Bill > SB0071

This bill modifies Utah's existing nonrefundable tax credit for Social Security benefits by adjusting income thresholds and calculation methods. Specifically, the bill increases the income levels at which the tax credit begins to phase out for different filing statuses: for married filing separately status, the threshold increases from $37,500 to $45,000; for single filers, from $45,000 to $54,000; and for head of household and joint filing statuses, from $75,000 to $90,000. The bill also changes the basis for calculating the credit from the amount included in federal adjusted gross income to the amount included in the claimant's state taxable income. The tax credit remains nonrefundable, meaning taxpayers cannot claim more credit than their tax liability, and cannot carry forward or back excess credits. The bill will take effect on May 7, 2025, and will apply retrospectively to taxable years beginning on or after January 1, 2025, potentially providing tax relief for Social Security recipients by allowing them to claim a larger credit before the credit is reduced based on their modified adjusted gross income.