Instructions for Form TC-40 "Utah Individual Income Tax Return" - Utah

This document contains official instructions for Form TC-40, Utah Individual Income Tax Return - a form released and collected by the Utah State Tax Commission. An up-to-date fillable Form TC-40 Schedule A is available for download through this link.

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TC-40 Forms & Instructions
TC-40 Forms & Instructions
All State income tax dollars suppport education, children and individuals with disabilities.
All State income tax dollars suppport education, children and individuals with disabilities.
All State income tax dollars suppport education, children and individuals with disabilities.
Utah State Tax Commission • 210 North 1950 West • Salt Lake City, Utah 84134 • tax.utah.gov
Get a faster refund!
tap.utah.gov
TC-40 Forms & Instructions
TC-40 Forms & Instructions
All State income tax dollars suppport education, children and individuals with disabilities.
All State income tax dollars suppport education, children and individuals with disabilities.
All State income tax dollars suppport education, children and individuals with disabilities.
Utah State Tax Commission • 210 North 1950 West • Salt Lake City, Utah 84134 • tax.utah.gov
DID YOU
BUY ANYTHING ONLINE
LAST YEAR?
USE
TAX!
YOU MIGHT OWE
Shopping online is easy, but it’s not free.
You Should Know:
Y
S
Utah loses tax revenue every year to online sales. This makes it
harder for the state to pay for everything from education to
healthcare.
• Purchases are not exempt
from tax
just because you
When online sellers do not collect
make them online .
sales tax, it becomes your
• Use tax applies
to any pur-
responsibility to pay use tax. You
chase that sales tax would .
must pay this use tax when you file
• Your use tax rate
depends on
where you live . See page 10 .
your Utah income tax return.
• Grocery food
is taxed at a flat
10
See page
for more information
3 percent across Utah .
and a worksheet to help you calcu-
• Some online sellers have tools
late how much use tax you owe.
to help you calculate the use
tax you owe .
Cover photo: Antelope Island, by Colton Matheson
The Fastest Refund Possible!
The Fastest Refund Possible!
Error-free filing!
Error-free filing!
To learn more, go to:
tap.utah.gov
tap.utah.gov
Your one-stop shop for
everything you need to
file electronically.
Three good reasons to e-file:
Still want to file a paper return?
Are you sure?
Electronic returns get processed faster than
paper returns.
Each paper return must be removed from the
envelope, sorted, examined and processed by hand.
Electronic filing catches mistakes, ensuring
your return is filed right the first time.
If you make even a simple mistake, fixing it will add
several more weeks of processing time.
If you owe taxes, you can wait to pay until April
18, 2022, no matter how early you file your
If we can’t figure out how to fix your return, we will
return.
have to contact you and wait for your response
before we can process your return.
If you are waiting for a refund, we cannot issue it
until your paper return has been manually processed
and posted to your account.
1
2021 Utah TC-40 Instructions
Paper Returns
Customer Service
To avoid errors and get the fastest refund possible, fi le your return
Hours:
Monday - Friday, 8:00 a.m. - 5:00 p.m.
electronically. If you must fi le a paper return, follow these guidelines:
Help from tax pros:
taxmaster@utah.gov
Taxpayer help line:
801-297-2200
• Use black or dark blue ink only. Do not use felt tip pen.
1-800-662-4335 (outside SLC area)
• Enter only whole dollar amounts – no cents.
Visit us in person:
• If a line or box does not apply to you, leave it blank.
Ogden:
2540 Washington Blvd., 6th Floor
• Do not use dollar signs, commas or parentheses.
Provo:
150 E Center St., #1300
• If entering a loss, use a minus sign in front of the number.
SLC:
210 N 1950 W
Hurricane: 100 S 5300 W
• Sign and mail the original return – keep a copy for your records.
