Military Personnel & Their Spouses

Military Personnel & Their Spouses

Residents

Utah residents in the military do not lose their Utah residency or domicile solely by being absent due to military orders.They must file a Utah income tax return on all income, regardless of the source. If tax must be paid to another state on nonmilitary income, a credit may be allowed for the tax paid to the other state. If claiming this credit, complete and attach form TC-40S, Credit for Income Tax Paid to Another State.

Nonresidents

Nonresidents stationed in Utah solely due to military orders are not subject to Utah tax on their military pay. However, nonresident military personnel residing in Utah and receiving income from Utah sources (other than active duty military pay) must file a Utah income tax return and pay any tax due on that other income. See Subtractions from Income and Pub 57, Military Personnel Instructions.

Married Couples

The nonresident spouse of a nonresident active military service member may be exempt from Utah tax on income received in Utah under certain conditions. See Subtractions from Income and Pub 57, Military Personnel Instructions.

If one spouse is a full-year Utah resident and the other spouse is a full-year nonresident, they may file their federal return as married filing jointly and file their Utah returns as married filing separately. If either spouse is a part-year resident, they cannot file using these special instructions but must file their Utah return using the same filing status as on their federal return.

Serving in a Combat Zone

Military personnel deployed to a combat zone or overseas contingency operation can receive additional tax relief. See Utah Tax Information for Members of the U.S. Armed Forces for information about combat zone tax relief, including how to notify the Tax Commission of your deployment.