Utah State Tax Credits

More ways to save your hard-earned money from the tax man!

Utah has some great State Tax Credits for you....

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap

 
Utah

Utah my529 Tax Credit Summary

Overview:
Utah taxpayers can contribute part or all of their state tax refund directly to their my529 education savings accounts. These contributions count as current-year deposits and may offer tax benefits if properly allocated during the filing process.

Who It’s For:
Utah residents who own a my529 college savings account and wish to use their state income tax refund to fund future education expenses.

Four Key Highlights:

  1. Direct Refund Contributions
    Taxpayers can allocate part or all of their Utah state refund to their my529 account by entering the desired amount on their TC-40 tax form.

  2. Equal Distribution Across Accounts
    If a taxpayer owns multiple my529 accounts tied to their SSN, the refund will be divided equally. For joint returns, both spouses’ accounts will be matched and distributed accordingly.

  3. No Account? No Deposit.
    If no active my529 account exists, the refund will be returned—without interest—unless an account is opened within the required time after receiving notification.

  4. Contributions Count as Current-Year Deposits
    Refund contributions are treated as deposits for the tax year in which the refund is actually processed, not the year in which the return was filed.

CHECK IT OUT NOW

Utah Capital Gain Transactions Credit Summary

Overview:
This Utah tax credit incentivizes reinvesting capital gains into local small businesses. If at least 70% of the proceeds from a qualifying capital gain are used to purchase stock in a qualified Utah small business corporation within 12 months, the investor may receive a non-refundable credit against their Utah income tax.

Who It’s For:
Utah taxpayers who reinvest capital gains into qualified Utah small business corporations and had no prior ownership interest in those businesses.

Four Key Highlights:

  1. Investment Timing & Threshold
    At least 70% of the capital gain proceeds must be reinvested in a qualified Utah small business within 12 months of the gain transaction.

  2. Ownership Restrictions Apply
    You cannot claim the credit if you had any prior ownership interest in the Utah business receiving your investment.

  3. Simple Credit Calculation
    Multiply the eligible capital gain by 4.55% and report it on Form TC-40A, Part 3, using credit code 04.

  4. No Carryforward or Carryback
    Any unused portion of the credit cannot be applied to past or future tax years, so it must be used in the year claimed.

CHECK IT OUT NOW