Nonresidents and Part-year Residents

• Nonresidents
• Part-year residents

Nonresidents

A nonresident either did not live in Utah or was in Utah for less than 183 days of the taxable year. Income a nonresident receives from Utah sources is taxable in Utah.

If you are a nonresident, you must file two state returns – one to Utah and one to your home state. Report ALL income earned on your Utah return, not just income from Utah. Compute the Utah income income ratio (percentage) on form TC-40B, Non or Part-year Resident Utah Income Schedule. Then use that percentage to calculate the Utah tax due.

Your resident state may give you credit for taxes 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
$ 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.
2. He takes his deductions and calculates his Utah tax as if everything was earned in Utah.
3. He uses form TC-40C to compute the portion of Utah-earned income – 60 percent (30,000 divided by 50,000).
4. Because 60 percent of the income is from Utah, he multiplies the tax amount on the TC-40B by 60 percent.
5. To avoid double taxation, he files a California resident return, entering all of the income, and claiming a credit for the Utah-paid tax on the California return.

Part-year Residents

A part-year resident lives in Utah for part of the year and outside Utah for part of the year. All income received while living in Utah is taxable in Utah, regardless of the income's source. Income from Utah sources is also taxable.