Tax Return & Instructions
Utah State Tax Commission • 210 North 1950 West • Salt Lake City, UT 84134
Utah Taxpayer Advocate Service
The Taxpayer Advocate Service assists taxpayers who
have made multiple unsuccessful attempts to resolve
concerns with the Tax Commission. This service helps
resolve problems when normal departmental processes
break down, identiﬁes why the problem occurred and
suggests remedies to stop the problem from recurring.
See speciﬁc details at tax.utah.gov/contact.html or
contact us to ﬁnd out if you qualify for this assistance at
801-297-7562, toll free at 800-662-4335, ext. 7562, or
by email at email@example.com.
The Taxpayer Advocate service should not be used to
bypass normal methods for resolving disputes or is-
UC: Utah Code, available at tax.utah.gov/research
IRC: Internal Revenue Code, available at tax.utah.gov/
2010 Utah Fiduciary Income Tax Page 1
What’s New in 2011. If the return is for a ﬁscal year or a short tax
• Form Changes. year (less than 12 months), ﬁll in the tax year space at
• Schedule A has been expanded to two pages in the top of the form.
order to allocate credits to beneﬁciaries, and Extension of Time to File
• Schedules K and K-1 for reporting beneﬁciary There is NO extension of time to pay your taxes – only
distributions. to ﬁle your tax return.
• TC-41, Schedule B, Non or Part-year Resident
Estate/Trust Schedule. This form has changed You automatically get an extension of up to six
for 2010 and now includes the additions to in- months to ﬁle your return without ﬁling an extension
come and subtractions from income as part of the form. However, penalties will be assessed if you have
calculation of the Utah tax. See page 14. not met the prepayment requirements by the original
due date (see next paragraph). See Penalties and
• Recycling Market Development Zone Credit. This
Interest instructions on page 2. All extension returns
credit has been repealed for purchases and expen-
must be ﬁled by October 17, 2011.
ditures made after June 30, 2010. See page 9.
Who Must File Prepayment Requirements for Filing
A ﬁduciary of a resident estate or trust, or a ﬁduciary Extension
of a nonresident estate or trust with income derived All prepayments are due by the original due date.
from Utah sources, if required to ﬁle a federal Fidu- You must prepay:
ciary Income Tax Return, must ﬁle a Utah Fiduciary • 90% of the 2010 tax due;
Income Tax Return, form TC-41. • 100% of the 2009 Utah tax liability as indicated on
the 2009 Utah Fiduciary Income Tax Return; or
When to File and Pay • 90% of the 2010 tax due if you did not have a tax
You must ﬁle your return and pay any income tax due: liability in 2009 or this is your ﬁrst year ﬁling.
1. By April 18, 2011, if you ﬁle on a 2010 calendar
You may prepay through withholding (W-2, TC-675R,
year basis (tax year ends December 31, 2010); or
etc.), payments applied from a previous year refund,
2. By the 15th day of the fourth month after the ﬁs-
tax credits and credit carryovers, or payment made by
cal year ends, if you ﬁle on a ﬁscal year basis. If
the tax due date using form TC-548, Fiduciary Income
the due date falls on Saturday, Sunday or legal
Tax Prepayment Coupon or online at taxexpress.
holiday, the due date is the next business day.
utah.gov. Interest is assessed on unpaid tax from
All Utah income taxes for the year must be paid by the ﬁling due date until the tax is paid in full. Penalties
the due date. Make check or money order payable to may also apply.
the Utah State Tax Commission. If your return is not
ﬁled on time or all income tax due is not paid by the Where to File
due date you may be subject to penalties and interest. Mail your return and any payment (with TC-549 Fidu-
(See Penalties and Interest instructions on page 2.) ciary Income Tax Return Payment Coupon) to:
Utah State Tax Commission
Utah does not require quarterly estimated tax pay- 210 N 1950 W
ments. You can prepay at any time by sending your SLC, UT 84134-0250
payment with form TC-548, Fiduciary Income Tax Pre-
payment Coupon, or by paying online at taxexpress.
utah.gov. See additional instructions below.
What to Attach and What to Keep
Include the following with your TC-41 and also keep a
Tax Period and Accounting Method copy with your tax records.
The ﬁrst return ﬁled by an administrator or executor • Utah Schedules: Attach all applicable schedules
of an estate must cover the period from the date of (TC-41A, TC-41B, TC-41C, TC-41K, TC-41K-1 for
the decedent’s death to the end of the ﬁrst tax year each beneﬁciary, TC-41S, and TC-41W).
selected by the ﬁduciary. The ﬁrst return ﬁled by a • Other Adjustments: Attach an explanation for
ﬁduciary of a trust must cover the period beginning any equitable or ﬁduciary adjustment entered
with the creation of the trust to the end of the ﬁrst tax on TC-41A, Part 1 code 62 or code 69, or Part 2
year selected by the ﬁduciary. Returns must be ﬁled code 79 or code 87.
for each subsequent year the estate or trust exists. • Other Utah Forms: Attach a copy of Utah TC-
The taxable year cannot be longer than 12 months 40LIS if you are a building project owner of a low-
and must coincide with the tax year selected for ﬁling income housing unit.
the federal return. You must use the same accounting
method used for federal ﬁduciary income tax purpos- • Tax Due: If you have an amount due on the return,
es for Utah ﬁduciary income tax purposes. submit form TC-549, Fiduciary Income Tax Return
Payment Coupon, and your check or money order
Return for Period Covered along with the return.
File the 2010 Utah Fiduciary Return for calendar year Withholding Forms: Enter withholding tax informa-
2010 and ﬁscal years beginning in 2010 and ending tion on TC-41W and submit with your return. Do not
attach forms W-2, 1099-R, 1099-MISC, etc., Utah
2010 Utah Fiduciary Income Tax Page 2
Schedule K-1, or TC-675R (showing mineral with- Domicile Deﬁned
holding tax). Keep all withholding forms with your tax Domicile is the place where an individual has a per-
records for future reference. If you do not complete manent home and where he or she intends to return
the TC-41W with all required information, process- after being absent. It is the place where an individual
ing your return may be delayed and your withholding has voluntarily ﬁxed his habitation, not for a special
credit may be disallowed. or temporary purpose, but with the intent of making a
Do not send a copy of your federal return, credit sched- permanent home. A domicile, once established, is not
ules (other than Utah Schedules TC-41A, TC-41S, lost until all of the following three conditions are met:
TC-41W, if applicable), worksheets, or other documen- 1. a speciﬁc intent to abandon the former domicile;
tation with your Utah return. Keep these, along with any 2. the actual physical presence in a new domicile; and
receipts, to support entries reported on your return. 3. the intent to remain in the new domicile perma-
You may be asked to provide this information later nently.
to verify entries on your Utah return. See Tax Commission rules R865-9I-2 and R884-
24P-52 at tax.utah.gov/research for more informa-
Recordkeeping and Documentation tion.
Keep copies of any receipts, state forms, worksheets,
credit authorization forms, and other documentation to Resident Estate or Trust Deﬁned
support any income, deduction, exemption, and credit Resident estate or resident trust means:
you have reported. 1. an estate of a decedent who, at death, was domi-
ciled in Utah;
Rounding Off to Whole Dollar Amounts 2. a trust, or a portion of a trust, consisting of prop-
Round off cents to the nearest whole dollar. Round erty transferred by will of a decedent who at death
down if under 50 cents; round up if 50 cents and was domiciled in Utah; or
above. Do not enter cents anywhere on the return. 3. a trust administered in Utah. A trust is adminis-
Penalties tered in Utah if:
Utah law (UC §59-1-401) provides penalties for not a. the place where the ﬁduciary transacts a
ﬁling tax returns by the due date, not paying tax due major portion of its administration of the trust
on time, not making sufﬁcient prepayment on exten- is in Utah; or
sion returns, and not ﬁling information returns or sup- b. the ﬁduciary’s usual place of business is in
porting schedules. Details of these penalties, along Utah.
additional penalties, are at tax.utah.gov/billing/ Nonresident Estate or Trust Deﬁned
penaltyinterest.html and in Pub 58, Utah Interest The terms nonresident estate or nonresident trust
and Penalties online at tax.utah.gov/forms. You may are deﬁned as estates or trusts that are not resident
calculate penalties by using the online Penalty and estates or trusts.
Interest Calculator at taxexpress.utah.gov.
Interest (In addition to any penalties due) A trust exempt from federal income tax is exempt from
Interest is assessed on underpayments from the due Utah income tax unless there is unrelated business
date until the liability is paid in full. The interest rate income in Utah.
for the 2011 is 3%. Use the online Penalty and Inter-
est Calculator at taxexpress.utah.gov or follow the Amounts Reportable as Utah Income by
instructions in Pub 58, Utah Interest and Penalties the Beneﬁciaries
available at tax.utah.gov/forms. Resident beneﬁciaries will report the income from the
estate or trust included in the beneﬁciary’s federal
Fiduciary and Estate Deﬁned adjusted gross income to Utah as though the beneﬁ-
The term ﬁduciary means a guardian, trustee, execu-
ciary received the income directly. The estate or trust
tor, administrator, receiver, conservator, or any person
residence does not affect the source of income for
acting in a ﬁduciary capacity for any individual or
computing the beneﬁciary’s Utah individual income
entity. The term estate refers only to the estate of a
tax. Nonresident beneﬁciaries must ﬁle Utah income
deceased person and does not include a trust main-
tax returns and report the distribution from Utah
tained for minors, for a person adjudicated incompe-
sources (see instructions for TC-41B).
tent, or for any person who is suffering from another
Note: Throughout these instructions, any reference
to “you” means the ﬁduciary of the estate or trust.
2010 Utah Fiduciary Income Tax Page 3
Heading B. Enter the corrected ﬁgures on the return and/or
Print the information requested in the spaces provid- schedules.
ed. Enter the full name of the estate or trust. C. Enter all other amounts shown on your original
return. If you received a refund on your original
Enter the estate or trust’s federal employer return, enter the amount of the previous refund on
identiﬁcation number (EIN). If the estate or trust is line 29 of the 2010 amended return. If you paid
ﬁled with a social security number (SSN) instead of with the original return or made subsequent tax
an EIN, check the space below this number. payments before the amended return is ﬁled, enter
Zip Code – Enter your zip code with the “plus four” at the total previous payments on line 34 of the 2010
the end. amended return.
D. Submit the amended return with all schedules,
Foreign Address – If your address is in a foreign
including copies of those schedules that did not
country, enter the mailing address where indicated.
change from the original ﬁling.
Enter the foreign city, state/province and postal code
E. Do not submit a copy of your original return
in the city ﬁeld. Abbreviate if necessary. Enter only the
with your amended return.
foreign country name in the “Foreign Country” ﬁeld.
