Taxpayer Tax Credit

General Information

UC §59-10-1018

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:

  1. The initial credit is 6 percent of the total of your Utah personal exemption amount plus your federal standard or itemized deduction amount.
  2. 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.

Phase-out Calculation

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
Single $14,256
Married Filing Jointly $28,512
Married Filing Separately $14,256
Head of Household $21,384
Qualifying Widow(er) $28,512

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”.