Training Home – Understanding Taxes – Exempt From Utah Income Taxes

Lesson 2 – Exemption From Utah Income Taxes

Exemption From Utah Income Taxes

Taxpayers are exempt from Utah income tax if the sum of their federal standard deduction and their federal personal exemptions are equal to or greater than their federal adjusted gross income.

• The standard deduction does not include:
• the extra deduction for age 65 and older, or
• For being blind

For example: A taxpayer married filing joint with three dependents and a federal adjusted gross income of $20,500. Their standard deduction and personal exemptions are:

Standard Deduction	Personal Exemption	Total	Federal Adjusted Gross Income
$10,300	$2,475 each
$10,300 plus	$12,375 =	$22,675	$20,500
The sum of the exemptions and standard deduction is greater than the federal adjusted gross income so the taxpayer would be exempt from Utah income taxes.

Caution: Determining the exemption is not always as simple as the example above. Individuals need to complete an income tax exemption worksheet for 2006 to determine if they are exempt from income taxes.

If you think you qualified for a previous tax year, you need to complete a different worksheet and may need to file an amended return. Click here to access tax forms from previous years.