Utah offers certain apportionable refundable credits that can reduce your Utah tax liability and may result in a refund if the credit is greater than the tax you owe.
For part-year residents and nonresidents, apportionable credits may be adjusted based on the portion of income taxable by Utah. This process helps ensure the credit reflects your Utah residency period or Utah-source income.
What Credit Is Available in This Section?
The Utah Apportionable Refundable Credits section includes the:
- Refundable Adoption Expenses Credit
Refundable Adoption Expenses Credit
You may qualify for a refundable credit of up to $3,500 for qualified expenses related to an adoption that was finalized during the tax year.
Because this is a refundable credit, any allowable credit that exceeds your Utah tax liability may be refunded to you.
Income Limits
To qualify for the refundable adoption expenses credit, your adjusted gross income (AGI) must be less than:
- $55,000 if your filing status is Married Filing Jointly, or
- $27,500 if your filing status is Single, Head of Household, or Qualifying Surviving Spouse
If your income exceeds these limits, you may still qualify for Utah's nonrefundable adoption expenses credit, subject to the state's eligibility requirements.
Who Does Not Qualify?
You do not qualify for the refundable adoption expenses credit if:
- You received state or federal assistance during the tax year for the adoption.
- You claimed the same adoption expenses for the federal adoption credit under Internal Revenue Code Section 23.
- You are married but did not file a joint federal income tax return.
- You are adopting your spouse's child or your spouse is adopting your child.
What Expenses Qualify?
Qualified adoption expenses generally include reasonable and necessary expenses directly related to the legal adoption of an eligible child.
Examples may include:
- Adoption agency fees
- Court costs
- Attorney fees
- Travel expenses related to the adoption process
Keep documentation supporting all adoption expenses claimed on your return.
How Do I Enter the Utah Refundable Adoption Expenses Credit?
- Navigate to the Utah Return section.
- Select Apportionable Refundable Credits.
- Choose Refundable Adoption Expenses Credit.
- Enter the allowable credit amount.
- Continue through the remainder of the Utah return.
What Records Should I Keep?
Keep documents supporting both your eligibility and your adoption expenses, including:
- Adoption decrees or court documents
- Agency invoices
- Attorney billing statements
- Travel receipts
- Records showing the adoption was finalized during the tax year
- Documentation of any federal or state adoption assistance received
Retaining these records with your tax documents can help support the credit if the Utah State Tax Commission requests additional information after your return is filed.