Utah S.B. 116: Social Security Income Tax Amendments

Bill Text

S
.B
. 116
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: C.R. Gilbert 6
6 02-10-20 3:44 PM 6
S.B. 116
1 SOCIAL SECURITY INCOME TAX AMENDMENTS
2 2020 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Karen Mayne
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill provides for an individual income tax credit for certain social security benefits.
10 Highlighted Provisions:
11 This bill:
12 < defines terms;
13 < enacts a tax credit for social security benefits that are included in the claimant's
14 modified adjusted gross income;
15 < provides that an individual who claims the tax credit for social security benefits may
16 not also claim the retirement tax credit;
17 < grants rulemaking authority to the State Tax Commission; and
18 < makes technical and conforming changes.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill provides retrospective operation.
23 Utah Code Sections Affected:
24 AMENDS:
25 59-10-1002.2, as last amended by Laws of Utah 2016, Chapter 263
26 59-10-1019, as renumbered and amended by Laws of Utah 2008, Chapter 389
27 ENACTS:
*SB0116*

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28 59-10-1041, Utah Code Annotated 1953
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-10-1002.2 is amended to read:
32 59-10-1002.2. Apportionment of tax credits.
33 (1) A nonresident individual or a part-year resident individual that claims a tax credit
34 in accordance with Section 59-10-1017, 59-10-1018, 59-10-1019, 59-10-1022, 59-10-1023,
35 59-10-1024, [or] 59-10-1028, or 59-10-1041 may only claim an apportioned amount of the tax
36 credit equal to:
37 (a) for a nonresident individual, the product of:
38 (i) the state income tax percentage for the nonresident individual; and
39 (ii) the amount of the tax credit that the nonresident individual would have been
40 allowed to claim but for the apportionment requirements of this section; or
41 (b) for a part-year resident individual, the product of:
42 (i) the state income tax percentage for the part-year resident individual; and
43 (ii) the amount of the tax credit that the part-year resident individual would have been
44 allowed to claim but for the apportionment requirements of this section.
45 (2) A nonresident estate or trust that claims a tax credit in accordance with Section
46 59-10-1017, 59-10-1020, 59-10-1022, 59-10-1024, or 59-10-1028 may only claim an
47 apportioned amount of the tax credit equal to the product of:
48 (a) the state income tax percentage for the nonresident estate or trust; and
49 (b) the amount of the tax credit that the nonresident estate or trust would have been
50 allowed to claim but for the apportionment requirements of this section.
51 Section 2. Section 59-10-1019 is amended to read:
52 59-10-1019. Definitions -- Nonrefundable retirement tax credits.
53 (1) As used in this section:
54 (a) "Eligible over age 65 [or older] retiree" means a claimant, regardless of whether
55 that claimant is retired, who[:] was born on or before December 31, 1952.
56 [(i) is 65 years of age or older; and]
57 [(ii) was born on or before December 31, 1952.]
58 [(b) (i) "Eligible retirement income" means income received by an eligible under age

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59 65 retiree as a pension or annuity if that pension or annuity is:]
60 [(A) paid to the eligible under age 65 retiree or the surviving spouse of an eligible
61 under age 65 retiree; and]
62 [(B) (I) paid from an annuity contract purchased by an employer under a plan that
63 meets the requirements of Section 404(a)(2), Internal Revenue Code;]
64 [(II) purchased by an employee under a plan that meets the requirements of Section
65 408, Internal Revenue Code; or]
66 [(III) paid by:]
67 [(Aa) the United States;]
68 [(Bb) a state or a political subdivision of a state; or]
69 [(Cc) the District of Columbia.]
70 [(ii) "Eligible retirement income" does not include amounts received by the spouse of a
71 living eligible under age 65 retiree because of the eligible under age 65 retiree's having been
72 employed in a community property state.]
73 [(c) "Eligible under age 65 retiree" means a claimant, regardless of whether that
74 claimant is retired, who:]
75 [(i) is younger than 65 years of age;]
76 [(ii) was born on or before December 31, 1952; and]
77 [(iii) has eligible retirement income for the taxable year for which a tax credit is
78 claimed under this section.]
79 [(d)] (b) "Head of household filing status" [is as] means the same as that term is
80 defined in Section 59-10-1018.
81 [(e) "Joint filing status" is as defined in Section 59-10-1018.]
82 (c) "Joint filing status" means:
83 (i) spouses who file one return jointly under this chapter for the taxable year; or
84 (ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files
85 one federal individual income tax return for the taxable year.
86 [(f)] (d) "Married filing separately status" means a married individ