Utah State Military Retirement Credit (code AJ)

[Chuck_K]

How do I enter Military Retirement Credit (code AJ) on my Utah state tax form?  The drop down for other credits does not have this option.

[RBBrittain]

Are you or your spouse also taking the Retirement Credit (code 18)? You cannot claim both. See https://incometax.utah.gov/credits/military-retirement and https://incometax.utah.gov/credits/retirement-credit .

[Chuck_K]

No we are not taking any other credits.  Turbo Tax form/software does not have the Utah State Military Credit listed.

[BillM223 · Accepted solution]

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.

[Chuck_K]

I'm NOT taking any other credits.  Turbo Tax did not identify which credits gives me the best results because there is no other credit to apply.  The Turbo Tax Utah State form does not allow / list the Military Retirement Credit.  When I fill out the form manually (paper) I get an additional $1200.00 over what Turbo Tax gets me.

Should I just fill a paper return for my state taxes?

[RBBrittain]

@Chuck_K Please re-read the latter part of @BillM223 's response: "We have identified an issue with the military retirement credit in Utah, and are researching it." I read that as a bug in TurboTax Utah that Intuit will need to fix before you can move forward with your Utah state return. I suggest you wait a short time for a resolution of that bug; if that doesn't happen, you may want to file the state return on paper.

[jjwtaxes0626]

When will this bug be fixed. I paid for federal and state tax support and do not want to fill out a paper form when I have paid for Utah State tax support.

[EbonyL122824]

We’re currently working to resolve this inconvenient issue. Please see this link here for more information.

@Chuck_K

@jjwtaxes0626

[kweduc8r]

Not sure why this is still an issue.  The law was signed last year in January.  Intuit had an entire year to update the software.

[dele2451-aol-com]

I too am having the same problem using AJ code. I wonder how we will know when Turbo Tax has this fixed? keep coming back to this post everyday.

[rclayton22]

My Utah State return was also rejected by the state because TurboTax without any input from the user elected to use Nonrefundable Credit Code AH (Social Security) which is significantly less than Code AJ (Military Retirement).  The state system was smart enough to detect the Military Retirement and reject the TurboTax file return because of this error.

The TurboTax error explanation stated it was a known issue with TurboTax affecting the Utah returns and will be addressed in a software update.  The software update was scheduled for release on February 3rd which has passed.  Since I use an online product how can tell when the online version is updated and is there a new scheduled date for the software update release?

[TeresaM]

Yes, our team is working on updating the Utah state military retirement credit area. There have been a lot of tax changes and the IRS and the state tax departments are still updating some forms, then TurboTax integrates the changes.  This is common early in the filing season. Please see this TurboTax Help Article with a link to sign up to receive updates.

Utah Military Retirement Credit updates

[Jd4001Gab]

You can go to the Utah State Tax Commission home page and download the TC40 e file packet. Fill in the forms with information from the Turbo tax federal return. You can claim the military retirement credit and efile free of charge. Took about ten minutes. Received confirmation of receipt within 10 minutes by email. Simple

[Jd4001Gab]

You can go to the Utah State Tax Commission home page and download the TC40 e file packet. Fill in the forms with information from the Turbo tax federal return. You can claim the military retirement credit and efile free of charge. Took about ten minutes. Received confirmation of receipt within 10 minutes by email. Simple

[dele2451-aol-com]

Thanks