Utah Earned Income Tax Credit
Last updated August 2026
Utah offers a state Earned Income Tax Credit worth 20 percent of your federal EITC. It lowers the Utah income tax you owe. You claim it on your Utah income tax return if you qualified for the federal credit.
There are two things you must do to qualify. First, you must qualify for and claim the federal EITC in the same tax year. Second, you must earn Utah income that is reported on a W-2. Both parts are required.
Here is the myth to clear up. The Utah EITC is nonrefundable, not refundable. That means it can only reduce the Utah tax you owe, down to zero. It does not pay out as cash below zero the way the federal EITC can.
You also cannot save the extra for later. You may not carry forward or back any part of the credit that is more than your tax liability. If the credit is bigger than your tax, the leftover part is simply lost.
The amount is capped by your Utah wages. The credit is the lesser of 20 percent of your federal EITC or your total Utah wages shown in W-2 box 16. So your Utah pay can limit the credit.
Claiming it is a short worksheet. Enter your federal EITC from Form 1040 or 1040-SR line 27a, multiply by 0.2, and report the result on Utah form TC-40A, Part 3, using code AM. Free tax help through 2-1-1 can walk you through it.
Updated August 2026 Program details can change — confirm with the program directly.
Who qualifies
- You generally must qualify for the federal Earned Income Tax Credit and file a Utah income tax return
- The credit is nonrefundable and equal to 20 percent of your federal EITC, so it reduces the tax you owe but is not paid out below zero
You may qualify. The program makes the final decision.
How to apply
- 1
Confirm you qualified for and claimed the federal EITC in the same tax year.
- 2
Make sure you have Utah income reported on a W-2.
- 3
Take your federal EITC from Form 1040 or 1040-SR line 27a and multiply by 0.2.
- 4
Compare that to your Utah wages in W-2 box 16 and use the lesser amount.
- 5
Report the credit on Utah form TC-40A, Part 3, using code AM.
What the application looks like
Common questions
How much is the Utah EITC?
It is 20 percent of your federal Earned Income Tax Credit, but no more than your total Utah wages shown in W-2 box 16.
Is the Utah EITC refundable?
No. It is nonrefundable. It only reduces the Utah tax you owe down to zero and does not pay out as cash below zero.
Can I carry unused credit to another year?
No. You cannot carry forward or back any part of the credit that is more than your tax liability. The extra is lost.
How do I claim it?
Multiply your federal EITC by 0.2, then report the result on Utah form TC-40A, Part 3, using code AM.
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