Also see: Recent Info and Tax Law Changes which details recent changes in tax laws, including federal laws that affect Utah taxes.
- Solar energy systems phase-out: The maximum Renewable Residential Energy Systems Credit (credit 21) for solar power systems installed in 2022 is $800.
- Payroll Protection Program (PPP) grant or loan addback: In certain situations you must add to your income the amount of PPP grants or loans forgiven in 2022.
- Utah tax rate: The 2022 Utah Legislature passed SB 59, lowering the state individual income tax rate from 4.95 percent to 4.85 percent.
- Earned income tax credit: The 2022 Utah Legislature passed SB 59, creating the Utah Earned Income Tax Credit.
- Tax paid on behalf of a pass-through entity taxpayer: The 2022 Utah legislature passed HB 444, allowing a pass-through entity to pay tax on behalf of a pass-through entity taxpayer. This bill created an addition to income and a nonrefundable tax credit.
Can a Utah resident individual claim a nonrefundable credit for taxes paid to another state if those taxes are paid through a pass through entity on behalf of the individual?
Yes, a Utah resident individual may claim a credit for taxes paid to another state by a pass-through entity if:
- the taxes are imposed on income derived from sources within that other state;
- the pass-through entity paid the tax to the other state on behalf of the resident individual for income that was calculated on the distributable share of the resident individual; and
- any amount of income or taxes paid to another state on the income that is not included in the resident individual’s federal adjusted gross income, is reported on the resident individual’s Utah income tax return as an addition to income on form TC-40A, Part 1, using Code 60.