This is a Postal Service requirement. Federal Form 8886
If you ﬁled federal form 8886, Reportable Transaction
Amended Return Disclosure Statement, with the IRS, enter an “X” at the
To amend a previously ﬁled return, use the tax forms
top of your TC-41, where indicated.
and instructions for the year you are amending. You
can get prior year forms and instructions at tax.utah. 1. Type of Return
gov/forms. Enter the code that describes the entity ﬁling the re-
Amend your return if you discover an error on your turn. The type of return must match the type of entity
Utah or federal return after it is ﬁled; or your federal indicated in part A of federal Form 1041. For pooled
return is audited or adjusted by the IRS and the audit income funds, enter H (charitable trust).
or adjustment affects your Utah return. You must Bankruptcy Estate See instructions on pages 15 and
amend your Utah return within 90 days of the IRS’s 16 on how to compute the Utah tax on the TC-41C.
ﬁnal determination. Contact the Tax Commission if you
are unsure whether or not your Utah taxes are affected Federal Form 1041-QFT See the general instructions
by an audit or adjustment. on page 21 to ﬁle a Utah return.
To qualify for a refund or a credit, you must ﬁle an Electing Small Business Trust (ESBT) Report
amended return within the later of three years after federal taxable income on line 4 and the separate
the original return was due or two years from the date small business trust portion of the taxable income on
the tax was paid. (A return ﬁled before the due date is TC-41A, Part 1, code 58.
considered ﬁled on the due date.)
2. Status Code of Estate or Trust
How to Amend a 2010 Utah Fiduciary Tax Return Enter the code “R” for a resident estate or trust, “N” for
A. On the top of page 1 of TC-41 in the “For Amended nonresident estate or trust, or “P” for part-year resident
Return - Enter Code” box, enter the code num- estate or trust. See the General Instructions to determine
ber that best corresponds to your Reason For if the estate or trust is a resident or nonresident entity.
Amending. See codes below.
Reason-for-Amending Codes (enter on return) 3. Nonresident Beneﬁciaries
1 You ﬁled an amended return with the IRS. At- If any beneﬁciary of the trust is not a Utah resident,
tach a copy of your amended federal return. (If enter an “X” in the box. If all beneﬁciaries are resi-
amending for a net operating loss, do not use dents of Utah, leave the box blank.
code 1, use code 4 - see below.) Resident Deﬁned
2 You made an error on your Utah return. Attach A trust beneﬁciary is a Utah resident if:
an explanation of the error. 1. Domiciled in Utah for the entire year, even if tem-
3 Your federal return was changed by an IRS au- porarily outside of Utah for an extended period of
dit or adjustment and it affects your Utah return. time;
Attach a copy of the IRS adjustment. 2. Domiciled in Utah for any period of time during
4 You had a net operating loss. Utah treats net the taxable year, but only for the duration of that
operating losses the same as the federal return. period; or
If any portion of your amended return is from 3. Even though domiciled outside Utah, maintains a
a net operating loss carryback, use reason 4 place of abode in Utah and spends a total of 183
and complete a ﬁduciary tax return for each or more days of the taxable year in Utah. In deter-
year you are amending. Attach a copy of your mining whether an individual spends 183 or more
amended federal return. days in Utah, a “day” means a day in which the
5 Other. Attach explanation to your return. individual spends more time in Utah than in any
2010 Utah Fiduciary Income Tax Page 4
Part-year Resident Deﬁned (51) Lump Sum Distribution
A trust beneﬁciary is a part-year Utah resident if do- (UC §59-10-202(1)(a))
miciled in Utah for part of the taxable year and outside This addition to income only applies if you ﬁled form
of Utah for part of the taxable year. For purposes of 4972 with your federal return. If you received a lump
this line only, enter an “X” in the box if any beneﬁciary sum distribution and ﬁled federal form 4972, enter the
is a part-year resident. total of the amounts shown on Part II, line 6 and on Part
III, line 10. Keep a copy of form 4972 and any 1099-R
Nonresident Deﬁned forms showing the distribution with your records.
A trust beneﬁciary is a Utah nonresident if that ben-
eﬁciary is not domiciled in Utah, or was in Utah for Shared Distributions: If you shared a lump sum
a temporary or transitory purpose for less than 183 distribution with others, enter the amount calculated by
days during the taxable year. In determining whether multiplying the amount on line 10 of form 4972 by the
an individual spends 183 or more days in Utah, a distribution percentage shown in box 9a on your form
“day” means a day in which the individual spends 1099-R, then adding the amount shown on form 4972,
more time in Utah than in any other state. Part II, line 6.
(54) Utah Educational Savings Plan (UESP) 529
4. Federal Total Income Plan Addback (UC §59-10-202(1)(d))
Enter the federal total income from federal form 1041, If you withdrew an amount from a Utah Educational
line 9 or form 1041-QFT, line 5. Savings Plan (UESP) 529 account but did not use it for
Bankruptcy Estates. Trustees of an individual qualiﬁed higher education expenses and the with-
bankruptcy estate (chapter 7 or chapter 11) must drawal did not meet an exception under IRC §529(c)
complete TC-41C, Bankruptcy Estate Tax Calculation, or §530(d), enter that amount to the extent the amount
to determine the taxable income and tax liability of the was deducted or used in calculating the UESP credit
estate. Follow these instructions for TC-41: on the current or a previously ﬁled Utah tax return. A
• Leave lines 4 through 21 blank. UESP account owner will receive form TC-675H, Utah
• Line 22, Utah income tax – enter the amount Educational Savings Plan Tax Statement for Contribu-
from TC-41C, line 20. tions, Withdrawals, and Transfers, from UESP. Keep this
• For a resident bankrupt estate, complete lines form with your records. If you have any questions about
23 through 41 according to the regular ﬁduciary UESP, call 801-321-7188 or 1-800-418-2551 or visit
• For a non or part-year resident bankrupt estate, (57) Municipal Bond Interest
complete lines 23 through 25 according to the (UC §59-10-202(1)(b))
regular ﬁduciary instructions, then follow the Enter interest from certain bonds, notes and other evi-
instructions for TC-41C, page 2 (see page 16). dences of indebtedness issued by non-federal govern-
5. Additions to Income ment entities outside Utah (commonly known as mu-
Enter any of the following additions to income that ap- nicipal bonds) if acquired on or after January 1, 2003.
ply on TC-41A, Part 1 and attach it to your Utah return. Do not enter interest earned on non-Utah municipal
On TC-41A, write the code and amount of each addi- bonds if the issuing state (or political subdivision) does
tion to income. Enter the sum of all additions to income not impose an income tax on bonds issued by Utah
on line 5 of your Utah TC-41. Each addition to income or the issuing state does not impose an income tax.
is explained below. See details at incometax.utah.gov/speciﬁc-topics/
NOTE: Only include amounts that will not be passed
through to the beneﬁciaries. You must apportion the ad- (58) ESBT S Corporation Income
ditions to income between the income taxed at the trust (UC §59-10-202(1)(c))
level and the amounts distributed to the beneﬁciaries. Electing Small Business Trusts (ESBTs) must report
Calculate the apportioned amount that must be added the separate S portion of the taxable income, as cal-
on this line as follows: culated on the attachment to federal form 1041.
1. Divide the amount distributed to beneﬁciaries (62) Fiduciary Adjustments
by distributable net income, (UC §59-10-210)
2. Multiply the amount in step 1 by the total Enter any qualiﬁed ﬁduciary adjustment and attach an
amount of the addition that must be appor- explanation of the adjustment.
(69) Equitable Adjustments
3. Subtract the amount in step 2 from the total
amount of the addition that must be appor-
Enter any qualiﬁed equitable adjustment needed to
prevent receiving a double tax beneﬁt. Attach an ex-
Codes for Additions to Income, TC-41 Part 1 planation of any equitable adjustment reported.
51 Lump Sum Distribution
54 Utah Educational Savings Plan (UESP) 529 Plan Addback
57 Municipal Bond Interest
6. Total Adjusted Income
58 ESBT S Corporation Income
Add line 4 and line 5.
62 Fiduciary Adjustments
69 Equitable Adjustments
2010 Utah Fiduciary Income Tax Page 5
7. Fiduciary Fees for Administering • E, EE, H, HH, and I bonds
Trust The following income is NOT exempt from Utah in-
Enter any ﬁduciary fees deducted on your federal come tax:
form 1041, line 12. • Interest or dividends from Federal National
Mortgage Association (FNMA) and Government
8. Income Distribution Deduction National Mortgage Association (GNMA); and
Enter any income distribution deduction reported on • Interest on IRS or other federal agency refunds.
your federal form 1041, line 18.
The following conditions determine if the instrument
9. Estate Tax Deduction qualiﬁes as a U. S. Government obligation (see U. S.
Enter the amount of any estate tax deduction, includ- Supreme Court decision in Smith vs Davis, 323 U.S.
ing certain generation-skipping taxes, deducted on 111 (1944)). The instrument must: (1) be a written
your federal form 1041, line 19. document, (2) bear interest, (3) contain a binding
promise by the U. S. Government to pay a speciﬁc
10. Exemption sum on a speciﬁc date, and (4) have congressional
Enter the exemption deduction taken on your federal authorization to pledge the full faith and credit of the
form 1041, line 20. United States in support of the promise to pay.
11. State Tax Refund Included in Fed- Only interest or dividend income from U. S. Govern-
eral Income ment obligations included in your federal total income
(UC §59-10-202(2)(d)) should be deducted from Utah income. Before enter-
Enter the amount of any state tax refund you included ing an amount, subtract any related interest expense
in income on the federal form 1041 for the same year. on money borrowed to purchase the obligation or
12. Subtractions from Income If the interest income is from a trust, attach a sched-
Enter any of the following subtractions from income ule to your return showing the calculation of income.
that apply on TC-41A, Part 2 and attach it to your Include the name, residency and federal identiﬁcation
Utah ﬁduciary return. On TC-41A, write the code number of the trust making the distribution.
and amount of each subtraction from income. Enter
the sum of all subtractions from income on line 12 of Keep all records, forms and worksheets to support
your Utah TC-41. Each subtraction from income is this deduction.
explained below. (77) Native American Income
NOTE: Only include amounts that apply to income (UC §59-10-202(2)(c) and (f))
taxed at the trust level. You must apportion the subtrac- An enrolled member of a Native American tribe in
tions from income between the amount taxed at the Utah who lives and works on the reservation where
trust level and the amounts distributed to the beneﬁ- he/she is an enrolled member is exempt from Utah
ciaries. Calculate the apportioned amount that may be income tax on the reservation income. An enrolled
deducted on this line as follows: member of the Ute tribe who works on the Uintah and
1. Divide the amount distributed to beneﬁciaries Ouray Reservation and lives on land removed from
by distributable net income, that reservation under Hagen vs Utah (510 U.S. 399
2. Multiply the amount in step 1 by the total (1994)) is exempt from Utah income tax on income
amount of the subtraction that must be appor- earned on the reservation.
tioned, and Enter the exempt income included in your federal
3. Subtract the amount in step 2 from the total total income on TC-41A, Part 2, using code 77. Enter
amount of the subtraction that must be appor- your enrollment/census number and your Native/Tribe
tioned. Code from the list below.
