All income of a service member’s nonresident spouse is exempt from Utah income tax ONLY IF:
1. the spouse and the service member are residents of the same state outside Utah;
2. the service member is in Utah under current military orders; and
3. the spouse is in Utah solely to be with the service member.
NOTE: A qualified nonresident spouse should fi le a federal W-4 form with their employer marked “Utah Only - Exempt military spouse” to end Utah withholding on their income.
When reporting a qualified nonresident spouse’s income:
1. Include all of the spouse’s income on line 8 of the Utah TC-40 return.
2. Report the subtraction on Utah form TC-40A, Part 2, using subtraction code 88.
3. Report all of the spouse’s income on schedule TC-40B in Column B-Total. If the income was from a Utah source, also report it in the Utah column. Subtract the income included in each column on line 32