Utah Code 59-10-1043. Nonrefundable tax credit for military retirement

59-10-1043. Nonrefundable tax credit for military retirement.

(1)

As used in this section:

Terms Used In Utah Code 59-10-1043

Armed forces: means the United States Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard. See Utah Code 68-3-12.5
claimant: means a resident or nonresident person that has state taxable income. See Utah Code 59-10-1002
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)

(i)	“Military retirement pay” means retirement pay, including survivor benefits, that relates to service in the armed forces or the reserve components, as described in 10 U.S.C. § 10101.

(ii)

“Military retirement pay” does not include:

(A)	Social Security income;

(B)	401(k) or IRA distributions; or

(C)	income from other sources.

(b)	“Survivor benefits” means the retired pay portion of the benefits described in 10 U.S.C. Secs. 1447 through 1455.

(2)

Except as provided in Section 59-10-1002.2, a claimant who receives military retirement pay may claim a nonrefundable tax credit against taxes equal to the product of:

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

(b)	the amount of military retirement pay 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 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.

Amended by Chapter 258, 2022 General Session

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