Utah Apportionable Nonrefundable Credits – TC-40A Part 3
Apportionable nonrefundable credits in Utah are designed to reduce your Utah individual income tax liability, but they cannot result in a refund if they exceed your tax obligation. These credits must be apportioned for nonresidents and part-year residents. You claim these credits on TC-40A, Part 3, and the total is carried to TC-40, Line 24.
Eligible Credits for TC-40A Part 3
The following credits are eligible for entry in TC-40A, Part 3:
- Capital gain transactions credit
- Retirement credit
- my529 credit
- Health benefit plan credit
- Gold and silver coin sale credit
- Social Security benefits credit
- Military retirement credit
- Earned income tax credit
- Nonrefundable adoption expenses credit
- Child tax credit
- Employer-provided childcare construction credit
How to Claim the Earned Income Tax Credit (EITC)
To claim the Utah EITC, follow these steps:
- Enter your federal earned income tax credit from Form 1040 or 1040SR, line 27a.
- Multiply line 1 by 0.2 (20%).
- Enter your total Utah wages from Form W-2, box 16.
- Enter the lesser of line 2 or line 3 on TC-40A, Part 3, using code AM.
Note: You may not carry forward or back any credit that exceeds your tax liability.
Important Notes
- Credits listed in TC-40A Part 3 are apportionable, meaning they are adjusted based on your Utah residency status.
- You must attach TC-40A to your return when claiming any of these credits.
- Keep all supporting documents with your tax records for potential review by the Utah Tax Commission.
Codes for Apportionable Nonrefundable Credits (TC-40A Part 3)
- 04 – Capital gain transactions credit
- 18 – Retirement credit
- 20 – my529 credit
- 23 – Health benefit plan credit
- 26 – Gold and silver coin sale credit
- AH – Social Security benefits credit
- AJ – Military retirement credit
- AM – Earned income tax credit
- AS – Nonrefundable adoption expenses credit
- AT – Child tax credit
- AW – Employer-provided childcare construction credit
Source:
TC-40 Forms and Instructions
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.