01-10 16:03 H.B. 179
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Social Security Tax Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kay J. Christofferson
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LONG TITLE
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General Description:
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This bill addresses the individual income tax credit for social security benefits.
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Highlighted Provisions:
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This bill:
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▸ removes the income limitations on eligibility for the social security benefits tax credit; and
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▸ makes technical changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides retrospective operation.
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Utah Code Sections Affected:
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AMENDS:
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59-10-1042, as last amended by Laws of Utah 2023, Chapter 459
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 59-10-1042 is amended to read:
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59-10-1042 . Nonrefundable tax credit for social security benefits.
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(1) As used in this section[:] , "social security benefit" means an amount received by a
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claimant as a monthly benefit in accordance with the Social Security Act, 42 U.S.C. Sec.
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401 et seq.
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[(a) "Head of household filing status" means the same as that term is defined in Section
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59-10-1018.]
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[(b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.]
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[(c) "Married filing separately status" means a married individual who:]
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[(i) does not file a single federal individual income tax return jointly with that
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married individual's spouse for the taxable year; and]
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[(ii) files a single federal individual income tax return for the taxable year.]
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[(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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or, if the claimant's return under this chapter is allowed a joint filing status, the
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claimant and the claimant's spouse:]
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[(i) adjusted gross income for the taxable year for which a tax credit is claimed
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under this section;]
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[(ii) any interest income that is not included in adjusted gross income for the taxable
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year described in Subsection (1)(d)(i); and]
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[(iii) any addition to adjusted gross income required by Section 59-10-114 for the
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taxable year described in Subsection (1)(d)(i).]
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[(e) "Single filing status" means a single individual who files a single federal individual
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income tax return for the taxable year.]
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[(f) "Social security benefit" means an amount received by a claimant as a monthly
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benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.]
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(2) Except as provided in Section 59-10-1002.2 and [Subsections (3) and (4), each claimant
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on a return] Subsection (3), a claimant that receives a social security benefit may claim a
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nonrefundable tax credit against taxes otherwise due under this part equal to the product
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of:
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(a) the percentage listed in Subsection 59-10-104(2); and
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(b) the claimant's social security benefit that is included in [adjusted gross income on the
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claimant's federal income tax return] the claimant's state taxable income for the
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taxable year.
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(3) A claimant may not:
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(a) carry forward or carry back the amount of a tax credit under this section that exceeds
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the claimant's tax liability for the taxable year; or
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(b) claim a tax credit under this section for a taxable year if a tax credit under Section
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59-10-1019 is claimed on the claimant's return for the same taxable year.
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[(4) The tax credit allowed by Subsection (2) claimed on a return filed under this part shall
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be reduced by $.025 for each dollar by which modified adjusted gross income for
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purposes of the return exceeds:]
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[(a) for a federal individual income tax return that is allowed a married filing separately
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status, $37,500;]
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[(b) for a federal individual income tax return that is allowed a single filing status,
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$45,000;]
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[(c) for a federal individual income tax return that is allowed a head of household filing
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status, $75,000; or]
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[(d) for a return under this chapter that is allowed a joint filing status, $75,000.]
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[(5)] (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission may make rules governing the calculation and method for claiming the tax
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credit described in this section.
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Section 2. Effective date.
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This bill takes effect on May 7, 2025.
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Section 3. Retrospective operation.
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This bill has retrospective operation for a taxable year beginning on or after January 1,
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2025.
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