No. 31530 (Amendment): R865-9I-6. Returns by Husband and Wife when one is a Resident and the other is a Nonresident Pursuant to Utah Code Ann. Section 59-10-119

DAR File No.: 31530
Filed: 06/05/2008, 02:44
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed amendment is necessary because of statutory changes arising from 2008 H.B. 359. (DAR NOTE: H.B. 359 (2008) is found at Chapter 389, Laws of Utah 2008, and was effective 05/05/2008.)

Summary of the rule or change:

This proposed amendment repeals references to deductions that have been repealed with the passage of the single rate income tax.

State statutory or constitutional authorization for this rule:

Section 59-10-119

Anticipated cost or savings to:

the state budget:

None--Any revenue impacts were considered in H.B. 359 (2008).

local governments:

None--Any revenue impacts were considered in H.B. 359 (2008).

small businesses and persons other than businesses:

None--Any revenue impacts were considered in H.B. 359 (2008).

Compliance costs for affected persons:

A husband and wife who file a joint federal tax return and qualify to file separate state tax returns will calculate their separate state tax differently with the passage of the single rate income tax.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no anticipated impacts. D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/31/2008

This rule may become effective on:

08/07/2008

Authorized by:

D'Arcy Dixon, Commissioner

RULE TEXT

R865. Tax Commission, Auditing.

R865-9I. Income Tax.

R865-9I-6. Returns by Husband and Wife When One is a Resident and the Other is a Nonresident Pursuant to Utah Code Ann. Section 59-10-119.

[A.](1) Except as provided in [B.]Subsection (2), a husband and wife, one being a nonresident and the other a resident, who file a joint federal income tax return, but separate state income tax returns shall determine their separate:

(a) state taxable income as follows:

[1.](i) [First,]Determine the amount of the total federal adjusted gross income ("FAGI") pertaining to each spouse[ shall be determined. Any adjustments]. Any adjustments that apply to both spouses shall be divided between the spouses in proportion to the respective incomes of the spouses.

[2.](ii) [Next, each spouse is allocated]Allocate a portion of each deduction and add back item[.]described in Section 59-10-114 to each spouse by:

[ a) To determine this allocation, each spouse shall:

] [(1)](A) [divide his or her own]dividing each spouse's FAGI by the combined FAGI of both spouses, and [round]rounding the resulting percentage to four decimal places; and

[(2)](B) [multiply]multiplying the resulting percentage by [the]any deductions and add back items described in Section 59-10-114; and

(b)(i) shares of the taxpayer tax credit authorized in Section 59-10-1018 by multiplying the percentage calculated under Subsection (1)(a)(ii)(A) by the:

(A) itemized or standard deduction; and

(B) state exemption for dependents.

(ii) For purposes of Subsection (1)(b)(i), each spouse shall claim his or her full state personal exemption.

[b) The deductions and add back items allowed are as follows:

(1) state income tax deducted as an itemized deduction on federal Schedule A;

(2) other items that must be added back to FAGI on the state income tax return;

(3) itemized or standard deduction;

(4) state exemption for dependents;

(5) one-half of the federal tax liability;

(6) state income tax refund included on line 10 of the federal income tax return; and

(7) other state deductions.

3. Each spouse shall claim his or her full state personal exemption.

4. Each spouse shall determine his or her separate tax using the Utah tax rate schedules applicable to a husband and wife filing separate returns.

B.](2) A husband and wife, one being a nonresident and the other a resident, may use an alternate method of calculating their separate state taxable incomes than the method provided in [A.]Subsection (1) if they can demonstrate to the satisfaction of the [Tax Commission]commission that the alternate method more accurately reflects their separate state taxable incomes.

 

KEY: historic preservation, income tax, tax returns, enterprise zones

Date of Enactment or Last Substantive Amendment: [March 14], 2008

Notice of Continuation: March 20, 2007

Authorizing, and Implemented or Interpreted Law: 59-10-108 through 59-10-122