Military Personnel

See Also:

• Tax Deductions – Military and Active Duty Pay
• Utah Tax Information for Members of the U.S. Armed Forces
• Pub 57, Military Personnel Instructions

Military personnel stationed in Utah and Utahns serving in the armed forces outside of Utah should ask themselves the following questions to find out if they must file a Utah income tax return.

• Am I a Utah resident?
• What if my spouse earns income in Utah?
• What if my spouse is a Utah resident and I am a nonresident?

Am I a Utah resident?

Utah residents who go into military service do not lose their Utah residency solely by being absent from Utah due to military orders. Likewise, residents of other states who are in Utah solely due to military orders are considered nonresidents while stationed in Utah.

Utah residents are liable for filing Utah income tax returns on all income regardless of whether it is generated in Utah or not. If income tax is paid to another state on nonmilitary income earned there, Utah allows a credit for taxes paid to the other state.

Nonresidents who are stationed in Utah solely due to their military orders are not subject to income tax on their military pay in Utah. However, if nonresident military personnel (or members of their family) living in Utah earn income from Utah sources – other than active military service pay – they are required to file a return and pay any Utah tax due.

Note: A Utah resident in military service, stationed outside the United States, will be granted a waiver of penalty for late filing if the return is filed on or before the 15th day of the fourth month after the taxpayer's return to the United States or his discharge date, whichever is earlier. Interest is still due on any unpaid amounts from the original due date until the tax is paid. For information on combat zone relief, click here.

What if My Spouse Earns Income in Utah?

The spouse of a person in active military service is generally considered to have that person's domicile and is subject to the same income tax laws and rules that apply to the military person.

The following income is taxable by the state of Utah:

• Any income of a resident spouse;
• Any income earned by a nonresident spouse from Utah sources, other than active duty military pay.
• Any income earned by a part-year resident spouse during the period of residency.

What if My Spouse is a Utah Resident and I am a Nonresident?

A husband and wife qualify to file Utah returns using Special Instructions when one spouse is a full-year Utah resident and the other spouse is a nonresident. If either spouse is a part-year resident, the couple cannot file using Special Instructions; they must claim 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 – you must include all income of both spouses as reported on your federal return;
   2. Using Special Instructions – file separate returns for Utah. For detailed instructions and examples, see Publication 49.

See also 2007 Income Tax Special Instructions for Married Couples Where One Spouse is a Utah Nonresident.