Calculate Capital Gain Transaction Credit

Description Amount Eligible capital gain 1 _________ Multiply line 1 by 4.5% (.045). This is your credit. 2 _________

Enter this amount on TC-40A, Part 3, using code 04.

There is no form for this credit. Keep all documents with your records.

Note: You may not carry forward or back any credit that is more than your tax liability.

(18) Retirement Credit (UCA §59-10-1019)

If you (and/or your spouse, if filing jointly) were born on or before Dec. 31, 1952, you may take a retirement credit of up to $450. Complete the Retirement Credit Worksheet, below, to calculate the credit.

You may not claim this credit if you (or your spouse, if filing jointly) claim either the Social Security Benefits Credit (code AH) or the Military Retirement Credit (code AJ).

Retirement Credit Worksheet Calculation Steps Amount If only you or only your spouse is taking this credit, enter 450. If both you and your spouse are taking this credit, enter 900. 1 _________ Enter the amount from TC-40, line 6 (Total income) 2 _________ Enter municipal bond interest from TC-40, Schedule A, Part 1, code 57 3 _________ Line 2 minus line 3 4 _________ Enter tax-exempt interest from federal form 1040 or 1040-SR, line 2a 5 _________ Modified Adjusted Gross Income: Add lines 4 and 5 6 _________ Enter: • Married filing separately: $16,000 • Married filing federal return 1040NR: $16,000 • Married filing joint: $32,000 • Single: $25,000 • Qualifying surviving spouse or head of household: $32,000 7 _________ Line 6 minus line 7 (not less than zero) 8 _________ Multiply line 8 by 0.025 9 _________ Retirement Credit: Subtract line 9 from line 1 (not less than zero). 10 _________

If you (and/or your spouse) claim this credit, enter the total amount on TC-40A, Part 3, using code 18. Also enter your (and/or your spouse’s) birthdate(s).

TIP: Because the maximum amount of this credit is $450 per individual, you (and/or your spouse) may qualify for a larger credit by taking the Social Security Benefits Credit (code AH) or the Military Retirement Credit (code AJ). See below.

Note: You may not carry forward or back any retirement credit that is more than your tax liability.

(20) my529 Credit (UCA §59-10-1017)

If a qualified contribution was made to your Utah my529 account, you may claim a nonrefundable credit. To qualify, the contribution must be made during the tax year and must not have been deducted on your federal return.

If you are a my529 account owner, you will receive form TC-675H, my529 Tax Statement for Contributions, Withdrawals, and Transfers, from my529. If your filing status is single, head of household, married filing separate or qualifying surviving spouse, enter on TC-40A, Part 3, the amount from TC-675H, box 1A. If your filing status is married filing joint, enter the amount from TC-675H, box 1B. Use code 20.

If you are a grantor trust and you receive more than one TC-675H for the same beneficiary, contact my529 for instructions to correctly calculate the credit.

Keep form TC-675H with your records to provide the Tax Commission upon request. If you have any questions about my529 accounts, call my529 at 1-800-418-2551, or visit my529.org .

Note: You may not carry forward or back any credit that is more than your tax liability.

(23) Health Benefit Plan Credit (UCA §59-10-1023)

TIP: Amounts not included in your federal taxable income and amounts used to claim a federal credit cannot be used for this credit.

You may claim this credit if you purchased your own health insurance and were not eligible to participate in a health benefit plan maintained and funded through an employer or former employer. You do not qualify for this credit if you (or your spouse, if filing a joint return) had the option to get health insurance through an employer or former employer, even if you chose not to use the employer’s plan.

Definition

A health benefit plan is a policy, contract or agreement offered by a carrier to pay for or reimburse health care costs.

Health benefit plans do not include:

accident and disability income insurance;

liability and supplemental liability insurance;

workers compensation insurance;

automobile medical insurance;

credit-only insurance;

on-site medical coverage;

insurance where health care is not the main benefit;

separate dental, vision, hearing, long-term care or home health plans;

insurance for a specific illness or disease;

fixed indemnity insurance;

Medicare supplemental insurance;

self-insurance; or

other similar coverage.

