According to Utah Publication 57:
If you are a resident of Utah, all of your income is required to he reported on your resident return regardless of where it was earned or the source of the income.
If you are a nonresident of Utah stationed in Utah, active duty military pay is not taxable on the Utah return.
To deduct the Active Duty military pay for a nonresident, follow these steps in the program:
- State Section
- Nonresident Utah return
- Basic Information
- Select your State of Residency
- Save
- Continue to Subtractions From Income
- Subtractions Form Income
- Enter the active duty pay to be deducted
- Select the Choose 'Nonresident Active Duty Military Pay' option from the drop down menu
- Continue
If the military member is a Utah resident and the spouse is a nonresident, file married filing separate returns even if the federal return was filed using the married filing joint status. If you choose to file as married filing joint, the nonresidents spouse's income is included in Utah taxable income.
If the military member is a nonresident of Utah and the spouse is a resident, file married filing separate returns. If you choose to file as married filing joint, deduct the military members income on the resident Utah return.
To deduct the Active Duty military pay, follow these steps in the program:
- State Section
- Resident Utah return
- Subtractions From Income
- Subtractions From Income (again)
- Add New
- Enter the active duty pay to be deducted
- Select the option Choose 'Nonresident Active Duty Military Pay' in the drop down menu
- Continue
Combat Related Death Credit (UC §59-10-1027)
If you are filing a return on behalf of a military service member who died as a result of military service in a combat zone, you may claim a nonrefundable credit equal to the amount of the tax liability on the return attributable to the deceased service member.
To qualify for the credit, all of the following conditions must be met:
- The military service member must have been in an active or reserve component of the United States Army, Navy, Air Force, Marine Corps, or Coast Guard;
- The combat related death must have occurred on or after Jan. 1, 2010;
- The death must have occurred while the military service member was serving in a combat zone, or be the result of a wound, disease, or injury incurred while serving in a combat zone; and
- The service must have been on or after the date declared by the President of the United States by Executive Order as a combat zone, and on or before such designation is terminated by the President.
To enter the non-refundable credit within the program, follow these steps below:
- State Section
- Utah Resident State Return
- Credits
- Nonapportionable Nonrefundable Credits
- Nonapportionable Nonrefundable Credits (again)
- Add New
- Enter the credit amount
- Select "Combat Related Death Credit" from drop-down menu
- Continue