Military Personnel Instructions - Utah (Page 2 of 14) in pdf

Definitions

• ﬁ le a married ﬁ ling joint federal income tax return with the

service member, and the service member must ﬁ le a mar-

Domicile and Residency. Regular Utah domicile and

ried ﬁ ling separate Utah income tax return. See When One

residency rules are not applicable to service members and

Spouse is a Utah Resident and the Other is a Nonresident

spouses of service members. A service member’s domi-

on page 3.

cile for Utah tax purposes is their military state of legal

residence. The non-military spouse of the service member

Income Taxable in Utah

is considered to have the same domicile as the service

member unless he or she was domiciled in Utah prior to their

marriage and continued to reside in Utah. See Residency

Utah Resident Service Member

Issues below.

Utah residents who enter military service do not lose their

Non-resident Military Taxpayer. A service member who is

Utah residency solely by being absent from Utah due to

domiciled in a state other than Utah, even though the service

military orders.

member may be stationed in Utah.

A Utah service member is required to ﬁ le a Utah income

Non-Utah Active Duty Military Wages. Active duty earned

tax return and report all income received regardless of the

income received for military service which is not sourced to

source of that income, unless the income was excluded on

Utah, and is reported on a Form W-2.

the federal return (not included in federal adjusted gross in-

come). If income tax is paid to another state on non-military

Resident Military Taxpayer. A service member who is

income earned in that state, a credit for the tax paid to the

domiciled in Utah.

other state may be allowed on the Utah return (see Utah

Service Member. An active duty member of the U.S. Armed

form TC-40S).

Forces, including those serving overseas or in a combat

zone. This also includes National Guard members who are

Utah Nonresident Service Member

called to active service by the President of the United States

A nonresident service member stationed in Utah solely due

or the Secretary of Defense for a period of more than 30

to military orders does not pay Utah income tax on his or

consecutive days in response to a national emergency de-

her active duty military pay, but must pay Utah income tax

clared by the President and supported by federal funds.

on all income earned or received from other Utah sources.

Spouse of a Service Member. The spouse of an active duty

Examples of other taxable Utah source income include non-

member of the U.S. Armed Forces. If the spouse is also a

military wages earned in Utah, income from rentals or sales

military service member, then the spouse is entitled to the

of property in Utah, and Utah investment income. Utah Code

tax beneﬁ ts of a service member, and not the beneﬁ ts of a

§59-10-117 provides guidance on what income is considered

spouse of a service member.

to be Utah source. Active duty military pay of a nonresident

U.S. Armed Forces. Commissioned ofﬁ cers, warrant of-

service member is exempt based on federal law.

ﬁ cers, and enlisted personnel in all regular and reserve units

If a nonresident service member does not have any Utah

under control of the Secretaries of Defense, Army, Navy and

source income, he or she is not required to ﬁ le a Utah

Air Force. The U.S. Armed Forces also includes the Coast

income tax return. A nonresident service member with Utah

Guard. It does not include members of the U.S. Merchant

income must ﬁ le a Utah individual income tax return if they

Marine or the American Red Cross.

were required to ﬁ le a federal income tax return. He or she

Utah Active Duty Military Wages. Active duty earned in-

may subtract the active duty military wages included in their

come received for military service and sourced to Utah, and

federal adjusted gross income when calculating their Utah

is reported on a Form W-2.

taxable income. This subtraction is entered on TC-40A, Part

2, using code 82. See examples on pages 6 and 7.

Residency Issues

Utah Nonresident Service MemberÊs

A service member’s domicile (state of legal residence) does

Non-military Spouse

not change when they are stationed in another state on

military orders. This also applies to the nonresident spouse

The income of a nonresident non-military spouse who is

of a service member who is in a state solely to be with the

in Utah solely to be with a nonresident service member in

service member in compliance with military orders.

compliance with the service member’s military orders, may

be excluded from Utah income tax. See Residency Issues

A non-military Utah domiciled resident who marries a non-

on page 2 if the non-military spouse was a Utah resident

resident service member remains a Utah domiciled resident

(domiciled in Utah) when they married the service member

for tax purposes until he or she permanently moves out of

and is still living in Utah.

Utah or otherwise changes his or her residency (domicile),

per Utah Code §59-10-136.

All Utah income of the nonresident spouse of a nonresident

active duty service member may be exempt from Utah tax if

A nonresident, non-military spouse of a Utah service mem-

all of the following three conditions are met:

ber may elect to change his or her residency (tax domicile)

to Utah even if they are not currently living in Utah by ﬁ ling

1. the nonresident spouse had the same domicile as the

a married ﬁ ling joint federal and Utah individual income tax

nonresident service member prior to moving to Utah,

return with the Utah service member. If a nonresident, non-

2. the nonresident active duty service member is in Utah

military spouse of the Utah service member does not elect to

under military orders, and

become a Utah resident, he or she must either:

3. the nonresident spouse is in Utah solely to be with their

• File married ﬁ ling separate federal and Utah income tax

military service member spouse.

returns, or

page 2

Military Personnel Instructions - Utah Page 2

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