Excluded Amounts

You must exclude the following amounts when calculating the credit:

Amounts used to calculate a federal Health Coverage Tax Credit (HCTC) for Trade Adjustment Assistance (TAA) recipients, alternate TAA recipients or Pension Benefit Guaranty Corporation (PBGC) pension recipients (IRC Section 35).

Payments into or for an Archer Medical Savings Account (MSA), Health Savings Account (HSA), Health Flexible Spending Accounts (FSA) or Health Reimbursement Arrangement (HRA) (IRC Section 106).

Pre-tax employer contributions to cafeteria or employer plans covering employees who may choose among two or more cash and qualified benefits (IRC Section 125).

Trade or business expenses for self-employed persons up to 100 percent of premiums paid but not more than your net business income (under IRC Section 162).

Amounts deducted on federal Schedule A (IRC section 213).

Amounts paid on your behalf by a third party, such as government subsidies through Medicaid.

Payments for Medicare supplemental plans (Medigap).

Fees or co-pays for Children’s Health Insurance Program (CHIP) and Primary Care Network (PCN) programs run by the Utah Department of Health, or similar programs run by other states.

Included Amounts

You may include the following amounts when calculating the credit:

Payments for a health benefit plan through an Affordable Care Act (ACA) marketplace. You may also include any extra amounts you had to pay for the plan on your federal income tax return, but you must subtract any amounts refunded to you on your federal tax return.

Medicare Plan A premiums, if you are required to pay them (most people are not).

Medicare Plan B premiums, even if the payments are deducted from your social security benefits.

Payments for healthcare plans offered by private insurance carriers approved by Medicare (Medicare Plan C, Medicare Advantage).

Payments for Medicare Plan D (drug) plans offered by private insurance carriers and approved by Medicare.

Payments for a health benefit plan connected to Medicaid. Do not include amounts paid by Medicaid.

Payments through COBRA for a former employer’s insurance plan.

Credit Calculation

Use the worksheet below to calculate the credit.

There is no form for this credit. Keep all related documents with your records.

Calculation of Health Benefit Plan Credit Calculation Steps Amount Amount paid for health benefit plan in 2025 1 _________ Enter your excess advance premium tax credit repayment from your 2024 federal form 1040, Schedule 2, line 2 2 _________* Add line 1 and line 2 3 _________ Enter your net premium tax credit from your 2024 federal form 1040, Schedule 3, line 9 4 _________* Subtract line 4 from line 3 5 _________ Excluded amount (see instructions, above) 6 _________ Subtract line 6 from line 5 (if less than zero, enter “0”) 7 _________ Multiply line 7 by 4.5% (.045) 8 _________ Enter maximum credit allowed per return: • $300 for single taxpayer with no dependents • $600 for married filing jointly with no dependents • $900 for all taxpayers with dependents 9 _________ Enter the lesser of line 8 or line 9. This is your credit. 10 _________

Enter this amount on TC-40A, Part 3, using code 23.

*Enter an amount on line 2 or line 4 only if you claimed the Health Benefit Credit on your 2024 return.

Note: You may not carry forward or back any credit that is more than your tax liability.

(26) Gold and Silver Coin Sale Credit (UCA §59-10-1028)

Capital gains recognized on the sale or exchange of gold and silver coins issued by the United States government and reported on a federal individual income tax return are eligible for an apportionable nonrefundable credit against Utah tax.

You may also include any gold or silver coin or bullion, other than that issued by the United States, if a court of competent jurisdiction issues a final, unappealable judgment or order determining that Utah may recognize the gold or silver coin or bullion as legal tender in the state, or Congress enacts legislation expressly providing that such coin or bullion is legal tender.

To qualify for the credit, all of the following conditions must be met:

The capital gain transaction must be for the sale or exchange of gold or silver coin issued by the federal government for another form of legal tender,

the capital gain transaction must result in a short-term or long-term capital gain (defined in IRC §1222) that is reported on Schedule D of your federal individual or fiduciary return,

any eligible capital gain must first be offset by any capital loss recognized for the year for federal purposes from the sale of gold and/or silver coin, and

the transaction must be made during the tax year.

For more information, see UC Title 59, Chapter 1, Part 15, Specie Legal Tender Act.

