Utah levies an income tax tied to the federal tax system, which means that Utah allows for the federal standard deduction or itemized deductions, and a portion of the federal personal exemption. Utah has six tax brackets, with a top rate of 6.98 percent, levied on taxable income greater than $5,500 if single or married filing separately and $11,000 if married filing joint, head of household, or qualifying widow(er). Utah begins its calculations with federal adjusted gross income and, in general, allows for the following deductions/exemptions.
Note: In 2007, if using the single rate tax of 5.35% on modified adjusted gross income, the above deductions do not apply.
Utah allows the current federal standard deduction, which is:
Utah allows a personal and dependent exemption deduction equal to 75 percent of the personal and dependent exemption deduction allowed on the federal return. The Utah exemption amount for 2007 is $2,550 (75 percent of the $3,400 federal exemption amount).
If your federal adjusted gross income on the Utah TC-40, line 4a is more than the amount shown in the following table for your filing status, your Utah exemption deduction is limited. You must complete the worksheet below to determine the amount of your Utah exemption allowed for 2007 that is entered on the TC-40, line 9b.
| AGI | Filing Status |
|---|---|
| $117,300 $156,400 $195,500 $234,600 |
Married Filing Separate Single Head of Household Married Filing Joint or Qualifying Widow(er) |
| 1. |
Enter the amount of your federal exemption deduction from: Form 1040, line 42, Form 1040A, line 26, or Form 1040NR, line 39. |
$ |
|---|---|---|
| 2. | Multiply line 1 by 75% (.75) Enter this amount on Utah TC-40, line 9b |
$ |
An additional Utah exemption is allowed for certain disabled dependents. If your income exceeds the amount in the AGI table above for your filing status and you claim a qualified disabled exemption (line 2d of TC-40), complete the following worksheet to determine your Utah exemption amount.
| 1. |
Enter the amount of your federal exemption deduction from: Form 1040, line 42, Form 1040A, line 26, or Form 1040NR, line 39. |
$ |
|---|---|---|
| 2. |
Number of exemptions claimed on federal return from: Form 1040, line 6d, Form 1040A, line 6d, or Form 1040NR, line 7d. |
|
| 3. | Divide line 1 by line 2. | $ |
| 4. | Number of Utah exemptions on TC-40, line 2e. | |
| 5. |
Multiply line 3 by line 4. Enter this amount on Utah TC-40, line 9b |
$ |
Utah permits taxpayers to deduct one-half of the federal income tax liability as shown on their federal return for the same tax year. The federal tax deduction is based on the tax calculated on their federal return, not on the amount of federal tax withheld by employers.
The federal tax used for this calculation for 2007 is located on teh following forms:
Utah seniors and retirees have special income tax benefits that can reduce their Utah taxable incomes. Click here for more information.
