According to Utah Publication 57, "All Utah income of the nonresident spouse of a nonresident active duty service member may be exempt from Utah tax if all of the following three conditions are met:
- the nonresident spouse had the same domicile as the nonresident service member prior to moving to Utah
- the nonresident active duty service member is in Utah under military orders, and
- the nonresident spouse is in Utah solely to be with their military service member spouse."
To claim tax-exempt from Utah withholding:
If the nonmilitary spouse qualifies for the exclusion of the income on the tax return, the spouse should provide the employer with a Federal W-4 Form claiming exempt from Utah withholding taxes.
Mark “Utah Copy” at the top of Form W-4
Write the words “Utah Exempt” in box 7.
To claim a refund of taxes withheld from your Utah income, follow these steps in the program:
- State Section
- Nonresident Utah Return
- Subtractions from Income
- Subtractions from Income (again)
- Add New
- Enter the income that was taxed in Utah and choose the reason for exemption from the drop-down menu-Nonresident military spouse earned income.
Military Spouse income may be taxable on your state return where you file as a resident.