Each taxpayer who was age 65 or older at the end of the tax year may be entitled to a retirement exemption of up to $7,500. A married couple filing a joint return may claim up to $15,000, if they are both 65 or older, depending on their income limitation explained below. This is in addition to the standard or itemized deduction and their Utah personal exemptions.
Each taxpayer who was under age 65 at the end of the tax year and received retirement income may qualify to deduct up to $4,800 of the qualifying income, depending on their income limitation explained below. The deduction is only available to the taxpayer who earned the qualifying income. A surviving spouse is entitled to this deduction for qualified income received on behalf of a deceased spouse; children or other nonspouse recipients are not entitled to the deduction.
Remember: Taxpayers claiming the retirement income deduction must attach a copy of all forms 1099-R, SSA-1099, and other documentation to support the deduction.
Utah law limits the exemption or deduction if your income exceeds certain amounts. For each dollar your income exceeds the limitation (as shown on TC-40B), the exemption/deduction is reduced by 50 cents. Income is calculated as shown below.
If your income exceeds the amount in the table below, you do not qualify for the retirement income exemption or deduction.
Calculate your income (all amounts are from your 2007 tax returns) as follows.
| 1. Federal adjusted gross income (Utah form TC-40, line 4a) | $ |
| 2. Lump-sum distribution (Utah form TC-40S, Part 1, code 51) | $ |
| 3. Tax-exempt interest (Federal form 1040 or 1040A, line 8b) | $ |
| 4. Total Income (add lines 1 through 3) | $ |
Find your filing status in the left column of the table below. Follow the rows across until you find the column that describes your age(s). If the income calculated on line 4 above is less than the amount indicated on the table, you are eligible for this deduction. Complete form TC-40B to determine your exemption/deduction.
| Filing Status | Retirement Exemption | Retirement Deduction | ||
|---|---|---|---|---|
| Taxpayer is 65 or older | Taxpayer AND spouse are 65 or older | Taxpayer is under age 65 | Taxpayer AND spouse are under age 65 | |
| Single | $40,000 | N/A | $34,600 | N/A |
| Married Filing Joint | $47,000* | $62,000 | $41,600* | $51,200 |
| Married Filing Separate | $31,000 | N/A | $25,600 | N/A |
| Head of Household or Qualifying Widow(er) | $47,000 | N/A | $41,600 | N/A |
*One spouse is 65 or older and the other spouse is under 65.
If you qualified for but didn’t take the retirement income exemption/deduction for a prior year, you may file an amended return. You have three years from the original due date to amend your return.
To amend a return, use the form for the year you are amending. These forms are available online at tax.utah.gov/forms, at the walk-in customer service locations, or by request from our automated forms order line (801) 297-6700 or 1-800-662-4335, ext. 6700. When completing the amended return, be sure to enter all tax amounts, such as withholding credits, tax credits, deductions, exemptions and all other tax amounts.
