The Utah State Tax Commission has published the Military Personnel Instructions for state income tax and we want to provide a quick summary of some of the key points. Utah offers several tax benefits for active members of the U.S. Armed Forces and their spouses. These benefits can be significant, so it's important to understand how they work.
One of the key factors determining your Utah tax liability is your residency status:
- Nonresident Service Member: If your legal residence is outside of Utah, you won't pay Utah income tax on your military pay, even if you're stationed in Utah.
- Resident Service Member: If your legal residence is Utah, you'll pay Utah income tax on all your income, including your military pay.
Utah generally follows the same rules as the IRS when it comes to taxing military pay. This means that all income included in your federal adjusted gross income is also included in your Utah income. However, there are some exceptions, such as:
- Nonresident Service Members: As mentioned earlier, nonresident service members don't pay Utah income tax on their military pay.
- Nonresident Spouses: The income of a service member's spouse is exempt from Utah income tax if the spouse is not a resident of Utah, is not also a service member, and is in Utah solely to be with the service member.
- Native Americans: The active duty military wages of a Native American Utah resident are exempt from Utah tax if the service member's legal residence is a federal Indian reservation.
Understanding Utah's tax filing requirements is crucial for service members and their families, so let's break down who needs to file a state return.
- Utah Residents: If you're a Utah resident and required to file a federal income tax return, you must also file a Utah return.
- Nonresident Service Members: You only need to file a Utah return if you have Utah-taxable income, such as income from a civilian job in Utah or rental income from Utah property.
- Nonresident Spouses: If you meet the criteria mentioned earlier, you generally don't need to file a Utah return
We encourage you to review the entire guide for service members and their families here: Military Personnel Guide to Utah Income Tax. If you have questions about Utah tax benefits for military personnel, you can contact the Utah State Tax Commission:
- Phone: 801-297-7705 (Salt Lake City area) or 1-800-662-4335, ext. 7705 (outside Salt Lake City)
- Fax: 801-297-6357
- Email: [email protected]
You can also find more information online at the Utah State Tax Commission website: incometax.utah.gov.