According to the Utah filing instructions, Military Retirement is taxable and is included in gross income on the return.
However, you may qualify for the Military Retirement Credit if you or your spouse (if filing jointly) received taxable military retirement pay. Military retirement does not include Social Security income, 401(k) or IRA distributions, or other sources of income, such as non-military federal retirement. You may only claim the Military Retirement Credit for military retirement income included in your adjusted gross income.
Where do I claim the credit?
If you are eligible for the Military Retirement Credit, follow the pathway below:
- State Section
- Edit Utah Return
- Begin on Credits
- Begin on SSA, Retirement, and Military Retirement Tax Credit
- Select appropriate tax credit from drop-down menus for taxpayer and/or spouse
- Enter amount of taxable military retirement pay or survivor benefits