• Nonresidents
• Part-year residents

Nonresidents

A nonresident individual is one who was not domiciled in Utah, or does not maintain a place of abode in Utah, or was in Utah for temporary purposes for less than 183 days during the taxable year.

In determining whether an individual spends 183 or more days in Utah, a day means a day in which the individual spends more time in Utah than in any other state.

Income a nonresident receives from Utah sources is taxable in Utah.

If you are a nonresident, you must file two state returns – one for Utah and one for your home state (if they have an income tax).

• Report all income earned or received from all sources on your Utah TC-40, line 4.
• Report all income earned in Utah on your Utah TC-40B, Non or Part-year Resident Utah Schedule.
• Compute the Utah income ratio (percentage) on your Utah form TC-40B. Then use that percentage to calculate the Utah tax due.
• Report all income you earned and received during the tax year on the return of your home state. Your resident state may give you credit for the taxes you paid to Utah.

Example

A California resident works in Utah on a construction project. His yearly income is:

$ 10,000 - Income from renting his California home while in Utah
$ 10,000 - Income earned in California
$ 30,000 - Income earned in Utah
$ 50,000 - Total Income

He completes the Utah return as follows:

1. He enters the entire income, $50,000 on the Utah TC-40, line 4.
2. He calculates his initial Utah tax as if everything was earned and taxed in Utah.
3. He uses the Utah form TC-40B to compute the ratio of Utah income to total income – .6000 (30,000 divided by 50,000).
4. He multiplies the “as is” total Utah tax by the ratio – .6000.
5. To avoid double taxation, he files a California resident return, reporting and calculating California tax on all of his income, and then claiming a credit for the income tax paid in Utah.

Part-year Residents

A part-year resident is an individual who is a Utah resident for part of the year and a nonresident for part of the year.

All income received during the period of Utah residency is taxable in Utah, regardless of where that income is earned, unless specifically exempted by Utah law. Income from Utah sources is taxable in Utah during the period of non-residency.

Example

After living in Oregon for the first half of the year, an individual moves to Utah on July 1. His yearly income is:

$ 28,000 - Income earned in Oregon from January 1 through June 30
$ 32,000 - Income earned in Utah from July 1 through December 31
$ 60,000 - Total Income

He completes the Utah return as follows:

1. He enters the entire income, $60,000 on the Utah TC-40, line 4.
2. He calculates his initial Utah tax as if everything was earned and taxed in Utah.
3. He uses the Utah form TC-40B to compute the ratio of Utah income to total income – .5333 (32,000 divided by 60,000).
4. He multiplies the “as is” total Utah tax by the ratio – .5333.
5. He files an Oregon part-year resident return, reporting and calculating Oregon tax on his Oregon income.