2005 Utah Forms And Instructions (Page 10 of 19) in pdf

a. Section 125 - cafeteria plans. Generally, this is

• Any welfare agency, child placement service, legal and

an employer plan covering all employees and the

other fees or costs relating to the adoption.

employees may choose among two or more beneﬁ ts

Keep all records, forms and worksheets to support your

consisting of cash and qualiﬁ ed beneﬁ ts.

deduction.

b. Section 162 - trade or business expenses. This is

(77) Native American Income

the deduction for self-employed individuals of up to

(UC §59-10-114(2)(l))

100 percent of premiums paid, but not exceeding

An enrolled member of a Native American tribe in Utah

the taxpayer's net business income.

who lives and works on the reservation on which he/she is

c. Section 213 - medical, dental, etc., expenses.

an enrolled member is exempt from Utah income tax on the

These are itemized expenses deducted on federal

reservation income. An enrolled member of the Ute tribe

Schedule A to the extent they exceed 7.5 percent

who works on the Uintah and Ouray Reservation and lives

of the taxpayer's federal adjusted gross income.

on land removed from that reservation under Hagen vs.

incometax.utah.gov/deductionshealthinsur-

Utah (510 U.S. 399 (1994)) is exempt from Utah income tax

ance.html - Detailed instructions and examples

on income earned on the reservation.

for Health Care Insurance Premiums.

On Schedule S, Part 2, using code 77, enter the exempt

(75) Long-Term Care Insurance Premiums

income included in your federal adjusted gross income.

(UC §59-10-114(2)(k))

Enter your enrollment/census number and a Native/Tribe

You may only deduct amounts paid during 2005 for long-

Code from the list below in the box designating to which

term care insurance policies to the extent the amounts paid

nation/tribe you belong.

for premiums were not deducted on your federal return.

Nation/Tribe Code

Long-term care insurance policy means any insurance

1 Confederated Tribes of the Goshute Reservation

policy designed to provide coverage:

2 Navajo Nation Reservation

• For not less than 12 consecutive months; and

3 Paiute Indian Tribe of Utah Reservation

4 Skull Valley Bank of Goshute Indians

• For medically necessary services provided in a setting

5 Ute Indian Tribe

other than an acute care unit of a hospital.

6 Other tribe

A long-term care insurance policy includes group and

(78) Railroad Retirement Income

individual annuities and life insurance policies or riders

Federal law does not allow states to tax railroad retirement

that provide or supplement long-term care insurance. It

or disability income received from the Railroad Retirement

also includes a policy or rider that provides for payment of

Board on form RRB-1099. States are also prohibited from

beneﬁ ts based upon cognitive impairment or the loss of

taxing unemployment and sickness beneﬁ ts. If railroad

functional capacity.

retirement pensions from these forms are deducted on line

Long-term care insurance does NOT include any insurance

12, do not deduct the amounts again as an other deduction

policy offered primarily to provide:

on Schedule S.

• Basic Medicare supplement coverage,

Railroad retirement pensions are deductible on the Utah

• Basic hospital expense coverage,

return only to the extent they are taxable on the federal

• Basic medical-surgical expense coverage,

return. If you received pension payments, disability income

• Hospital conﬁ nement indemnity coverage,

or unemployment payments under the Railroad Retirement

• Major medical expense coverage,

Act and are required to report all or part of the amount

• Disability income or related asset-protection coverage,

received as income on lines 16b and/or 20b on federal

• Accident only coverage,

form 1040, or lines 12b and/or 14b of federal form 1040A,

• Speciﬁ ed disease or speciﬁ ed accident coverage, or

you may deduct that amount from Utah income. If amounts

• Limited beneﬁ t health coverage.

derived from sources other than railroad retirement are

(76) Adoption Expenses

included on lines 16b and/or 20b of federal form 1040, or

(UC §59-10-114(2)(c))

lines 12b and/or 14b of federal form 1040A, only deduct the

Utah allows individuals to subtract qualifying adoption ex-

railroad retirement amounts reported on these lines.

penses in ONE of three ways: 1) the year in which the ex-

(79) Equitable Adjustments (other)

penses are paid or incurred; 2) the year in which the adoption

(UC §59-10-115)

is ﬁ nalized; or 3) the year in which the taxpayer may claim the

This includes qualiﬁ ed equitable adjustments. Attach a

federal adoption credit. Qualiﬁ ed adoption expenses may be

schedule or explanation of any other deductions claimed.

deducted, even if the adoption process is terminated.

(81) Gains on Capital Transactions

This deduction applies to the actual qualiﬁ ed adoption

(UC §59-10-114(2)(m))

expenses of the birth mother, the legal guardian of the birth

A qualiﬁ ed taxpayer may deduct the long-term and short-

mother (or another acting on behalf of the birth mother), or

term capital gain on a transaction if:

the adoptive parents. Expenses include:

a. The gain occurs on or after January 1, 2003;

• Any medical and hospital expenses of the birth mother

b. At least 70% of the proceeds of the capital gain

of the adopted child incidental to the child’s birth;

transaction are used to purchase qualifying stock in

• Living expenses of the birth mother if paid by the adoptive

a Utah small business corporation within 12 months

parents as part of their adoption expenses;

from when the gain was recognized; and

• Actual travel costs incurred exclusively for the purpose

c. The individual did not have an ownership interest in

of completing adoption arrangements; and

the Utah small business corporation that issued the

qualifying stock.

2005 Utah Forms And Instructions Page 10

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