What's New for 2018
Federal & State Tax Reform
In 2017 Congress passed the Tax Cuts and Jobs Act, suspending federal personal exemptions and increasing the standard deduction for individual income tax. The federal standard deduction (line 12) is greater than previous years. Meanwhile, the 2018 Utah Legislature passed HB 2003, creating a Utah personal exemption for dependents that qualify for the child tax credit on a filer’s federal return.
Utah Tax Rate
The 2018 Utah Legislature passed HB 293, lowering the state individual income tax rate from 5 percent to 4.95 percent.
UESP Name Change
The Utah Educational Savings Plan (UESP) is now my529.
Municipal Bond Interest
If you paid federal taxes on interest you received from a Utah municipal bond, you may be entitled to a deduction on your Utah return.
Solar Energy Systems Phase-out
The 2018 Utah Legislature passed SB 141, phasing out the Renewable Residential Energy Systems Credit (credit 21) for solar panels starting in 2018. The maximum credit for solar power systems installed in 2018 is $1,600.
Small Employer Retirement Program
The 2017 legislature passed SB 109, creating a one-year tax credit for small employers who offer their employees a qualified retirement plan.
Suicide Prevention Fund
The 2018 legislature passed HB 370, creating a new voluntary contribution to the Governor’s Suicide Prevention Fund.
The retirement credit for persons under age 65 has expired.