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Returning Member
posted Jan 30, 2024 10:24:01 AM

utah state tax

I read that there was a credit for utah for earned income 20 % of federal but it wont come up in my turbo tax 

0 11 884
11 Replies
Employee Tax Expert
Jan 30, 2024 10:55:56 AM

Verify your w2 shows Utah wages and verify you qualify for EIC on the federal.

 

Utah does offer 20% of the amount on your federal tax return for state EIC with these rules:  

You may claim a Utah earned income tax credit equal to 20 percent of your federal earned income tax credit. To qualify you must:

  1. qualify for and claim the federal credit in the same tax year, and
  2. earn Utah income that is reported on a W-2.

 

Earned Income Tax Credit - Utah State Tax Commission

Returning Member
Jan 30, 2024 3:08:34 PM

why wont the program put it in automatically    because it doesnt let me manual enter it either

 

Employee Tax Expert
Jan 30, 2024 6:25:41 PM

Did you do both of these things?

 

To qualify you must:

  1. qualify for and claim the federal credit in the same tax year, and
  2. earn Utah income that is reported on a W-2.

In my test, it calculated the credit at 20% of the federal amount automatically.

 

Are you using TurboTax Online or TurboTax desktop?

Returning Member
Jan 31, 2024 6:38:13 AM

turbo tax desktop premier there is around a 3500 earned income credit 

Employee Tax Expert
Jan 31, 2024 9:16:19 AM

Yes, but is there a value in box 16 on your W-2?

Returning Member
Jan 31, 2024 11:25:15 AM

yes the value is the same as the federal   i just  ran an update i still cant get it to come in.   

Returning Member
Feb 1, 2024 7:37:58 AM

yes there is a value

Employee Tax Expert
Feb 1, 2024 11:09:36 AM

I am able to claim the Utah Earned Income Tax Credit using TurboTax Desktop Premier.

 

The Utah State Tax Commission website explaining the credit is here.

 

You may claim a Utah earned income tax credit equal to 20 percent of your federal earned income tax credit. To qualify you must:

 

  1. qualify for and claim the federal credit in the same tax year, and
  2. earn Utah income that is reported on a W-2.

@ldbrereton 

Returning Member
Feb 1, 2024 3:22:59 PM

i knew it could be claimed the problem i am having is i cant get it to automatically come from federal, and i cant see anyway of manually doing it on turbo tax i bought premier tax

Returning Member
Feb 1, 2024 3:47:35 PM

i bought premier to be able to file 5 returns electronically and i have never helped my friend before but she was charged 419.00 dollars from hr block just for a w2 and the earned income credit i told her we could do it so i studied up on utah found that credit but cant seem to get it to work

Employee Tax Expert
Feb 4, 2024 10:09:14 AM

The Utah Earned Income Tax Credit is nonrefundable.  All it can do is reduce your Utah tax liability down to zero.  Is this what is happening?

 

 

I am able to claim the Utah Earned Income Tax Credit using TurboTax Desktop Premier.  It is difficult to know what is happening without seeing the details on your tax return. 

 

First, you must have earned income.  The IRS defines earned income as:

 

  • Taxable income you earned as an employee, such as wages, salaries, commissions, and tips,
  • Profits from operating your business or farm,
  • Long-term disability pay if received before the minimum retirement age,
  • Union strike benefits.

Here are the requirements to qualify for the Earned Income Credit:

 

  • Have earned income; and
  • Have been a U.S. citizen or resident alien for the entire tax year; and
  • Have a valid Social Security number (not an ITIN) for yourself, your spouse (if filing jointly), and any qualifying children on your return; and
  • Not have investment income exceeding $11,000; and
  • Not be filing a Form 2555 or 2555-EZ; and
  • File a return with the Single, Married Filing Jointly, Head of Household, or Qualifying Widower filing status, even if you're not required to file a return.

In addition, both your earned income and Adjusted Gross Income (AGI) may not exceed:

 

  • $17,640 if you're not claiming a qualifying child ($24,210 if filing jointly)
  • $46,560 if you're claiming 1 qualifying child ($53,120 if filing jointly)
  • $52,918 if you're claiming 2 qualifying children ($59,478 if filing jointly)
  • $56,838 if you're claiming 3+ qualifying children ($63,698 if filing jointly)

The tests for a qualifying child are:

 

  • Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew).
  • Residence: Must have the same residence for more than half the year.
  • Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled.
  • Support: Must not have provided more than half of their own support during the year.
  • Joint Support: The child cannot file a joint return for the year.