HAWAII
separate property state

 

Military Income:  Fully taxable.

NOTE: Spouses do not become Hawaii residents if their reason for moving to Hawaii was the transfer of their spouse and they will be leaving Hawaii once the spouse is transferred out.

Military Spouse Residency Relief Act:  Service member present in state solely in compliance with military orders. Spouse in state solely to be with service member. Spouse must be a resident of same state as service member and that state is not Hawaii. When filing for a refund, write "MSRRA" at the top of Form N-15 and attach a copy of Form W-2 showing amount of Hawaii tax withheld. copy of service member's orders assigning to Hawaii post, copy of valid, unexpired military spouse ID card that identifies the cardholder as a spouse, and a copy of the service member's LES with legal residence indicated

File HW-4,Employee's Withholding Allowance and Status Certificiate, HW-6, Employees Statement to Employer Concerning Nonresidence in the State of Hawaii, copy of service member's orders assigning the service member to Hawaii, copy of service member's LES indicating the service members legal residence, and valid unexpired military spouse identification card that identifies the card-holder as a spouse and not merely a dependant.

Forms Used:            

Filing Status:  Spouses may file separate returns, and that is highly recommended when one spouse is a resident and the other a nonresident.  If a nonresident spouse decides to file jointly with a resident spouse, the nonresident spouse will be taxed on income from ALL sources – EVEN MILITARY INCOME.  SPOUSES IN HAWAII DUE TO MILITARY MEMBER'S ORDERS SHOULD FILE AS NONRESIDENTS.

Attach Copy of Federal Return:  No

Not Taxed: 

Other State Tax Credit:  Available.  Attach other state return.

Where to File and for Other Info:

If enclosing a check or money order, send to:

Hawaii Department of Taxation
Attn: Payment Section
P O Box 1530
Honolulu, HI  96806-1530

If NOT enclosing a check or money order, send to:

Hawaii Department of Taxation
P O Box 3559
Honolulu, HI  96811-3559

Forms: 1-800-222-7572 General Information: (808) 587-6515

Website:  www.state.hi.us/tax/tax.html  

Electronic Filing:  (808) 587-1692
E-filing InfoThere is no Hawaii e-file signature form, the checkmark on the HI Efile form constitutes consent to e-file.
Tax Form Instructions:
Resident Instructions Non-Resident Instructions

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income Form Other State
6.  Amended Return
1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Hawaii residents, lived at their present location all year, and one or both had income.

Main Info Screen.

Hawaii N-11 Form.  A joint resident Hawaii income tax return is prepared.  Answer the question regarding filing status changes from last year and filing district code.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Hawaii, while the other member is a resident of a different state.  A Hawaii income tax return must be prepared due to the taxpayer or spouse having Hawaii earned income.

Main Info Screen.  It is highly recommended when one spouse is a resident and the other a nonresident that a married filing separate return be prepared.  For this example, the taxpayer is a resident of Hawaii while the spouse is a resident of North Dakota.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Hawaii Form N-11.   A married filing separate resident Hawaii income tax return should be prepared.  In order to prepare a MFS return you will need to check the appropriate individual, Taxpayer or Spouse, under Line 3

Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Hawaii tax return due to one or both having Hawaii earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Hawaii income tax return because the spouse worked in Hawaii.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Hawaii Form N-15.   A joint non-resident Hawaii income tax return must be prepared.

HI N-15 Pg 2 - In order to comply with the Military Spouse Residency Relief Act, the nonresident military spouse's wages/salary needs to be removed from Column B. Link to a Scratch Pad from Column B on Line 7 as in the example.

Complete the Scratch Pad, substituting the amounts of the nonresident military spouse's income, as in the following example.

Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or Form Hawaii during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Hawaii.  The Spouse and taxpayer must file a Hawaii tax return due to one or both of them having Hawaii earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from Hawaii to North Dakota during the year.  The spouse was a resident of Hawaii but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Hawaii and North Dakota and must file a Hawaii income tax return because the spouse worked in Hawaii.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Hawaii Form N-15.   A joint part-year resident Hawaii income tax return must be prepared.  This form will be generated for a Hawaii part- year resident who must report Hawaii earned income.

Hawaii Form N-15.  This form is used to subtract out all the other-states (Indiana and North Dakota) income. 

Review the remainder of the Hawaii Form N-15 to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Hawaii with Income from Another State  - Taxpayer is single.  The taxpayer must file a Hawaii tax return due to him or her having Hawaii earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of Hawaii.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Hawaii N-11 Form.  A resident Hawaii income tax return is prepared.  Hawaii taxes residents on income from all sources, even income earned while living in another state (North Dakota as in this example).  

Hawaii Schedule of Tax Credits must be added to the tax return.  Add HI Sch CR and Hawaii Other State and Foreign Tax Credit Worksheet can be linked to (F9) from Hawaii Schedule CR, Part I, Line 1.

Hawaii Credit from, Other State and Foreign Tax Credit Worksheet.  Hawaii Credit from must be added to the tax return. and prepared to give a credit for taxes paid to another state (North Dakota). You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the tax payer had withheld from his or her pay but the amount of tax imposed on them.  Line 3 is the amount of income earned in the other state (North Dakota).  Line 5 is the amount of income tax liability on the (North Dakota) tax return.  A copy of the other state's return must be attached to the Hawaii return if not e-filed.

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Hawaii return must be filed because the taxpayer received new tax information after their Hawaii return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Hawaii N-11 - Hawaii Resident Individual Income Tax Return.  The N-11 is also used for amended returns.  Check the appropriate blocks as in the example.  You must check the box to lock in the line 49 amount before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Hawaii N-11 - Hawaii Resident Individual Income Tax Return.  Refer to Page 4 to determine if the taxpayer owes money or will receive a refund.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.