Military Pay and Military Spouse Income

Nonresident Active Duty Military Pay (code 82)

50 USC §4001

Active duty military service pay received by a nonresident is not taxable on the Utah return.

The amount of active duty military pay included in federal adjusted gross income should be subtracted on TC-40A, Part 2, using code 82.

You must also complete a Utah TC-40B, Non or Part-year Resident Schedule. Your military income subtraction is included in the TC-40B total column on line 32.

If you file a paper return, attach both the TC-40A and TC-40B to your Utah return. Also include your active duty military income from your W-2 form on the TC-40W, Part 1.

See Pub 57, Military Personnel Instructions for more information.

Nonresident Military Spouse Income (code 88)

50 USC §4001

All Utah income of a nonresident spouse married to a nonresident active duty military service-member may be exempt from Utah income tax.

In order to qualify, the nonresident spouse must meet the following conditions:

  • The nonresident spouse had the same domicile as the nonresident military service-member before moving to Utah;
  • The nonresident spouse is in Utah to be with their military spouse; and
  • The nonresident active duty service-member is in Utah under military orders.

If the nonresident military spouse qualifies for this exemption, all their income is exempt from Utah tax. (This income may still be taxable for federal purposes and may be taxed in the state of residence.)

If qualified, subtract the total income included in federal adjusted gross income for the nonresident spouse on your Utah TC-40A, Part 2, using code 88. This will then be included in the subtractions on TC-40B, column B, line 32. Include only the Utah income of the nonresident spouse in the subtractions entered on TC-40B, column A, line 32.

See Pub 57, Military Personnel Instructions for more information.