Form Tc-41 - Fiduciary Income Tax Return Instructions - 2011 Page 12
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282011 Utah Fiduciary Income Tax
Page 10
Codes for Subtractions from Income, TC-41A Part 2
Nation/Tribe Code
71 Interest from U. S. Government Obligations
1 Confederated Tribes of the Goshute Reservation
77 Native American Income
2 Navajo Nation Reservation
78 Railroad Retirement Income
3 Paiute Indian Tribe of Utah Reservation
79 Equitable Adjustments
4 Skull Valley Bank of Goshute Indians
84 Nontaxable Income from Irrevocable Resident Trust
5 Ute Indian Tribe
86 Nongrantor Charitable Lead Trust Charitable Contribution
6 Other tribe
87 Fiduciary Adjustments
(78) Railroad Retirement Income
(71) Interest from U.S. Government Obligations
(UC §59-10-202(2)(e))
(UC §59-10-202(2)(a))
Federal law does not permit states to tax railroad retire-
See Pub 33 for detailed instructions of Interest from
ment, disability income, unemployment income, and
U. S. Government Obligations. Interest earned on U.
sickness benefi ts received from the Railroad Retirement
S. Government obligations issued by an agency or
Board and reported on form RRB-1099.
instrumentality of the United States is exempt from
state income tax. These obligations include:
Railroad retirement pensions are deductible only for
• Treasury bills,
the amount taxed on the federal return. If you received
• Treasury notes, and
pension payments, disability income or unemployment
• E, EE, H, HH, and I bonds
payments under the Railroad Retirement Act and must
report all or part of the amount received as income on
The following income is NOT exempt from Utah income
your federal return, you may deduct that amount from
tax:
Utah income.
• Interest or dividends from Federal National
Mortgage Association (FNMA) and Government
(79) Equitable Adjustments
National Mortgage Association (GNMA); and
(UC §59-10-209.1)
• Interest on IRS or other federal agency refunds.
Enter any qualifi ed equitable adjustment needed to
prevent paying double tax. Attach an explanation of any
The following conditions determine if the instrument
equitable adjustment claimed.
qualifi es as a U. S. Government obligation (see U. S.
(84) Nontaxable Income from Irrevocable Resident
Supreme Court decision in Smith vs Davis, 323 U.S. 111
Trust (UC §59-10-202(2)(b))
(1944)). The instrument must: (1) be a written document,
Income of an irrevocable resident trust is subtracted
(2) bear interest, (3) contain a binding promise by the U.
from federal total income if:
S. Government to pay a specifi c sum on a specifi c date,
1. The trust became a resident trust on or after Janu-
and (4) have congressional authorization to pledge the
ary 1, 2004;
full faith and credit of the United States in support of
2. No assets were held at any time after January 1,
the promise to pay.
2003 in another resident irrevocable trust created
Only interest or dividend income from U. S. Govern-
by the same settlor or the settlor’s spouse;
ment obligations included in your federal total income
3. The trustee is a trust company as defi ned in UC
should be deducted from Utah income. Before entering
§7-5-1(1)(d); and
an amount, subtract any related interest expense on
4. The amount subtracted is reduced to the extent
money borrowed to purchase the obligation or security.
the settlor or any other person is treated as an
owner of any portion of the trust, and by any
If the interest income is from a trust, attach a schedule
interest on indebtedness incurred or continued
to your return showing the calculation of income. Include
the name, residency and federal identifi cation number
to buy or carry the assets generating the income,
of the trust making the distribution.
and by any expense incurred in the production of
income to the extent those expenses, including
Keep all records, forms and worksheets to support this
amortizable bond premiums, are deductible in
deduction.
determining federal taxable income.
(77) Native American Income
(86) Nongrantor Charitable Lead Trust Charitable
(UC §59-10-202(2)(c) and (f))
Contribution (UC §59-10-202(2)(g))
A member of a Native American tribe in Utah who
Enter the amount a qualifi ed nongrantor lead trust de-
lives and works on the reservation where he/she is an
ducted on the federal return as a charitable contribution
enrolled member is exempt from Utah income tax on
under IRC Section 642(c).
the reservation income. An enrolled member of the Ute
tribe who works on the Uintah and Ouray Reservation
(87) Fiduciary Adjustments
and lives on land removed from that reservation under
(UC §59-10-210)
Hagen vs Utah (510 U.S. 399 (1994)) is exempt from
Enter any qualifi ed fi duciary adjustment and attach an
Utah income tax on income earned on the reservation.
explanation of the adjustment.
Enter the exempt income included in your federal total
Part 3 - Apportionable Nonrefundable
income on TC-41A, Part 2, using code 77. Enter your
Credits
enrollment/census number and your Native/Tribe Code
Apportionable nonrefundable credits can reduce your
from the list on this page.
income tax to zero, but cannot result is a refund.
Claim the following apportionable nonrefundable credits
(credits that must be apportioned for nonresidents and
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