Codes for Subtractions from Income, TC-41A Part 2 Nation/Tribe Code
71 Interest from U. S. Government Obligations 1 Confederated Tribes of the Goshute Reservation
77 Native American Income 2 Navajo Nation Reservation
78 Railroad Retirement Income 3 Paiute Indian Tribe of Utah Reservation
79 Equitable Adjustments 4 Skull Valley Bank of Goshute Indians
84 Nontaxable Income from Irrevocable Resident Trust 5 Ute Indian Tribe
86 Nongrantor Charitable Lead Trust Charitable Contribution 6 Other tribe
87 Fiduciary Adjustments
(71) Interest from U.S. Government Obligations (78) Railroad Retirement Income
(UC §59-10-202(2)(a)) (UC §59-10-202(2)(e))
See Pub 33 for detailed instructions of Interest from Federal law does not permit states to tax railroad
U. S. Government Obligations. Interest earned on retirement, disability income, unemployment income,
U. S. Government obligations issued by an agency and sickness beneﬁts received from the Railroad Re-
or instrumentality of the United States is exempt tirement Board and reported on form RRB-1099.
from state income tax. These obligations include: Railroad retirement pensions are deductible only for
• Treasury bills, the amount taxed on the federal return. If you re-
• Treasury notes, and ceived pension payments, disability income or unem-
2010 Utah Fiduciary Income Tax Page 6
ployment payments under the Railroad Retirement allowable deductions. See line instructions below the
Act and must report all or part of the amount received worksheet.
as income on your federal return, you may deduct that WORKSHEET FOR ALLOWABLE DEDUCTIONS
amount from Utah income. 1. Interest $__________
(79) Equitable Adjustments 2. Taxes $__________
(UC §59-10-209.1) 3. Charitable contributions $__________
Enter any qualiﬁed equitable adjustment needed to 4. Attorney/accountant/return preparer fees $__________
5. Miscellaneous deductions $__________
prevent paying double tax. Attach an explanation of 6. Total deductions (add lines 1 through 5) $__________
any equitable adjustment claimed. Enter the amount from line 6 above on line 16 of your TC-41.
(84) Nontaxable Income from Irrevocable Resident Worksheet Line Instructions:
Trust (UC §59-10-202(2)(b)) • Line 1 – Interest. Enter the total interest paid or
Income of an irrevocable resident trust is subtracted accrued, and deducted on the federal return (IRC
from federal total income if: section 163).
1. The trust became a resident trust on or after Janu- • Line 2 – Taxes. Enter the total taxes paid or ac-
ary 1, 2004; crued, and deducted on the federal return (IRC
2. No assets were held at any time after January 1, section 164). Do not include any amounts paid or
2003 in another resident irrevocable trust created accrued for state or local income taxes for the tax-
by the same settlor or the settlor’s spouse; able year.
3. The trustee is a trust company as deﬁned in UC • Line 3 – Charitable Contributions. Enter the total
§7-5-1(1)(d); and charitable contributions deducted on the estate or
4. The amount subtracted is reduced to the extent trust federal return. Do not include any amounts a
the settlor or any other person is treated as an qualiﬁed nongrantor charitable lead trust deducts
owner of any portion of the trust, and by any under IRC section 642(c).
interest on indebtedness incurred or continued • Line 4 – Certain Fees. Enter the total deducted
to buy or carry the assets generating the income, on the federal return for attorney, accountant, or
and by any expense incurred in the production of return preparer fees.
income to the extent those expenses, including • Line 5 – Miscellaneous Deductions. Enter the total
amortizable bond premiums, are deductible in miscellaneous and other deductions deducted on
determining federal taxable income. the federal return.
(86) Nongrantor Charitable Lead Trust Charitable
Contribution (UC §59-10-202(2)(g)) 17. Initial Credit before Phase-out
Enter the amount a qualiﬁed nongrantor lead trust Multiply the amount on line 16 by 6% (.06).
deducted on its federal return as a charitable contribu- 18. Base Phase-out Amount
tion under IRC Section 642(c). The base phase-out amount for an estate or trust is
(87) Fiduciary Adjustments $12,000.
Enter any qualiﬁed ﬁduciary adjustment and attach an 19. Income Subject to Phase-out
explanation of the adjustment. Subtract line 18 (the base phase-out amount) from
line 14 (Utah taxable income). If the result is zero or
13. Total Deductions less, enter “0.”
Add lines 7 through 12.
20. Phase-out Amount
14. Utah Taxable Income Multiply line 19 by 1.3% (.013). This is the credit
Subtract line 13 from line 6. If the result is zero or phase-out amount.
less, enter “0.” This amount is used to calculate the
tax on line 15. 21. Estate or Trust Tax Credit
Subtract the phase-out amount on line 20 from the
15. Utah Tax initial credit on line 17. If the result is zero or less,
Multiply the Utah taxable income on line 14 by 5% enter “0.”
(.05) and enter the result on line 15.
22. Utah Income Tax
Fiduciary Tax Credit (lines 16 - 21) Subtract the estate or trust tax credit on line 21 from
(UC §59-10-1020) the tax calculated on line 15. If the result is zero or
Estates and trusts are allowed a credit against Utah less, enter “0.”
tax based on the total of the interest expense, taxes Bankruptcy Estates. Enter the tax calculated on
paid, charitable contributions, attorney/accountant/tax TC-41C, line 20. See bankruptcy estate instructions
preparer fees, and certain miscellaneous deductions. on page 15.
The credit phases out for income over a speciﬁed
amount. 23. Enter Tax from Line 22
Enter the tax from page 1, line 22.
16. Allowable Deductions for Credit
Use the following worksheet to calculate the trust’s
2010 Utah Fiduciary Income Tax Page 7
24. Apportionable Nonrefundable not deducted on your federal return. The credit is 5%
Credits of contributions made (up to $1,710) per beneﬁciary
Apportionable nonrefundable credits can reduce your during the tax year, with a maximum credit of $86 per
income tax to zero, but cannot result is a refund. beneﬁciary.
Claim any of the following apportionable nonrefundable A UESP account owner will receive form TC-675-H,
credits (credits that must be apportioned for nonresi- Utah Educational Savings Plan Tax Statement for
dents and part-year residents) that apply on TC-41A, Contributions, Withdrawals, and Transfers, from UESP.
Part 3 and attach it to your Utah return. On TC-41A, Use the qualiﬁed amount from line 1 of form TC-675H
write the code and amount of each apportionable to calculate the credit.
nonrefundable credit you are claiming. Enter the sum of Keep form TC-675H with your records. If you have any
these credits, then subtract any credits being distrib- questions about UESP, call 801-321-7188 or 1-800-
uted to beneﬁciaries. This distributed amount should be 418-2551, or visit uesp.org.
reported on Schedule K and allocated to the beneﬁcia-
ries on Schedule K-1. Then enter the net amount of the Calculation of UESP Tax Credit
credits being claimed on the ﬁduciary return and enter 1. Eligible amount for credit from line 1
this amount on line 24 of your TC-41. Each apportion- of form TC-675H $__________
able nonrefundable credit is explained below. 2. Multiply line 1 by 5% (.05). This is your
UESP credit. $__________
Keep all related documents with your records. You Enter this amount on TC-41A, Part 3, using code 20.
may have to provide this information later to verify a
credit claimed on your return. Note: Any credit that is more than the tax liability may
not be carried back or forward.
Codes for Apportionable Nonrefundable Credits,
TC-41A Part 3 (24) Qualifying Solar Project Credit
04 Capital Gain Transactions Credit (UC §59-10-1024)
20 Utah Educational Savings Plan (UESP) 529 Plan Credit You may claim a credit of 25% of the amount paid to
24 Qualifying Solar Project Credit buy one or more solar units from a qualifying political
(04) Capital Gain Transactions Credit subdivision, up to a maximum credit of $2,000. This is
(UC §59-10-1022) in addition to any other energy credit you claim.
You may claim a credit for the short-term and long- A qualifying solar unit is a portion of the electrical
term capital gain on a transaction if: output of an active solar project constructed, con-
a. The transaction occurs on or after January 1, trolled or owned by a qualifying political subdivision,
2008; which generates electricity furnished to and for the
b. At least 70% of the gross proceeds of the transac- beneﬁt of one or more residential units, and is sold to
tion are used to buy stock in a qualiﬁed Utah small the taxpayer in exchange for credit on the taxpayer’s
business corporation within 12 months from when electric bill.
the capital gain transaction occurred; and Calculation of Qualifying Solar Project Credit
c. You did not have an ownership interest in the 1. Amount paid for solar unit(s) $__________
qualiﬁed Utah small business corporation at the
time of investment. 2. Multiply line 1 by 25% (.25) $__________
See incometax.utah.gov/credits/capital-gains.html 3. Maximum allowable credit 2,000
or refer to UC §59-10-1022 for more information. 4. Enter lesser of line 2 or line 3.
There is no form for this credit. Keep all related docu- This is your credit. $__________
ments with your records. Enter this amount on TC-41A, Part 3, using code 24.
Note: Any credit that is more than the tax liability may
Calculation of Capital Gain Transactions Tax Credit be carried forward as a credit for the next four years.
1. Eligible short-term or long-term
capital gain $__________ There is no form for this credit. Keep all related docu-
ments with your records.
2. Multiply line 1 by 5% (.05). This is your
credit. $__________ Contact your city or electrical utility provider or refer to
Enter this amount on TC-41A, Part 3, using code 04. UC §59-10-1024 for more information.
Note: Any credit that is more than the tax liability may 25. Subtract line 24 from line 23
not be carried back or forward. Apportionable nonrefundable credits cannot exceed
(20) Utah Educational Savings Plan (UESP) 529 the tax liability on the return. If the total of the credits
Plan Credit shown on line 24 is more than or equal to the tax on
(UC §59-10-1017) line 23, enter “0.”
If a qualiﬁed contribution was made to your Utah FULL-YEAR RESIDENT – Enter the tax from line 25
Educational Savings Plan (UESP) 529 account, you on line 26, then complete the rest of the return.
may claim a nonrefundable credit. To qualify, the con-
tribution must be made during the taxable year and NON OR PART-YEAR RESIDENT ESTATE OR
TRUST – Enter the tax from line 25 on TC-41B, Non
or Part-year Resident Estate or Trust Schedule, line
2010 Utah Fiduciary Income Tax Page 8
20. Complete TC-41B, enter the tax from TC-41B, (03) Carryover of 2006 Energy Credit
line 21 on TC-41, page 2, line 26, then complete the (UC §59-10-1014)
rest of the return. If you claimed a renewable energy systems tax credit
on your 2006 Utah ﬁduciary return, and the credit was
26. Enter Applicable Tax more than your tax liability for the year, the excess
Full-year resident estate or trust: Enter the tax from credit may be carried over to the next four years. If you
line 25. have any credit that was not used in a subsequent
Non or part-year resident estate or trust: Enter the year, and are using it in 2010, enter that amount on
tax from line 21 of TC-41B. TC-41A, Part 4, using code 03.
