Section 1043 – Nonrefundable tax credit for military retirement.

• (1) As used in this section:
  • (a)
    • (i) “Military retirement pay” means retirement pay, including survivor benefits, that relates to service in the armed forces or the reserve components, as described in 10 U.S.C. Sec. 10101.
    • (ii) “Military retirement pay” does not include:
      • (A) Social Security income;
      • (B) 401(k) or IRA distributions; or
      • (C) income from other sources.
  • (b) “Survivor benefits” means the retired pay portion of the benefits described in 10 U.S.C. Secs. 1447 through 1455.

• (2) Except as provided in Section 59-10-1002.2, a claimant who receives military retirement pay may claim a nonrefundable tax credit against taxes equal to the product of:
  • (a) the percentage listed in Subsection 59-10-104(2); and
  • (b) the amount of military retirement pay that is included in adjusted gross income on the claimant’s federal income tax return for the taxable year.

• (3) A claimant may not:
  • (a) carry forward or carry back the amount of a tax credit that exceeds the claimant’s tax liability for the taxable year; or
  • (b) claim a tax credit under this section for a taxable year if a tax credit under Section 59-10-1019 is claimed on the claimant’s return for the same taxable year.

Amended by Chapter 258, 2022 General Session