Updated October 19, 2026. Quick answer: Utah’s retirement credit is credit code 18 in the TC-40 instructions. It is figured on a ten-line Retirement Credit Worksheet and entered in Part 3 of Schedule TC-40A, whose total goes to line 24 of the TC-40. The instructions limit it by birth date and say it cannot be taken together with certain other credits.
What this form does
The TC-40 instructions list the retirement credit among the credits entered through TC-40A: “Complete TC-40A, Part 3 if you can claim any of these credits:” Retirement credit is on that list, and the instructions explain it as “Retirement Credit” under credit code 18. For the wider state picture see Utah retirement taxes and whether Utah taxes pensions.
Who it applies to
The instructions set a birth date: “If you (and/or your spouse, if filing jointly) were born on or before Dec. 31, 1952, you may take a retirement credit of up to $450.” They also say it is not available together with two other credits: “You may not claim this credit if you (or your spouse, if filing jointly) claim either the Social Security Benefits Credit (code AH) or the Military Retirement Credit (code AJ).”
The instructions add that a person who qualifies for either of those other credits may do better there: “Because the maximum amount of this credit is $450 per individual, you (and/or your spouse) may qualify for a larger credit by taking the Social Security Benefits Credit (code AH) or the Military Retirement Credit (code AJ).”
The lines, one by one
| Line | What the form says |
|---|---|
| Credit | “If you (and/or your spouse, if filing jointly) were born on or before Dec. 31, 1952, you may take a retirement credit of up to $450.” |
| Worksheet | “Complete the Retirement Credit Worksheet, below, to calculate the credit.” |
| Worksheet line 1 | “If only you or only your spouse is taking this credit, enter 450.” “If both you and your spouse are taking this credit, enter 900.” |
| Worksheet line 2 | “Enter the amount from TC-40, line 6” “(Total income)” |
| Worksheet line 3 | “Enter municipal bond interest from TC-40, Schedule A, Part 1, code 57” |
| Worksheet line 4 | “Line 2 minus line 3” |
| Worksheet line 5 | “Enter tax exempt interest from federal form 1040 or 1040-SR, line 2a” |
| Worksheet line 6 | “Modified Adjusted Gross Income” “Add lines 4 and 5” |
| Worksheet line 8 | “Line 6 minus line 7 (not less than zero)” |
| Worksheet line 9 | “Multiply line 8 by 0.025” |
| Worksheet line 10 | “Subtract line 9 from line 1 (not less than zero).” |
Worksheet line 7 asks for an amount that depends on filing status. Those amounts are printed as a short list under the line and are not read on this page; use the list printed in your own instructions. This page does not use any other number from that list.
The figures the form prints
Three figures sit inside single sentences. The credit cap is in “you may take a retirement credit of up to $450”, the per-person cap is repeated in “the maximum amount of this credit is $450 per individual”, and the worksheet’s multiplier is printed on line 9 as “Multiply line 8 by 0.025”.
Where the result goes next
The worksheet ends with the entry instruction: “If you (and/or your spouse) claim this credit, enter the total amount on TC-40A, Part 3, using code 18.” “Also enter your (and/or your spouse’s) birthdate(s).”
Part 3 of TC-40A is described this way: “Add the amounts and carry the total to TC-40, line 24.” “Attach TC-40A to your return.” The line 24 instruction itself reads “Enter the total from TC-40A, Part 3.” The credit is limited by the tax: “Apportionable nonrefundable credits can reduce your income tax to zero, but cannot result in a refund.” For related federal amounts see Form 1040 line 5a and 5b and Form 1040 line 4a and 4b.
Edition and line numbers
This page reads Forms and Instructions TC-40 Utah 2025 for tax year 2025, the current file the Utah State Tax Commission served on 2026-10-19. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Taking this credit along with the Social Security or military credit. The instructions say “You may not claim this credit if you (or your spouse, if filing jointly) claim either the Social Security Benefits Credit (code AH) or the Military Retirement Credit (code AJ).”
- Carrying an unused credit to another year. The instructions say “Note: You may not carry forward or back any retirement credit that is more than your tax liability.”
- Leaving out the birth date. The worksheet instruction says “Also enter your (and/or your spouse’s) birthdate(s).”
Related: Utah retirement taxes, whether Utah taxes pensions, Form 1040 line 5a and 5b, and Form 1040 line 4a and 4b.
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- Forms and Instructions TC-40 Utah 2025, Utah State Tax Commission: files.tax.utah.gov
- Related official page (not quoted): 2025 Utah TC-40A Income Tax Supplemental Schedule (credit codes), Utah State Tax Commission: files.tax.utah.gov
Read from the state revenue documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.