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Show Commuters to Utah must pay state income taxes SALT LAKE CITY Workers who commute to Utah to earn a living are subject to Utah income taxes, according to the Utah State Tax Commission. Two neighboring states, Nevada and Wyoming, have no income tax, so income earned in Utah by residents of those states is taxed by Utah as though the income recipient were a resident. But other neighboring states, such as Arizona, Idaho and Colorado, do levy income taxes, so any taxes paid to Utah would be credited against the tax liability in those states. In this way, states avoid double taxation. Income is considered to be from Utah sources if it stems from the carrying on of a business, trade, profes sion or occupation in Utah, or is attributable to or resulting from ownership of any interest in real or tangible personal property in Utah. Examples: bit If a Preston, Idaho resident works in Logan, Utah, the wages earned in Utah are taxable by the State of Utah. bit If a Colorado resident receives royalty interest payments from an oil well in the Uintah Basin in Utah, those royalties are considered income from Utah sources. In each case, the nonresident would be required to file Utah Nonresident form TC-4NR and report all income in-come from Utah sources. |