Utah state tax benefits information

Utah taxpayers, depending on their tax-filing status, can claim a 5 percent tax credit/deduction per qualified beneficiary for contributions to their my529 account up to a certain limit. See table below for specific information.

Married couples are not required to have separate my529 accounts to claim the joint tax benefits. However, if both spouses own separate accounts for the same beneficiary, each will receive a Utah state tax form TC-675H for his or her account. Their aggregated maximum Utah state income tax credit is then limited to one joint tax credit per qualified beneficiary.

For UGMA/UTMA accounts, only the account owner, who is also the beneficiary, is eligible for state tax benefits, even if the account owner is a minor.

A nonresident or part-year Utah resident can claim only a prorated amount of the Utah state income tax credit.

The Utah state income tax credit/deduction may be taken per beneficiary. If an account owner with three different beneficiaries contributes $100 to each account for the tax year, she would qualify for a $5 tax credit for each account (5% of each $100 contribution), yielding a total tax credit of $15. If she contributes $2,000 to each beneficiary, she would qualify for a $100 tax credit for each account (5% of each $2,000 contribution), yielding a total tax credit of $300.

You can contribute beyond the maximum allowable amount, but you receive a tax benefit only up to the limit. If a couple, married filing jointly, contributes $5,000 to an account during the tax year, they would only be eligible for a tax benefit based on the maximum allowable contribution, which is $4,000. They would receive a $200 tax credit. For more information, read the Program Description.