The Utah Tax section includes additional taxes and credit recapture amounts that may apply to your Utah individual income tax return. Most taxpayers won't need every entry in this section, but it's important to review each item carefully to determine whether it applies to your situation.
For tax year 2026, the Utah return includes entries for:
- Recapture of Low-Income Housing Credit
- Recapture of Employer-provided daycare construction Credit
- Recapture of Employer-provided daycare expenses Credit
- Utah Use Tax
Recapture of Low-Income Housing Credit
If you claimed a Utah Low-Income Housing Credit in a prior year and the property no longer qualifies for the credit, you may be required to repay some or all of the credit previously claimed. This repayment is called a credit recapture.
You may need to recapture the credit if:
- The building or ownership interest was sold.
- The qualified basis of the building decreased.
- You were required to recapture a portion of the related federal Low-Income Housing Credit.
Recapture of Employer-Provided Daycare Construction Credit
If you previously claimed Utah's Employer-Provided Childcare Construction Credit and stopped operating the childcare center before meeting the required five-year operating period, you may be required to repay a portion of the credit.
Recapture of Employer-Provided Daycare Expenses Credit
If you previously claimed the Utah Employer-Provided Daycare Expenses Credit and did not continue providing qualifying childcare services for at least five consecutive years, you may be required to repay a portion of the credit claimed in an earlier year.
Recapture may apply if you stop:
- Operating a qualified on-site childcare center, or
- Providing a contracted off-site childcare benefit for employees
If you do not operate the on-site childcare center or provide the contracted off-site childcare benefit for at least five consecutive years, you must repay a percentage of the total credit taken.
The repayment must be reported for the tax year in which the childcare benefit or facility ceased operation. Keep all supporting records with your tax documents.
Utah Use Tax
Utah use tax applies when you purchase taxable goods or services for use, storage, or consumption in Utah and Utah sales tax was not collected at the time of purchase.
Use tax commonly applies to purchases from:
- Online retailers
- Mail-order companies
- Out-of-state businesses
- Sellers not required to collect Utah sales tax
Common Examples
You may owe Utah use tax on items such as:
- Furniture purchased online without Utah sales tax
- Electronics purchased from an out-of-state seller
- Equipment or supplies purchased while traveling and brought into Utah
- Other taxable goods where sales tax was not paid when purchased
How Is Use Tax Calculated?
If you do not have a Utah sales tax account, calculate your use tax using Form TC-150 and enter the total on your Utah return.
You may receive a credit for sales or use tax paid to another state, but not for tax paid to a foreign country. The credit cannot exceed the Utah use tax due.
How Do I Access the Utah Taxes Section?
- Go to the Utah Return menu.
- Select Tax.
- Review the available entries.
- Enter any applicable amounts for:
- Recapture of Low-Income Housing Credit
- Recapture of Employer-provided daycare construction Credit
- Recapture of Employer-provided daycare expenses Credit
- Utah Use Tax
- Continue through the remainder of your Utah return.