What Information Can Be Found in the Utah Taxes Section?

The Utah Taxes section includes additional taxes and tax recapture items that may apply to your Utah income tax return. Most taxpayers won't need to complete every field in this section, but it's important to review each item to determine whether it applies to your situation.

The Utah Taxes section may include:

• Recapture of Low-Income Housing Credit
• Use Tax

Recapture of Low-Income Housing Credit

If you previously claimed a Utah Low-Income Housing Credit and the property no longer qualifies for the credit, you may be required to repay all or part of the credit claimed in an earlier year.

This repayment is called a credit recapture.

Credit recapture may apply when:

• The property is sold.
• The property is no longer used for its intended qualifying purpose.
• Federal or state requirements related to the credit are no longer met.

If you receive documentation indicating that a portion of a previously claimed credit must be recaptured, enter the recapture amount in this section.

Keep all supporting schedules and recapture calculations with your tax records.

Use Tax

Utah use tax applies when you purchase taxable items for storage, use, or consumption in Utah and no Utah sales tax was collected at the time of purchase.

Use tax helps ensure that purchases made outside Utah are taxed in the same way as purchases made from businesses located within Utah.

When Might I Owe Use Tax?

You may owe Utah use tax if you purchased taxable items from:

• Online retailers that did not collect Utah sales tax
• Mail-order companies
• Out-of-state businesses
• Individuals or businesses not required to collect Utah sales tax

Common Examples

Examples of purchases that may result in use tax include:

• Furniture purchased online without Utah sales tax being charged
• Electronics purchased from an out-of-state seller
• Equipment or supplies purchased while traveling and brought into Utah for use
• Other taxable goods where sales tax was not paid at the time of purchase

How Is Use Tax Calculated?

Use tax is generally calculated using the purchase price of the taxable item and the applicable Utah sales and use tax rate.

You should keep receipts, invoices, and purchase records to help determine the correct amount of use tax owed.

How Do I Access the Utah Taxes Section?

1. Navigate to the Utah Return section.
2. Select Taxes.
3. Review the available entries.
4. Enter any applicable amounts for:
   • Recapture of Low-Income Housing Credit
   • Use Tax
5. Continue through the remainder of the Utah return.

Do I Need to Complete This Section?

Not necessarily. Many taxpayers won't owe use tax and won't have a Low-Income Housing Credit recapture amount.

If neither item applies to your situation, you can leave the section blank and continue with your Utah return. However, if you made untaxed purchases during the year or received a notice regarding credit recapture, be sure to enter the appropriate amount before filing your return.