Enrolled Copy S.B. 71
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Social Security Tax Revisions
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Walt Brooks
Cosponsor:
Heidi Balderree
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LONG TITLE
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General Description:
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This bill modifies 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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▸ expands eligibility for the social security benefits tax credit by increasing the thresholds
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for the income-based phaseout; 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:
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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. S.B. 71 Enrolled Copy
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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 married
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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 or,
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if the claimant's return under this chapter is allowed a joint filing status, the claimant
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and the claimant's spouse:
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(i) adjusted gross income for the taxable year for which a tax credit is claimed under
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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 that receives a social security benefit may claim a nonrefundable tax credit
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against taxes otherwise due under this part equal to the product 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] $45,000;
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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] $54,000;
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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] $90,000; or
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(d) for a return under this chapter that is allowed a joint filing status, [$75,000] $90,000.
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(5) 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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