Utah Income and Losses

Federal Adjusted Gross Income

Enter your federal adjusted gross income (FAGI) from line 11 of your federal return (1040, 1040-SR, 1040NR).

Nonresidents and part-year residents: Enter the full amount of your federal adjusted gross income from your federal return (as noted above), not just your Utah income.

Income from Other States

Utah residents who earn income in other states must pay Utah tax on that income. You may claim a credit for income tax paid to another state if the other state also taxes the same income. See Credit for Income Tax Paid to Another State.

Income from Other Countries

Utah residents who live and work abroad must pay Utah tax on income earned in other countries if the income is included in federal adjusted gross income on the federal return. There is no Utah credit for taxes paid to another country. See Federal Tax Credits below.

Foreign Nationals & Expatriates

A foreign national or expatriate who meets Utah domicile and residency requirements is considered a Utah resident for tax purposes. See Utah Domicile.

You must pay tax on income earned from Utah sources if that income is included in your adjusted gross income on your federal return.

Federal Tax Credits

Federal income tax credits do not have an effect on Utah income tax. See UC §59-10-110.

There are some situations on the federal return that let you take a tax credit instead of excluding income from adjusted gross income or taking an itemized deduction. For example:

  • Foreign tax credit -OR- Foreign earned income exclusion
  • Lifetime learning credit -OR- Tuition deductions

Be aware: In these cases, if you choose to take a credit on your federal return instead of using an exclusion or deduction, you lose the tax benefit on your Utah return. Do not adjust your federal adjusted gross income or itemized deductions on your Utah return in an effort to gain the tax advantage — report your adjusted gross income and itemized deductions exactly as they appear on your federal return.

Utah Losses and Loss Carries

You must treat federal net operating losses on your Utah return in the same manner as you do on your federal return.

Nonresidents and part-year residents with a Utah loss but no federal net operating loss can apportion their Utah tax for the loss year to zero on Schedule TC-40B, but may not carry the remaining loss forward or back to other years.

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