Get Utah Forms
Tax Commission Mailing address
tax.utah.gov/forms
Mail your Utah return to one of the following addresses:
ALL RETURNS WITH PAYMENTS
Utah State Tax Commission
References
210 N 1950 W
UC
Utah Code (le.utah.gov)
Salt Lake City, UT 84134-0266
IRC Internal Revenue Code (law.cornell.edu/uscode/26)
ALL OTHER RETURNS (including refunds)
USC U.S. Code (law.cornell.edu/uscode)
Utah State Tax Commission
Online instructions and information: incometax.utah.gov
210 N 1950 W
Salt Lake City, UT 84134-0260
Utah Taxpayer Advocate Service
Employee Verifi cation for Employers
The Taxpayer Advocate Service helps taxpayers who have made
Employers can help prevent identity theft by verifying the Social Se-
multiple, unsuccessful attempts to resolve concerns with the Tax
curity numbers of job applicants. E-Verify is a free service of the U.S.
Commission. This service helps resolve problems when normal
Department of Homeland Security that verifi es employment eligibility
agency processes break down, identifi es why problems occurred, and
through the Internet. Employers can use E-Verify at e-verify.gov.
suggests solutions. See tax.utah.gov/contact, or contact us to fi nd
out if you qualify for this service at 801-297-7562 or 1-800-662-4335,
Utah Taxpayer Bill of Rights
ext. 7562, or by email at taxpayeradvocate@utah.gov.
Learn about your rights and responsibilities as a Utah taxpayer
Do not use the Taxpayer Advocate Service to bypass normal methods
in Pub 2, Utah Taxpayer Bill of Rights. Get publications online at
for resolving issues or disputes.
tax.utah.gov/forms.
If you need an accommodation under the Americans with Dis-
abilities Act, email taxada@utah.gov, or call 801-297-3811 or TDD
801-297-2020. Please allow three working days for a response.
Contents
Income from Other States ................................................... 4
TC-40 - General Instructions .................................................... 2
Income from Other Countries ............................................. 5
What's New ......................................................................... 2
Foreign Nationals & Expatriates ......................................... 5
Free Tax Help ...................................................................... 2
Injured Spouse .................................................................... 5
Federal Earned Income Tax Credit (EITC) .......................... 2
Innocent Spouse ................................................................. 5
Who Must File ..................................................................... 2
Fiscal Year Filers ................................................................. 5
When to File and Pay .......................................................... 2
Amended Return................................................................. 5
How to File .......................................................................... 3
Federal Tax Credits ............................................................. 6
What to Attach and What to Keep ....................................... 3
Utah Losses and Loss Carries ............................................ 6
Rounding Off to Whole Dollars ........................................... 3
Deadlines to Claim a Refund or Credit ............................... 6
Utah Domicile ..................................................................... 3
TC-40 - Line-by-Line Instructions ............................................. 6
"Resident" Defi ned .............................................................. 4
TC-40A - Supplemental Schedule Instructions....................... 15
"Part-Year Resident" Defi ned .............................................. 4
TC-40B - Non or Part-year Resident Schedule ...................... 25
Military ................................................................................ 4
TC-40W - Utah Withholding Tax Schedule ............................. 27
Native Americans ................................................................ 4
Special Instructions for Married Couples ................................ 29
Students .............................................................................. 4
2
2021 Utah TC-40 Instructions
TC-40 - General Instructions
What's New
Who Must File
Solar Energy Systems Phase-out:
The maximum Re-
You must fi le a Utah TC-40 return if you:
newable Residential Energy Systems Credit (credit 21) for
1. are a Utah resident or part-year resident who must fi le a
solar power systems installed in 2021 is $1,200.
federal return,
Special Needs Opportunity Scholarship Program:
The
2. are a nonresident or part-year resident with income from
2020 legislature passed HB 4003, creating a nonrefund-
Utah sources who must fi le a federal return, or
able tax credit for donations made to the Special Needs
3. want a refund of any income tax overpaid.
Opportunity Scholarship Program. See page 24.