Calculation of Gold and Silver Coin Sale Credit Calculation Steps Amount Capital gains on all sales and exchanges of gold and silver coins 1 _________ Capital losses on all sales and exchanges of gold and silver coins 2 _________ Subtract line 2 from line 1 (if a loss, STOP , there is no credit) 3 _________ Amount from federal form 1040, Schedule D, line 16 (if a loss, STOP , there is no credit) 4 _________ Enter the lesser of line 3 or line 4 5 _________ Credit percentage - 4.5% 6 .045 Credit: Multiply line 5 by line 6 7 _________

Enter this amount on TC-40A, Part 3, using code 26.

Note: You may not carry forward or back any credit that is more than your tax liability.

There is no form for this credit. Keep all related documents with your records.

(AH) Social Security Benefits Credit (UCA §59-10-1042)

You may qualify for this credit if you (or your spouse, if filing jointly) received taxable Social Security retirement, disability or survivor benefits. Complete the Social Security Credit Worksheet, below, to calculate this credit. You may only claim this credit for Social Security benefits included in adjusted gross income on this return.

You may not claim this credit if you (or your spouse, if filing jointly) claim the Retirement Credit (code 18).

Social Security Credit Worksheet Calculation Steps Amount For yourself (and/or your spouse), enter the amount from federal form 1040 or 1040-SR, line 6b; or 1040-NR, Schedule NEC, line 8 1 _________ Did you report Native American Income (code 77) or Railroad Retirement Income (code 78) as a subtraction from income on TC-40, Schedule A, Part 2? If yes, enter any Social Security benefit included in those amounts. If no, enter “0” 2 _________ Line 1 minus line 2 3 _________ Multiply line 3 by 0.045 4 _________ Enter the amount from TC-40, line 9 (Utah taxable income/loss) 5 _________ Enter municipal bond interest from TC-40, Schedule A, Part 1, code 57 6 _________ Line 5 minus line 6 7 _________ Enter tax exempt interest from federal form 1040, 1040-SR or 1040-NR, line 2a 8 _________ Add lines 7 and 8 9 _________ Enter: a. Married filing separately: $45,000 b. Married filing federal return 1040-NR: $45,000 c. Married filing joint: $90,000 d. Single: $54,000 e. Qualifying surviving spouse or head of household: $90,000 10 _________ Line 9 minus line 10 (not less than zero) 11 _________ Multiply line 11 by 0.025 12 _________ Social Security Benefits Credit: Line 4 minus line 12 (not less than zero) 13 _________

If claiming this credit, enter the total amount on TC-40A, Part 3, using code AH.

Note: You may not carry forward or back any credit that is more than your tax liability.

(AJ) Military Retirement Credit (UCA §59-10-1043)

You may qualify for this credit if you (or your spouse, if filing jointly) received taxable military retirement pay. Military retirement pay means retirement pay related to service in the armed forces, including retirement pay received by a survivor of a deceased service member. It does not include Social Security income, 401(k) or IRA distributions, or other sources of income, such as non-military federal retirement. You may only claim this credit for military retirement income included in adjusted gross income reported on this return.

Complete the Military Retirement Credit Worksheet, below, to calculate this credit.

You may not claim this credit if you (or your spouse, if filing jointly) claim the Retirement Credit (code 18).

TIP: Do not take this credit if you receive survivor benefits for a service member who died while on active duty or while in training. Instead, take the Military Survivor Benefits Credit (code AA) .

Military Retirement Credit Worksheet Calculation Steps Amount Enter the amount of taxable military retirement pay 1 _________ Military Retirement Credit: Multiply line 1 by 0.045 2 _________

Complete one worksheet for each person taking this credit.

If claiming this credit, add the amount on line 2 of all worksheets and enter the total amount on TC-40A, Part 3, using code AJ.

Note: You may not carry forward or back any credit that is more than your tax liability.

(AM) Earned Income Tax Credit (UCA §59-10-1044)

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

qualify for and claim the federal credit in the same tax year, and

earn Utah income that is reported on a W-2.

Earned Income Tax Credit Worksheet Calculation Steps Amount Enter your federal earned income tax credit from federal form 1040 or 1040-SR, line 27a 1 _________ Multiply line 1 by 0.2 2 _________ Total Utah wages shown on form W-2, box 16 3 _________

Enter the lesser of line 2 or line 3 on TC-40A, Part 3, using code AM.

