the fourth column the amount of the allocated Utah
these credits when fi ling this partnership’s return. refundable credit shown on Utah Schedule K-1 received by
this partnership from the upper-tier pass-through entity.
First Column
Carry the refundable credits over to Utah Schedule K, line
Enter in the fi rst column the federal EIN shown in box “A” 18 for this return. If you have multiple credits for the same
of Utah Schedule K-1 received by this partnership from the credit code, combine the credit amounts before entering on
upper-tier pass-through entity. Schedule K. Allocate the credit to the partners on their indi-
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
pass-through entity. Part 3 – Utah Mineral Production
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
Enter in the fourth column the amount of the distributed Utah First Column
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
return. If you have multiple credits for the same credit code, combine Second Column
the credit amounts before entering on Schedule K. Allocate the Enter in the second column the producer’s name shown in box
credit to the partners on their individual Schedule K-1 based on “1” of the form TC-675R received by this partnership.
their ownership percentage or the partnership agreement.
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| 2021 Utah TC-65 Instructions 23 Third Column Enter in the third column the amount of the mineral production withholding tax shown in box “6” of the form TC-675R received by this partnership. Total the mineral production withholding amounts shown in the third column. Carry this total to Utah Schedule K for this return and enter it on line 18 using code “46.” Allocate this amount to the partners on their individual Schedule K-1 based on their ownership percentage or the partnership agreement. |
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2021 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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