See detailed instructions for the TC-41B on page 14. (05) Clean Fuel Vehicle Credit
27. Nonapportionable Nonrefundable This credit is available for the following four conditions:
Credits (1) you purchase a new vehicle that meets air qual-
Nonapportionable nonrefundable credits can reduce ity and fuel economy standards; (2) you purchase a
your income tax to zero, but cannot result in a refund. qualiﬁed vehicle fueled by compressed natural gas;
(3) you purchase equipment to convert a vehicle
Claim any of the following nonapportionable nonre- to run on propane, natural gas, electricity, or other
fundable credits that apply on TC-41A, Part 4 and approved fuel; and (4) you purchase equipment to
attach it to your Utah return. On TC-41A, write the convert a special mobile equipment engine to operate
code and amount of each credit you are claiming. on propane, natural gas, electricity, or other approved
Enter the sum of these credits, then subtract any fuel. The credit may only be claimed once per vehicle.
credits being distributed to beneﬁciaries. This distrib- See instructions on form TC-40V for more information.
uted amount should be reported on Schedule K and
allocated to the beneﬁciaries on Schedule K-1. Then Complete form TC-40V, Clean Fuel Vehicle Tax Credit,
enter the net amount of the credits being claimed on with the Division of Air Quality approval stamp, verify-
the ﬁduciary return and carry this to line 27 of your ing the credit is approved. Do not send form TC-40V
Utah TC-41. Each nonapportionable nonrefundable with your return. Keep the form and all related docu-
credit is explained below. ments with your records.
Keep all related documents, including credit forms, Note: Any credit that is more than the tax liability may
with your records. You may have to provide this infor- be carried forward for the next ﬁve years.
mation later to verify a credit claimed on your return. Contact the Division of Air Quality, 195 N 1950 W, PO
Codes for Nonapportionable Nonrefundable Credits, Box 144820, SLC, UT 84114-4820, 801-536-4000, or
TC-41A Part 4 go to www.cleanfuels.utah.gov/taxcredits/taxcred-
02 Qualiﬁed Sheltered Workshop 10 Recycling Market Credit itsintro.htm for more information.
03 Carryover of 2006 Energy Credit 12 Research Activities in Utah
05 Clean Fuel Vehicle Credit 13 Research Mach./Equip. (06) Historic Preservation Credit
06 Historic Preservation Credit 17 Taxes Paid to Another State (UC §59-10-1006)
07 Enterprise Zone Credit 21 Renew. Residential Energy System The credit is for costs to restore any residential certi-
08 Low-Income Housing Credit ﬁed historic building.
(02) Qualiﬁed Sheltered Workshop Cash Contribu- Complete form TC-40H, Historic Preservation Tax
tion Credit (UC §59-10-1004) Credit, with the State Historic Preservation Ofﬁce cer-
Cash contributions made in 2010 to a qualiﬁed Utah tiﬁcation, verifying the credit is approved. Do not send
nonproﬁt rehabilitation sheltered workshop facility form TC-40H with your return. Keep the form and all
for persons with disabilities are eligible for the credit. related documents with your records.
Check with the workshop to make sure they have a
current Day Training Provider License or Day Support Note: Any credit that is more than the tax liability may
Provider Certiﬁcate issued by the Department of Hu- be carried forward for next ﬁve years.
man Services. The credit is the lesser of $200 or 50% Contact the State Historic Preservation Ofﬁce, 300 S
of the total cash contributions. Rio Grande St., SLC, UT 84101, 801-533-3500, or go
There is no form for this credit. Keep all related docu- to history.utah.gov/historic_buildings/ﬁnancial_as-
ments with your records. The name of the qualiﬁed sistance/index.html for form TC-40H, certiﬁcation,
workshop must be written on TC-41A, Part 4 to and more information.
claim the credit. (07) Enterprise Zone Credit
Contributions claimed as a tax credit under this sec- (UC §63M-1-413)
tion may not also be claimed as a charitable deduc- Note: You may not claim this credit or carry it into the
tion in determining net taxable income. same year you claim the recycling market develop-
ment zone credit (nonapportionable nonrefundable
Note: Any credit that is more than the tax liability may credit, code 10) or the targeted business tax credit
not be carried back or forward. (refundable credit, code 40).
Contact the Contract Administrator, Division of Ser- The Enterprise Zone Credit is for certain businesses
vices for People with Disabilities, 195 N 1950 W, SLC, that hire new full-time employees, restore buildings or
UT 84116, 801-538-4200; or go to www.dspd.utah. meet certain other requirements in a designated zone.
gov for more information.
2010 Utah Fiduciary Income Tax Page 9
Indian tribes may apply for enterprise zone designa- Note: Any credit that is more than the tax liability may
tion within an Indian reservation. be carried forward for the next three years.
If you are allocated enterprise zone credit from your Contact the Governor’s Ofﬁce of Economic Develop-
ownership in a partnership or S corporation, your ment, 324 S State St, Suite 500, SLC, UT 84111,
credit must be based on your ownership percentage. 801-538-8804; or go to goed.utah.gov/relocate/
Note: Any credit that is more than the tax liability may incentives/incentives-recycling_zones for more
be carried forward for the next three years. information.
There is no form for this credit. Keep all related docu- (12) Credit for Increasing Research Activities in
ments with your records. Utah (UC §59-10-1012)
The credit is:
Contact the Governor’s Ofﬁce of Economic 1. 5% of your qualiﬁed expenses for increasing re-
Development, 324 S State St., Suite 500, SLC, UT search activities in Utah above a base amount,
84111, 801-538-8804; or go to incometax.utah.gov/ 2. 5% of certain payments made to a qualiﬁed orga-
credits/enterprise-zones.html or goed.utah.gov/ nization increasing basic research in Utah above a
incentives/enterprise_zones for more information. base amount, and
(08) Low-Income Housing Credit 3. 9.2% of your qualiﬁed research expenses for a tax-
(UC §59-10-1010) able year beginning in 2010.
This credit is determined by the Utah Housing Corpo- Note: Any credit for 1 or 2 above that is more than the
ration for owners of a low-income housing project who tax liability may be carried forward for the next 14 tax-
also received part of the federal low-income housing able years. Any credit for 3 above may not be carried
tax credit. When this credit applies, the project owner forward.
will provide you form TC-40TCAC (issued by the Utah
Housing Corporation). There is no form for this credit. Keep all related docu-
ments with your records.
If you share in this credit, get form TC-40TCAC, Utah
Low-Income Housing Tax Credit Allocation Certiﬁca- (13) Credit for Machinery and Equipment Used to
tion, and complete form TC-40LI, Summary of Utah Conduct Research (UC §59-10-1013)
Low-Income Housing Tax Credit. Do not send these The credit is:
forms with your return. Keep the forms and all related 1. 6% of the cost of machinery and equipment used
documents with your records. primarily to conduct qualiﬁed research in Utah for
12 or more consecutive months, and
The building project owner must also complete and 2. 6% of the cost of machinery and equipment donat-
attach to the return form TC-40LIS, Credit Share ed to a qualiﬁed organization and used primarily
Summary of Low-Income Housing Project. to conduct basic research in Utah for 12 or more
Note: Any credit that is more than the tax liability may consecutive months.
be carried back three years or forward for the next ﬁve Note: Any credit that is more than the tax liability may
years. If you are carrying this credit back or forward, be carried forward for the next 14 taxable years.
also complete form TC-40LIC, Utah Low-Income
Housing Tax Credit Carryback and/or Carryforward. If machinery or equipment for which this credit was
claimed is used for less than 12 consecutive months
Contact Utah Housing Corporation, 2479 S Lake Park for qualiﬁed research, an amended return must be
Blvd, West Valley City, UT 84120, 801-902-8200, or go ﬁled for the year the credit was claimed, the credit
to www.utahhousingcorp.org for more information. deleted from the return, and any increase in tax paid.
(10) Recycling Market Development Zone See amended return instructions on page 3.
(UC §59-10-1007) There is no form for this credit. Keep all related docu-
Note: You may not claim this credit or carry it into the ments with your records.
same year you claim the enterprise zone credit (nonap-
portionable nonrefundable credit, code 07) or the tar- (17) Credit for Fiduciary Income Tax Paid to An-
geted business tax credit (refundable credit, code 40). other State (UC §59-10-1003)
If you are a Utah estate or trust with income that is
The Recycling Market Development Zone Credit taxed by Utah and another state(s), the District of
is repealed for qualiﬁed machinery or equipment Columbia, or a possession of the United States, you
purchased or for other qualiﬁed expenditures may be entitled to a credit for the tax paid to the other
made after June 30, 2010. state(s). Nonresident estates and trusts do not qualify
The credit is for individuals and businesses operat- for this credit.
ing in a designated recycling market development You may only claim credit on the portion of income:
zone. 1. Taxable in Utah,
Complete form TC-40R, Recycling Market Develop- 2. Taxed also by the other state(s), and
ment Zone Tax Credit, with the Governor’s Ofﬁce of 3. Included in “Column A - Utah” income on form TC-41B.
Economic Development certiﬁcation, verifying the Complete and attach form TC-41S, Credit for Fidu-
credit is approved. Do not send form TC-40R with ciary Income Tax Paid to Another State. If there are
your return. Keep the form and all related documents
with your records.
2010 Utah Fiduciary Income Tax Page 10
two or more states, use separate calculations for each difference. If the other state’s tax rate is more than
state. Carry the sum of the credits from line 7 to TC- Utah’s, no credit or refund is given. If sales tax was
41A, Part 4, using code 17. paid to more than one state, complete the worksheet
Do not use the state income tax withheld from form (below) for each state. Add lines 8 on all worksheets
W-2 as the tax paid to the other state. You must com- and enter the total on line 30.
plete and ﬁle the other state’s return to determine the Sales and use tax rates vary throughout Utah. Use
tax amount paid. You may have to provide additional the chart on the next page to get the rate for the loca-
information later to verify this credit. tion where the merchandise was delivered, stored,
Note: Any credit that is more than the tax liability may used or consumed. Use the county rate if the city is
not be carried back or forward. not listed.
Keep a signed copy of the other state’s return and all Grocery food bought through the Internet or catalog
related documents with your records. is taxed at 3%. The grocery food must be sold for
ingestion or chewing by humans and consumed for
(21) Renewable Residential Energy Systems Tax the substance’s taste or nutritional value. The reduced
Credit (UC §59-10-1014) rate does not apply to alcoholic beverages or tobacco.
