• Nonresident students in Utah
• Utah residents attending school out of state
• Get forms from other states
• Also see: IRS – Tax Information For Students (Federal Information)

Nonresident Students in Utah

Income a nonresident student receives from Utah sources is taxable in Utah (wages, rental income, business income, etc.).

If you are a nonresident student, 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 1

A California resident attends the University of Utah. His yearly income is:

$ 2,000 – Part-time job in Utah
$ 5,000 – Earned in California during summer break
$ 3,000 – Federal taxable portion of University of Utah scholarship
$10,000 – Total taxable income (1/2 Utah, 1/2 California)

The income is divided as follows:

$5,000 – California
$5,000 – Utah (2,000 plus 3,000)

The student completes the Utah return as follows:

1. He enters the entire income, $10,000 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 – .5000 (5,000 divided by 10,000).
4. He multiplies the “as is” total Utah tax by the ratio – .5000.
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.

Example 2

An Oregon resident attends the University of Utah. Her yearly earnings are:

$ 2,000 – Part-time job in Utah
$ 5,000 – Earned in Oregon during summer break
$ 3,000 – Taxable portion of Oregon Elks Lodge scholarship
$10,000 – Total income

The income is divided as follows:

$8,000 – Oregon (5,000 plus 3,000)
$2,000 – Utah

The $3,000 taxable portion of the scholarship is considered Oregon income. In this case, the student would:

1. She enters the entire income, $10,000 on the Utah TC-40, line 4.
2. She calculates her initial Utah tax as if everything was earned and taxed in Utah.
3. She uses the Utah form TC-40B to compute the ratio of Utah income to total income – .2000 (2,000 divided by 10,000).
4. She multiplies the “as is” total Utah tax by the ratio – .2000.
5. To avoid double taxation, she files an Oregon resident return, reporting and calculating Oregon tax on all of her income, and then claiming a credit for the income tax paid in Utah.

Utah Residents Attending School Out of State

Utah residents who attend an out-of-state school (full or part-time) must pay Utah taxes on all income earned or received from Utah and from the other state where they attend school. Utah residents attending non-Utah schools do not lose their residency by being absent from Utah to attend school. They must file a Utah income tax return reporting all income, regardless of source.

You may have to pay tax to another state on income received while attending a school in the other state; however, Utah may allow a credit for the tax paid to the other state.

Example 1

A Utah resident attends the University of Arizona. Her income is:

$2,000 – Part-time job in Arizona
$5,000 – Earned in Utah during summer break
$1,500 – Taxable portion of scholarship from Univ. of AZ
$8,500 – Total income

The income is divided as follows:

$3,500 – Arizona (2,000 plus 1,500)
$5,000 – Utah

The student must file a full-year Utah resident return reporting all income (8,500).

If she files and pays taxes to Arizona on the income earned there, she may get a credit on her Utah return for those taxes (see TC-40S, Credit for Income Taxes Paid Another State). The ratio of Arizona income to total income is .4118. She files a Utah tax return computing tax on the full $8,500. On TC-40S, she multiplies the Utah tax by .4118 – the Arizona portion of her income – to compute her allowable credit.

She must file an Arizona return to qualify for the credit.

Example 2

A Utah resident attends school at Idaho State University. His income is:

$ 3,000 – Part-time job in Idaho
$ 5,000 – Earned in Utah during summer break
$ 2,000 – Taxable portion of scholarship from Utah Elks Lodge
$10,000 – Total income

Here is how the income is divided:

$3,000 – Idaho portion
$7,000 – Utah portion (5,000 plus 2,000)

The student must file a full-year Utah resident return reporting all income (10,000).

He must file and pay taxes to Idaho on the $3,000 wages earned there. In this case, the $2,000 taxable portion of the scholarship is not taxed by Idaho because it is from a non-Idaho source.

He may get a credit on his Utah return for taxes paid to Idaho (see TC-40S, Credit for Income Taxes Paid Another State). The ratio of Idaho income to total income is .3000. He files a Utah tax return computing the tax on the full $10,000. On TC-40S, he multiplies the Utah tax by .3000 – the Idaho portion of his income – to compute his allowable credit.

He must file an Idaho return to qualify for the credit.

Example 3

A Utah resident attends the University of Nevada. His income is:

$2,000 – Part-time job in Nevada
$5,000 – Earned in Utah during summer break
$7,000 – Total income

The student must file a full-year Utah resident return reporting all income (7,000).

On the Utah return he must pay tax on the full $7,000 of income. The student does not get a credit for taxes paid to Nevada because Nevada does not have a state income tax.