UTAH SUBTRACTIONS FROM INCOME
Native American Income
An enrolled member of a Native American tribe in Utah who lives and works on the reservation on which he/she is an enrolled member is exempt from Utah income tax on the reservation income. An enrolled member of the Ute tribe who works on the Uintah and Ouray Reservation and lives on land removed from that reservation under Hagen vs. Utah (510 U.S. 399 (1994)) is exempt from Utah income tax on income earned on the reservation.
Railroad Retirement Income
Federal law does not permit states to tax railroad retirement or disability income received from the Railroad Retirement Board and reported on form RRB-1099. States are also prohibited from taxing unemployment and sickness benefits from this source. If a railroad retirement pension from form RRB-1099 is used to calculate the retirement credit on form TC-40C for a taxpayer under age 65, do not deduct the amount again as a deduction on TC-40A, Part 2. Railroad retirement pensions are deductible on the Utah return only to the extent they are taxable on the federal return. If you received pension payments, disability income or unemployment payments under the Railroad Retirement Act and are required to report all or part of the amount received as income on lines 16b and/or 20b on federal form 1040, or lines 12b and/or 14b of federal form 1040A, you may deduct that amount from Utah income. If amounts derived from sources other than railroad retirement are included on lines 16b and/or 20b of federal form 1040, or lines 12b and/or 14b of federal form 1040A, only deduct the railroad retirement amounts reported on these lines.
Enter any qualified equitable adjustment needed to prevent suffering a double tax detriment. Attach an explanation of any equitable adjustment claimed.
Nonresident Active Duty Military Pay
Active duty military service pay received by a nonresident is not taxable on the Utah return. The amount of active duty military pay included in federal adjusted gross income should be deducted on TC-40A, Part 2, using code 82. Also, see instructions for TC-40B, line 30 and Pub 57, Military Personnel Instructions.
State Tax Refund Distributed to Beneficiary of Trust
Enter any state tax refund distributed to a beneficiary of a resident trust to the extent the tax was included in computing federal income of the resident trust for the year.