To fi le a Utah return, fi rst complete your federal return, even
Schedule C Removed:
We have removed TC-40C (Retire-
if you do not have to fi le with the IRS. You need the federal
ment Tax Credit Schedule) from the TC-40 forms package.
return information to complete your Utah return.
In place of TC-40C, use the worksheet on page 18 of
these instructions. If you claim the retirement tax credit,
Qualifi ed Exempt Taxpayer:
You may be exempt from Utah
be sure to enter your birthdate on TC-40A, Part 3.
individual income tax if your federal adjusted gross income
is less than your federal standard deduction. See instructions
Social Security Benefi ts Tax Credit:
The 2021 Utah
for line 21.
Legislature passed HB 86, creating an apportionable,
nonrefundable tax credit for taxable Social Security income.
Nonresident Filing Exemption:
You do not need to fi le a
See page 20.
Utah return if:
Military Retirement Tax Credit:
The 2021 Utah Legislature
1. you are a nonresident whose only Utah source of income
passed SB 11, creating an apportionable, nonrefundable
is from a partnership, S corporation or trust (or other pass-
tax credit for taxable military retirement benefi ts. See
through entity);
page 20.
2. the partnership, S corporation, trust or other pass-through
Payroll Protection Program (PPP) Grant or Loan Ad-
entities withheld Utah income tax on your Utah income; and
dback:
In certain situations you must add to your income
3. you are not claiming a Utah tax credit.
the amount of PPP grants or loans forgiven in 2021. See
page 16.
When to File and Pay
Free Tax Help
You must fi le your return and pay any tax due:
1. by April 18, 2022, if you fi le on a calendar year basis (tax
Volunteer Income Tax Assistance (VITA)
year ends Dec. 31, 2021); or
VITA volunteers provide free tax preparation service to low-
2. by the 15th day of the fourth month after the fi scal year
income and elderly taxpayers. Some VITA sites can fi le electroni-
ends, if you fi le on a fi scal year basis. If the due date falls
cally. Call 2-1-1 or 1-800-906-9887 to fi nd the closest VITA site.
on a Saturday, Sunday or legal holiday, the due date is the
next business day.
Tax Counseling for the Elderly (TCE)
Note: The due date may change if the IRS changes the due
TCE offers free tax help to anyone, but gives priority to persons
date of the federal return. Check incometax.utah.gov if you
60 years and older. Volunteers specialize in pension and retire-
have questions.
ment issues unique to seniors. See aarp.org, or call 2-1-1 or
You must pay all Utah income taxes for the tax year by the
1-888-227-7669.
due date. You may be subject to penalties and interest if you
do not fi le your return on time or do not pay all income tax
Earn it. Keep it. Save it.
due by the due date. (See instructions for line 41).
This coalition of statewide partners offers free tax preparation
Utah does not require quarterly estimated tax payments. You can
and free online DIY tax prep to certain low-income taxpayers.
prepay at any time at tap.utah.gov, or by mailing your payment
See UtahTaxHelp.org.
with form TC-546, Individual Income Tax Prepayment Coupon.
Federal Earned Income Tax Credit
Extension of Time to File
(EITC)
This is NOT an extension of time to pay your
taxes – it is an extension to fi le your return.
The federal earned income tax credit is a refundable federal
(not Utah) tax credit for certain people who work and have
You get an automatic extension of up to six months to fi le
earned income. The credit can mean a larger refund or a
your return. You do not need to fi le an extension form, but
reduction in your federal tax.
we will assess penalties if you have not met the prepayment
Check the IRS website at irs.gov/eitc, or call the IRS at
requirements (see below).
1-800-829-1040 to see if you qualify.
See instructions for line 41. All extension returns must be fi led
by Oct. 17, 2022.
3
2021 Utah TC-40 Instructions
Prepayment Requirements for Filing
TC-40W), worksheets, or other documentation with your Utah
return.
