2018 N-11 Forms
and Instructions
2018 N-11
STATE OF HAWAII — DEPARTMENT OF TAXATION
Hawaii Resident Income Tax Forms and Instructions
Caution: Part-Year Residents Must Use Form N-15
MESSAGE FROM THE DIRECTOR
I. Department of Taxation Welcomes your Feedback
At the Department of Taxation, we are committed to our mission to administer the tax laws of the
State of Hawaii in a consistent, uniform, and fair manner. To help us with this commitment, we
welcome your feedback to assist our effort to improve our services and make voluntary compliance
as easy as possible. Please address your written suggestions to the Department of Taxation, P.O. Box
259, Honolulu, HI, 96809-0259, or email them to Tax.Directors.Office@hawaii.gov.
II. Electronic Filing and Paying Advances Are Being Made
Each year, thousands of individuals file and pay their taxes electronically. You can e-file yourself or
through your tax practitioner using commercially available software. For up to date information, visit
our website at tax.hawaii.gov.
III. We are Here to Assist You
Form N-11, Individual Income Tax Return (Resident Form), is due on or before April 22, 2019. For
information and guidance in its preparation, we have helpful publications and other instructions on our
website at tax.hawaii.gov. Need more assistance? Do not hesitate to telephone, write, or visit any of
our six offices below:
Oahu 830 Punchbowl Street, Honolulu, HI 96813-5094 Phone: 808-587-4242
Maui 54 S. High Street, #208, Wailuku, HI 96793-2198 Phone: 808-984-8500
Molokai 35 Ala Malama Street, #101, Kaunakakai, HI 96748 Phone: 808-553-5541
Hawaii 75 Aupuni Street, #101, Hilo, HI 96720-4245 Phone: 808-974-6321
Kona 82-6130 Mamalahoa Hwy, #8, Captain Cook, HI 96704 Phone: 808-323-4597
Kauai 3060 Eiwa Street, #105, Lihue, HI 96766-1889 Phone: 808-274-3456
To better assist you, always keep a copy of your return, worksheets, and supporting documents in
your possession; we can help you understand and resolve problems more quickly if you have your tax
return information in front of you. Keeping a copy will also help you in preparing the following year’s
tax return.
Thank you for helping us provide more efficient service.
LINDA CHU TAKAYAMA
Director of Taxation
THIS PACKAGE CONTAINS: Form N-11 Hawaii Individual Income Tax Return - Resident; Schedule CR Schedule of Tax Credits;
Schedule X Tax Credits for Hawaii Residents; Form N-101A Individual Income Tax Extension Payment Voucher; Form N-200V
Individual Income Tax Payment Voucher; Form N-311 Refundable Food/Excise Tax Credit; Form N-356 Earned Income Tax Credit;
and Hawaii Taxpayer Bill of Rights
DUE DATE: APRIL 22, 2019
Make your check payable to the
“Hawaii State Tax Collector”
For more information, see page 29
of the Instructions.
State of Hawaii
Department of Taxation
P.O. Box 3559
Honolulu, Hawaii 96811-3559
PRSRT STD
U.S. Postage
PAID
Honolulu, Hawaii
Permit No. 481
E-file Form N-11!
E-file Form N-11 through Hawaii
Tax Online, the Department’s
website. For more information, go to
hitax.hawaii.gov
or
E-file Form N-11 and federal Form
1040 using approved tax preparation
software or authorized tax
professionals. For more information,
go to tax.hawaii.gov
Clear Form
Page 2
Changes to Note
Hawaii has adopted the following federal provisions pursuant to Act 27, SLH 2018:
Reduces the medical expense deduction floor to 7.5% of adjusted gross income for tax years 2017 and 2018.
Increases the adjusted gross income limitation on cash contributions to 60% for contributions made in tax years 2018 through 2025.
Repeals the 80% deduction for contributions made for university athletic seating rights for contributions made in tax years beginning after 2017.
Amends the definition of losses from wagering transactions to include any otherwise allowable deduction incurred in carrying on wagering
transactions (e.g., traveling to and from a casino) for tax years 2018 through 2025.
Excludes from gross income, income resulting from the discharge of certain student debt on account of the death or total and permanent
disability of the student for loans discharged after 2017.
Limits the nonrecognition of gain or loss to like-kind exchanges of real property that is not held primarily for sale for exchanges completed after 2017.
Eliminates the above-the-line deduction for alimony payments and does not require the payee receiving alimony payments to include alimony
payments in income for divorce decrees, separation agreements, and certain modifications entered into after 2018.
Limits the net operating loss (NOL) deduction to 80% of taxable income for NOLs arising in tax years beginning after 2017, and eliminates NOL
carrybacks (except for farming NOLs which are permitted a two-year carryback), and allows unused NOLs to be carried forward indefinitely for
NOLs arising in tax years ending after 2017.
Increases the contribution limit to ABLE accounts for tax years beginning after December 22, 2017 through 2025.
Permits taxpayers to roll over amounts from qualified tuition programs to ABLE accounts without penalty for distributions after December 22,
2017 through 2025.
Grants combat zone tax benefits to the Sinai Peninsula of Egypt beginning June 9, 2015 through 2025.
You may exclude up to $6,564 of your military reserve or Hawaii National Guard duty pay from your income for tax years beginning after 2017. (Act
197, SLH 2004)
Three income tax rates and brackets for the highest-income taxpayers are reinstated for tax years beginning after 2017. (Act 107, SLH 2017)
A qualifying individual taxpayer may claim a new nonrefundable Earned Income Tax Credit equal to 20 percent of the federal earned income credit
claimed on the taxpayer’s federal income tax return for tax years 2018 through 2022. (Act 107, SLH 2017)
Increases the amount that taxpayers may designate from their individual income tax refunds to the Hawaii Public Libraries Special Fund from $2 to
$5 ($4 to $10 if filing a joint return) for tax years after 2017. (Act 170, SLH 2018)
Important Reminders
File and Pay on Time
Please file your return and pay your taxes by April 22, 2019.
When you mail your return:
(1) Mail it to the appropriate address as stated in “Where to File.
(2) Enclose only one return per envelope.
(3) Use proper postage. If there is insufficient postage on the envelope, the U.S. Postal Service will return it to you.
Keep a copy of your return for your records.
Extension of Time to File
If you are unable to file by April 22, 2019, you are granted an automatic 6-month extension of time to file your return through October 20, 2019. You
do not have to file a form to request an extension. The extension of time to file is not an extension of time for payment of tax.
(1) If you are due a refund, just file your return by October 20, 2019.
(2) If you have a balance due, you must pay your taxes in full by April 22, 2019. File Form N-101A with your payment. You may not use federal Form
4868 instead of Form N-101A.
(3) If you’re not sure if you have a balance due, use the worksheet on Form N-101A.
Make Sure Your Tax Return is Correct and Complete
You can avoid processing delays, adjustments to your return, and additional correspondence from the Department of Taxation if you:
(1) Make sure all social security numbers are correct.
(2) Check the appropriate filing status box.
(3) Complete all required entries on your return. The following lines must be filled in: Form N-11, line 24; and Form N-15, line 41.
(4) Check the arithmetic on your return.
(5) Attach all required forms and statements.
(6) Attach your employee earning statements (HW-2s or federal W-2s) to the front of your return.
(7) Sign your return. If you paid someone to prepare your return, the preparer must sign and complete the Paid Preparer’s Information box.
You may be required to file an amended return to complete missing entries or provide missing forms or statements.
Amended Returns
If you are filing an amended return, you must submit a complete return and attach Schedule AMD along with all required forms and statements. If
you are claiming any tax credits, remember to attach the required forms, such as Schedule CR and Schedule X, even if you claimed the credits on
the original return. See “Make Sure Your Tax Return is Correct and Complete” above.
Married Taxpayers
If you are married, print your spouse’s social security number in the designated area on your return whether a joint or separate return is filed.
If your spouse is an alien and was issued an ITIN by the IRS, enter your spouse’s ITIN. If your spouse has applied for an ITIN but the IRS has not yet
issued the ITIN, write “Applied For.
If you are married and filing separate returns, the refund from your spouse’s return cannot be applied to your liability.
Items To Note
The Hawaii Taxpayer Bill of Rights is reprinted inside the back cover.
The Department of Taxation is a proud partner with the Missing Child Center - Hawaii, Department of the Attorney General (MCCH). Photographs
of missing children selected by the Center may appear in this instruction booklet on pages that would otherwise be blank. You can help bring these
children home by looking at the photographs and calling MCCH at 1-808-586-1449 if you recognize a child.
Page 3
STATE OF HAWAII — DEPARTMENT OF TAXATION
RELATED FEDERAL/HAWAII TAX FORMS
Copy of
Fed. Form
Federal Comparable May Be
Form Number Title or Description of Federal Form Hawaii Form Submitted+
W-2 ......................Wage and Tax Statement ...................................................................................................................... HW-2 .................... Ye s
W-4
......................Employee’s Withholding Allowance Certificate ...................................................................................... HW-4 .................... No
W-10
....................Dependent Care Provider’s Identification and Certification ................................................................... HW-16 .................. No
1040.....................U.S. Individual Income Tax Return
......................................................................................................... None .................... No
1040 Sch A
..........Itemized Deductions .............................................................................................................................. None .................... No
Sch B
...................Interest and Ordinary Dividends ............................................................................................................ None .................... No
Sch C
................... Profit or Loss From Business ................................................................................................................ None .................... Not Required
Sch C-EZ
.............Net Profit From Business ....................................................................................................................... None .................... Not Required
Sch D
................... Capital Gains and Losses ..................................................................................................................... None ....................No
Sch E
...................Supplemental Income and Loss ............................................................................................................ None .................... Not Required
Sch F
...................Profit or Loss From Farming .................................................................................................................. None .................... Not Required
Sch J
....................Income Averaging for Farmers and Fishermen ..................................................................................... N-168 ................... No
Sch R
................... Credit for the Elderly or the Disabled ..................................................................................................... None .................... No
1040-ES
...............Estimated Tax for Individuals ................................................................................................................. N-1 ....................... No
1040NR
...............U.S. Nonresident Alien Income Tax Return ........................................................................................... None .................... No
1040-V
.................Payment Voucher................................................................................................................................... N-200V................. No
1040X
..................Amended U.S. Individual Income Tax Return ........................................................................................ None .................... No
1045.....................Application for Tentative Refund
............................................................................................................ N-109 ................... No
1128.....................Application To Adopt, Change, or Retain a Tax Year.............................................................................. None
.................... Ye s
1310.....................Statement of Person Claiming Refund Due a Deceased Taxpayer
....................................................... N-110 ................... No
2106.....................Employee Business Expenses
.............................................................................................................. None .................... Yes*
2106-EZ
............... Unreimbursed Employee Business Expenses ....................................................................................... None .................... Yes*
2120.....................Multiple Support Declaration
................................................................................................................. None .................... Ye s
2210.....................Underpayment of Estimated Tax by Individuals, Estates, and Trusts
.................................................... N-210 ................... No
2441.....................Child and Dependent Care Expenses
................................................................................................... Sch X ................... No
2848.....................Power of Attorney and Declaration of Representative
........................................................................... N-848 ................... No
3903.....................Moving Expenses
.................................................................................................................................. N-139 ................... No
4562.....................Depreciation and Amortization
.............................................................................................................. None .................... Ye s
4684.....................Casualties and Thefts
............................................................................................................................ None .................... Yes*
4797.....................Sales of Business Property
................................................................................................................... Sch D-1 ................ No
4835.....................Farm Rental Income and Expenses
...................................................................................................... None .................... Ye s
4852.....................Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From
Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. ............ L-15 ..................... No
4868.....................Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
....................... None .................... No
4952.....................Investment Interest Expense Deduction
................................................................................................ N-158 ................... No
4970.....................Tax on Accumulation Distribution of Trusts
............................................................................................ N-405 ................... No
4972.....................Tax on Lump-Sum Distributions
............................................................................................................ N-152 ................... No
5213.....................Election To Postpone Determination as To Whether the Presumption Applies That an
Activity Is Engaged in for Profit ....................................................................................................... None .................... Ye s
5329.....................Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts....................... None
.................... No
5884.....................Work Opportunity Credit
........................................................................................................................ N-884 ................... No
6198.....................At-Risk Limitations
................................................................................................................................. None .................... Ye s
6252.....................Installment Sale Income
........................................................................................................................ None .................... Ye s
6781.....................Gains and Losses From Section 1256 Contracts and Straddles
........................................................... None .................... Ye s
8283.....................Noncash Charitable Contributions
......................................................................................................... None .................... Ye s
8332.....................Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent
.......................... None .................... Ye s
8582.....................Passive Activity Loss Limitations
........................................................................................................... None .................... Ye s
8586.....................Low-Income Housing Credit
.................................................................................................................. N-586 ................... No
8615.....................Tax for Certain Children Who Have Unearned Income
......................................................................... N-615 ................... No
8814.....................Parents’ Election To Report Child’s Interest and Dividends
................................................................... N-814 ................... No
8824.....................Like-Kind Exchanges
............................................................................................................................. None .................... Ye s
8829.....................Expenses for Business Use of Your Home
............................................................................................ None .................... Ye s
8853.....................Archer MSAs and Long-Term Care Insurance Contracts
...................................................................... None .................... No
+If “Yes” is indicated and there is no Hawaii equivalent form, the federal form must be used.