This credit is for reasonable costs, including instal- See Tax Commission Publication 25 at tax.utah.gov/
lation, of a residential energy system that supplies forms for more information.
energy to a Utah residential unit. Additional residential
energy systems or parts may be claimed in following Enter use tax of $400 or less. If the amount is over
years as long as the total amount claimed does not ex- $400, you must get a sales and use tax license and
ceed $2,000 per residential unit. If the residence is sold pay the use tax on a sales and use tax return.
to a non-business entity before claiming the tax credit, Worksheet for Computing Utah Use Tax on Line 30
you may irrevocably transfer the right to the tax credit to
1. Amount of purchases (except
the new owner. The principal portion of system’s lease grocery food) subject to use tax $ __________
payments may qualify for the credit if the lessor irre- 2. Use tax rate (decimal from chart) x ._ _ _ _
vocably transfers the right to the tax credit to the new 3. Multiply line 1 by line 2 $ __________
owner. 4. Amount of grocery food purchases
Get form TC-40E, Renewable Residential and Com- subject to use tax $ __________
mercial Energy Systems Tax Credits from the Utah 5. Multiply line 4 by 3% (.03) $ __________
Geological Survey with their certiﬁcation stamp, veri- 6. Add line 3 and line 5 $ __________
fying the credit is approved and showing the amount 7. Credit for sales tax paid to another
of the approved credit. Do not send form TC-40E with state on use tax purchases $ __________
your return. Keep the form and all related documents 8. Use tax due (subtract line 7 from line 6)
with your records. If less than zero, enter “0” $ __________
Note: Any credit that is more than the tax liability may 31. Total Tax, Additions and Use Tax
be carried forward for the next four years. Add lines 28, 29 and 30.
Contact the Utah Geological Survey (UGS), 1594 W
North Temple, Box 146100, SLC, UT 84114-6100, 801- 32. Utah Income Tax Withheld
537-3300, or go to geology.utah.gov/sep/incentives/ You MUST enter your UTAH TAX WITHHELD on this
index.htm for more information. line.
Complete TC-41W listing each W-2 and 1099 with
28. Subtract Line 27 from Line 26 Utah withholding tax. The total Utah withholding tax
Nonapportionable nonrefundable credits cannot on the TC-41W must equal the amount entered on
exceed your tax liability. If the total credits on line 27 is line 32. If you have more than four withholding forms,
more than or equal to the tax on line 26, enter “0”. use additional TC-41Ws. See instructions for TC-41W
on page 19.
29. Amended Returns Only
Previous Refund Keep withholding forms with your records. Processing
This line is only for amended returns. Enter the total may be delayed or the withholding tax credit disal-
of all refunds, credits, or offsets of state income tax lowed if you do not complete the TC-41W with all
received for the tax year being amended. Do not required information.
include refund interest. Note: If there is no Utah employer identiﬁcation
number on forms W-2 box 15, 1099-R box 11, 1099-
30. Utah Use Tax MISC box 17, or any other 1099 form, your refund
You must pay use tax on all taxable items bought for may be reduced or the tax due increased. Contact
storage, use or consumption in Utah during the ﬁling the employer or payer of the income to get the Utah
year, if sales and use tax was not paid to the seller at employer ID number.
the time of purchase. This includes Internet or catalog
purchases. 33. Credit for Utah Fiduciary Tax Pre-
You may take a credit for sales or use tax paid to paid
another state (but not a foreign country). If the other Prepayments include payments made with form TC-
state’s tax rate is lower than Utah’s, you must pay the 548, Fiduciary Income Tax Prepayment Coupon, and
2010 Utah Fiduciary Income Tax Page 11
Use Tax Rate Chart (Effective Dec. 31, 2010) Codes for Refundable Credits - TC-41A Part 5
.0595 Beaver County .0685 Salt Lake County 39 Renewable Commercial Energy Systems Tax Credit
.0695 Beaver City .0835 Alta 40 Targeted Business Tax Credit
.0595 Box Elder County .0595 San Juan County 43 Pass-through Entity Withholding
.0650 Brigham City, Perry, .0635 Blanding, Monticello 46 Mineral Production Withholding
Willard .0595 Sanpete County 47 Agricultural Off-highway Gas/Undyed Diesel Credit
.0695 Snowville .0625 Ephraim, Fairview,
.0630 Cache County Gunnison, Mt. Pleasant 48 Farm Operation Hand Tools Credit
.0655 Cache Valley Transit, .0595 Sevier County
Hyde Park, Lewiston, .0605 Aurora, Redmond (39) Renewable Commercial Energy Tax Systems
Millville .0625 Richﬁeld Credit (UC §59-10-1106)
.0660 Hyrum, Logan, Nibley, .0635 Salina This credit is for reasonable costs, including installation,
N. Logan, Providence, .0605 Summit County
Richmond, River .0635 Snyderville Basin Transit of a commercial energy system that is an active solar
Heights, Smithﬁeld .0745 Park City system, a direct-use geothermal system, a geothermal
.0595 Carbon County .0595 Tooele County
.0625 Wellington .0625 Erda, Grantsville, heat-pump system, a hydro-energy system, or a passive
.0635 Price Lakepoint, Lincoln, solar system. Credit is also allowed for a commercial
.0695 Daggett County Stansbury Park system that uses wind, geothermal electricity, or bio-
.0650 Davis County .0635 Tooele City
.0660 Bountiful, Centerville, .0605 Uintah County mass equipment.
N. Salt Lake, W. Boun- .0635 Naples, Vernal
tiful, Woods Cross .0650 Utah County Get form TC-40E, Renewable Residential and Com-
.0595 Duchesne County .0675 Alpine, American mercial Energy Systems Tax Credits, from the Utah
.0605 Duchesne City Fork, Eagle Mountain, Geological Survey with their certiﬁcation stamp, verifying
.0635 Roosevelt Highland, Lehi, Lindon,
.0595 Emery County Mapleton, Payson, the credit is approved and showing the amount of the
.0775 Green River Pleasant Grove, Provo, approved credit. Do not send this form with your return.
.0695 Garﬁeld County Provo Canyon, Salem,
.0795 Boulder, Panguitch, Saratoga Springs, Span- Keep the form and all related documents with your
Tropic ish Fork, Springville records.
.0805 Bryce Canyon .0685 Cedar Hills, Orem
.0595 Grand County .0595 Wasatch County Contact the Utah Geological Survey (UGS), 1594 W
.0785 Moab .0625 Heber North Temple, Box 146100, SLC, UT 84114-6100,
.0595 Iron County .0705 Independence
.0605 Cedar City .0735 Midway, Park City East 801-537-3300, or go to geology.utah.gov/sep/incen-
.0785 Brian Head .0595 Washington County tives/index.htm for more information.
.0595 Juab County .0625 Hurricane, Ivins, La
.0625 Nephi Verkin, St. George, (40) Targeted Business Tax Credit
.0695 Kane County Santa Clara, (UC §63M-1-504)
.0795 Kanab, Orderville Washington City
.0595 Millard County .0755 Springdale Note: You may not claim this credit the same year you
.0595 Morgan County .0595 Wayne County claim the enterprise zone credit (nonapportionable
.0595 Piute County .0685 Weber County
.0595 Rich County .0705 Riverdale nonrefundable credit, code 07) or the recycling market
.0705 Garden City development zone tax credit (nonapportionable nonre-
fundable credit, code 10).
any amount of the previous year’s refund applied to A credit is available to businesses providing a commu-
your current tax liability. nity investment project as deﬁned in UC §63M-1-501
through §63M-1-503. Get a certiﬁed copy of form TC-
34. Amended Returns Only 40TB, Targeted Business Tax Credit. Keep this form
Previous Payments and all related documents with your records.
Use this line only for amended returns. Enter the total
tax paid with the original return plus any later tax pay- Contact the Governor’s Ofﬁce of Economic Develop-
ments for the tax year being amended. Do not include ment, 324 S State St., Suite 500, SLC, UT 84111,
on this line any penalty, interest or fees paid on the 801-538-8804, or go to goed.utah.gov/incentives/
previous return. enterprise_zones for more information.
(43) Pass-through Entity Taxpayer’s Withholding
35. Refundable Credits Tax Credit
Claim any of the following refundable credits that (UC §59-10-1103)
apply on TC-41A, Part 5 and attach it to your Utah If you have an interest in a pass-through entity (part-
return. On TC-41A, write the code and amount of nership, LLP, LLC or S corporation) and received an
each credit you are claiming. Enter the sum of these income distribution from them, you may have had
credits, then subtract any credits being distributed Utah income tax withheld from your distribution.
to beneﬁciaries. This distributed amount should be
reported on Schedule K and allocated to the beneﬁ- If you distributed the income you received from the
ciaries on Schedule K-1. Then enter the net amount of pass-through entity to your beneﬁciaries, the Utah
the credits being claimed on the ﬁduciary return and income tax withheld must also be distributed to your
carry this to line 35 of your Utah TC-41. Each refund- beneﬁciaries. Complete TC-41A, page 2, using code
able credit is explained below. 43 to report the withholding, then subtract on the
schedule the withholding distributed to the beneﬁcia-
Keep all related documents, including credit forms, ries.
with your records. You may have to provide this infor-
mation later to verify a credit claimed on your return. Utah income tax withheld by a pass-through entity
that is attributable to income you received but did not
distribute to your beneﬁciaries may be claimed as a
2010 Utah Fiduciary Income Tax Page 12
credit on the ﬁduciary return. Enter such withholding Calculator at taxexpress.utah.gov or by following the
tax on TC-41W, Part 3 and bring the total over to TC- instructions in Pub 58, Utah Interest and Penalties at
41A, page 2, using code 43. tax.utah.gov/forms. The Tax Commission will send
you a bill if you do not pay the penalties and interest
Keep Utah Schedule K-1s issued by the pass-through
with your return or the penalty and/or interest was
entity and all other related documents with your re-
cords. Do not attach them to your Utah return.
35. Mineral Production Withholding Tax Credit PENALTIES: You may receive a penalty for not ﬁling
(UC §59-6-102(3)) your return on time and for not paying any tax due on
List any Utah mineral production withholding tax from time. The penalties are a percentage of the unpaid
TC-675R or Utah Schedule K-1 on TC-41W, Part 2. tax, based on the number of days late. Instructions to
Total your entries on TC-41W, Part 2 and enter this calculate these penalties are found at tax.utah.gov/
total on your TC-41A, Part 5, using code 43. billing/penaltyinterest.html and in Pub 58, Utah
Interest and Penalties at tax.utah.gov/forms. Include
The mineral production company must provide the these penalties on line 38, if applicable.
following information to you:
• The company’s federal employer identiﬁcation A penalty for underpaying an extension prepayment
number (EIN), is 2% of the unpaid tax per month of the extension
• The company’s Utah mineral production withhold- period. If the return is not ﬁled by the extension due
ing account number, and date, failure to ﬁle and pay penalties will apply, as
• Your share of the mineral production withholding if the extension had not been granted. Also, include
tax. this penalty on line 38, if applicable.