Extension
You must prepay by the original due date:
Recordkeeping
90 percent of your 2021 tax due (TC-40, line 27 plus line 30);
Keep copies of any receipts, tax forms, worksheets and other
documentation to support any income, deduction, exemption
100 percent of your 2020 tax liability (2020 TC-40, line 27
and credit you have reported. We may ask you to provide this
plus line 30); or
information later to support entries on your Utah return.
90 percent of your 2021 tax due (TC-40, line 27 plus line
30) if you did not have a Utah tax liability in 2020 or if this
Rounding Off to Whole Dollars
is your fi rst year fi ling.
You may prepay through withholding (W-2, TC-675R, 1099-R,
Round off cents to the nearest whole dollar. Round down if
etc.), payments applied from previous year refunds, credits
under 50 cents; round up if 50 cents and above. Do not enter
and credit carryovers, or payments made by the tax due
cents on the return.
date using form TC-546, Individual Income Tax Prepayment
Coupon, or at tap.utah.gov. Interest is assessed on unpaid
Utah Domicile
tax from the original fi ling due date until the tax is paid in full.
Penalties may also apply.
(UC §59-10-136)
Test 1
How to File
You are domiciled in Utah if:
File your Utah taxes at tap.utah.gov.
1. You or your spouse claimed a child tax credit (IRC §24) for
a dependent on your federal tax return, and the dependent
If fi ling on paper, mail your return to the address on page 1.
is enrolled in a Utah public K-12 school. This does not
apply if you are the dependent’s noncustodial parent and
What to Attach and What to Keep
are divorced from, or were never married to, the custodial
parent.
Attach
2. You or your spouse is enrolled as a resident student in a
Send the following with your Utah return (also keep a copy
Utah state institution of higher education.
with your tax records):
Test 2
Utah Schedules
There is a rebuttable presumption you are domiciled in Utah
TC-40 page 3, TC-40A, TC-40B, TC-40S, and TC-40W (all
(i.e., you are domiciled in Utah unless you can prove otherwise)
that apply).
if you or your spouse:
Other Adjustments
1. claims a residential exemption for a primary residence
An explanation for any equitable adjustment entered on
under UC §59-2, Property Tax Act,
TC-40A, Part 2, code 79.
2. voted in Utah during the taxable year and were not regis-
Other Forms
tered to vote in another state during that time, or
Attach form TC-131 if claiming a refund for a deceased
3. fi le a Utah income tax return as a full-year or part-year
taxpayer. Also attach TC-40LIS if you are a building project
resident.
owner of a low-income housing unit. Also attach federal
form 8379 if you are claiming relief as an injured spouse
Test 3
(see page 5).
Even if you do not meet any of the conditions above, you are
Tax Due
still domiciled in Utah if:
Pay any return amount due at tap.utah.gov. If paying by
1. either you or your spouse has a permanent home in Utah
check or money order, include form TC-547, Individual
to which either of you intend to return after being absent;
Income Tax Return Payment Coupon (see the last page
and
of these instructions).
2. you or your spouse has voluntarily settled in Utah, not
for a special or temporary purpose, but with the intent of
FYI: Withholding Forms
making a permanent home.
You must enter withholding tax information on form
Under Test 3, whether you have a permanent home in Utah
TC-40W. Attach TC-40W to your return.
is based on a preponderance of the evidence (i.e., the evi-
dence you have a permanent home is more convincing than
any evidence you do not), taking into consideration all of the
following facts and circumstances:
Keep
You or your spouse has a Utah driver’s license.
Do not send forms W-2, 1099-R, 1099-MISC, Utah Schedule
You or your spouse claims a federal tax credit (IRC §24)
K-1 or TC-675R with your return. If you do not complete and
for a dependent who is enrolled as a resident student in a
submit form TC-40W with your return, processing will be de-
Utah state institution of higher education.
layed and we may reject your withholding credit.
The nature and quality of the living accommodations you
Do not send a copy of your federal return, credit schedules
or your spouse has in Utah compared to another state.
(other than Utah schedules TC-40A, TC-40B, TC-40S and/or
Page of 32