*Use the 2017 federal form when filing the 2018 Form N-11 or Form N-15.
To request tax forms by mail, you may call 808-587-4242 or toll-free 1-800-222-3229.
You may also obtain tax forms through the Department of Taxation’s website at tax.hawaii.gov.
Page 4
Form N-11 —
General Instructions
Guidelines for Filling in
Scannable Forms
Form N-11 and Schedule CR are designed
for electronic scanning that permits faster
processing with fewer errors. To avoid delays:
Print amounts only on those lines that are
applicable.
Use only a black or dark blue ink pen. Do
not use red ink, pencils, felt tip pens, or
erasable pens.
Because this form is read by a machine, print
your numbers inside the boxes like this:
1234567890x
• Do NOT print outside the boxes.
Fill in ovals completely. Do not 4 or 8
the ovals.
Do NOT enter cents. For numbers that are
required to be rounded to the nearest dol-
lar, do NOT print over the zeros printed on
the form that are used to designate cents.
Do NOT use dollar signs, slashes, dashes
or parentheses in the boxes.
• Do NOT photocopy this form.
Please use a color printer and print in
color.
Same-Sex Marriage
Effective December 2, 2013, Hawaii recog-
nizes marriages between individuals of the
same sex. As it relates to taxation, all same-
sex couples that are legally married in Hawaii
or any other jurisdiction where such marriag-
es are valid are married for all tax purposes,
including Hawaii income tax purposes.
Note: The federal government recognizes
marriages between individuals of the same
sex for federal income tax purposes.
Civil Unions
Effective January 1, 2012, civil unions are
recognized in Hawaii. Civil unions entered into
in a jurisdiction other than Hawaii are also rec-
ognized, provided that the relationship meets
Hawaii’s eligibility requirements, has been en-
tered into in accordance with the laws of the
other jurisdiction, and can be documented.
The Internal Revenue Code (IRC) provi-
sions referred to in Hawaii’s Income Tax Law
that apply to a husband and wife, spouses, or
person in a legal marital relationship shall be
deemed to apply to partners in a civil union
with the same force and effect as if they were
“husband and wife,” “spouses,” or other
terms that describe persons in a legal marital
relationship. Accordingly, references to “mar-
ried” and “spouse” are also references to “in a
civil union” and “civil union partner,” respec-
tively.
For Hawaii income tax purposes, civil union
couples have the same tax filing status options
as married couples. Also, if an employee bene-
fit is tax-exempt when extended to the opposite
sex spouse of an employee, or to the children of
the spouse, the benefit is tax-exempt when ex-
tended to a civil union partner of an employee,
or to the children of the civil union partner.
Note: Individuals who have entered into a
registered domestic partnership, civil union,
or other similar relationship that is not consid-
ered a marriage under state (or foreign) law
are not considered married for federal income
tax purposes. Since the federal government
does not recognize civil unions as married
individuals for federal income tax purposes,
civil unions will continue to file as unmar-
ried individuals on their federal income tax
returns. Also, the income reported for federal
and for Hawaii income tax purposes may dif-
fer, depending on the situation. For example,
certain employee benefits that are tax-exempt
when provided to married couples and the
children of married couples may be taxable
federally when they are provided for civil
union partners and their children, unless the
civil union partner or their children qualify as
dependents under IRC section 152.
Who Must File
1. Every individual doing business in Ha-
waii during the taxable year must file a re-
turn, whether or not the individual derives
any taxable income from that business.
“Doing business” includes all activities en-
gaged in or caused to be engaged in with the
object of gain or economic benefit, direct or
indirect, except personal services performed
as an employee under the direction and con-
trol of an employer.
For example, every person receiving rents
from property owned in Hawaii is “doing
business” and must file a return whether or
not the person’s expenses exceed the gross
rental income.
2. Every individual receiving more than the
following amounts of gross income subject
to taxation under Hawaii Income Tax Law,
including amounts received as salaries and
wages for services rendered by an employee
to an employer, must file a return:
For Individuals Under Age 65
Filing Status Gross Income of
Married filing separately $3,344
Single $3,344
Head of household $4,356
Qualifying widow(er) $5,544
Married filing jointly $6,688
For Individuals Age 65 or older
Filing Status Gross Income of
Married filing separately $4,488
Single $4,488
Head of household $5,500
Qualifying widow(er) $6,688
Married filing jointly,
one is 65 or older $7,832
Married filing jointly,
both are 65 or older $8,976
These threshold amounts will be higher
for persons who are blind, deaf, or totally
disabled, and who have completed and filed
a certification with the Department of Taxa-
tion (Department) of their disability on Form
N-172 before filing their income tax return.
For individuals who can be claimed as de-
pendents on the tax return of another taxpay-
er, the threshold amount is the amount of the
dependents’ standard deduction.
For nonresident aliens, the threshold
amount is $1,144 for individuals under 65, and
$2,288 for individuals 65 or older.
For nonresident individuals, the threshold
amounts stated above must be multiplied by
the ratio of Hawaii adjusted gross income to
total adjusted gross income from all sources
to determine whether the individual must file
a return.
3. Children who receive unearned income
during the taxable year and have not attained
the age of 14 years before the end of the tax-
able year must file their own returns to report
their income unless their parent or parents
report that income.
However, the Department will, administra-
tively, not require the filing of a State income
tax return if the child’s total earned and/or
unearned income for the taxable year is $500
or less and the application of the standard de-
duction amount results in no taxable income
for the child. Children who must file a return
may need to file Form N-615, Computation
of Tax for Children Under Age 14 Who Have
Unearned Income of More than $1,000. Par-
ents may report income of their children by
filing Form N-814, Parent’s Election to Report
Child’s Interest and Dividends.
4. If you need to report additional tax from
Form N-2, Distribution from an Individual
Housing Account; Form N-103, Sale of Your
Home; Form N-152, Tax on Lump-Sum Dis-
tributions; Form N-312, Recapture of Capital
Goods Excise Tax Credit; Form N-338, Re-
capture of Tax Credit for Flood Victims; Form
N-344, Recapture of Important Agricultural
Land Qualified Agricultural Cost Tax Credit;
Form N-348, Recapture of Capital Infrastruc-
ture Tax Credit; Form N-405, Tax on Accumu-
lation Distribution of Trusts; Form N-586, Re-
capture of Tax Credit for Low-Income Hous-
Page 5
ing; or Form N-814, Parent’s Election to Re-
port Child’s Interest and Dividends, then you
must file a return regardless of income level.
Who Should File
Even if you do not have to file, you should
file to get a refund if too much income tax was
withheld from your pay. Also, if you are eli-
gible for refundable credits, you need to file a
return to claim the credits.
Residency Status
Resident
A resident is taxed on income from all
sources.
A resident must file an Individual Income
Tax Return—Resident (Form N-11), if re-
quired to do so.
A Hawaii resident is (1) Every individual
domiciled in Hawaii, and (2) Every other in-
dividual whether domiciled in Hawaii or not,
who resides in Hawaii for other than a tempo-
rary or transitory purpose.
An individual domiciled outside Hawaii is
presumed to be a resident if he or she spends
more than 200 days in Hawaii during the tax-
able year. This presumption may be overcome
by evidence satisfactory to the Department
that the individual maintained a permanent
place of abode outside the State and was in the
State for a temporary or transitory purpose.
No person shall be deemed to have gained
or lost a residence simply because of his or
her presence or absence in compliance with
military or naval orders of the United States,
while engaged in aviation or navigation, or
while a student at any institution of learning.
See Tax Information Release No. 97-1, “Deter-
mination of Residence Status.”
Nonresident
A Hawaii nonresident is an individual who
is in Hawaii for a temporary or transient pur-
pose, and whose permanent domicile is not
Hawaii.
A nonresident must file an Individual In-
come Tax Return—Nonresident and Part-Year
Resident (Form N-15), if required to do so. A
nonresident will be taxed on income from Ha-
waii sources only.
A nonresident married to a Hawaii resi-
dent may choose to file a joint return with the
resident spouse on Form N-11; however, the
nonresident will then be taxed on all income
from all sources. For more information, see
Married Filing Joint Return on page 8.
Part-Year Resident
A part-year resident is an individual who
was a Hawaii resident for part of the year, and
who was a nonresident during the other part
of the year. This includes those who moved to
Hawaii during the year and those who moved
away from Hawaii during the year.
A part-year resident must file an Individual
Income Tax Return—Nonresident and Part-
Year Resident (Form N-15), if required to do
so. A part-year resident will be taxed on all
income from all sources during the period of
residency, and on income from Hawaii sourc-
es only during the period of nonresidency.
Domicile Defined
The term “domicile” means the place where
an individual has a true, fixed, permanent
home and principal establishment, and to
which place the individual has, whenever ab-
sent, the intention of returning. It is the place
in which an individual has voluntarily fixed
the habitation of himself or herself and family,
not for a mere special or temporary purpose,
but with the present intention of making a
permanent home. Three things are necessary
to create a new domicile: first, abandonment
of the old domicile; second, the intent to estab-
lish a new domicile; and third, actual physical
presence in the new domicile. Once a domicile
is established, the intent to abandon it is not it-
self sufficient to create a new domicile; a new
domicile must be shown.
Reminder: If you are in Hawaii because of
military orders and do not intend to make Ha-
waii your permanent home, you are not con-
sidered a Hawaii resident for income tax pur-
poses, even though you have been in Hawaii
for more than 200 days in 2018. File a resident
return with your home state, and file a Hawaii
nonresident and part-year resident return
(Form N-15) to report your Hawaii income.
Resident and Nonresident
Examples
Note: For more information, see Tax Informa-
tion Release No. 90-3, “Income Taxation and
Eligibility for Credits of an Individual Tax-
payer Whose Status Changes from Resident to
Nonresident or from Nonresident to Resident,”
Tax Information Release No. 90-10, “Clarifi-
cation of Taxation and the Eligibility for Per-
sonal Exemptions and Credits of Residents
and Nonresidents in the Military and Spouses
and Dependents of Persons in the Military,”
Tax Information Release No. 97-1, “Determi-
nation of Residence Status,” and Tax Informa-
tion Release No. 2010-01, “Military Spouses
Residency Relief Act (“MSRRA”).”
Example 1—A Hawaii resident who enlists
in the military normally will remain a Hawaii
resident regardless of the length of absence
from Hawaii while stationed outside of Ha-
waii.
Example 2—A Hawaii resident working in a
foreign country will remain a Hawaii resident
unless permanent resident status is granted
by the foreign country.
Example 3—Foreign students who are
granted entry into the United States on “F” vi-
sas are nonresidents for Hawaii tax purposes.
Researchers and faculty members who are
granted entry into the United States on “H,”
J,” or “Q” visas, and who have been in Ha-
waii for more than 200 days during the taxable
year may be considered Hawaii residents.
Example 4—Spouses of those in the mili-
tary service do not become Hawaii residents
if their principal reason for moving to Hawaii
was the transfer of the service member spouse
to Hawaii, and if it is their intention to leave
Hawaii when the service member spouse ei-
ther is transferred to another military station
or leaves the service.
