Utah 2025 Regular Session

Utah House Bill HB0179 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	01-10 16:03 H.B. 179
2	2	1
3	3	Social Security Tax Modifications
4	4	2025 GENERAL SESSION
5	5	STATE OF UTAH
6	6	Chief Sponsor: Kay J. Christofferson
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8	8
9	9	3
10	10	LONG TITLE
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12	12	General Description:
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14	14	This bill addresses the individual income tax credit for social security benefits.
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16	16	Highlighted Provisions:
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18	18	This bill:
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20	20	▸ removes the income limitations on eligibility for the social security benefits tax credit; and
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22	22	▸ makes technical changes.
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24	24	Money Appropriated in this Bill:
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26	26	None
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28	28	Other Special Clauses:
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30	30	This bill provides retrospective operation.
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32	32	Utah Code Sections Affected:
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34	34	AMENDS:
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36	36	59-10-1042, as last amended by Laws of Utah 2023, Chapter 459
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38	38
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40	40	Be it enacted by the Legislature of the state of Utah:
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42	42	Section 1. Section 59-10-1042 is amended to read:
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44	44	59-10-1042 . Nonrefundable tax credit for social security benefits.
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46	46	(1) As used in this section[:] , "social security benefit" means an amount received by a
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48	48	claimant as a monthly benefit in accordance with the Social Security Act, 42 U.S.C. Sec.
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50	50	401 et seq.
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52	52	[(a) "Head of household filing status" means the same as that term is defined in Section
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54	54	59-10-1018.]
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56	56	[(b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.]
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58	58	[(c) "Married filing separately status" means a married individual who:]
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60	60	[(i) does not file a single federal individual income tax return jointly with that
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62	62	married individual's spouse for the taxable year; and]
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64	64	[(ii) files a single federal individual income tax return for the taxable year.]
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66	66	[(d) "Modified adjusted gross income" means the sum of the following for a claimant H.B. 179 01-10 16:03
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68	68	or, if the claimant's return under this chapter is allowed a joint filing status, the
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70	70	claimant and the claimant's spouse:]
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72	72	[(i) adjusted gross income for the taxable year for which a tax credit is claimed
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74	74	under this section;]
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76	76	[(ii) any interest income that is not included in adjusted gross income for the taxable
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78	78	year described in Subsection (1)(d)(i); and]
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80	80	[(iii) any addition to adjusted gross income required by Section 59-10-114 for the
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82	82	taxable year described in Subsection (1)(d)(i).]
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84	84	[(e) "Single filing status" means a single individual who files a single federal individual
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86	86	income tax return for the taxable year.]
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88	88	[(f) "Social security benefit" means an amount received by a claimant as a monthly
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90	90	benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.]
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92	92	(2) Except as provided in Section 59-10-1002.2 and [Subsections (3) and (4), each claimant
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94	94	on a return] Subsection (3), a claimant that receives a social security benefit may claim a
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96	96	nonrefundable tax credit against taxes otherwise due under this part equal to the product
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98	98	of:
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100	100	(a) the percentage listed in Subsection 59-10-104(2); and
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102	102	(b) the claimant's social security benefit that is included in [adjusted gross income on the
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104	104	claimant's federal income tax return] the claimant's state taxable income for the
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106	106	taxable year.
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108	108	(3) A claimant may not:
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110	110	(a) carry forward or carry back the amount of a tax credit under this section that exceeds
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112	112	the claimant's tax liability for the taxable year; or
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114	114	(b) claim a tax credit under this section for a taxable year if a tax credit under Section
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116	116	59-10-1019 is claimed on the claimant's return for the same taxable year.
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118	118	[(4) The tax credit allowed by Subsection (2) claimed on a return filed under this part shall
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120	120	be reduced by $.025 for each dollar by which modified adjusted gross income for
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122	122	purposes of the return exceeds:]
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124	124	[(a) for a federal individual income tax return that is allowed a married filing separately
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126	126	status, $37,500;]
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128	128	[(b) for a federal individual income tax return that is allowed a single filing status,
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130	130	$45,000;]
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132	132	[(c) for a federal individual income tax return that is allowed a head of household filing
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134	134	status, $75,000; or]
135	135	- 2 - 01-10 16:03 H.B. 179
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137	137	[(d) for a return under this chapter that is allowed a joint filing status, $75,000.]
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139	139	[(5)] (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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141	141	commission may make rules governing the calculation and method for claiming the tax
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143	143	credit described in this section.
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145	145	Section 2. Effective date.
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147	147	This bill takes effect on May 7, 2025.
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149	149	Section 3. Retrospective operation.
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151	151	This bill has retrospective operation for a taxable year beginning on or after January 1,
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153	153	2025.
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