What are Utah Retirement Credits?

Utah has three retirement credits. Those credits are as follows:

Retirement Tax Credit is equal to $450 for individuals who were born before December 31, 1952. The credit is reduced if your income is higher than the following threshholds:

• Married filing joint - $32,000
• Single - $25,000
• Married filing separate - $16,000

The Social Security Benefits Tax Credit is based off the taxable social security income reported on the return for each taxpayer. The credit is equal to 4.55% of taxable social security income. This credit is also reduced if the income on the return exceeds the following limits:

• Married filing joint - $90,000
• Single - $54,000
• Married filing separate - $45,000

Finally, the Military Retirement Tax Credit is equal to 4.55% of your taxable military retirement income. This income would need to have been reported on a 1099-R from Defense Finance and Accounting Services for each taxpayer with military retirement pay. There is no income-based reduction for this credit.

We will calculated whether the retirement credit or the social security credit and the military retirement tax credit will give you the best tax result and apply that to your Utah income tax return.