Note: You may not carry forward or back any credit that is more than your tax liability.

(AS) Nonrefundable Adoption Expenses Credit (UCA §59-10-1046)

You may claim a nonrefundable credit of up to $3,500 for expenses related to an adoption finalized during the tax year.

To qualify for this nonrefundable credit, your adjusted gross income must be:

at least $55,000 but less than $110,000 if your filing status is married filing jointly; or

at least $27,500 but less than $55,000 if your filing status is single, head of household or qualifying surviving spouse.

If your income is less than the minimum amount for this credit, see the refundable adoption expenses credit (code ME) .

You do NOT qualify for an adoption expenses tax credit if:

you received any state or federal assistance during the tax year;

you claimed the same expenses as a federal tax credit under 26 USC Sec. 23;

you are married but you and your spouse did not file a joint federal tax return; or

you are adopting your spouse’s child or your spouse is adopting yours.

Note: You may carry forward for the next three years any credit that is more than your tax liability.

For more information and to apply for this credit, contact:

Department of Workforce Services [email protected] Phone: 801-526-9621 Fax: 801-526-9244 jobs.utah.gov/adoptioncredit

(AT) Child Tax Credit (UCA §59-10-1047)

You may claim a credit for any child who:

qualifies for the federal child tax credit under IRC 24, and

was, on the last day of 2025, no more than five years old.

Child Tax Credit Worksheet Calculation Steps Amount Enter the number of children who qualify for the federal tax credit (IRC 24) and who were 5 and younger on the last day of 2025 1 _________ Multiply line 1 by $1,000 2 _________ Enter the amount from TC-40, line 6 (Total Income) 3 _________ Enter municipal bond interest from TC-40, Schedule A, Part 1, code 57 4 _________ Line 3 minus line 4 5 _________ Enter tax exempt interest from federal form 1040 or 1040-SR, line 2a 6 _________ Modified Adjusted Gross Income: Add lines 5 and 6 7 _________ Enter: A. Married filing separately: $27,000 B. Married filing federal return 1040NR: $27,000 C. Married filing joint: $54,000 D. Single: $43,000 E. Head of household: $43,000 F. Qualifying surviving spouse: $54,000 8 _________ Line 7 minus line 8 (not less than zero) 9 _________ Multiply line 9 by 0.10 10 _________ Child Tax Credit: Line 2 minus line 10 (not less than zero) 11 _________

Enter this amount on TC-40A, Part 3, using code AT.

Note: You may not carry forward or back any credit that is more than your tax liability.

(AW) Employer-provided Childcare Construction Credit (UCA §59-10-1048(2))

WARNING: You do not qualify for this credit unless you are an employer who is taking the federal Employer-Provided Childcare Credit ( IRC Sec. 45F) this tax year.

A qualifying employer may claim a tax credit that is 20 percent of the cost to acquire, build, rehabilitate or expand a qualified childcare center during the tax year.

Recapture

If you do not operate the childcare center for at least five consecutive years after taking this credit, you must repay a percentage of it. The repayment must occur in the same tax year you stop providing childcare. The percentage to repay is as follows:

100 percent if you stop providing childcare within two years.

75 percent if you stop providing childcare within three years.

50 percent if you stop providing childcare within four years.

25 percent if you stop providing childcare within five years.

Note: You may carry forward for the next five years any credit that is more than your tax liability.

There is no form for this credit. Keep all related documents with your records.

(AX) Employer-provided Childcare Expenses Credit (UCA §59-10-1048(3))

WARNING: You may only claim this credit if you have already claimed the Employer-provided Child Care Construction Credit (credit AW).

A qualifying employer may claim a tax credit that is 10 percent of the costs to operate a qualified childcare center during the tax year.

Recapture

If you do not operate the childcare center for at least five consecutive years, you must repay a percentage of the total credit taken. The whole repayment must occur in the same tax year you stop providing childcare. The percentage to repay is as follows:

100 percent if you stop providing childcare within two years.

75 percent if you stop providing childcare within three years.

50 percent if you stop providing childcare within four years.

25 percent if you stop providing childcare within five years.

Note: You may not carry forward or back any credit that is more than your tax liability.

There is no form for this credit. Keep all related documents with your records.