The following instructions will help military personnel understand how to file a Utah income tax return:

• Am I a Utah resident?
• Is my military income taxed?
• What if my spouse is a Utah resident and I am a nonresident on military orders?
• What if my spouse receives income in Utah?
• Sample calculation for nonresidents

See also:

• Military and Military Spouse Income
• Utah Tax Information for Members of the U.S. Armed Forces
• Pub 57, Military Personnel Instructions

Am I a Utah Resident?

Utah residents in the military do not lose their Utah residency or domicile solely by being absent from Utah due to military orders. They must file a Utah income tax return on all income, regardless of the source. If tax must be paid to another state on non-military income, Utah allows a credit for taxes paid to the other state. If claiming this credit, complete and attach form TC-40S, Credit for Income Tax Paid to Another State.

Residents of other states (nonresidents of Utah) stationed in Utah solely due to military orders are not subject to Utah tax on their military pay. However, nonresident military personnel residing in Utah and receiving income from Utah sources (other than active duty military pay), must file a Utah income tax return and pay any tax due on that other income. See Pub 57, Military Personnel Instructions.

Is My Military Income Taxed?

Military pay of nonresidents stationed in Utah due to military orders is not subject to Utah income tax. However, if nonresident military personnel living in Utah earn income from Utah sources other than military pay, they must file a return and pay any Utah tax on the non-military income by the earlier of:

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

Interest 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 is a Utah Resident and I am a Nonresident on Military Orders?

If one spouse is a full-year Utah resident and the other spouse is a full-year nonresident, the couple may file separate Utah tax returns, even though they file a joint federal tax return. If either spouse is a part-year resident, the couple cannot file using these special instructions. They must file using 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 which includes all income of both spouses as reported on your federal return;
   2. Separate Utah returns following the instructions in Pub 49, Income Tax Special Instructions for Married Couples Where One Spouse is a Utah Nonresident.

What if My Spouse Receives Income in Utah?

The nonresident spouse of a nonresident active military service member may be exempt from Utah tax on income received in Utah if certain conditions are met. This income is still taxable for federal purposes and may be taxed in the state of residence.

To exclude the exempt income from the Utah return, make these subtractions:

• For the nonresident military service-member, deduct the active duty military pay on TC-40A, Part 2, using code 82.
• For the nonresident spouse of a nonresident military service-member filing a joint return, deduct total income from all sources on TC-40A, Part 2, using code 88.

Income that is taxable in Utah would then include:

• All income of a resident service-member, including military pay;
• All income of a resident spouse; and
• Any income earned or received from Utah sources while stationed in Utah by the nonresident service-member, other than active duty military pay.

Sample Calculation for Nonresidents

The following example may help illustrate the above explanations.

If the military service member and spouse are both nonresidents of Utah and had the same domicile in another state before moving to Utah under military orders, their Utah taxable income would be computed as follows:

^1. The active duty military pay of a nonresident service-member on line 1 would be deducted on TC-40A, Part 2, using code 82.

^2. The total income of a nonresident spouse on line 3 would be deducted on TC-40A, Part 2, using code 88.

The only income taxed for the nonresident couple is the Utah income earned by the service-member from his non-military employment.