Keep all TC-675Rs and Utah Schedule K-1(s) with There is no late ﬁling penalty (including on an amend-
your records. Processing may be delayed or the with- ed return) if you have no tax due on the return.
holding tax credit disallowed if you do not complete INTEREST: Calculate interest from the due date
the TC-41W, Part 2 with all required information. (April 15, 2011) to the date paid. The 2011 rate is 3%.
(47) Agricultural Off-Highway Gas/Undyed Diesel Include this interest on line 38, if applicable.
Credit (UC §59-13-202)
You may claim a credit of 24.5 cents per gallon for
39. Pay this Amount
Add any penalty and interest you owe on line 38 to
motor fuel and undyed diesel fuel bought in Utah to
the tax on line 37. Pay this amount with your return.
operate stationary farm engines and self-propelled
Include a TC-549 coupon (page 22) with your pay-
farm machinery used solely for commercial nonhigh-
way agricultural use if the fuel was taxed at the time it
was bought. This does not include (but is not limited PAYMENT OPTIONS
to) the following: golf courses, horse racing, boat You may pay your tax online with your credit card or
operations, highway seeding, vehicles registered for with an electronic check (ACH debit). Online pay-
highway use, hobbies, personal farming, etc. ments may include a service fee. Follow the instruc-
tions at taxexpress.utah.gov.
Gallons _______ x .245 = Credit _____________ You may also mail your check or money order payable
to the Utah State Tax Commission with your return.
There is no form for this credit. Keep all related docu-
Write your daytime phone number, and “2010 TC-41”
ments with your records.
on your check. DO NOT STAPLE check to return.
(48) Farm Operation Hand Tools Credit Remove any check stub before sending. DO NOT
(UC §59-10-1105) MAIL CASH with your return. The Tax Commission is
This credit is for sales and use tax paid on hand tools not liable for cash lost in the mail. Include the TC-549
purchased and used or consumed primarily and coupon on page 22 with your payment.
directly in a farming operation in Utah. The credit only
applies if the purchase price of a tool is more than Mail your payment, coupon and Utah return to Utah
$250. State Tax Commission, 210 N 1950 W, Salt Lake City,
There is no form for this credit. Keep all related docu-
ments with your records. ALLOW AT LEAST 90 DAYS FOR YOUR RETURN
TO BE PROCESSED.
36. Total Withholding and Refundable PAYMENT AGREEMENT REQUEST
Credits A payment agreement cannot be set up until your
Add lines 32 through 35. return is processed.
37. Tax Due If you cannot pay the full amount you owe, register at
If line 31 is more than line 36, subtract line 36 from tap.tax.utah.gov and click on “Request Pay Plan or
line 31. This is the tax you owe. Waiver.” Or, you may contact the Tax Commission at
801-297-7703, or outside the Salt Lake area at 1-800-
38. Penalty and Interest 662-4335 ext. 7703.
If you are ﬁling your return or paying any tax late, TAP is a feature of taxexpress.utah.gov. It allows
you may owe penalties and interest. Calculate your many free services, including e-ﬁle and e-pay, as well
penalty and interest by using the Penalty and Interest
2010 Utah Fiduciary Income Tax Page 13
as allowing you to monitor your own income tax ac- Paid Preparer Authorization
count and request a pay plan. If you want to allow the Tax Commission to discuss
Pay plan requests will be considered after your return your 2010 Utah return with the paid preparer who
is processed. If accepted, you will receive a letter stat- signed it, enter an “X” in the box on the right side of
ing the terms and conditions of the agreement. A pay the signature area of the return where indicated. This
plan does not stop penalty and interest from accruing authorization applies only to the individual whose
and we may still ﬁle a tax lien to secure the debt. signature appears in the Paid Preparer Section of the
return. It does not apply to the ﬁrm, if any, shown in that
You may make payments prior to approval of the pay section.
plan or prior to receiving a billing notice.
If you enter an “X” in the box, you authorize the Tax
40. Refund Commission to call the paid preparer with questions
If line 36 is more than line 31, subtract line 31 from that may arise while processing the return. You also
line 36. This is your refund. authorize the preparer to:
• Give the Tax Commission any missing information
41. Refund Applied To 2011 Taxes from the return,
You may apply all or part of your refund as a prepay- • Call the Tax Commission for information about the
ment for your 2011 Utah ﬁduciary tax liability. Enter processing of the return or the status of any refund
the amount of refund you want applied to your 2011 or payment(s), and
tax on this line. Any part not applied to your 2011 tax • Respond to certain Tax Commission notices about
liability will be refunded to you (unless you have other math errors, offsets, and return preparation.
outstanding government obligations). You are not authorizing the preparer to receive any
Completing the Return refund, bind you to anything (including any additional
tax liability), or otherwise represent you before the Tax
Signature Commission. If you want to change the preparer’s au-
The ﬁduciary or an ofﬁcer representing the estate or thorization, complete and submit form TC-737, Power
trust must sign the return. Failing to sign the return will of Attorney and Declaration of Representative. Form
delay your refund. TC-737 is available at tax.utah.gov/forms.
Attachments to Return The authorization automatically ends on the due date
Attach ONLY the following with your TC-41: for ﬁling the entity’s 2011 tax return (without regard
• All applicable Utah schedules (TC-41A, TC-41B, TC- to extensions). If you want to revoke the authoriza-
41C, TC-41K, TC-41K-1s, TC-41S, and/or TC-41W); tion before it ends, submit your request in writing to
• An explanation of any other adjustment entered on the Utah State Tax Commission, attention Taxpayer
TC-41A, Part 1, using code 62 or 69, or Part 2, using Services, 210 N 1950 W, SLC, UT 84134.
code 79 or 87.
• A copy of Utah TC-40LIS if you are a building project Preparer Penalties
owner of a low-income housing unit. (UC §59-1-401(11))
• Tax Due: If you owe tax on your return, submit form The person who prepares, presents, procures, ad-
TC-549 and your check or money order along with vises, aids, assists or counsels another on a return,
the return. afﬁdavit, claim or similar document administered by
Do not send a copy of your federal return, credit the Tax Commission, and who knows or has reason
schedules, worksheets, or other documents. Also, do to believe it may understate a tax, fee or charge is
not send copies of your W-2, 1099-R, 1099-MISC, subject to both a civil penalty ($500 per document)
Utah Schedule K-1, or TC-675R forms. These are and criminal penalty (second degree felony with a ﬁne
listed on the TC-41W. Keep all these with your tax from $1,500 to $25,000).
Paid Preparer Requirements
The paid preparer must enter his or her name, ad-
dress and PTIN in the section below the ﬁduciary’s
2010 Utah Fiduciary Income Tax Page 14
Instructions for TC-41B –
Non or Part-year Resident Estate or Trust Schedule
Note: Bankruptcy estates do not use TC-41B. See 3. Subtract line 17 from line 10 for both columns A
instructions for TC-41C. and B and enter the result on line 18.
Follow these steps to calculate your Utah tax. Note: The amount on line 18 in column B should
1. Complete form TC-41 through line 25. equal the amount shown on TC-41, line 14.
2. Complete form TC-41B, Non or Part-Year Resident 4. Divide the total on line 18 column A by the total on
Estate or Trust Schedule. line 18 column B and enter the result on line 19.
Round your result to four decimal places. Do not
Column A - Utah Income and Deductions enter a decimal greater than 1.0000.
Enter on lines 1 through 8 all income (loss) earned or
received from Utah sources while not a Utah resi- 5. Enter the tax from your TC-41, page 2, line 25, on
dent, plus all income (loss) earned or received from line 20.
all sources while a Utah resident (even if not from a
Utah source). Enter on line 9 the Utah portion only of 6. Multiply the tax on line 20 by the decimal on line
the additions to income shown on TC-41, Schedule A, 19 and enter the result on line 21. This is your Utah
Part 1. Total lines 1 through 9 on line 10. tax.
Enter on lines 11 through 14 deductions applicable to 7. Transfer your Utah tax from line 21 to page 2 of
Utah income. Enter on line 15 the Utah portion only your TC-41, line 26.
of the state tax refund included in federal income, and
8. Complete page 2 of your TC-41.
enter on line 16 the Utah portion only of the subtrac-
tions from income shown on TC-41, Schedule A, Part Attach form TC-41B to your Utah return. Do not attach
2. Total lines 11 through 16 on line 17. a copy of your federal return. Keep a copy of form TC-
Column B - Total Income and Deductions 41B and your federal return with your records.
Enter on lines 1 through 8 the total income (loss) from
all sources as reported on your federal return, as
noted on the TC-41B. Enter on line 9 the total addi-
tions to income shown on TC-41, Schedule A, Part 1.
Total lines 1 through 9 on line 10.
Enter on lines 11 through 14 deductions claimed on
your federal return, as noted on the TC-41B. Enter on
line 15 the state tax refund included in federal income,
and enter on line 16 the total subtractions from in-
come shown on TC-41, Schedule A, Part 2. Total lines
11 through 16 on line 17.
2010 Utah Fiduciary Income Tax Page 15
Instructions for TC-41C – Bankruptcy Estate Schedule
The ﬁling of a bankruptcy petition for an individual 3. Federal Adjusted Gross Income
debtor under chapter 7 or chapter 11 of the Subtract line 2 from line 1. (This amount should equal
bankruptcy code creates a separate taxable entity the federal adjusted gross income shown on line 37
known as a bankruptcy estate. The trustee (for of the bankruptcy estate’s federal return, form 1040,
chapter 7 cases) or the debtor-in-possession (for attached to the federal ﬁduciary return, form 1041.
chapter 11 cases) must prepare and ﬁle the estate’s
tax returns and pay its taxes. The debtor remains 4. Additions to Income
responsible for ﬁling returns and paying taxes on any Enter the code and amount of each addition to
income that does not belong to the estate. income. Codes and explanations for these additions to
Amended Return. If a bankruptcy case begins, but is income are in the TC-40 tax return instruction booklet.
later dismissed by the bankruptcy court, the estate is 5. Add lines 3 and 4
not treated as a separate taxable entity. If tax returns Enter the total of line 3 and line 4.
have been ﬁled for the estate, amended returns must
be ﬁled to move income and deductions from the 6. State Tax Refund Included on
estate’s returns to the debtor’s returns. If no returns Federal Form 1040, Line 10
have been ﬁled, report all income and deductions on If you itemized your deductions on your 2009 federal
the debtor’s returns. form 1040, enter the amount reported on your 2010
Utah Instructions. For purposes of the TC-41C, federal from 1040, line 10. Otherwise leave this line
references made to federal form 1040 refer to the blank.
federal form 1040 that is attached as a schedule
to federal form 1041 that the trustee or debtor-in- 7. Subtractions from Income
possession ﬁles on behalf of the bankruptcy estate Enter the code and amount of each subtraction
with the Internal Revenue Service. from income. Codes and explanations for these
subtractions from income are in the TC-40 tax return
A trustee or debtor-in-possession of a bankruptcy instruction booklet.
estate (chapter 7 or chapter 11) must ﬁle form TC-
41, Utah Fiduciary Income Tax Return, and attach 8. Utah Taxable Income
a completed TC-41C, Bankruptcy Estate Schedule. Subtract the sum of lines 6 and 7 from line 5. If the
Leave lines 4 through 21 of the TC-41 blank. Line 22 of result is less than zero, enter “0.”
the TC-41 is the tax calculated on the TC-41C, line 20.
