What’s New & Recent Information

Also see: Recent Info and Tax Law Changes which details recent changes in tax laws, including federal laws that affect Utah taxes.

What’s New

• Solar Energy Systems Phase-out: The maximum Renewable Residential Energy Systems Credit (credit 21) for solar power systems installed in 2021 is $1,200.
• Special Needs Opportunity Scholarship Program: The 2020 legislature passed HB 4003, creating a nonrefundable tax credit for donations made to the Special Needs Opportunity Scholarship Program.
• Schedule C Removed: We have removed TC-40C (Retirement Tax Credit Schedule) from the TC-40 forms package. In place of TC-40C, use this worksheet. If you claim the retirement tax credit, be sure to enter your birthdate on TC-40A, Part 3.
• Social Security Benefits Tax Credit: The 2021 Utah Legislature passed HB 86, creating an apportionable, nonrefundable tax credit for taxable Social Security income.
• Military Retirement Tax Credit: The 2021 Utah Legislature passed SB 11, creating an apportionable, nonrefundable tax credit for taxable military retirement benefits.
• 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 2021.

Recent Information

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:

1. the taxes are imposed on income derived from sources within that other state;
2. 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
3. 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.