Social Security Tax Modifications

HB 179 removes income limits that previously prevented some Utah residents from claiming a tax credit for Social Security benefits. It eliminates the modified adjusted gross income thresholds (ranging from $37,500 to $75,000 based on filing status) that previously reduced or denied the credit. This change allows more Social Security recipients to claim the full nonrefundable tax credit against their state taxes. The bill applies retroactively to taxable years beginning January 1, 2025, and takes effect May 7, 2025.