Military Personnel Instructions - Utah Page 7
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14Example for Nonresident Married Military Personnel and Spouse
Terry is a married active duty military member whose military home of record is Colorado. He was transferred to Utah’s Hill Air
Force Base in March of 2015. He and his wife had adjusted gross income on their federal return of $69,550. Terry had active
duty military pay of $24,875 and non-military income from a Utah part-time job of $28,825. His spouse (who had the same
domicile as Terry before moving to Utah to be with Terry) had non-military income of $4,700 from her previous employment in
Colorado and $9,950 from her non-military job in Utah. They also have $1,200 of interest earned from their bank in Colorado
(each owns one-half).
Terry and his wife are required to fi le a joint Utah return. Their joint Utah return is calculated as follows:
The following references are to lines on form TC-40:
1. Filing Status = MARRIED FILING JOINTLY
2. Exemptions = 2
3. N/A
4. Adjusted gross income from federal return
$69,550
5. Additions to income from TC-40A, Part 1
0
6. Add lines 4 and 5
69,550
7. State tax refund included on federal form 1040, line 10
0
8. Subtractions from income from TC-40A, Part 2 –
Nonresident active duty military pay, code 82
24,875
Nonresident military spouse total income, code 88 (4,700 + 9,950 + 600)
15,250
Total subtractions (add lines 7 and 8)
(40,125)
9. Utah taxable income – subtract lines 7 and 8 from line 6
29,425
10. Utah tax - line 9 multiplied by 5%
1,471
11. Personal exemption amount for Utah
6,076 *
12. Federal standard or itemized deductions
12,600
13. Add line 11 and line 12
18,676
14. State income tax deducted on federal Schedule A, line 5
0
15. Subtract line 14 from line 13
18,676
16. Initial taxpayer tax credit - multiply line 15 by 6%
1,121
17. Base phase-out amount
27,734
18. Subtract line 17 from line 9
1,691
19. Multiply line 18 by 1.3%
22
20. Taxpayer tax credit - subtract line 19 from line 16
1,099
21. N/A
22. Utah income tax - subtract line 20 from line 10 (also enter on TC-40B, line 34)
372
23. Apportionable nonrefundable credits
0
24. Net Utah tax
372
The following references are to lines on form TC-40B:
Col. A
Col. B
17. Utah total income (Column A)
38,775
Total income (Column B)
69,550
32. Utah subtractions from income (Column A – spouse Utah income)
9,950
Total subtractions from income (Column B) – total of lines 7 and 8 above
40,125
35. Utah income (Column A – line 17 less line 34)
28,825 **
Total income (Column B – line 17 less line 34)
29,425
36. Ratio – line 35, Column A divided by line 35, Column B
.9796
37. Utah tax from TC-40, line 24
372
38. Nonresident Utah tax - line 37 multiplied by ratio on line 36
364
This is the Utah tax to be entered on TC-40, line 25.
* Utah exemption amount for 2016 is $3,038 (75% of federal exemption of $4,050).
** Only the military service member’s non-military Utah income is taxable. The nonresident military spouse’s Utah in-
come is not taxable in Utah nor is the out-of-state interest income taxable in Utah.
See the Utah Individual Income Tax Return on pages 11 through 13
57
page 7
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial