Article: 50512
Overview
If you are a Utah resident and you earned income in another state that also taxed that income, you may qualify for a credit on your Utah return. This prevents you from being double taxed on the same income. To claim this, you must complete the UT – Credit for Tax Paid to Another State form.
What Is the Credit for Taxes Paid to Another State?
The credit allows Utah residents to reduce their Utah tax liability when another state has already taxed the same income.
- The credit is available only for income tax paid to another state (not sales tax, property tax, or other taxes).
- The credit cannot exceed the amount of Utah tax you would owe on that same income.
- This ensures fairness for taxpayers who work across state lines or have multi-state income.
Who Should File This Credit?
You may need to complete this form if:
- You were a full-year resident of Utah.
- You earned income in another state and paid that state’s income tax.
- You want to prevent being taxed by both Utah and the other state on the same income.
Note: Nonresidents and part-year residents of Utah should review special instructions, as different rules may apply.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Utah.
- Click on the Credits tab.
- Click on Credit for Tax Paid to Another State to open the form.
- Enter the tax paid to that state (based on your return or withholding).
Note: These fields are override entries (green-highlighted boxes). By entering amounts here, you are replacing calculated values that would normally flow in automatically. Only use overrides if you are certain your entries are correct.
- Click Save once complete.
Additional Resources
For detailed eligibility rules, calculation methods, and examples, see the official Utah instructions: Utah TC-40 Instructions (2024) – Credit for Taxes Paid to Another State,