Military Personnel

See Also:

• Tax Deductions – Military and Active Duty Pay
• Utah Tax Information for Members of the U.S. Armed Forces
• Pub 57, Military Personnel Instructions

Military personnel should answer the following questions to find out if they must file a Utah income tax return.

• Am I a Utah resident?
• What if my spouse earns income in Utah?
• What if my spouse is a Utah resident and I am a nonresident?

Am I a Utah resident?

Utah residents in military service do not lose their Utah residency when absent from Utah on military orders. Likewise, residents of other states who are in Utah solely on military orders are considered nonresidents while stationed in Utah.

Utah residents must file Utah income tax returns on all income even if it is not earned in Utah. If tax is paid to another state on nonmilitary income, Utah allows a credit for taxes paid to the other state.

Military pay of nonresidents stationed in Utah on military orders is not subject to Utah income tax. However, if nonresident military personnel (or their family members) living in Utah earn income from Utah sources, they must file a return and pay any Utah tax.

Note: The late-filing penalty is waived for a Utah resident in military service stationed outside the United States if the return is filed by:

• the 15th day of the fourth month after the taxpayer's return to the United States or
• his discharge date, whichever is earlier.

Interest is accrues on unpaid tax from the due date until the tax is paid. Click here for information on combat zone relief.

What if My Spouse Earns Income in Utah?

The spouse of an active military person is considered to share that person's domicile and is subject to the same income tax laws and rules that apply to the military person.

Utah taxable income includes:

• Any income of a resident spouse;
• Any income earned by a nonresident spouse from Utah sources, other than active duty military pay.
• Any income earned by a part-year resident spouse during the period of residency.

What if My Spouse is a Utah Resident and I am a Nonresident?

A husband and wife qualify to file Utah returns using Special Instructions when one spouse is a full-year Utah resident and the other spouse is a nonresident. If either spouse is a part-year resident, the couple cannot file using Special Instructions; they must claim the same filing status on both their federal and Utah returns.

The following procedures should be used when one spouse is a full-year resident and the other spouse is a nonresident:

1. If you file separate federal returns, you must file separate Utah returns.
2. If you file a joint federal return, you may choose to either file:
   1. A joint Utah return – you must include all income of both spouses as reported on your federal return;
   2. Using Special Instructions – file separate returns for Utah. For detailed instructions and examples, see Publication 49.

See also 2007 Income Tax Special Instructions for Married Couples Where One Spouse is a Utah Nonresident.