Taxpayer Tax Credit
You may be allowed a credit against your Utah tax based on the total of your Utah exemptions and adjusted federal itemized deductions or standard deduction. The credit phases out for incomes over a specific amount, based on your filing status.
This credit is calculated in two parts:
- The initial credit is 6 percent of the total of your Utah personal exemption amount plus your federal standard or itemized deduction amount.
- The initial credit is then subject to a phase-out when income exceeds certain limits set by law.
The calculation of the taxpayer tax credit appears on the front of TC-40, Utah Individual Income Tax Return, on lines 11 through 20. No documentation needs to be attached to your Utah return.
Line 16. Initial Credit before Phase-out
Multiply line 15 by 6 percent (.06).
Line 17. Base Phase-out Amount
Enter the following base phase-out amount determined by your filing status shown on line 1.
|Filing Status||Base Amount|
|Married Filing Jointly||$28,512|
|Married Filing Separately||$14,256|
|Head of Household||$21,384|
Line 18. Income Subject to Phase-out
Subtract line 17 from line 9. If the result is zero or less, enter “0”.
Line 19. Phase-out Amount
Multiply line 18 by 1.3 percent (.013). This is the credit phase-out amount.
Line 20. Taxpayer Tax Credit
Subtract the phase-out amount on line 19 from the initial credit on line 16. If the result is zero or less, enter “0”.