Example 5—A Hawaii resident who marries
a nonresident will remain a Hawaii resident
unless the three requirements for changing
his or her domicile are also met. (Refer to
“Domicile Defined” on this page.) This situ-
ation applies in reverse to a nonresident who
marries a resident. A person’s residence sta-
tus will not change just because of marriage.
Which Form to File
You MUST use Form N-11 if:
You were a resident for the full year, or, if
married filing jointly, either spouse was
a resident for the full year (however, the
nonresident spouse would be taxed on their
worldwide income for the full year).
You MUST use Form N-15 if:
You were a nonresident for the full year, or,
if married filing jointly, both spouses were
nonresidents for the full year.
You are taking up residence in Hawaii dur-
ing the tax year. (Part-year resident).
You are giving up residence in Hawaii dur-
ing the tax year. (Part-year resident).
When to File
Note: If any due date falls on a Saturday,
Sunday, or legal holiday, use the next regular
workday as the due date.
You should file as soon as you can after Jan-
uary 1, but not later than April 22, 2019. If you
file late, you may have to pay penalties and in-
terest if you owe taxes on your return. Please
see the instructions for Penalties and Interest
on page 32. If you cannot meet the deadline,
you are automatically granted a 6-month ex-
tension without the need to file anything with
the Department unless an additional tax pay-
ment must be made. As long as the following
conditions are met, you are deemed to have
made an application for the 6-month exten-
sion to file an income tax return on the pre-
scribed due date:
1. On or before April 22, 2019, 100% of the
properly estimated tax liability is paid;
2. The tax return is filed on or before the ex-
piration of the 6-month extension period;
3. The tax return is accompanied by full pay-
ment of any tax not already paid; and
4. A court has not ordered you to file the tax
return on or before the prescribed due
date.
If you must make an additional payment
of tax on or before April 22, 2019 in order to
meet the condition requiring payment of 100%
of the properly estimated tax liability, you
must file Form N-101A with your payment.
The extension of time to file is not an exten-
sion of time for payment of tax.
Form N-101A can be filed and payment
made electronically through the State’s In-
ternet portal. Go to tax.hawaii.gov/eservices/
for more information. Federal Form 4868, Ap-
plication for Automatic Extension of Time To
Page 6
File U.S. Individual Income Tax Return, may
not be used in lieu of Form N-101A.
Note: Returns for fiscal year taxpayers must
be filed on or before the 20th day of the fourth
month following the close of the fiscal year.
Note: Under Hawaii Income Tax Law, certain
tax credits must be claimed within 12 months
from the close of the tax year.
The official U.S. Post Office cancellation
mark will be considered primary evidence of
the date of filing of tax documents and pay-
ments. If you want to keep evidence that you
mailed your return on time, ask your Post
Office for a Certificate of Mailing. It is NOT
necessary to get a certified or registered mail
return receipt.
Hawaii has adopted the IRC provision to al-
low documents and payments delivered by a
designated private delivery service to qualify
for the “timely mailing treated as timely fil-
ing/paying rule.” The Department will con-
form to the Internal Revenue Service listing
of designated private delivery service and
type of delivery services qualifying under this
provision. Timely filing of mail which does not
bear the U.S. Post Office cancellation mark or
the date recorded or marked by the desig-
nated delivery service will be determined by
reference to other competent evidence. The
private delivery service can tell you how to
get written proof of the mailing date.
Where to File
If you are enclosing a check or money order
with your tax return, mail your return with
payment to:
Hawaii Department of Taxation
Attn: Payment Section
P. O. Box 1530
Honolulu, Hawaii 96806-1530
If you are NOT enclosing a check or money
order with your tax return, mail your return
to:
Hawaii Department of Taxation
P. O. Box 3559
Honolulu, Hawaii 96811-3559
If two pre-addressed envelopes were re-
ceived with your forms, please use the appro-
priate envelope as stated above.
Where to Get Forms and
Information
Taxpayer Services Branch
Website: tax.hawaii.gov
E-mail: Taxpayer.Services@hawaii.gov
Telephone:
808-587-4242
Toll-Free: 1-800-222-3229
Telephone for the hearing impaired:
808-587-1418
Toll-Free: 1-800-887-8974
Other Information
Death of Taxpayer
Did the taxpayer die before filing a return
for 2018? If so, the taxpayer’s spouse or per-
sonal representative may have to file a return
and sign it for the person who died (decedent)
if the decedent was required to file a return.
A personal representative can be an executor,
administrator, or anyone who is in charge of
the taxpayer’s property.
If the decedent did not have to file a return
but either had State income tax withheld,
made estimated tax payments, or is eligible
for various tax credits, a return must be filed
to get a refund.
If your spouse died in 2018 and you did not
remarry in 2018, or if your spouse died in 2019
before filing a return for 2018, you may still
file a joint return for the 2018 tax year.
If a return is filed for a deceased taxpay-
er, including a joint return with a surviving
spouse, the Deceased oval must be filled in
and the date of death must be written in the
boxes provided.
Generally, the personal representative or
other responsible individual must sign the re-
turn on behalf of the decedent. If a refund is
due, Form N-110, Statement of Person Claim-
ing Refund Due a Deceased Taxpayer, must
be completed and attached to the return to
ensure that the refund check will be issued
in the name of the surviving spouse, personal
representative, or other responsible individu-
al instead of in the decedent’s name. A per-
sonal representative or other individual may
be required to attach other documents such
as the death certificate. See Form N-110 for
further information.
Exception for joint returns filed by sur-
viving spouse. If a joint return is being filed
by the decedent and the decedent’s spouse,
the spouse should write, “Filing as surviving
spouse,” on the signature line which the de-
cedent would have signed, and then the sur-
viving spouse should sign his or her name on
the other signature line. If a refund is being
claimed on the return, Form N-110 is not re-
quired. The refund check will be issued to the
surviving spouse.
Filing a Final Return
If you are giving up your Hawaii residency
at the end of the year, write the words FINAL
RETURN” on the top middle of the return.
Declaration of Estimated Tax
Basic rules. Individuals who must pay more
tax than is withheld, or who have no with-
holding, may have to file a declaration of es-
timated tax and pay that tax in a lump sum
or installments. Income tax obligations might
not be satisfied through withholding when an
individual has income not subject to withhold-
ing, such as from self-employment, rent, gains
from sales of property, interest and dividend
income, unemployment compensation, or dis-
tributions from deferred compensation plans.
Who Must File a Declaration on Form N-1.
An individual subject to Hawaii net income
tax generally must file Form N-1, Declaration
of Estimated Income Tax for Individuals, un-
less: (a) his or her estimated tax liability for
the taxable year, after taking into account
all taxes withheld or collected at the source,
is less than $500, or (b) the taxpayer did not
have any tax liability for the preceding tax-
able year. See Form N-1 for details. Form N-1
can be filed and payment made electronically
through the State’s Internet portal. For more
information, go to tax.hawaii.gov/eservices/.
Date and Payment of Estimated Tax. Your
declaration for 2019 must be filed on or be-
fore April 22, 2019. The tax may be paid in
full with the declaration, or in equal install-
ments on or before April 22, 2019, June 20,
2019, September 20, 2019, and January 21,
2020. Each installment payment must be sub-
mitted with a payment voucher. Make checks
or money orders payable to the “Hawaii State
Tax Collector.”
Penalties. If you are required to file a dec-
laration but you fail to do so, you may be sub-
ject to penalties. See Penalties and Interest on
page 32.
Multistate Tax Compact Act
Any taxpayer, other than a corporation act-
ing as a business entity in more than one state,
who is required by Hawaii Income Tax Law to
file a return and whose only activities in the
State consist of sales and who does not own
or rent real estate or tangible personal prop-
erty and whose annual gross sales in or into
the State during the tax year are not in excess
of $100,000, may elect to report and pay a tax
of .5 percent of such annual gross sales. Tax-
payers who elect the foregoing shall file Form
N-310 in lieu of Form N-11.
Special Instructions for
Nonresident Aliens
In certain situations, a taxpayer may be
considered a nonresident alien for federal in-
come tax purposes and a resident for Hawaii
income tax purposes. In these situations, the
special rules applicable to individuals who
are considered nonresident aliens for federal
income tax purposes will apply when the in-
dividual files a Hawaii resident income tax
return. See Tax Information Release No. 97-1,
Determination of Residence Status.”
Steps for Preparing Your
Return
These instructions consist of 12 steps. You
should complete the first 3 steps that follow
BEFORE you begin to fill in your return.
Steps 4 and 5, filling in the return through
line 6e, begin on page 7 and end on page 11.
Step 6, filling in the rest of the return, is on
page 11. The Line-By-Line Instructions for
Form N-11 begin on page 11 and end on page
31.
Finally, steps 7 through 12 begin on page 31.
These are the steps you should take after your
Form N-11, and other schedules and forms
you need, are filled in.
If you follow these steps and read the Line-
By-Line Instructions, we feel you can fill in
your return quickly and accurately. If you
have any questions, call our Taxpayer Ser-
vices staff.
Page 7
Step 1
Get all of your income
records together.
These include any Forms HW-2 and federal
Forms W-2 or 1099 that you received. If you
don’t receive a Form HW-2 or federal Form
W-2 by January 31, or if the one you get isn’t
correct, please contact your employer as soon
as possible. Only your employer can give you
a Form HW-2 or federal Form W-2, or correct
it. If you cannot get a Form HW-2 or federal
Form W-2 by February 15, please contact our
Taxpayer Services staff.
If you have someone prepare your return
for you, make sure that person has all your
income and expense records so he or she can
fill in your return correctly. Remember, even
if someone else prepares your return incor-
rectly, YOU are still responsible.
Step 2
If you plan to claim tax credits
or itemize deductions, get
the information and expense
records you need.
These instructions tell you what credits and
deductions you can claim. Some of the records
you may need are:
• Medical and dental payment records.
• Real estate and income tax receipts.
Interest payment records for a home mort-
gage.
• Receipts for charitable contributions.
Step 3
Get any forms, schedules, or
information you need.
All forms and instructions you need may be
picked up at any district tax office. You may
also request that the forms and publications
be mailed to you. Please allow approximately
10 days for the mailing of the tax forms. Tax
forms are also available on the Internet. See
page 6 for the phone number to request the
forms you need and for the Department’s
website address.
Step 4
Fill in the oval(s) if you are
filing an amended return.
If you are filing an amended return, fill in
the amended return oval at the top of Form
N-11.
If you are filing an amended return due to a
farming net operating loss carryback, also fill
in the NOL Carryback oval.
If you are filing an amended return due to
an IRS adjustment, also fill in the IRS Adjust-
ment oval.
See page 33 of the instructions for more in-
formation.
Step 5
Fill in your tax year, the
oval(s) if you are a first time
filer or have an address or
name change, name, address,
social security number, filing
status, and exemptions.
Mailing Label
If you requested a forms booklet, take the
mailing label from the booklet we sent to you
and make sure the information is correct. If
any information is incorrect, do not use the
mailing label. Instead, print the entries in this
section.
After you have completed and checked all
entries, attach your label (if the information
is correct) to the return over the mailing ad-
dress area where indicated. Use of the label
helps us identify your account, saves process-
ing time, and speeds refunds.
Do not attach your label to the envelope. It
may get separated from your return.
If you did not receive a label, print the en-
tries in this section.
Do not use the IRS mailing label.
Tax Year, First Time Filer, Address or
Name Change
If you are filing your return on a fiscal year
basis, you must fill in the dates that your fiscal
year begins and ends.
If you are filing a tax return for the first
time or if your address or name has changed,
fill in the appropriate oval above the name
and address area of the tax return.
If your mailing address has changed, and
you do not notify the Department of the
change by filling in the “Address or Name
Change” oval, your address may not be up-
dated, any refund due to you may not be de-
livered (the U.S. Postal Service is not permit-
ted to forward your State refund check), and
important notices or correspondence to you
regarding your return may be delayed. To no-
tify the Department of your new address, you
can also complete Form ITPS-COA, Change of
Address Form.
