TC-40S: Credit for Income Tax Paid to Another State (2024)
Utah · Utah Tax Commission · Used for tax years 2024
Utah Form TC-40S calculates the credit for income tax paid to another state on income taxed by both Utah and that state. It reports the shared taxable income, tax paid to the other state, and credit amount, which is limited to the lesser of the calculated credit limitation or the
Who files this form
Use TC-40S to claim a credit for income tax paid to another state on income taxed by both Utah and that state.
Nonresidents do not qualify for this credit. Part-year residents rarely qualify. The form directs part-year residents to see the instructions, which are not included in the provided text.
What you'll need
Have these forms and details available to complete TC-40S:
- Your Utah TC-40, including federal adjusted gross income from line 4 and Utah income tax from line 22.
- The name of each other state and the federal adjusted gross income taxed by both Utah and that state.
- The actual income tax paid to each other state. For part-year residents, only the portion paid on the income shown on TC-40S, line 1, applies.
- TC-40A, Part 4, where you enter the total credit using code 17.
You will need additional TC-40S forms if claiming credits for more than three states.
How to file
Complete a separate state section for each state for which you claim a credit:
- Enter the income taxed by both Utah and the other state on line 1, and federal adjusted gross income from TC-40, line 4, on line 2.
- Divide line 1 by line 2. Round to four decimal places and do not enter more than 1.0000 on line 3.
- Enter Utah income tax from TC-40, line 22, on line 4. Part-year residents are directed to see the instructions.
- Multiply line 4 by line 3 to find the credit limitation on line 5.
- Enter actual income tax paid to the other state on line 6. Part-year residents must prorate this amount to the tax paid on income shown on line 1.
- Enter the smaller of line 5 or line 6 on line 7.
Add all line 7 amounts and enter the total on TC-40A, Part 4, using code 17. Attach the completed TC-40S to your Utah Income Tax Return. Submit the page only if you entered data.
The provided text does not give a mailing address or e-filing directions.
Common mistakes
- Claiming the credit as a nonresident. Nonresidents do not qualify, and part-year residents rarely qualify.
- Entering more than 1.0000 on line 3 or failing to round it to four decimal places.
- As a part-year resident, failing to prorate the tax paid to the other state. Only the portion paid on income shown on line 1 applies.
- Failing to use additional TC-40S forms when claiming credits for more than three states.
- Submitting a blank TC-40S page. Submit it only if data is entered, and attach the completed schedule to your Utah Income Tax Return.
Questions people ask
Can a nonresident claim this credit?
No. The form states that nonresidents do not qualify.
Can a part-year resident claim this credit?
Part-year residents rarely qualify. The form directs them to see the instructions and requires them to prorate tax paid to the other state. Only tax paid on the income shown on line 1 applies.
How much is the credit?
For each state, the credit on line 7 is the smaller of the credit limitation on line 5 or the actual tax paid amount on line 6.
What if I claim credits for more than three states?
Use additional TC-40S forms. Enter the total of all line 7 amounts on TC-40A, Part 4, using code 17.