Nonrefundable tax credit for social security benefits

# (1)

As used in this section:

# (a)

"Head of household filing status" means the same as that term is defined in Section 59-10-1018.

# (b)

"Joint filing status" means the same as that term is defined in Section 59-10-1018.

# (c)

"Married filing separately status" means a married individual who:

(i) does not file a single federal individual income tax return jointly with that married individual's spouse for the taxable year; and

(ii) files a single federal individual income tax return for the taxable year.

# (d)

"Modified adjusted gross income" means the sum of the following for a claimant or, if the claimant's return under this chapter is allowed a joint filing status, the claimant and the claimant's spouse:

(i) adjusted gross income for the taxable year for which a tax credit is claimed under this section;

(ii) any interest income that is not included in adjusted gross income for the taxable year described in Subsection (1)(d)(i); and

(iii) any addition to adjusted gross income required by Section 59-10-114 for the taxable year described in Subsection (1)(d)(i).

# (e)

"Single filing status" means a single individual who files a single federal individual income tax return for the taxable year.

# (f)

"Social security benefit" means an amount received by a claimant as a monthly benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.

# (2)

Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each claimant on a return that receives a social security benefit may claim a nonrefundable tax credit against taxes otherwise due under this part equal to the product of:

# (a)

the percentage listed in Subsection 59-10-104(2); and

# (b)

the claimant's social security benefit that is included in the claimant's state taxable income for the taxable year.

# (3)

A claimant may not:

# (a)

carry forward or carry back the amount of a tax credit under this section that exceeds the claimant's tax liability for the taxable year; or

# (b)

claim a tax credit under this section for a taxable year if a tax credit under Section 59-10-1019 is claimed on the claimant's return for the same taxable year.

# (4)

The tax credit allowed by Subsection (2) claimed on a return filed under this part shall be reduced by $.025 for each dollar by which modified adjusted gross income for purposes of the return exceeds:

# (a)

for a return filed under this chapter that is allowed a married filing separately status, $45,000;

# (b)

for a return filed under this chapter that is allowed a single filing status, $54,000;

# (c)

for a return filed under this chapter that is allowed a head of household filing status, $90,000; or

# (d)

for a return filed under this chapter that is allowed a joint filing status, $90,000.

# (5)

In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules governing the calculation and method for claiming the tax credit described in this section.