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 percent of each $100 contribution), yielding a total tax credit of $15. If she contributes $1,960 to each beneficiary, she would qualify for a $98 tax credit for each account (5 percent of each $1,960 contribution), yielding a total tax credit of $294.

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 $3,920. They would receive a $196 tax credit.

For more information, read the Program Description.

my529 will record tax-year transactions based on the following deadlines.

All contributions must be in good order—accurate, proper, legible, and complete.

1Paper forms and incoming faxes are considered manual submissions and must meet the deadlines for the manual process. A mailed contribution postmarked on or before the December 31, 2018, deadline but received in 2018 will be recorded as a 2019 tax-year contribution.