Utah 2025 Regular Session

Utah Senate Bill SB0071 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy S.B. 71
	1	+	03-04 18:22 2nd Sub. (Salmon) S.B. 71
	2	+	Wayne A. Harper proposes the following substitute bill:
2	3		1
3	4		Social Security Tax Revisions
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Wayne A. Harper
7	8		House Sponsor: Walt Brooks
8		-
9		-	Cosponsor:
10		-
11		-	Heidi Balderree
12	9		2
13	10
14	11		3
15	12		LONG TITLE
16	13		4
17	14		General Description:
18	15		5
19	16		This bill modifies the individual income tax credit for social security benefits.
20	17		6
21	18		Highlighted Provisions:
22	19		7
23	20		This bill:
24	21		8
25	22		▸ expands eligibility for the social security benefits tax credit by increasing the thresholds
26	23		9
27	24		for the income-based phaseout; and
28	25		10
29	26		▸ makes technical changes.
30	27		11
31	28		Money Appropriated in this Bill:
32	29		12
33	30		None
34	31		13
35	32		Other Special Clauses:
36	33		14
37	34		This bill provides retrospective operation.
38	35		15
39	36		Utah Code Sections Affected:
40	37		16
41	38		AMENDS:
42	39		17
43	40		59-10-1042, as last amended by Laws of Utah 2023, Chapter 459
44	41		18
45	42
46	43		19
47	44		Be it enacted by the Legislature of the state of Utah:
48	45		20
49	46		Section 1. Section 59-10-1042 is amended to read:
50	47		21
51	48		59-10-1042 . Nonrefundable tax credit for social security benefits.
52	49		22
53	50		(1) As used in this section:
54	51		23
55	52		(a) "Head of household filing status" means the same as that term is defined in Section
56	53		24
57	54		59-10-1018.
58	55		25
59		-	(b) "Joint filing status" means the same as that term is defined in Section 59-10-1018. ~~S.B. 71 Enrolled Copy~~
	56	+	(b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
60	57		26
61	58		(c) "Married filing separately status" means a married individual who:
62	59		27
63	60		(i) does not file a single federal individual income tax return jointly with that married
64	61		28
65	62		individual's spouse for the taxable year; and
66	63		29
67	64		(ii) files a single federal individual income tax return for the taxable year.
	65	+	2nd Sub. S.B. 71 2nd Sub. (Salmon) S.B. 71 03-04 18:22
68	66		30
69	67		(d) "Modified adjusted gross income" means the sum of the following for a claimant or,
70	68		31
71	69		if the claimant's return under this chapter is allowed a joint filing status, the claimant
72	70		32
73	71		and the claimant's spouse:
74	72		33
75	73		(i) adjusted gross income for the taxable year for which a tax credit is claimed under
76	74		34
77	75		this section;
78	76		35
79	77		(ii) any interest income that is not included in adjusted gross income for the taxable
80	78		36
81	79		year described in Subsection (1)(d)(i); and
82	80		37
83	81		(iii) any addition to adjusted gross income required by Section 59-10-114 for the
84	82		38
85	83		taxable year described in Subsection (1)(d)(i).
86	84		39
87	85		(e) "Single filing status" means a single individual who files a single federal individual
88	86		40
89	87		income tax return for the taxable year.
90	88		41
91	89		(f) "Social security benefit" means an amount received by a claimant as a monthly
92	90		42
93	91		benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
94	92		43
95	93		(2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each claimant
96	94		44
97	95		on a return that receives a social security benefit may claim a nonrefundable tax credit
98	96		45
99	97		against taxes otherwise due under this part equal to the product of:
100	98		46
101	99		(a) the percentage listed in Subsection 59-10-104(2); and
102	100		47
103	101		(b) the claimant's social security benefit that is included in [adjusted gross income on the
104	102		48
105	103		claimant's federal income tax return] the claimant's state taxable income for the
106	104		49
107	105		taxable year.
108	106		50
109	107		(3) A claimant may not:
110	108		51
111	109		(a) carry forward or carry back the amount of a tax credit under this section that exceeds
112	110		52
113	111		the claimant's tax liability for the taxable year; or
114	112		53
115	113		(b) claim a tax credit under this section for a taxable year if a tax credit under Section
116	114		54
117	115		59-10-1019 is claimed on the claimant's return for the same taxable year.
118	116		55
119	117		(4) The tax credit allowed by Subsection (2) claimed on a return filed under this part shall
120	118		56
121	119		be reduced by $.025 for each dollar by which modified adjusted gross income for
122	120		57
123	121		purposes of the return exceeds:
124	122		58
125	123		(a) for a federal individual income tax return that is allowed a married filing separately
126	124		59
127	125		status, [$37,500] $45,000;
128		-	- 2 - Enrolled Copy S.B. 71
129	126		60
130	127		(b) for a federal individual income tax return that is allowed a single filing status, [
131	128		61
132	129		$45,000] $54,000;
133	130		62
134	131		(c) for a federal individual income tax return that is allowed a head of household filing
135	132		63
136	133		status, [$75,000] $90,000; or
	134	+	- 2 - 03-04 18:22 2nd Sub. (Salmon) S.B. 71
137	135		64
138	136		(d) for a return under this chapter that is allowed a joint filing status, [$75,000] $90,000.
139	137		65
140	138		(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
141	139		66
142	140		commission may make rules governing the calculation and method for claiming the tax
143	141		67
144	142		credit described in this section.
145	143		68
146	144		Section 2. Effective date.
147	145		69
148	146		This bill takes effect on May 7, 2025.
149	147		70
150	148		Section 3. Retrospective operation.
151	149		71
152	150		This bill has retrospective operation for a taxable year beginning on or after January 1,
153	151		72
154	152		2025.
155	153		- 3 -