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posted Jan 28, 2025 2:03:16 PM

FORM TC-40A: Part 3 Credit Code AJ still not recognized by TurboTax (Utah Military Retirement Credit)

Well, it's been two years now.  Still, TurboTax software developers have been too lazy to implement this code into their software.  "Check This Entry:  TC-40A: Part 3 credit code must be an authorized code."  Well, it has been an authorized code in the state of Utah now for 3 years.  This is the last year for TurboTax.  Not sure if I even trust it to file my federal taxes this year. I'll move on to a competent competitor next year.  For now, I'll just eFile with the state, again, for free.

 

https://incometax.utah.gov/credits/military-retirement

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1 Replies
Expert Alumni
Jan 29, 2025 11:24:06 AM

It depends. I have tested this in Turbo Tax and it is working normally with no errors at the end of the return. Possibly, you may be entering the information on your own so here is how to enter your 1099R in your federal return so that the information will flow to your FORM TC-40A.

 

Start TurboTax:

  • Open TurboTax and sign in or start a new return.
  • If you have already started the return, navigate to the "Wages & Income" section.:
  • In the "Wages & Income" section, scroll down to Retirement Plans and Social Security.
  • Go to RA, 401(k), Pension Plan Withdrawals (1099-R) Or Social Security ( SSA 1099, RRB 1099)

Now after entering your 1099R that reports your military income, there will be some follow-up questions. When you reach a screen that is labeled "Where is the Distribution From", indicate it is military pay. This will then flow to your Utah Form TC-40A with . You do not need to do anything additionally. Here is how the screen(s) should appear in your return.


Please note this is for illustration only so the amount next to the code will be different in your return.