• Resident Bankruptcy Estate – Complete lines 23 9. Tax Calculation
through 43 of the TC-41 according to the regular Multiply the Utah Taxable Income on line 8 by 5%
ﬁduciary instructions. Complete and attach only (.05).
page 1 of TC-41C to your return; do not complete
or attach TC-41C, page 2. Taxpayer Tax Credit (lines 10 - 19)
• Nonresident or Part-year Resident Bankruptcy (UC §59-10-1018)
Estate – Complete lines 23 through 25 of form TC-
41 according to the regular ﬁduciary instructions. 10. Personal Exemption Deduction
Then complete TC-41C, page 2 to calculate the A bankrupt estate exemption is $2,738.
Utah tax. Enter the apportioned tax from TC-41C, 11. Standard or Itemized Deductions
line 57 on TC-41, line 26. Attach both pages 1 and Enter $5,700 (standard deduction) or the bankruptcy
2 of TC-41C to your return. estate’s federal itemized deductions from federal form
The estate’s tax liability is determined by completing 1040, Schedule A (if greater) attached to the federal
the TC-41C with information and calculations similar ﬁduciary return, form 1041.
to the Utah TC-40, Individual Income Tax Return.
12. Add Lines 10 and 11
These special bankruptcy estate line number Add the amounts on line 10 and line 11.
reference instructions override those for TC-41 and
TC-41B, where there is a conﬂict.
13. State Income Tax Itemized on 2010
Federal Schedule A
1. Federal Total Income Enter the amount, if any, of state income tax deducted
Enter the amount from line 22 of the bankruptcy on the bankruptcy estate’s federal Schedule A, line 5
estate’s federal return, form 1040, attached to the attached to the federal ﬁduciary return, form 1041. If
federal ﬁduciary return, 1041. you did not itemize your deductions on federal Sched-
ule A, leave this line blank.
2. Federal Adjustments to Income
Enter the amount from line 36 of the bankruptcy
estate’s federal return, form 1040, attached to the
federal ﬁduciary return, form 1041.
2010 Utah Fiduciary Income Tax Page 16
14. Subtract Line 13 from Line 12 Column A – Utah Income and Adjustments:
Subtract the amount on line 13 from line 12. Enter on lines 21 through 35 all income (loss) earned
or received from Utah sources while not a Utah resi-
15. Multiply Line 14 by 6% dent, plus all income (loss) earned or received from
Multiply the amount on line 14 by 6% (.06). This is all sources while a Utah resident (even if not from a
your initial taxpayer tax credit before phase-out. Utah source). Enter on line 36 the Utah portion only
of the additions to income shown on TC-40, Schedule
16. Base Phase-out Amount A, Part 1. Total lines 21 through 36 on line 37.
The base phase-out amount for a bankrupt estate is
$12,535. Enter on lines 38 through 50 adjustments applicable
to Utah income. Enter on line 51 the Utah portion only
17. Subtract Line 16 from Line 8 of the state tax refund included on line 10 of federal
Subtract the base phase-out amount on line 16 from form 1040, and enter on line 52 the Utah portion only
the Utah taxable income on line 8. of the subtractions from income shown on TC-40,
Schedule A, Part 2. Total lines 38 through 52 on line
18. Multiply Line 17 by 1.3% 53.
Multiply the amount on line 17 by 1.3% (.013). This is
the credit phase-out amount. If you have federal adjustments written in on line 36 of
federal form 1040, enter the description and amount
19. Taxpayer Tax Credit of the Utah portion of these adjustments on TC-41C
Subtract the phase-out amount on line 18 from the on the line beneath line 52, and include the amount in
initial credit on line 15. If the result is less than zero, the total on line 53.
Column B – Total Income and Adjustments: Enter
20. Utah Income Tax on lines 21 through 35 the total income (loss) from all
Subtract the taxpayer tax credit on line 19 from the sources you reported on your federal return, as noted
tax calculated on line 9. If the result is less than zero, on the TC-41C. Enter on line 36 the total additions to
enter “0.” income shown on TC-40, Schedule A, Part 1. Total
lines 21 through 36 on line 37.
FULL-YEAR UTAH RESIDENT BANKRUPTCY ES-
TATE Enter the tax from line 20 on TC-41, line 22 and Enter on lines 38 through 50 adjustments claimed on
then complete the rest of the TC-41 ﬁduciary return. your federal return, as noted on the TC-41C. Enter on
Attach the TC-41C, page 1 to your ﬁduciary return. line 51 the state tax refund included on line 10 of fed-
(Do not complete or attach TC-41C, page 2 to your eral form 1040, and enter on line 52 the total subtrac-
return.) tions from income shown on TC-40, Schedule A, Part
2. Total lines 38 through 52 on line 53.
NON OR PART-YEAR RESIDENT BANKRUPTCY
ESTATE If you have federal adjustments written in on line 36 of
Enter the tax from line 20 on TC-41, line 22. Complete federal form 1040, enter the description and amount
lines 23 through 25 on the TC-41. Then complete of these adjustments on TC-41C on the line beneath
TC-41C, page 2 to determine your apportioned Utah line 52, and include the amount in the total on line 53.
tax. Enter the tax from line 57 on TC-41C, page 2 on
your TC-41, line 26 and then complete the rest of the 5. Calculate line 54 by subtracting line 53 from line
TC-41 ﬁduciary return. 37 for both columns A and B.
Note: The amount on line 54 in column B should
Non or Part-year Resident (lines 21 - 57) equal the amount shown on TC-41C, page 1, line 8.
If ﬁling for a nonresident or part-year resident bank-
ruptcy estate, complete form TC-41C, page 2 and 6. Divide the total on line 54 Column A by the total on
attach it to the TC-41 return. line 54 Column B, and enter the result on line 55.
Follow these steps to calculate your Utah tax. Round your result to four decimal places. Do not
1. Complete form TC-41C, page 1, through line 20. enter a decimal greater than 1.0000.
2. Enter the tax from line 20 of TC-41C on line 22 of 7. Enter the tax amount from form TC-41, page 2,
form TC-41. line 25 on your TC-41C, line 56.
3. Complete form TC-41, lines 23 through 25. 8. Multiply the tax on line 56 by the decimal on line
55. This is your Utah tax. Enter this tax on line 57
4. Complete form TC-41C, page 2. of TC-41C and on form TC-41, line 26. Then com-
plete the balance of form TC-41.
Reminder: Be sure to indicate on the TC-41 in box 1
that this is a Chapter 7 Bankruptcy Estate (code A) or
a chapter 11 Bankruptcy Estate (code B).
2010 Utah Fiduciary Income Tax Page 17
Instructions for TC-41K – Beneﬁciaries’ Share of Income,
Deductions, and Credits
Attach TC-41, Schedule K to show the ﬁduciary’s in- Line 10 – Estate Tax Deduction
come, gains, losses, deductions, and Utah credits that Enter in the ﬁrst column the federal estate tax deduc-
are to be distributed to the beneﬁciaries. tion from federal form 1041 (total of all federal Sched-
Number of Schedules K-1 Attached to this Return ules K-1). Enter the Utah portion in the second column
Enter the number of Schedules K-1 that are attached (total of all Utah Schedules K-1).
to this return and issued to beneﬁciaries. Line 11 – Final Year Deductions
Line 1 – Interest Income Enter in the ﬁrst column the federal ﬁnal year deduc-
Enter in the ﬁrst column the federal interest income tions from federal form 1041 (total of all federal Sched-
from federal form 1041 (total of all federal Schedules ules K-1). Enter the Utah portion in the second column
K-1). Enter the Utah portion in the second column (total of all Utah Schedules K-1).
(total of all Utah Schedules K-1). Line 12 – Other Information
Line 2 – Ordinary Dividends Enter in the ﬁrst column the federal other information
Enter in the ﬁrst column the federal ordinary dividends from federal form 1041 (total of all federal Schedules
from federal form 1041 (total of all federal Schedules K-1). Enter the Utah portion in the second column
K-1). Enter the Utah portion in the second column (total of all Utah Schedules K-1).
(total of all Utah Schedules K-1). Line 13 – Utah Nonrefundable Credits
Line 3 – Net Short-term Capital Gains In the Utah column, enter the Utah nonrefundable
Enter in the ﬁrst column the federal net short-term credits being distributed to the beneﬁciaries. Describe
capital gains from federal form 1041 (total of all the nonrefundable credit in the space provided, enter
federal Schedules K-1). Enter the Utah portion in the the Utah credit code and amount of the credit (see ex-
second column (total of all Utah Schedules K-1). planations of credits and codes under the instructions
for TC-41, lines 24 and 27).
Line 4 – Net Long-term Capital Gains
Enter in the ﬁrst column the federal net long-term cap- Line 14 – Utah Refundable Credits
ital gains from federal form 1041 (total of all federal In the Utah column, enter the Utah refundable credits
Schedules K-1). Enter the Utah portion in the second being distributed to the beneﬁciaries. Describe the
column (total of all Utah Schedules K-1). refundable credit in the space provided, enter the Utah
credit code and amount of the credit (see explanations
Line 5 – Other Portfolio and Nonbusiness Income of credits and code under the instructions for TC-41,
Enter in the ﬁrst column the federal other portfolio and line 35).
nonbusiness income from federal form 1041 (total of
all federal Schedules K-1). Enter the Utah portion in
the second column (total of all Utah Schedules K-1).
Line 6 – Ordinary Business Income
Enter in the ﬁrst column the federal ordinary business
income from federal form 1041 (total of all federal
Schedules K-1). Enter the Utah portion in the second
column (total of all Utah Schedules K-1).
Line 7 – Net Rental Real Estate Income
Enter in the ﬁrst column the federal net rental real es-
tate income from federal form 1041 (total of all federal
Schedules K-1). Enter the Utah portion in the second
column (total of all Utah Schedules K-1).
Line 8 – Other Rental Income
Enter in the ﬁrst column the federal other rental
income from federal form 1041 (total of all federal
Schedules K-1). Enter the Utah portion in the second
column (total of all Utah Schedules K-1).
Line 9 – Directly Apportioned Deductions
Enter in the ﬁrst column the federal directly appor-
tioned deductions from federal form 1041 (total of all
federal Schedules K-1). Enter the Utah portion in the
second column (total of all Utah Schedules K-1).
