If you are a Utah Resident or Part-Year Resident with income that is taxed by Utah and another state(s), the District of Columbia, or a possession of the United States, you may be entitled to a credit for income tax paid to the other state(s).
Nonresidents do not qualify for this credit.
Part-year residents rarely qualify for this credit, as Utah and other states only tax the income earned while a resident of that state. To qualify, your income must be:
- Taxable in Utah;
- Taxed also by the other state(s); and
- Included in the income in “Column A – Utah” on Form TC-40B.
What else do I need to know?
The credit only applies to the part of your income taxed by both states. Any credit in excess of the tax due will not be refunded, and may not be carried back or carried forward.
What do I need to do?
The program will automatically calculate this credit for your Resident Utah return if you have a Nonresident return created in your account. If your Utah state return is a Part-Year return or the other state return is a Part-Year return, you will be required to enter the information asked within the state return menu.
Where do I enter this?
If you need to manually adjust or enter this credit, go to the:
- State Section
- Credit for taxes paid to another state
- Add New
- Enter the additional information required