Has Turbo Tax been updated with the State of Utah no longer taxing military retirement income starting 1/1/21?

[salhensley]

On March 11, 2021, Gov. Spencer J. Cox signed Senate Bill 11 into law, providing an average annual tax savings to military retirees and their survivors of $1,315, according to the state’s budget office.

[BillM223]

The State of Utah is giving military retirees a 4.95% tax credit on military retirement income - see What's New in Utah.

When I add a 1099-R to my Online test return and indicate that this is military retirement income, the test adds a $1,000 credit for $10,000 1099-R. This is a lot more than 4.95%, but there may be other credits included - my test doesn't what what the credit consists of so this is not conclusive, but it's likely that the credit is included.

Please note that while the forms for the full year state return for Utah are listed as available, the part-year and non-resident Income Schedule ((TC-40B) form is not, so it is unpredictable what the return will show until the form are made available.

I would proceed on the assumption that TurboTax will honor this credit by the time you are able to file near the end of January or by 2//10/2022 for nonresidents and part-year residents.

[atcslarry]

Right now you have to override the program to enter in the military retirement credit....hopefully Turbotax will get on the ball and update the program.  Even using the step by step procedure it doesn't have an entry for Utah Military Retiement....Good Luck!

[LegacyGT]

Hopefully the on-line program will be updated soon to address the Utah Military Retirement credit.

[BillM223]

As you know, the change to the tax code in Utah was that taxpayers receiving military retirement income receive a nonrefundable tax credit of 4.95% of the distribution reported in income, so the military retirement still appears as taxable income but a credit is applied to compensate for it. See this Utah page.

NOTE: you can't take the military tax credit if you claim either the Social Security Benefits Credit or the Retirement Credit. Please see this Utah page.

TurboTax will identify which of the credits gives you the best result and apply it automatically.

We have identified an issue with the military retirement credit in Utah, and are researching it.

[LegacyGT]

So Intuit is aware of the problem? Any idea when they'll have a fix? I'm using the online TurboTax. When reviewing the Utah TC-40 form, Line 24 is blank. This is the line that the Military Retirement Credit should be on. It makes a pretty significant impact on taxes due / refund.

[atcslarry]

I hsve tried to make turbotax aware of the  problem....but been unable to do so...I have the program on cd so it hasn't been updated from their site.  However the federal program has received updates.  Phone calls just result in auto answering...can't get a real person.  If you or anyone knows a good phone number, please advise me.

Thanks

Larry

[ammorobbie]

I filed my Utah Return after over-riding the Military Retirement Credit in Turbo Tax on Part 3 Apportionable Nonrefundable Credits portion of the TC-40A.  After e-filing filing I received an e-mail stating that my Utah Return had been rejected with a comment that stated:

"What Happened: UT_MilitaryRetireCr_TY21 - Your Utah return, military retirement credit calculation, requires a software update."

I'm waiting for that software update. There is still no way to enter this information without over-riding the form template.

[BillM223]

Please see this TurboTax Help page where you can sign up to be notified when the resolution to this issue is available.

[rclayton22]

Nice try...

This is what you get when using your link to be notified....

We're sorry, we can't find the page you requested.

You may have clicked on an article that has been deleted or outdated.

I also received an email from TurboTax Support saying my issue was resolved.  It has not.  I just checked, it still does not allow the Military Retirement Credit.  If I'm forced to file my state return by paper I will be looking for a refund from TurboTax for what I paid to file my state return electronically which was rejected for a known TurboTax software error.  When will we gate a straight answer on the resolution?

[LegacyGT]

Interestingly enough I went back and looked at my account in TurboTax and noticed the refund amounts had changed. After verifying everything I filed.

[rclayton22]

I went back and checked mine again just now.  If the tax amounts do not change, you will have to go back to your Federal Tax and edit your Military Retirement 1099R.  Turbo Tax has added a question just before what type of pension (Conventional or Non-Convential) asking if this is a Military Retirement or not.  Checking Military Retirement fixes the problem and your Utah state tax total will adjust to the lower amount or higher refund.  I refiled mine and have my fingers crossed that it will be accepted.

[kweduc8r]

You won't.   At all.  They have resorted to basically telling us to falsify the return to make it work for them.   They closed our case file by essentially saying "It's broke and we know it's broke.  Now that you know that we know that's a good thing."   Their own web page located here still does not have Utah on any of its lists.

https://turbotax.intuit.com/tax-tips/military/states-that-dont-tax-military-retirement/L6oKaePdA

I lost confidence in Intuit after seeing this and filed electronically from the Utah Tax website.  It's not only free, its also competent.  I requested a refund from Intuit for my state taxes but was told this.....

"We are unable to process the refund for TurboTax Online product Case #[phone number removed] because our Satisfaction Guaranteed policy only covers TurboTax CD/Download products. TurboTax Online is designed not to charge the customer until after they choose to file, so it is not covered under the Satisfaction Guarantee."

So, since I filed I was satisfied.  Since it was rejected, I guess I am still satisfied.  Keep my money and use it to hire someone that can at least fix your website.  OPEN FILE ---TYPE "UTAH"---SAVE FILE--- CLOSE FILE.  Shouldn't be too hard.  You could even outsource it to a 10 year old. 

This type of product incompetence should be covered under the lemon laws.