The credit for taxes paid to another state is automatically calculated in your account when you add a Nonresident return to your already created Resident Utah return if you pay taxes to both Utah and another state.
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.
Utah may request a copy of the other state's tax return before processing the return. Please see the Utah Income Taxes website for more information.