Utah Code 59-10-1042. Nonrefundable tax credit for social security benefits

59-10-1042. Nonrefundable tax credit for social security benefits.

(1)

As used in this section:

Terms Used In Utah Code 59-10-1042

claimant: means a resident or nonresident person that has state taxable income. See Utah Code 59-10-1002
Individual: means a natural person and includes aliens and minors. See Utah Code 59-10-103
tax credit: means a tax credit that a claimant, estate, or trust may:

(a)

claim:

(i)	as provided by statute; and

(ii)	in an amount that does not exceed the claimant's, estate's, or trust's tax liability under this chapter for a taxable year; and

(b)

carry forward or carry back:

(i)	if allowed by statute; and

(ii)	unless otherwise provided in statute, to the extent that the amount of the tax credit exceeds the claimant's, estate's, or trust's tax liability under this chapter for a taxable year. See Utah Code 59-10-1002
(a)	“Head of household filing status” means the same as that term is defined in Section 59-10-1018.

(b)	“Joint filing status” means the same as that term is defined in Section 59-10-1018.

(c)

“Married filing separately status” means a married individual who:

(i)	does not file a single federal individual income tax return jointly with that married individual’s spouse for the taxable year; and

(ii)	files a single federal individual income tax return for the taxable year.

(d)

“Modified adjusted gross income” means the sum of the following for a claimant or, if the claimant’s return under this chapter is allowed a joint filing status, the claimant and the claimant’s spouse:

(i)	adjusted gross income for the taxable year for which a tax credit is claimed under this section;

(ii)	any interest income that is not included in adjusted gross income for the taxable year described in Subsection (1)(d)(i); and

(iii)

any addition to adjusted gross income required by Section 59-10-114 for the taxable year described in Subsection (1)(d)(i).

(e)	“Single filing status” means a single individual who files a single federal individual income tax return for the taxable year.

(f)	“Social security benefit” means an amount received by a claimant as a monthly benefit in accordance with the Social Security Act, 42 U.S.C. § 401 et seq.

(2)

Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each claimant on a return that receives a social security benefit may claim a nonrefundable tax credit against taxes otherwise due under this part equal to the product of:

(a)	the percentage listed in Subsection 59-10-104(2); and

(b)	the claimant’s social security benefit that is included in adjusted gross income on the claimant’s federal income tax return for the taxable year.

(3)

A claimant may not:

(a)	carry forward or carry back the amount of a tax credit under this section that exceeds the claimant’s tax liability for the taxable year; or

(b)	claim a tax credit under this section for a taxable year if a tax credit under Section 59-10-1019 is claimed on the claimant’s return for the same taxable year.

(4)

The tax credit allowed by Subsection (2) claimed on a return filed under this part shall be reduced by $.025 for each dollar by which modified adjusted gross income for purposes of the return exceeds:

(a)	for a federal individual income tax return that is allowed a married filing separately status, $37,500;

(b)	for a federal individual income tax return that is allowed a single filing status, $45,000;

(c)	for a federal individual income tax return that is allowed a head of household filing status, $75,000; or

(d)	for a return under this chapter that is allowed a joint filing status, $75,000.

(5)	In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules governing the calculation and method for claiming the tax credit described in this section.

Amended by Chapter 459, 2023 General Session

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