Name
Write your name, and your spouse’s name
if you are married and filing a joint return,
in the space provided and at the top of Form
N-11, pages 2, 3, and 4. You must use your
legal name. Nicknames are not permitted. If
you have changed your name because of mar-
riage, divorce, etc., make sure you immediate-
ly notify the Social Security Administration so
that the name on your tax return is the same
as the name on the social security records. If
these names do not match, your refund may
be delayed.
If you file joint returns, write the names in
the same order every year.
Write any descriptions (e.g., Jr., III, etc.) in
the space provided for the suffix.
You must also write the first four letters of
your last name in the boxes provided. If you
are married, you must also write the first four
letters of your spouse’s last name in the boxes
provided whether joint or separate returns
are filed.
Address
Write your current mailing address in the
space provided. If you receive your mail “in
care of” someone else (i.e., your mail is sent
to an address belonging to someone other
than yourself), fill in that person’s name in the
space provided.
If your address is outside the United States
or its possessions or territories, enter the
city in the space provided for “City, town or
post office,” and enter the postal code in the
space provided for “Postal/ZIP code.” Enter
the province and/or state, and the name of the
country in the space provided. Do not abbre-
viate the country name.
Social Security Number
Write your social security number in the
space provided. If you are married, you must
also write your spouse’s social security num-
ber in the space provided whether joint or
separate returns are filed. Your social securi-
ty numbers must be written in the same order
as your names are written on your return.
Also enter your social security number, and
your spouse’s social security number if you
are married and filing a joint return, at the top
of Form N-11, pages 2, 3, and 4.
If you are an alien and was issued an indi-
vidual taxpayer identification number (ITIN)
by the IRS, enter your ITIN in the space pro-
vided for the social security number. If you
have applied for an ITIN but the IRS has not
yet issued the ITIN, write “ITIN Applied For
in the space below the “THIS SPACE RE-
SERVED” box.
Filing Status
Fill in oval 1, 2, 3, 4, or 5 as appropriate. Fill
in only one oval.
Note: Civil union couples have the same tax
filing status options as married couples.
Note: More than one filing status may apply to
you. Choose the one that will give you the low-
est tax. Your Hawaii filing status may or may
not be the same as your federal filing status.
Single
Note: Civil union couples may not choose
“single” as their filing status.
You can fill in oval 1 if any of the following
was true on December 31, 2018.
• You were never married.
You were legally separated according to
your state’s law under a decree of divorce
or separate maintenance. But if, at the end
of 2018, your divorce was not final (an in-
terlocutory decree), you are considered
married and cannot fill in oval 1.
You were widowed before January 1, 2018,
and did not remarry before the end of 2018.
If you have a child, you may be able to use
Page 8
the qualifying widow(er) filing status. See
Qualifying Widow(er) on page 9.
If you are unmarried and provide a home for
certain other persons, you may be able to file
as Head of Household. See Head of Household
on this page.
Married Filing Joint Return
You can fill in oval 2 if any of the following
apply.
You were married at the end of 2018, even
if you did not live with your spouse at the
end of 2018.
Your spouse died in 2018 and you did not
remarry in 2018.
You were married at the end of 2018, and
your spouse died in 2019 before filing a
2018 return.
If you are married and file a joint return,
both you and your spouse must report all of
your income, exemptions, deductions, and
credits on your joint return. You can file a
joint return even if only one of you had income
or if you did not live together all year. How-
ever, both of you must sign the return.
If you file a joint return, both you and your
spouse are generally responsible for the tax,
interest, and penalties due on the return. This
means that if one spouse does not pay the tax
due, the other may have to.
Note: If you and your spouse file a joint return
for the year and later decide to file separately,
both you and your spouse MUST file amended
returns on or before the due date of the origi-
nal return (April 20). You may not change
your filing status from married filing jointly to
married filing separately after that date.
If your spouse died in 2018 or in 2019 before
filing a return for 2018, see Death of Taxpayer
on page 6.
Special Rule for Nonresidents or Part-Year
Residents Who File a Joint Return With a Ha-
waii Resident on Form N-11. If at the end of
the taxable year you were a nonresident (but
you were a U.S. resident) or a part-year resi-
dent who is married to a full-year Hawaii resi-
dent, you may choose to file a joint return with
your resident spouse. By filing a joint return,
however, you and your spouse will be taxed
on your combined worldwide income for the
entire year.
Special Rule for Nonresidents or Part-Year
Residents Who File a Joint Return With a Part-
Year Resident on Form N-15. If at the end of
the taxable year you were a nonresident (but
you were a U.S. resident) or a part-year resi-
dent who is married to a part-year resident,
you may choose to file a joint return with your
part-year resident spouse. By filing a joint
return, you and your spouse will be taxed on
your combined worldwide income for the pe-
riod in which the part-year resident is a Ha-
waii resident.
Special Rule for Nonresident Aliens and Du-
al-Status Aliens. Generally, a married couple
cannot file a joint return if either spouse is a
nonresident alien at any time during the year.
However, if you were a nonresident alien or a
dual-status alien and were married to a U.S.
citizen or resident alien at the end of 2018, you
can elect to be treated as a resident alien and
file a joint federal return. See federal Publi-
cation 519 for details. If you and your spouse
have made that election on your federal re-
turn, you also may choose to file a joint Ha-
waii return. By filing a joint return, you and
your spouse will be taxed on your combined
worldwide income.
Note: For purposes of filing a joint return,
common law marriages are not recognized
under Hawaii law unless they began in a state
which permits common law marriages.
Married Filing Separate Return
If you are married and file a separate re-
turn, you generally report only your own in-
come, exemptions, deductions, and credits.
Generally, you are responsible only for the tax
on your own income.
However, you will usually pay more tax than
if you use another filing status for which you
qualify. Also, if you file a separate return, you
cannot take the student loan interest deduc-
tion, the credit for child and dependent care
expenses, or the earned income tax credit.
You also cannot take the standard deduction if
your spouse itemizes deductions.
If you file a separate return, write your
spouse’s full name in the space after oval
3. Also write the first four letters of your
spouse’s last name and your spouse’s social
security number in the boxes provided.
If your spouse does not file a Hawaii tax re-
turn, you may be able to claim the exemption
for your spouse. See the instructions for line 6b.
If you were married in 2018, had a child liv-
ing with you, and lived apart from your spouse
during the last six months of 2018, you may be
able to file as Head of Household. See Married
persons who live apart on page 9.
Special Rule for Nonresident Aliens and Du-
al-Status Aliens. Married nonresident aliens
must file separate returns. However, if you
were a nonresident alien or a dual-status alien
and were married to a U.S. citizen or resident
alien at the end of 2018, you can elect to be
treated as a resident alien and file a joint fed-
eral return. See federal Publication 519 for
details. If you and your spouse have made that
election on your federal return, you also may
choose to file a joint Hawaii return. By filing a
joint return, you and your spouse will be taxed
on your combined worldwide income.
Head of Household
Note: Since this filing status is for unmarried
individuals who provide a home for certain
other persons, a person in a civil union may
not choose “head of household” as their fil-
ing status. However, a person in a civil union
may file as “head of household” if the person
is considered unmarried because they lived
apart from their civil union partner for the last
six months of 2018 and they meet the other
rules under Married persons who live apart
on page 9.
This filing status is for unmarried individu-
als who provide a home for certain other per-
sons. You are considered unmarried for this
purpose if any of the following applies.
You were legally separated according to
your state’s law under a decree of divorce
or separate maintenance at the end of 2018.
But if, at the end of 2018, your divorce was
not final (an interlocutory decree), you are
considered married.
You are married but lived apart from your
spouse for the last six months of 2018 and
you meet the other rules under Married
persons who live apart on page 9.
You are married to a nonresident alien at
any time during the year and you do not
choose to treat him or her as a resident
alien.
Fill in the oval on line 4 only if you are un-
married (or considered unmarried) and either
Test 1 or Test 2 applies.
Test 1. You paid over half the cost of keep-
ing up a home that was the main home for all
of 2018 of your parent whom you can claim as
a dependent, except under a multiple support
agreement (see page 11). Your parent did not
have to live with you.
Test 2. You paid over half the cost of keep-
ing up a home in which you lived and in which
one of the following also lived for more than
half of the year (if half or less, see Exception
to time lived with you on this page).
1. Any person whom you can claim as a de-
pendent. But do not include:
a. Your child whom you claim as your
dependent because of the rule for
Children of divorced or separated
parents on page 10,
b. Any person who is your dependent
only because he or she lived with you
for all of 2018, or
c. Any person you claimed as a dependent
under a multiple support agreement.
See page 11.
2. Your unmarried qualifying child who is
not your dependent.
3. Your married qualifying child who is not
your dependent only because you can be
claimed as a dependent on someone else’s
2018 return.
4. Your qualifying child who, even though
you are the custodial parent, is not your
dependent because of the rule for Chil-
dren of divorced or separated parents on
page 10.
If the child is not claimed as your depen-
dent, enter the child’s name on line 4.
Qualifying child. To find out if someone is
your qualifying child, see Step 1 of the line 6c
instructions on page 9.
Dependent. To find out if someone is your
dependent, see the instructions for line 6c that
begin on page 9.
Exception to time lived with you. Tempo-
rary absences by you or the other person for
special circumstances, such as school, vaca-
tion, business, medical care, military service,
or detention in a juvenile facility, count as
time lived in the home. Also see Kidnapped
child on page 11, if applicable.
Page 9
If the person for whom you kept up a home
was born or died in 2018, you still may be able
to file as head of household. If the person is
your qualifying child, the child must have
lived with you for more than half the part of
the year he or she was alive. If the person is
anyone else, see federal Publication 501.
Keeping up a home. To find out what is in-
cluded in the cost of keeping up a home, see
federal Publication 501.
Special Rule for Nonresident Aliens and Du-
al-Status Aliens.—If you were a nonresident
alien or dual-status alien during the tax year,
you cannot file as Head of Household.
Married persons who live apart. Even if you
were not divorced or legally separated at the
end of 2018, you are considered unmarried if
all of the following apply.
You lived apart from your spouse for the
last six months of 2018. Temporary ab-
sences for special circumstances, such
as for business, medical care, school, or
military service, count as time lived in the
home.
You file a separate return from your
spouse.
You paid over half the cost of keeping up
your home for 2018.
Your home was the main home of your
child, stepchild, or foster child for more
than half of 2018 (if half or less, see Excep-
tion to time lived with you on page 8).
You can claim this child as your dependent
or could claim the child except that the
child’s other parent can claim him or her
under the rule for Children of divorced or
separated parents on page 10.
Adopted child. An adopted child is always
treated as your own child. An adopted child
includes a child lawfully placed with you for
legal adoption.
Foster child. A foster child is any child
placed with you by an authorized placement
agency or by judgment, decree, or other order
of any court of competent jurisdiction.
Special Rule for Nonresident Aliens and
Dual-Status Aliens.—If you were a nonresident
alien or dual-status alien during the tax year,
the special rules for Married persons who live
apart will not apply to you unless you meet all
of the tests previously stated, and you are a res-
ident of Canada or Mexico. If you are consid-
ered unmarried under these rules, you may file
as a single individual. You cannot file as Head
of Household.
Qualifying Widow(er)
You can fill in oval 5 and use joint return tax
rates for 2018 if all of the following apply.
Your spouse died in 2016 or 2017 and you
did not remarry before the end of 2018.
You have a child or stepchild (not a foster
child) whom you can claim as a dependent
or could claim as a dependent except that,
for 2018:
The child had gross income of $4,150 or
more,
The child filed a joint return, or
You could be claimed as a dependent on
someone else’s return.
If the child isn’t claimed as your dependent
on line 6c, enter the child’s name on line 4.
This child lived in your home for all of
2018. If the child did not live with you for
the required time, see Exception to time
lived with you, below.
You paid over half the cost of keeping up
your home.
You could have filed a joint return with
your spouse the year he or she died, even if
you did not actually do so.
If your spouse died in 2018, you cannot file
as qualifying widow(er). Instead, see the in-
structions for Married Filing Joint Return on
page 8.
Adopted child. An adopted child is always
treated as your own child. An adopted child
includes a child lawfully placed with you for
legal adoption.
