Effective 1/1/2024
59-10-1047. Nonrefundable child tax credit.
| (1) |
As used in this section:
Terms Used In Utah Code 59-10-1047- 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 |
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| (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) |
“Joint filing status” means the same as that term is defined in Section 59-10-1018. |
| (b) |
“Head of household 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. |
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| (d) |
“Modified adjusted gross income” means the sum of the following for a claimant or, if the claimant’s federal individual income tax return 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). |
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| (e) |
“Qualifying child” means an individual:
| (i) |
with respect to whom the claimant is allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant’s federal individual income tax return for the taxable year; and |
| (ii) |
who is at least one year old and younger than four years old on the last day of the claimant’s taxable year. |
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| (f) |
“Single filing status” means a single individual who files a single federal individual income tax return for the taxable year. |
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| (2) |
Subject to Subsection 59-2-1002.2, a claimant may claim a nonrefundable tax credit of $1,000 for each qualifying child. |
| (3) |
A claimant may not carry forward or carry back the amount of the tax credit that exceeds the claimant’s tax liability. |
| (4) |
The tax credit allowed by Subsection (2) claimed on a return filed under this part shall be reduced by $.10 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, $27,000; |
| (b) |
for a federal individual income tax return that is allowed a single filing status or head of household filing status, $43,000; and |
| (c) |
for a federal individual income tax return under this chapter that is allowed a joint filing status, $54,000. |
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Enacted by Chapter 462, 2023 General Session
Technically renumbered to avoid duplication of newly enacted Chapter also in HB 130, Chapter 460.
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