Utah Code §59-10-114(d) and Rule R865-9I-49

If you withdrew an amount from a Utah Educational Savings Plan (UESP) 529 account but did not use it for qualified higher education expenses, and the withdrawal did not meet an exception under IRC §529(c) or §530(d), the amount withdrawn must be included in Utah additions to income.

Enter the amount, up to the amount deducted on your Utah return in a tax year prior to 2008 or the amount used to calculate the UESP credit on your Utah return after 2006. 

A UESP account owner will receive form TC-675H, Utah Educational Savings Plan Tax Statement for Contributions, Withdrawals, and Transfers, from UESP. Keep this form with your records.

Enter the taxable amount on Utah form TC-40A, Part 1, using code 20.

For More Information on UESP

For more detailed information on UESP accounts, call 801-321-7188 or 1-800-418-2551, or go to the UESP website at uesp.org.