Dependent. To find out if someone is your
dependent, see the instructions for line 6c that
begin on this page.
Exception to time lived with you. Tempo-
rary absences by you or the child for special
circumstances, such as school, vacation, busi-
ness, medical care, military service, or deten-
tion in a juvenile facility, count as time lived in
the home. Also see Kidnapped child on page
11, if applicable.
A child is considered to have lived with you
for all of 2018 if the child was born or died in
2018 and your home was the child’s home for
the entire time he or she was alive.
Keeping up a home. To find out what is in-
cluded in the cost of keeping up a home, see
federal Publication 501.
Note: See Death of Taxpayer on page 6 for
more information.
Special Rule for Nonresident Aliens and Du-
al-Status Aliens.—The special rules for Quali-
fying Widow(er) will not apply unless the sur-
viving spouse meets all of the tests previously
stated, and was a resident alien or U.S. citizen
the year their spouse died. The residency
status refers to the surviving spouse’s actual
status, and not the election that some nonresi-
dent aliens make to be taxed as U.S. residents.
Exemptions
Line 6a
Yourself
Fill in the oval on line 6a if no one can claim
you as a dependent on another person’s tax re-
turn. If you can be claimed as a dependent on
another person’s tax return, do not fill in the
oval on line 6a. Instead, fill in the oval above
line 21. Fill in the oval for “Age 65 or over” if
you are age 65 or over as of January 1, 2019.
Line 6b
Spouse
Fill in the oval on line 6b if either of the fol-
lowing applies.
1. Your filing status is married filing jointly
and your spouse cannot be claimed as a de-
pendent on another person’s return.
2. You were married at the end of 2018, your
filing status is married filing separately,
and both of the following apply.
a. Your spouse had no income and is not fil-
ing a return.
b. Your spouse cannot be claimed as a de-
pendent on another person’s return.
If your spouse meets these qualifications,
fill in the oval under line 6b.
If you became divorced or legally separated
during 2018, you cannot take an exemption for
your former spouse.
Fill in the oval for “Age 65 or over” if your
spouse was age 65 or over as of January 1,
2019 and your filing status is married filing
jointly.
Death of your spouse. If your spouse died
in 2018 and you did not remarry by the end of
2018, fill in the ovals on line 6b for the exemp-
tions you could have taken for your spouse
on the date of death. See the instructions for
Death of Taxpayer on page 6.
Enter the number of ovals filled on lines 6a
and 6b.
Lines 6c and 6d
Children and Other Dependents
Enter on lines 6c and 6d the full names, so-
cial security numbers, and relationship for
your dependent children and other depen-
dents. Each dependent must have a social
security number. If you have more than four
dependents, attach a statement with the re-
quired information. Enter the number of your
dependent children in the box for line 6c. En-
ter the number of other dependents in the box
for line 6d.
Follow the steps below to find out if a person
qualifies as your dependent.
Do You Have a Qualifying
Child?
A qualifying child is a child who is your:
Son, daughter, stepchild, foster child,
brother, sister, stepbrother, stepsister, half
brother, half sister, or a descendant of any
of them (for example, your grandchild,
niece, or nephew), and
Was under age 19 at the end of 2018 and
younger than you (or your spouse, if filing
jointly), or under age 24 at the end of 2018,
a student, and younger than you (or your
spouse, if filing jointly), or any age and
permanently and totally disabled, and
Who did not provide over half of his or her
own support for 2018, and
Who is not filing a joint return for 2018
or is filing a joint return for 2018 only to
claim a refund of withheld income tax or
estimated tax paid, and
Who lived with you for more than half of
2018. If the child did not live with you for
the required time, see Exception to time
lived with you on page 11.
1. Do you have a child who meets the condi-
tions to be your qualifying child?
Step 1
Page 10
Yes. Go to Step 2.
No. Go to Step 3.
Is Your Qualifying Child
Your Dependent?
1. Was the child a U.S. citizen, U.S. national,
U.S. resident alien, or a resident of Canada
or Mexico? If the child was adopted, see Ex-
ception to citizen test on this page.
Yes. Go to Question 2.
No. Stop. You cannot claim this child as a
dependent.
2. Was the child married?
Yes. See Married person on page 11.
No. Go to Question 3.
3. Could you, or your spouse if filing jointly,
be claimed as a dependent on someone
else’s 2018 tax return?
Yes. You cannot claim any dependents. Go
to Form N-11, line 7.
No. You can claim this child as a dependent.
Is Your Qualifying
Relative Your Dependent?
A qualifying relative is a person who is
your:
Son, daughter, stepchild, foster child, or a
descendant of any of them (for example,
your grandchild), or
Brother, sister, half brother, half sister, or
a son or daughter of any of them (for ex-
ample, your niece or nephew), or
Father, mother, or an ancestor or sibling of
either of them (for example, your grand-
mother, grandfather, aunt, or uncle), or
Stepbrother, stepsister, stepfather, step-
mother, son-in-law, daughter-in-law, fa-
ther-in-law, mother-in-law, brother-in-law,
or sister-in-law, or
Any other person (other than your spouse)
who lived with you all year as a member of
your household if your relationship did not
violate local law. If the person did not live
with you for the required time, see Excep-
tion to time lived with you on page 11, and
Who was not a qualifying child of any tax-
payer for 2018. For this purpose, a person
is not a taxpayer if he or she is not required
to file a Hawaii income tax return and ei-
ther does not file such a return or files only
to get a refund of withheld income tax or
estimated tax paid, and
Who had gross income of less than $4,150
in 2018. If the person was permanently and
totally disabled, see Exception to gross in-
come test on this page, and
For whom you provided over half of his or
her support in 2018. But see Children of
divorced or separated parents on this page,
and Multiple support agreements and Kid-
napped child on page 11.
1. Does any person meet the conditions to be
your qualifying relative?
Yes. Go to Question 2.
No. Stop. Go to Form N-11, line 7.
2. Was your qualifying relative a U.S. citizen,
U.S. national, U.S. resident alien, or a resi-
dent of Canada or Mexico? If your qualify-
ing relative was adopted, see Exception to
the citizen test on this page.
Yes. Go to Question 3.
No. Stop. You cannot claim this person as
a dependent.
3. Was your qualifying relative married?
Yes. See Married person on page 11.
No. Go to Question 4.
4. Could you, or your spouse if filing jointly,
be claimed as a dependent on someone
else’s 2018 tax return?
Yes. Stop. You cannot claim any depen-
dents. Go to Form N-11, line 7.
No. You can claim this person as a depen-
dent.
Definitions and Special Rules.
Adopted child. An adopted child is always
treated as your own child. An adopted child
includes a child lawfully placed with you for
legal adoption.
Children of divorced or separated parents.
A child will be treated as the qualifying child
or qualifying relative of his or her noncusto-
dial parent if all of the following conditions
apply.
1. The parents are divorced, legally separat-
ed, separated under a written separation
agreement, or lived apart at all times dur-
ing the last six months of 2018 (whether or
not they are or were married).
2. The child received over half of his or her
support for 2018 from the parents (and the
rules on Multiple support agreements, on
page 11, do not apply). Support of a child
received from a parent’s spouse is treated
as provided by the parent.
3. The child is in custody of one or both of the
parents for more than half of 2018.
4. Either of the following applies.
a. The custodial parent signs federal Form
8332 or a substantially similar statement
that he or she will not claim the child as
a dependent for 2018, and the noncusto-
dial parent includes a copy of the form
or statement with his or her return. If
the divorce decree or separation agree-
ment went into effect after 1984 and be-
fore 2009, the noncustodial parent may
be able to include certain pages from the
decree or agreement instead of federal
Form 8332. See Post-1984 and pre-2009
decree or agreement and Post-2008 de-
cree or agreement.
b. A pre-1985 decree of divorce or separate
maintenance or written separation agree-
ment between the parents provides that
the noncustodial parent can claim the
child as a dependent, and the noncusto-
dial parent provides at least $600 for sup-
port of the child during 2018.
If conditions (1) through (4) apply, only
the noncustodial parent can claim the child
for purposes of the dependency exemption.
However, this does not allow the noncustodial
parent to claim head of household filing sta-
tus, the credit for child and dependent care
expenses, the exclusion for dependent care
benefits, or the earned income tax credit. See
federal Publication 501 for details.
Custodial and noncustodial parents. The
custodial parent is the parent with whom the
child lived for the greater number of nights
in 2018. The noncustodial parent is the other
parent. If the child was with each parent for
an equal number of nights, the custodial par-
ent is the parent with the higher federal ad-
justed gross income. See federal Publication
501 for an exception for a parent who works
at night, rules for a child who is emancipated
under state law, and other details.
Post-1984 and pre-2009 decree or agree-
ment. The decree or agreement must state all
three of the following.
1. The noncustodial parent can claim the
child as a dependent without regard to any
condition, such as payment of support.
2. The other parent will not claim the child
as a dependent.
3. The years for which the claim is released.
The noncustodial parent must include all of
the following pages from the decree or agree-
ment.
Cover page (include the other parent’s so-
cial security number on that page).
The pages that include all the information
identified in (1) through (3) above.
Signature page with the other parent’s sig-
nature and date of agreement.
You must include the required information
even if you filed it with your return in an ear-
lier year.
Post-2008 decree or agreement. If the di-
vorce decree or separation agreement went
into effect after 2008, the noncustodial par-
ent cannot include pages from the decree or
agreement instead of federal Form 8332. The
custodial parent must sign either federal Form
8332 or a substantially similar statement the
only purpose of which is to release the custo-
dial parent’s claim to an exemption for a child,
and the noncustodial parent must include
a copy with his or her return. The form or
statement must release the custodial parent’s
claim to the child without any conditions. For
example, the release must not depend on the
noncustodial parent paying support.
Release of exemption revoked. A custodial
parent who has revoked his or her previous
release of a claim to exemption for a child
must include a copy of the revocation with his
or her return. For details, see federal Form
8332.
Exception to citizen test. If you are a U.S.
citizen or U.S. national and your adopted child
lived with you all year as a member of your
household, that child meets the requirement
to be a U.S. citizen.
Exception to gross income test. If your
relative (including a person who lived with
you all year as a member of your household)
is permanently and totally disabled (defined
on page 11), certain income for services per-
formed at a sheltered workshop may be ex-
cluded for this test. For details, see federal
Publication 501.
Step 2
Step 3
Page 11
Exception to time lived with you. Tempo-
rary absences by you or the other person for
special circumstances, such as school, vaca-
tion, business, medical care, military service,
or detention in a juvenile facility, count as
time the person lived with you. Also see Chil-
dren of divorced or separated parents on page
10, or Kidnapped child on this page.
If the person meets all other requirements
to be your qualifying child but was born or
died in 2018, the person is considered to have
lived with you for more than half of 2018 if
your home was this person’s home for more
than half the time he or she was alive in 2018.
Any other person is considered to have lived
with you for all of 2018 if the person was born
or died in 2018 and your home was this per-
son’s home for the entire time he or she was
alive in 2018.
Foster child. A foster child is any child
placed with you by an authorized placement
agency or by judgment, decree, or other order
of any court of competent jurisdiction.
Kidnapped child. If your child is presumed
by law enforcement authorities to have been
kidnapped by someone who is not a family
member, you may be able to take the child
into account in determining your eligibility
for head of household or qualifying widow(er)
filing status, the dependency exemption, and
the earned income tax credit. See federal Pub-
lication 501.
Married person. If the person is married
and files a joint return, you cannot claim that
person as your dependent. However, if the
person is married but does not file a joint re-
turn or files a joint return only to claim a re-
fund of withheld income tax or estimated tax
paid, you may be able to claim him or her as
a dependent. See federal Publication 501. In
that case, go to Step 2, Question 3, on page 10
(for a qualifying child) or Step 3, Question 4,
on page 10 (for a qualifying relative).
Multiple support agreements. If no one
person contributed over half of the support
of your relative (or a person who lived with
you all year as a member of your household)
but you and another person(s) provided more
than half of your relative’s support, special
rules may apply that would treat you as hav-
ing provided over half of the support. For de-
tails, see federal Publication 501.