2010 Utah Fiduciary Income Tax Page 18
Instructions for TC-41K-1 – Beneﬁciary’s Share of Utah
Income, Deductions, and Credits
Complete a TC-41, Schedule K-1 for each beneﬁciary, Line 7 – Utah Net Rental Real Estate Income
showing the share of income, gains, losses, deduc- Enter each beneﬁciary’s distributive share of Utah
tions, and Utah credits that are distributed to the net rental real estate income as reported on the Utah
beneﬁciary. Schedule K, line 7.
Estate or Trust Information Line 8 – Utah Other Rental Income
• Line A – Enter the estate or trust’s federal identiﬁ- Enter each beneﬁciary’s distributive share of Utah
cation number other rental income as reported on the Utah Schedule
• Line B – Enter the complete name of the estate or K, line 8.
trust Line 9 – Utah Directly Apportioned Deductions
Fiduciary Information Enter each beneﬁciary’s distributive share of Utah di-
• Line C – Enter the ﬁduciary’s complete name and rectly apportioned deductions as reported on the Utah
address Schedule K, line 9. Enter the description as shown on
Beneﬁciary Information the Schedule K in the space provided.
• Line D – Enter the beneﬁciary’s social security or Line 10 – Estate Tax Deduction
federal employer identiﬁcation number Enter each beneﬁciary’s distributive share of the es-
• Line E – Enter the beneﬁciary’s complete name tate tax deduction as reported on the Utah Schedule
and address K, line 10.
• Line F – Enter the beneﬁciary’s telephone number Line 11 – Final Year Utah Deductions
• Line G – Enter the percent of Utah income being Enter each beneﬁciary’s distributive share of the ﬁnal
distributed to the beneﬁciary year Utah deductions as reported on the Utah Sched-
Other Information ule K, line 11. Enter the description as shown on the
Enter any additional information or explanation of Schedule K in the space provided.
entries needed by the beneﬁciary in order to complete Line 12 – Other Utah Information
their individual Utah return. Enter each beneﬁciary’s distributive share of other in-
Line 1 – Utah Interest Income formation as reported on the Utah Schedule K, line 12.
Enter each beneﬁciary’s distributive share of Utah Line 13 – Utah Nonrefundable Credits Distributed
interest income as reported on the Utah Schedule K, to Beneﬁciary
line 1. Enter each beneﬁciary’s distributive share of Utah non-
Line 2 – Utah Ordinary Dividends refundable credits as reported on the Utah Schedule K,
Enter each beneﬁciary’s distributive share of Utah line 13. Also enter the description and the Utah nonre-
ordinary dividends as reported on the Utah Schedule fundable credit code as shown on the Schedule K.
K, line 2. Line 14 – Utah Refundable Credits Distributed to
Line 3 – Utah Net Short-term Capital Gains Beneﬁciary
Enter each beneﬁciary’s distributive share of Utah Enter each beneﬁciary’s distributive share of Utah
net short-term capital gains as reported on the Utah refundable credits as reported on the Utah Schedule
Schedule K, line 3. K, line 14. Also enter the description and the Utah
Line 4 – Utah Net Long-term Capital Gains refundable credit code as shown on the Schedule K.
Enter each beneﬁciary’s distributive share of Utah
net long-term capital gains as reported on the Utah
Schedule K, line 4.
Line 5 – Other Utah Portfolio and Nonbusiness
Enter each beneﬁciary’s distributive share of other
Utah portfolio and nonbusiness income as reported
on the Utah Schedule K, line 5.
Line 6 – Utah Ordinary Business Income
Enter each beneﬁciary’s distributive share of Utah
ordinary business income as reported on the Utah
Schedule K, line 6.
2010 Utah Fiduciary Income Tax Page 19
Instructions for TC-41W - Utah Withholding Tax Schedule
Purpose of Form TC-41W W-2 Example
Form TC-41W is used to gather data from em-
ployers and payers who must report Utah income
and withholding tax belonging to a taxpayer. The
information, while on forms W-2, 1099, TC-675R
and Utah Schedule K-1, cannot be easily rec-
onciled with what the employer or payer reports,
as employers and payers are free to design their
own forms for this reporting, print on different
sizes and thicknesses of paper, and eliminate in-
formation not relevant to the employee or payee.
In order to match this information, withholding
from forms W-2 and 1099 must be reported on
TC-41W, page 1, and data concerning mineral
production withholding tax and pass-through
entity withholding must be reported on TC-41W,
page 2. The data is then “captured” through a
high-speed scanner, and then matched against
what an employer or payer has reported.
Note: Employees and payees report this infor-
mation on TC-41W and should not send cop-
ies of their W-2s, 1099s, TC-675Rs, and Utah
Schedules K-1 with their Utah return.
TC-41W, Part 1 Instructions
You must report Utah withholding tax from the
following forms on TC-41W, page 1:
• Line 1 – Enter the employer/payer federal EIN
(W-2 box “b,” or 1099).
• Line 2 – Enter the employer/payer Utah with-
holding account number (W-2 box “15,” or
• Line 3 – Enter the employer/payer name and
address (W-2 box “c,” or 1099).
• Line 4 – Enter an “X” if the income and with-
holding tax are from a form 1099.
• Line 5 – Enter the taxpayer’s social security
number or EIN (W-2 box “a,” or 1099).
• Line 6 – Enter the Utah wages or income be-
ing reported (W-2 box 16, or 1099).
• Line 7 – Enter the Utah withholding tax (W-2
box “17,” or 1099).
Note: If there is no Utah employer identiﬁca-
tion number on a form W-2 box 15, 1099-R box
11, 1099-MISC box 17, or any other 1099 form,
your refund may be reduced or your tax due
increased. Contact the employer or payer of the
income to get the Utah ID number.
Add the amounts of Utah withholding tax from
all lines 7 and enter the total at the bottom of
TC-41W and on form TC-41, page 1, line 32.
2010 Utah Fiduciary Income Tax Page 20
TC-41W, Part 2 Instructions TC-41W, Part 3 Instructions
To claim credit for Utah mineral production withholding To claim credit for Utah withholding tax paid on your behalf
tax, enter the following information from TC-675R or Utah by a pass-through entity (partnership, LLP, LLC or S corpo-
Schedule K-1 on TC-41W, Part 2: ration), enter the following information from Utah Schedule
• Line 1 - Mineral producer’s federal EIN (TC-675R box K-1 on TC-41W, Part 3:
“2,” or from Utah Schedule K-1). • Line 1 - Pass-through entity’s federal EIN.
• Line 2 - Mineral producer’s name (TC-675R box “1”). • Line 2 - Pass-through entity’s name.
• Line 3 - Producer’s Utah withholding account number • Line 3 - Utah withholding tax withheld or paid on your
(TC-675R box “3”). behalf by the pass-through entity.
• Line 4 - If the mineral withholding tax distribution was Add the amounts of pass-through entity Utah withholding
received from a pass-through entity (partnership, LLC, tax from all lines 3 and enter the total on TC-41A, page 2,
LLP or S corporation), enter the pass-through entity’s using code 43.
federal EIN. If you receive a TC-675R directly from the
Do not send the Utah Schedule(s) K-1 with your Utah re-
mineral producer, leave this line blank.
turn. Keep them in your ﬁles.
• Line 5 - Mineral production withholding tax (TC-675R
box “5”) or your share of mineral production withholding Processing may be delayed or the withholding tax credit
tax reported on Utah Schedule K-1 by a pass-through disallowed if you do not complete the TC-41W with all re-
entity. quired information.
Add the amounts of mineral production withholding tax from
all lines 5 and enter the total on form TC-41A, Part 5, using
2010 Utah Fiduciary Income Tax Page 21
Qualiﬁed Funeral Trust Information and Instructions
Who Must File Making the Election
The trustee of a trust that has elected to be taxed as The trustee elects to treat a trust as a QFT by ﬁling
a qualiﬁed funeral trust (QFT) ﬁles federal Form 1041- federal Form 1041-QFT by the due date (including
QFT to report the income, deductions, gains, losses, extensions).
etc., and income tax liability of the QFT. The trustee
can use Form TC-41 to ﬁle for a single QFT, or for Composite Return
multiple QFTs having the same trustee following the A trustee may ﬁle a single, composite Utah Form
instructions under Composite Return on this page. TC-41 for all QFTs for which he or she is the trustee,
including QFTs that had a short tax year. Prepare a
Pre-need funeral trusts that do not qualify as QFTs schedule that includes the following information for
should use the regular instructions for Utah Form each QFT (or separate interest treated as a QFT).
TC-41, Utah Fiduciary Income Tax Return.
• The number of QFTs in the composite return.
Qualiﬁed Funeral Trust (QFT)
A QFT is a domestic trust that meets all of the follow- • The owner or beneﬁciary’s name. If the trust has
ing requirements: more than one beneﬁciary, separate the trust into
shares held by the separate beneﬁciaries. The
• It arose from a contract with a person who pro- same information used on the federal Form 1041-
vides funeral or burial services or property neces- QFT can be used to compute Utah tax.
sary to provide such services.
• The type and gross amount of income earned by
• The sole purpose of the trust is to hold, invest and the QFT. For capital gains, identify the net short-
reinvest funds in the trust and to use those funds term capital gain, net long-term capital gain, 28%
solely to pay for funeral or burial services or prop- rate gain, and unrecaptured section 1250 gain.
erty to provide such services for the beneﬁt of the
beneﬁciaries of the trust. • The type and amount of each deduction and
credit allocable to the QFT.
• The only beneﬁciaries are individuals for whom
such services or property is to be provided at • The Utah tax calculation for each QFT. You must
their death under the contracts described above. complete form TC-41, page 1, lines 15 through 22
separately for each QFT.
• The trustee elects or previously elected to treat
the trust as a QFT, and not as a grantor trust. • The Utah tax payments made for each QFT.
• If the QFT election had not been made, the trust • If the QFT terminated during the year, the termi-
would have been treated as owned by the con- nation date.
tracts’ purchasers under the IRC grantor trust You can use the same information and schedules
provisions. However, a trust that is not owned by from the federal Form 1041-QFT to compute Utah tax.
the purchaser solely because of the death of an Figure the taxable income separately for each QFT
individual shall be treated as meeting this require- using each QFT’s share of the amounts.
ment during the 60-day period beginning the day
Attach the composite return schedules to your TC-41.
of that individual’s death.
If a QFT has multiple beneﬁciaries, each beneﬁciary’s Tax Computation
separate interest under a contract is treated as a Follow the line-by-line instructions except for comput-
separate QFT for the purpose of ﬁguring the tax and ing the tax. Use a separate schedule to calculate the
ﬁling this return. Each beneﬁciary’s share of the trust’s Utah tax for each QFT using the 5% tax rate for each
income is determined in accordance with the beneﬁ- QFT. Enter the sum of the tax for all QFTs (after sub-
ciary’s interest in the trust. tracting any estate or trust tax credit) on line 22.
Whenever these instructions refer to a trust or QFT, it
includes such separate interests that are treated as
2010 Utah Fiduciary Income Tax Page 22