Income Tax Withholding Tax Credit
Withholding is a form of “pay as you earn” taxation. Your employer withholds money from your paycheck and then sends it to the government as a prepayment of your income taxes. The amount taken out of your check is called withholding tax. Then, when you file you income tax return, the withholding tax is applied as a credit against the amount you owe.
If you are employed by someone else, your employer is required to provide you a Form W-2, Wage and Tax Statement, by January 31 each year. This form shows the total amount you earned during the previous year and the amount of federal and Utah taxes withheld from your paychecks for the year.
If you have income from a source other than an employer, you should receive a Form 1099. This form reports the income earned and any federal and Utah taxes withheld.
Utah withholding tax is claimed as a credit on your Utah TC-40, Utah Individual Income Tax Return.
The withholding is identified by the code “UT” on the withholding forms (W-2 or 1099) in the state identification box. Enter the Utah withholding tax and other information from your withholding forms (W-2 and 1099) on the Utah form TC-40W, Part 1. Total this withholding and enter it on your TC-40, page 2, line 33. If you have more than four withholding forms (the maximum number listed on a TC-40W, Part 1), you should use additional TC-40Ws.
Do not send copies of withholding forms with your Utah return. Keep withholding forms with your records. Processing may be delayed or the withholding tax credit disallowed if you do not complete the TC-40W, Part 1 with all required information. We may ask you to provide the documents at a later time.
Note: If you had tax withheld for another state, get the other state’s filing requirements, instructions and forms by going to www.taxadmin.org/state-tax-forms.
TC-40W, Part 1 Instructions
You must report Utah withholding tax from the following forms on the TC-40W, Part 1:
- Federal form W-2, Wage and Tax Statement
- Federal form 1099 (with Utah withholding), including 1099-R, 1099-MISC, 1099-G, etc.
Do not send W-2s or 1099s with your Utah return. Keep them in your files. We may ask you to provide the documents at a later time.
Processing may be delayed or the withholding tax credit disallowed if you do not complete the TC-40W with all required information.
To claim credit for Utah withholding tax, complete TC-40W, Part 1 by entering the following information from form W-2 or 1099:
- Line 1 – Enter your employer/payer federal EIN (W-2 box “b,” or 1099).
- Line 2 – Enter your employer/payer Utah withholding account number (W-2 box 15, or 1099).
- Line 3 – Enter your employer/payer name and address (W-2 box “c,” or 1099).
- Line 4 – Enter an “X” if the income and withholding tax are from a form 1099.
- Line 5 – Enter your social security number (or your spouse’s, if filing jointly) (W-2 box “a,” or 1099).
- Line 6 – Enter your Utah wages or income being reported (or your spouse’s, if filing jointly) (W-2 box 16, or 1099).
- Line 7 – Enter your Utah withholding tax (or your spouse’s, if filing jointly) (W-2 box 17, or 1099).
Note: If there is no Utah employer identification number on a form W-2 box 15, 1099-R box 11, 1099-MISC box 17, or any other 1099 form, your refund may be reduced or the tax due increased. Contact the employer or payer of the income to obtain the Utah ID number, and write it on the TC-40W.