Utah offers several tax credits related to retirement income. Depending on your situation, you may be eligible for one of the following credits:
- Retirement Tax Credit
- Social Security Benefits Credit
- Military Retirement Credit
Because these credits apply to similar types of income, Utah generally does not allow taxpayers to claim more than one credit on the same income.
Retirement Tax Credit
The Utah Retirement Tax Credit may be available if you receive qualifying retirement income that is included in your federal adjusted gross income.
Examples of retirement income may include:
- Pension income
- Annuity payments
- Retirement distributions
- Other qualifying retirement benefits subject to Utah tax
Eligibility for the credit may depend on your age, filing status, income, and the amount of retirement income received during the tax year.
Military Retirement Credit
Utah provides a credit for qualifying military retirement pay and survivor benefits that are included in federal adjusted gross income.
What income may qualify?
Eligible income generally includes:
- Military retirement pay
- Military survivor benefits
If you qualify for this credit, enter the amount of taxable military retirement pay or survivor benefits included on your federal return.
Keep any Forms 1099-R or other retirement benefit statements with your tax records.
Social Security Benefits Credit
Utah also provides a credit for qualifying taxpayers who receive Social Security benefits.
The credit is generally available for Social Security benefits reported on the federal return and is subject to Utah's income limitations and eligibility rules.
Can I Claim More Than One of These Credits?
No. These credits are generally mutually exclusive.
If you claim the Retirement Tax Credit:
You cannot also claim the:
- Social Security Benefits Credit
- Military Retirement Credit
If you claim the Military Retirement Credit:
You cannot also claim the:
- Retirement Tax Credit
If you claim the Social Security Benefits Credit:
You cannot also claim the:
- Retirement Tax Credit
The credit that provides the greatest benefit will depend on your individual tax situation.
How Do I Choose Which Credit to Claim?
When completing your Utah return, review each credit for which you may qualify.
Factors that can affect which credit provides the greatest benefit include:
- The type of retirement income received
- The amount of retirement income
- Filing status
- Utah adjusted gross income
- Eligibility for income-based phaseouts
How Do I Enter Retirement-Related Credits?
- Navigate to the Utah Return section.
- Select Retirement Tax Credit.
- Indicate whether the taxpayer and/or spouse is claiming:
- Retirement Tax Credit
- Military Retirement Credit
- Social Security Benefits Credit
- Enter the amount of qualifying military retirement pay or survivor benefits, if applicable.
- Continue through the remainder of the Utah return.
What Records Should I Keep?
Keep documents supporting any credit claimed, including:
- Forms 1099-R
- Social Security benefit statements (Form SSA-1099)
- Military retirement benefit statements
- Survivor benefit statements
- Any worksheets used to determine eligibility or calculate the credit
Retaining these records with your tax documents can help support your credit if the Utah State Tax Commission requests additional information after your return is filed.