Nonrefundable tax credit for military retirement.

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  • (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, including service in the Reserves or the National Guard.
      • (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) A claimant may not:
      • (i) carry forward or carry back the amount of a tax credit that exceeds the claimant's tax liability for the taxable year; or
      • (ii) claim a tax credit under this section and a tax credit under Section 59-10-1019 for the same taxable year.
    • (b) A claimant that qualifies for a tax credit under this section and a tax credit under Section 59-10-1019 may elect whether to claim a tax credit under this section or a tax credit under Section 59-10-1019.




Technically renumbered to avoid duplication of section number also enacted in HB86, Chapter 428.


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