Permanently and totally disabled. A person
is permanently and totally disabled if, at any
time in 2018, the person cannot engage in any
substantial gainful activity because of a physi-
cal or mental condition and a doctor has de-
termined that this condition has lasted or can
be expected to last continuously for at least a
year, or can be expected to lead to death.
Qualifying child of more than one person.
Even if a child meets the conditions to be the
qualifying child of more than one person, only
one person can claim the child as a qualify-
ing child for the (1) dependency exemption,
(2) head of household filing status, (3) credit
for child and dependent care expenses, (4)
exclusion for dependent care benefits, and (5)
earned income tax credit, unless the special
rule for Children of divorced or separated par-
ents on page 10 applies.
No other person can take any of the five tax
benefits listed above based on the qualifying
child. If you and any other person can claim
the child as a qualifying child, the following
rules apply.
If only one of the persons is the child’s par-
ent, the child is treated as the qualifying
child of the parent.
If the parents file a joint return together
and can claim the child as a qualifying
child, the child is treated as the qualifying
child of the parents.
If the parents do not file a joint return to-
gether but both parents claim the child as
a qualifying child, the child will be treated
as the qualifying child of the parent with
whom the child lived for the longer period
of time in 2018. If the child lived with each
parent for the same amount of time, the
child will be treated as the qualifying child
of the parent who had the higher federal
adjusted gross income (AGI) for 2018.
If no parent can claim the child as a quali-
fying child, the child is treated as the
qualifying child of the person who had the
highest federal AGI for 2018.
If a parent can claim the child as a qualify-
ing child but no parent does so claim the
child, the child is treated as the qualifying
child of the person who had the highest
federal AGI for 2018, but only if that per-
son’s federal AGI is higher than the highest
federal AGI of any parent of the child who
can claim the child.
Example. Your daughter meets the condi-
tions to be a qualifying child for both you and
your mother. Your daughter does not meet the
conditions to be a qualifying child of any other
person, including her other parent. Under
the rules just described, you can claim your
daughter as a qualifying child for all of the
five tax benefits listed above for which you
otherwise qualify. Your mother cannot claim
any of the five tax benefits listed above based
on your daughter. However, if your mother’s
federal AGI is higher than yours and you do
not claim your daughter as a qualifying child,
your daughter is the qualifying child of your
mother.
If you will be claiming the child as a qualify-
ing child, go to Step 2 on page 10. Otherwise,
stop; you cannot claim any benefits based on
this child.
Student. A student is a child who during
any part of five calendar months of 2018 was
enrolled as a full-time student at a school,
or took a full-time, on-farm training course
given by a school or a state, county, or local
government agency. A school includes a tech-
nical, trade, or mechanical school. It does not
include an on-the-job training course, corre-
spondence school, or school offering courses
only through the Internet.
Birth or Death of Dependent. You can take
an exemption for a dependent who was born
or who died during the taxable year if he or
she met the tests for a dependent while alive.
This means that a baby who lived only a few
minutes can be claimed as a dependent.
Line 6e
Add the numbers you entered in the boxes
for 6a, 6b, 6c, and 6d. Enter the total in the
box on line 6e.
Step 6
Fill in your return.
Line-By-Line instructions for filling in Form
N-11 begin on this page and end on page 31.
Please read and follow the instructions care-
fully.
Rounding Off to Whole
Dollars
The Department requires individual tax-
payers to round off cents to the nearest whole
dollar for all dollar entries on the tax return
and schedules. To do so, drop amounts under
50 cents and increase amounts from 50 to 99
cents to the next dollar. For example: $1.39 be-
comes $1 and $2.69 becomes $3. If you have to
add two or more amounts to figure the amount
to enter on a line, schedule, or worksheet, you
may choose to use one of two methods. Once
a method of rounding is established, you must
use the same method throughout the return.
The first method is to include the cents when
adding and round off only the total. The other
method is to round off each entry. For exam-
ple: You received two W-2 forms, one showing
Hawaii withholding of $50.55 and one show-
ing Hawaii withholding of $185.73. For round-
ing method 1, show your total Hawaii with-
holding as $236, ($50.55 + $185.73 = $236.28
rounded to $236). For rounding method 2,
show your total Hawaii withholding as $237,
($50.55 rounded to $51.00 + $185.73 rounded
to $186.00 = $51 + $186 = $237).
Line-By-Line Instructions -
Form N-11
Special Note to Part-Year
Residents
Form N-11 is to be filed by full-year resi-
dents only. If you were a Hawaii resident for
only part of 2018, you must file Form N-15 in-
stead.
Caution: The dates to be entered at the top of
Form N-11 are not for part-year residents to
enter the period of their Hawaii residency.
Income
An individual who was a Hawaii resident for
the entire year is subject to income tax on his
or her entire income, computed without re-
gard to source in the State.
Line 7
Federal Adjusted Gross
Income (Federal AGI)
Report the federal AGI from the appropri-
ate line of federal Form 1040. If you are not
required to file a federal income tax return,
Page 12
use federal Form 1040 as a worksheet to de-
termine the amount to report as your federal
AGI.
If you are filing a joint return for federal
income tax purposes and a married filing
separate return for state income tax purposes,
use federal Form 1040 as a worksheet to de-
termine the amount to report as your federal
AGI. Your federal AGI must be calculated as
if you are filing a federal married filing sepa-
rate return.
Note: Since the federal government does not
recognize civil unions as married individuals
for federal income tax purposes, civil unions
will continue to file as unmarried individuals
on their federal income tax returns. There-
fore, they should use federal Form 1040 as a
worksheet to determine the amount to report
as their federal AGI. Their federal AGI must
be calculated as if they are filing a federal
married filing joint return or a federal mar-
ried filing separate return.
If the federal AGI is a negative number,
shade the minus (-) in the box to the left of the
amount boxes.
Hawaii Additions to
Federal AGI
Line 8
Difference Between State and
Federal Wages
If the amount in Form W-2, Box 16 (State
wages) is larger than Form W-2, Box 1 (Fed-
eral wages), subtract the federal wages from
the state wages and enter the difference here.
If you receive more than one Form W-2, add
the differences from all of the forms. For ex-
ample, federal employees getting Cost of Liv-
ing Allowance (COLA) or Living Quarter Al-
lowance (LQA) may see a difference that must
be reported here. If you received COLA or
LQA and do not see a difference between state
and federal wages, enter the amount of COLA
or LQA reported on your Form W-2. State or
County employees who are in the contributory
or hybrid plan of the Employees Retirement
System also will see a difference that must be
reported here.
Line 9
Interest on Out-of-State
Bonds, Including Municipal
Bonds
If you received interest from bonds issued
by another State, or a county, city, or political
subdivision of another State (including inter-
est distributions from a mutual fund investing
in these bonds), enter the interest on line 9.
Do not include interest from bonds issued by
the Governments of Puerto Rico, U.S. Virgin
Islands, Guam, and American Samoa, or any
of their political subdivisions. Also, do not in-
clude distributions of short-term or long-term
gains because these amounts are included in
federal AGI.
Line 10
Other Hawaii Additions to
Federal AGI
This line is used to report other items that
are taxed by Hawaii but are not taxed by the
federal government, such as:
Differences in the taxable portion of the
Hawaii tax refund.
Distributions and deemed distributions
from Individual Housing Accounts.
• Peace Corps compensation.
• Differences in depreciation and gain.
Compensation from temporary employ-
ment outside the United States.
Differences in the deduction for student
loan interest.
Differences in the taxable portion of em-
ployer-provided adoption benefits.
Qualified tuition program distributions
for elementary and secondary school ex-
penses.
Distributions from certain foreign corpo-
rations.
• Other adjustments.
These items are explained in more detail as
follows.
Taxable Refund of State Income
Taxes
Note: A refundable state tax credit (except for
the refundable food/excise tax credit, credit for
low-income household renters, credit for child
and dependent care expenses, and credit for
child passenger restraint system(s)) is sub-
ject to income tax to the extent the refundable
credit exceeds the taxpayer’s tax liability and
results in a cash payment from the state. Be-
cause such a payment is not actually a refund
of prior taxes paid, it is not treated as a tax re-
fund potentially excludable under IRC section
111 (recovery of tax benefit items). Therefore,
the State Tax Refund Worksheet on page 37
should not be used to determine the taxable
portion of these refundable state tax credits.
For more information, see Tax Information
Release No. 2010-10, “Common Income Tax &
General Excise Tax Issues Associated with the
Renewable Energy Technologies Income Tax
Credit, HRS § 235-12.5.”
The taxable portion of your Hawaii tax re-
fund may be different from the amount re-
ported on your federal return. Use the State
Tax Refund Worksheet on page 37 to figure the
taxable portion of your refund and to deter-
mine if an adjustment needs to be made here.
Note: None of your refund is taxable if, in the
year you paid the tax, you either (a) did not
itemize deductions, (b) elected to deduct state
and local general sales taxes instead of state
and local income taxes, or (c) did not deduct
state and local income taxes because your
federal adjusted gross income was above cer-
tain threshold amounts.
If you received a refund or credit in 2018
for state income taxes you paid before 2018,
you may have to report it as income on your
Hawaii income tax return. You should receive
federal Form 1099-G, or a similar statement,
showing the amount of the refund.
Any part of a refund of state or local income
taxes paid before 2018 that you were entitled
to receive in 2018 but chose to apply to your
2018 estimated state income tax is considered
to have been received in 2018.
If you received a refund of 2017 taxes and
you deducted state income taxes on line 21b of
your 2017 Form N-11, figure the taxable por-
tion of your refund using the State Tax Refund
Worksheet on page 37. When completing the
State Tax Refund Worksheet on page 37, enter
an amount on line 2e only if the carryover of
the residential construction and remodeling
tax credit was claimed for construction or
renovation costs for a residential unit that does
not constitute business property.
Note: If you received income tax refunds from
other states, include these amounts on line 1
of the State Tax Refund Worksheet on page 37.
If your refund included taxes from any pre-
vious year in which you itemized deductions,
a similar calculation must be done for each
previous year.
If part of your refund was interest, you
should include that part in your federal Form
1040 as taxable interest income.
If your 2017 Hawaii AGI was over $166,800
($83,400 for married taxpayers filing sepa-
rately), you may be able to report a smaller
amount of your tax refund as income because
your itemized deductions were reduced in
2017. To compute the proper amount, see fed-
eral Publication 525, “Taxable and Nontax-
able Income,” under Itemized deductions lim-
ited. In the computation, however, the Hawaii
standard deduction amounts must be used,
the amount of the refund due to the Hawaii
credits listed in the State Tax Refund Work-
sheet is subtracted, and the base amount for
the limitation of itemized deductions remains
at $166,800 ($83,400 for married taxpayers fil-
ing separately). If you use this calculation, en-
ter the result on line 8 of the State Tax Refund
Worksheet on page 37.
If your 2017 state and local income tax re-
fund is more than your 2017 state and local
income tax deduction minus the amount you
could have deducted as your 2017 state and
local general sales taxes, see federal Publica-
tion 525, “Taxable and Nontaxable Income,”
under Itemized Deduction Recoveries.
Individual Housing Accounts
If you purchased a principal residence with
an Individual Housing Account (IHA), or you
are notified by an IHA trustee that you have
received a taxable distribution, report the tax-
able amount on line a of the Hawaii Additions
Worksheet on page 37.
If you purchased residential property be-
fore January 1, 1990, with a distribution
from an IHA, you must include in gross
income in the year the property is sold,
conveyed, or transferred an amount equal
to the amount of the distribution, unless
an election was made to include one-tenth
of the distribution in gross income each
Page 13
year for ten years. In addition, a penalty is
added to your gross income. Attach Form
N-103, Sale of Your Home, to figure the ad-
ditional gross income.
If you purchased residential property af-
ter December 31, 1989, you must include
in gross income one-tenth of the distribu-
tion each year for ten years. If you sell the
property purchased with an IHA distribu-
tion before the end of the ten-year period,
the remaining amount of the distribution
not previously reported must be included
in gross income in the year of sale. In addi-
tion, a penalty is added to your tax liability.
Attach Form N-103, Sale of Your Home, to
figure the additional tax liability.
