Questions about which types of interest or dividends from U.S. securities and obligations are tax-free on the Utah individual income tax return frequently arise. In particular, many mutual funds claim all of the interest or dividends earned are tax-free in Utah, but often only a portion of the mutual fund is invested in U.S. securities or obligations that are clearly exempt from Utah tax.
The Tax Commission strongly encourages anyone who claims this deduction to read the Tax Commission Pub 33, Interest from U.S. Obligations. This publication contains detailed listings of which specific U.S. securities and obligations are and are not taxable.