If you purchased residential property af-
ter December 31, 1996, with a distribution
from an IHA established prior to January
1, 1990, and you have made the election to
do so, you must include in gross income in
the year the property is sold, conveyed, or
transferred an amount equal to the amount
of the distribution. In addition, a penalty is
added to your gross income. Attach Form
N-103, Sale of Your Home, to figure the ad-
ditional gross income.
If you use an IHA distribution for any pur-
pose other than to purchase a first princi-
pal residence in Hawaii, or if you borrow
against the IHA for such a purpose, the
distribution (or the loan amount) is tax-
able, and a 10% penalty tax is imposed. The
additional tax is the same amount shown
in Box 4 of Form N-2, Distribution from an
Individual Housing Account, and must be
included on line 27.
If you establish an IHA and later marry
a person owning residential property, the
IHA will terminate and distribute all of
the assets to you. In this case, you must
include the total distribution in your gross
income. No penalty tax is imposed, but the
10% is still withheld. Be sure to claim the
withheld amount on line 37.
If an individual establishes an IHA and
then dies or becomes totally disabled, spe-
cial rules apply. For more information, see
sections 18-235-5.5(r) and (s), Hawaii Ad-
ministrative Rules (HAR).
Peace Corps Compensation
If you received compensation for working
with the Peace Corps, include the amount of
that compensation on line c of the Hawaii Ad-
ditions Worksheet on page 37.
Depreciation and Gain Adjustments
Note: Hawaii did not adopt the federal pro-
visions for bonus depreciation, increased
IRC section 179 deduction (Hawaii limit is
$25,000), and inclusion of off-the-shelf com-
puter software as property qualifying for the
IRC section 179 deduction. If the bonus depre-
ciation, increased IRC section 179 deduction,
or IRC section 179 deduction for off-the-shelf
computer software is claimed for federal tax
purposes, you must: (a) complete a federal
Form 4562 for Hawaii tax purposes, (b) at-
tach the completed federal Form 4562 to the
Hawaii tax return, (c) make the necessary
adjustments to the Hawaii tax return for the
depreciation difference between federal and
Hawaii on line d of the Hawaii Additions
Worksheet on page 37, and (d) attach to the
Hawaii tax return any worksheet showing the
computation of the adjustments. You must
also keep records of the differences in the as-
set’s depreciable basis for federal and Hawaii
tax purposes.
If you claimed the capital goods excise tax
credit, hotel construction and remodeling tax
credit, technology infrastructure renovation
tax credit, or drought mitigating water stor-
age facility income tax credit, and did not in-
clude the amount of the credit as income in
the year in which it is properly recognized
under your method of accounting, then your
adjusted basis in the assets was decreased by
the amount of the credit claimed.
If you are claiming a depreciation deduc-
tion for any such asset, multiply the depre-
ciation percentage for this taxable year by
the amount of the applicable income tax
credit. Add the results for all of your assets
for which the applicable income tax credit
was claimed, and enter this amount on line
d of the Hawaii Additions Worksheet on
page 37.
If you sold or otherwise disposed of any
such asset, your gain or loss will be dif-
ferent from that reported on your federal
return. The difference will be the amount
of the applicable income tax credit that has
not already been recovered through depre-
ciation deductions. Enter this amount on
line e of the Hawaii Additions Worksheet
on page 37. In addition, you may need
to file Form N-312, Recapture of Capital
Goods Excise Tax Credit; see Form N-312
for more information.
Temporary Employment Outside the
U.S.
If, while you were a Hawaii resident, you
worked outside the United States and you
filed federal Form 2555 or 2555-EZ to exclude
some of your earned income, you need to add
back the amounts here because Hawaii does
not have this exclusion. On line f of the Ha-
waii Additions Worksheet on page 37, enter:
• The amount on Form 2555-EZ, line 18; or
• The sum of Form 2555, line 43, and Form
2555, line 48.
Student Loan Interest Deduction
The student loan interest deduction may be
different from the amount claimed on your
federal return since your Hawaii modified
adjusted gross income must be used in the
computation instead of your federal modified
adjusted gross income, and Hawaii’s modified
adjusted gross income ranges for phasing out
the deduction will not be adjusted for infla-
tion. Use the Student Loan Interest Deduction
Worksheet on page 40 to determine if an ad-
justment needs to be made here.
Employer-Provided Adoption
Benefits
The taxable portion of your employer-pro-
vided adoption benefits may be different from
the amount claimed on your federal return
since your Hawaii modified adjusted gross
income must be used in the computation in-
stead of your federal modified adjusted gross
income, and Hawaii’s exclusion amount and
modified adjusted gross income limit will not
be adjusted for inflation. Use the Adoption
Benefits Worksheet on page 40 to determine if
an adjustment needs to be made here.
Qualified Tuition Program
Distributions for Elementary and
Secondary School Expenses
Hawaii conforms to the federal provision
where distributions from qualified tuition
programs are not taxable if used to pay for
qualified higher education expenses. Howev-
er, pursuant to Act 27, Session Laws of Hawaii
2018, Hawaii did not adopt the federal provi-
sion that elementary and secondary school
expenses of up to $10,000 per year are quali-
fied expenses for qualified tuition programs.
Therefore, if a distribution was used to pay for
elementary and secondary school expenses,
include the taxable part of the distribution on
line i of the Hawaii Additions Worksheet on
page 37.
Owners of Certain Foreign
Corporations
Certain foreign corporations are classified
as Controlled Foreign Corporations (CFCs),
Passive Foreign Investment Companies (PF-
ICs), or Foreign Personal Holding Companies
(FPHCs). Federal law requires that share-
holders of these foreign companies recognize
certain income earned by these companies
before the companies distribute dividends.
Hawaii has no comparable provisions. If you
own one or more of these corporations, you
had to file federal Form 5471, or you sold
stock in any of these kinds of companies, you
may need to make an adjustment here.
Other Adjustments
Other adjustments to federal AGI include the
following:
Hawaii has not adopted the federal provi-
sions relating to:
the deduction for capital costs incurred
in complying with environmental protec-
tion agency sulfur regulations under IRC
section 179B, and
the exclusion from income of benefits un-
der a dependent care assistance program
that increases the amount of income that
is treated as having been earned by a
spouse who is either a full-time student
or not able to care for himself or herself.
There may be other adjustments to federal
AGI that are not discussed in these instruc-
tions. Such adjustments arise, for example, if
a taxpayer makes an election for federal tax
purposes (such as an IRC section 179 elec-
tion) but does not make the same election for
Hawaii tax purposes. If you believe that an ad-
ditional adjustment is needed to arrive at Ha-
waii adjusted gross income, enter the amount
of the adjustment on line j of the Hawaii Addi-
tions Worksheet on page 37, write “X” on the
dotted line next to line 10, and attach an expla-
Page 14
nation to Form N-11 that includes the amount
of the adjustment and how you calculated it.
Line 11
Total Hawaii Additions to
Federal AGI
Add the amounts on lines 8, 9, and 10. Enter
the result on this line.
Line 12
Add lines 7 and 11. Enter the result on this
line.
If line 12 is a negative number, shade the
minus (-) in the box to the left of the amount
boxes.
Hawaii Subtractions from
Federal AGI
Line 13
Pensions
Hawaii does not tax qualifying distribu-
tions from an employer-funded pension plan.
If you received qualifying distributions from
an employer-funded profit sharing, defined
contribution, or defined benefit plan, or from
a government retirement system (e.g., federal
civil service, military pension, state or coun-
ty retirement system), enter the qualifying
amount here.
Nontaxable Distributions
The following lines describe what qualifying
distributions are. These qualifying distribu-
tions were included in your federal AGI and
will be excluded on this line. For a distribution
to qualify, it must be paid by a pension plan by
reason of retirement, disability, or death. The
pension plan does not have to be a “qualified
plan” as defined in IRC section 401.
Employer-Funded Pension Plans
The following three types of distributions
are not taxed by Hawaii and should be includ-
ed on line 13:
(1) Pension or annuity distributions from a
public (i.e., government) retirement system
(e.g., federal civil service annuity, military
pension, state or county retirement system),
unless voluntary contributions were made by
an employee under an elective right. For more
information, see section 18-235-7-02, HAR.
(2) Distributions from a private employer
pension plan received upon retirement (in-
cluding early retirement and disability retire-
ment) if the employee did not contribute to the
pension plan.
(3) Distributions from a pension plan at
age 70-1/2 that are made to comply with the
federal mandatory payout rule do qualify as
a retirement payment whether or not the em-
ployee is still working full time.
Distributions from a private employer pen-
sion plan received upon retirement are par-
tially taxed by Hawaii if the employee con-
tributed to the pension plan.
Rollover IRAs
A rollover IRA is treated as a continuation
of the original plan that provided the money
that is rolled over. If distributions from the
original plan would be characterized as a
qualified distribution, distributions out of the
rollover IRA need not be reported as well.
Example - An individual received a lump
sum distribution from an employer-funded
profit-sharing plan upon retirement. The
individual did not contribute to the profit-
sharing plan. The entire lump sum distribu-
tion was rolled over to an IRA. In 2018, the
individual rolled over $50,000 from the IRA
to a Roth IRA. The entire amount rolled over
to the Roth IRA represents the lump sum
distribution received by the individual upon
retirement and earnings thereon. Since the
lump sum distribution that the individual re-
ceived upon retirement qualifies as a pension,
the amount rolled over from the regular IRA
to the Roth IRA also qualifies as a pension.
Therefore, the amount rolled over to the Roth
IRA is exempt from Hawaii’s income tax.
Taxable Pensions and Annuities
Early Distributions
Early distributions from a pension plan that
are subject to the 10% federal penalty tax do
not qualify and are taxable.
Deferred Compensation Plans
Distributions from a deferred compensa-
tion plan may be partly or fully taxable. A de-
ferred compensation plan includes any plan in
which the employee has a choice of whether
to contribute money into the plan or take that
amount in cash or property. Examples include
401(k) plans, salary reduction Simplified Em-
ployee Pension (SARSEP) plans, the Federal
Thrift Savings Plan, and section 457 plans like
the State of Hawaii Deferred Compensation
Plan.
Annuity Plans
Retirement vehicles that you fund yourself,
such as annuity plans and Individual Retire-
ment Accounts (IRAs) that are not funded
through a Simplified Employee Pension (SEP)
plan, are considered to be your own invest-
ments. Distributions from these plans may be
fully or partly taxable, depending on whether
your IRAs include deductible or nondeduct-
ible contributions. See federal Publications
590-A and 590-B, and federal Form 8606, for
more details.
Rollover IRAs
A rollover IRA is treated as a continuation
of the original plan that provided the money
that is rolled over. If distributions from the
original plan would be characterized as tax-
able, distributions out of the rollover IRA
would be taxable as well.
Example - An individual received a lump
sum distribution from an employer-funded
profit-sharing plan upon separation from ser-
vice before retirement. The individual did
not contribute to the profit-sharing plan. The
entire lump sum distribution was rolled over
to an IRA. In 2018, the individual rolled over
$50,000 from the IRA to a Roth IRA. The en-
tire amount rolled over to the Roth IRA repre-
sents the lump sum distribution received by
the individual upon separation from service
and earnings thereon. Since the lump sum
distribution that the individual received upon
separation from service does not qualify as
a pension (the distribution is not paid upon
retirement, disability, or death), the amount
rolled over from the regular IRA to the Roth
IRA also does not qualify as a pension. There-
fore, the amount rolled over to the Roth IRA is
taxable for Hawaii’s income tax.
Hybrid Plans
If you received a distribution from a plan
that is partly pension and partly deferred
compensation, such as a 401(k) plan with a
profit sharing component or an employer
matching program, a SEP plan with employer
contributions as well as a salary reduction op-
tion, or a similar hybrid plan, attach Schedule
J to figure the taxable amount.
Lump-Sum Distributions
If you received a lump-sum distribution
from a pension plan and you are electing to
use the special ten-year averaging method,
attach Schedule J and Form N-152, Tax on
Lump-Sum Distributions, to figure the tax-
able amount.
Note: If your lump-sum distribution included
capital gain amounts, you may be able to re-
duce your tax by including the capital gain
amounts on Form N-152 and electing the capi-
tal gains treatment. See Form N-152 Instruc-
tions for more information.
To compute the taxable portion of your an-
nuity or pension, use Schedule J.
Caution: Certain transactions, such as loans
against your interest in a qualified plan, may
be treated as taxable distributions.
For more information on the taxation of pen-
sions, see sections 18-235-7-02 to 18-235-7-
03, HAR, Tax Information Release No. 90-4,
Taxability of Benefit Payments from Pension
Plan to Participants who Attain Age 70-1/2 as
Required by the Internal Revenue Code (IRC)
Section 401(a)(9)(C), and Tax Information
Release No. 96-5, “Taxation of Pensions Un-
der the Hawaii Net Income Tax Law: Deferred
Compensation Arrangements; Rollover IRAs;
Sub-Accounts of Pension Plans; Social Secu-
rity and Railroad Retirement Act Benefits;
Limitation on Deductions for Contributions to
a Nonqualified Plan.
Line 14
Social Security Benefits
Hawaii does not tax Social Security or first
tier Railroad Retirement Act benefits. Enter
the amount from Form 1040, line 5b.
Page 15
Line 15
Military Reserve or Hawaii
National Guard Duty Pay
Exclusion
Hawaii does not tax the first $6,564 received
by each member of the reserve components of
the army, navy, air force, marine corps, coast
guard of the United States of America, and the
Hawaii national guard, as compensation for
performance of duty as such. If you qualify,
enter the smaller of:
• $6,564, or
Your pay, as shown on Box 16 of the Form
W-2 sent to you by your reserve compo-
nent.
If you are married filing a joint return, and
you and your spouse qualify, add the exclu-
sions for both of you and enter the total on line
15.
Line 16
Payments to an Individual
Housing Account
You may be able to deduct from your gross
income up to $5,000 paid in cash during the
taxable year into a trust account which is es-
tablished for saving for a down payment on
your first principal residence. A deduction
not to exceed $10,000 shall be allowed for a
married couple filing a joint return. No de-
duction shall be allowed on any amounts dis-
tributed less than 365 days from the date on
which a contribution is made to the account.
Any deduction claimed for a previous taxable
year for amounts distributed less than 365
days from the date on which a contribution
was made shall be disallowed and the amount
deducted shall be included in the previous
taxable year’s gross income and the tax reas-
sessed. The account is to encourage first-time
home buyers to save money for a down pay-
ment on a home.
The “first principal residence” means a res-
idential property purchased with the payment
or distribution from the individual housing ac-
count which shall be owned and occupied as
the only home by an individual who did not
have any previous interest in, individually, or
if the individual is married, whose spouse did
not own any interest in a residential property
inside or outside of Hawaii within the last 5
years prior to opening the IHA.
The amounts paid in cash allowable as a
deduction for all taxable years are limited to
$25,000, in the aggregate, excluding interest
earned or accrued. This limitation also applies
to married individuals having separate ac-
counts; the sum of such separate accounts and
the deduction shall not exceed $25,000 in the
aggregate, excluding interest income earned
or accrued.
For more information, see section 18-235-
5.5, HAR.
Line 17
Exceptional Trees Deduction
You may deduct up to $3,000 per exceptional
tree for qualified expenditures you made dur-
ing the taxable year to maintain the tree on
your private property. The tree must be desig-
nated as an exceptional tree by the local coun-
ty arborist advisory committee under chapter
58, Hawaii Revised Statutes (HRS). Qualified
expenditures are those expenses you incurred
to maintain the exceptional tree (excluding
interest) that are deemed “reasonably neces-
sary” by a certified arborist. No deduction is
allowed in more than one taxable year out of
every three consecutive taxable years.
An affidavit signed by a certified arborist
stating that the amount of expenditures are
deemed reasonably necessary must be at-
tached to your tax return. The affidavit also
must include the following information: (1)
type of tree, (2) location of tree, and (3) de-
scription and amount of expenditures made in
2018 to maintain the tree. The affidavit must
be notarized.
Line 18
Other Hawaii Subtractions
From Federal AGI
This line is used to report other items that
are taxed by the federal government but are
not taxed by Hawaii, such as:
Interest on federal obligations, including
U.S. Savings Bonds.
Differences in the taxable portion of the
Hawaii tax refund.
Interest earned on an Individual Housing
Account.
Compensation earned by patients with
Hansen’s disease.
Expenses not allowed on your federal re-
turn because they were connected with
federal credits.
Unearned income of children that you in-
cluded in your federal return, if the chil-
dren are filing Hawaii returns.
Benefits from or premiums paid to legal
services plans.
Differences in the deduction for student
loan interest.
Differences in the taxable portion of em-
ployer-provided adoption benefits.
Certain income from a qualified high tech-
nology business.
Contributions to and interest earned by an
individual development account.
• Moving expenses.
Qualified bicycle commuting reimburse-
ment.
Undistributed income earned by certain
foreign corporations.
• Other adjustments.
These items are explained in more detail as
follows.
Interest on Federal Obligations,
Including U.S. Savings Bonds
If you reported for federal purposes any in-
terest received on federal obligations, includ-
ing Treasury bills and notes and U.S. Savings
Bonds, enter the amount of that interest on
line a of the Hawaii Subtractions Worksheet
on page 37.
For more information about what kinds of
obligations should be reported here, see Tax
Information Release No. 84-1, Taxability of
Interest on U.S. Obligations.
If you filed federal Form 8815: If you re-
deemed U.S. Savings Bonds to pay for higher
education tuition and fees and excluded some
or all of the interest for federal purposes,
subtract the amount from Form 8815, line 14,
before entering it on line a. That amount was
already excluded on your federal return.
Taxable Refund of State Income
Taxes
See the instructions for line 10, Taxable
Refund of State Income Taxes, on page 12. In
some cases, the worksheet may call for an ad-
justment to be made here.
Interest on an Individual Housing
Account
If you have an Individual Housing Account,
enter the interest earned by the account, as it
appears on federal Form 1099-INT, on line c
of the Hawaii Subtractions Worksheet on page
37.
Patients With Hansen’s Disease
Hawaii does not tax compensation by Ha-
waii or the U.S. to a patient affected with Han-
sen’s disease (also known as leprosy). Enter
the amount of the qualifying compensation on
line d of the Hawaii Subtractions Worksheet
on page 37.
Expenses Disallowed Because
They Were Connected with Federal
Credits
If you are a business taxpayer; you claimed
certain credits such as the work opportunity
credit or the credit for qualified clinical test-
ing expenses; and some of your business ex-
penses were disallowed because you took the
credits (IRC section 280C), enter the amount
of the disallowed expenses on line e of the
Hawaii Subtractions Worksheet on page 37.
Hawaii does not have those credits, and does
allow the expense deductions.
Children Having Unearned Income
If you filed federal Form 8814, Parents’
Election To Report Child’s Interest and Divi-
dends, and you are not filing Form N-814 be-
cause your child will file a Hawaii tax return,
enter the total amount from line 12 of federal
Form(s) 8814 on line f of the Hawaii Subtrac-
tions Worksheet on page 37. Attach a copy of
federal Form(s) 8814.
Legal Services Plans
If you received benefits from a qualified
group legal services plan or if your employer
contributed to a group legal services plan, and
Page 16
you reported these benefits or contributions
as taxable income on your federal return,
check with your plan to see that it qualifies
under Hawaii standards. If it does, Hawaii
will not tax these amounts. Enter the amount
of federally taxable benefits or contributions
on line g of the Hawaii Subtractions Work-
sheet on page 37.
Student Loan Interest Deduction
The student loan interest deduction may be
different from the amount claimed on your
federal return since your Hawaii modified
adjusted gross income must be used in the
computation instead of your federal modified
adjusted gross income, and Hawaii’s modified
adjusted gross income ranges for phasing out
the deduction will not be adjusted for infla-
tion. Use the Student Loan Interest Deduction
Worksheet on page 40 to determine if an ad-
justment needs to be made here.
Employer-Provided Adoption
Benefits
The taxable portion of your employer-pro-
vided adoption benefits may be different from
the amount claimed on your federal return
since your Hawaii modified adjusted gross
income must be used in the computation in-
stead of your federal modified adjusted gross
income, and Hawaii’s exclusion amount and
modified adjusted gross income limit will not
be adjusted for inflation. Use the Adoption
Benefits Worksheet on page 40 to determine if
an adjustment needs to be made here.
Certain Income from a Qualified
High Technology Business
Royalties and other income derived from
patents, copyrights, and trade secrets.
Amounts received by an individual or a
qualified high technology business as
royalties and other income derived from
patents, copyrights, and trade secrets (1)
owned by the individual or qualified high
technology business, and (2) developed
and arising out of a qualified high technol-
ogy business are excluded from gross in-
come, adjusted gross income, and taxable
income. If you reported these amounts for
federal purposes, include that amount on
line j of the Hawaii Subtractions Work-
sheet on page 37.
Stock options income from qualified high
technology business. All income earned
and proceeds derived from stock options
or stock, including stock issued through
the exercise of stock options or warrants,
from a qualified high technology business
or from a holding company of a qualified
high technology business by an employee,
officer, or director of the qualified high
technology business, or investor who
qualified for the high technology business
investment tax credit is excluded from in-
come taxes. If you reported these amounts
for federal purposes, include that amount
on line j of the Hawaii Subtractions Work-
sheet on page 37.
Individual Development Accounts
If you have an individual development ac-
count, enter the amount of contributions you
made to the account, and the amount of inter-
est earned by the account (as it appears on
federal Form 1099-INT) on line k of the Ha-
waii Subtractions Worksheet on page 37.
Moving Expenses
Hawaii did not adopt the federal provi-
sions that suspended (1) the deduction for
moving expenses, and (2) the exclusion from
gross income for qualified moving expense
reimbursements for tax years 2018 through
2025. If you have moving expenses that were
not deducted on your federal return, enter
the amount of the deduction on line l of the
Hawaii Subtractions Worksheet on page 37.
Complete Form N-139 and attach it to your
return. If you have qualified moving expense
reimbursements that were not excluded on
your federal return, enter the amount of the
exclusion on line l of the Hawaii Subtractions
Worksheet on page 37.
Qualified Bicycle Commuting
Reimbursement
Hawaii did not adopt the federal provision
that suspended the exclusion from gross in-
come and wages for qualified bicycle com-
muting reimbursements for tax years 2018
through 2025. If you have qualified bicycle
commuting reimbursements that were not
excluded on your federal return, enter the
amount of the exclusion on line m of the Ha-
waii Subtractions Worksheet on page 37.
Owners of Certain Foreign
Corporations
If you own an interest in a CFC, PFIC, or
FPHC, you had to file federal Form 5471, or
you sold stock in any of these kinds of compa-
nies, see page 13 for further information. You
may need to make an adjustment here.
Other Adjustments
Other adjustments to federal AGI include the
following:
Scholarship grants received by a student
under the Nursing Scholars Program un-
der section 304A-3304(d), HRS, is not sub-
ject to Hawaii income tax.
The amount of payment stipend waived
by Department of Education coaches and
dispensed to the school for the benefit of
the coach’s team under section 302A-633.6,
HRS, is not subject to Hawaii income tax.
The capital loss carryover for qualified
high technology businesses is 15 years.
There may be other adjustments to federal
AGI that are not discussed in these instruc-
tions. Such adjustments arise, for example, if
a taxpayer makes an election for Hawaii tax
purposes (such as an IRC section 179 elec-
tion) but does not make the same election for
federal tax purposes. If you believe you are
entitled to an additional subtraction to ar-
rive at Hawaii adjusted gross income, enter
the amount of the adjustment on line n of the
Hawaii Subtractions Worksheet on page 37,
write “X” on the dotted line next to line 18,
and attach an explanation to Form N-11 that
includes the amount of the adjustment and
how you calculated it.
Line 19
Total Hawaii Subtractions
from Federal AGI
Add the amounts on lines 13 through 18. En-
ter the result on this line.
Line 20
Hawaii Adjusted Gross
Income
Subtract line 19 from line 12. Enter the re-
sult on this line. If line 19 is larger than line
12, you may have a net operating loss.
If the Hawaii AGI is a negative number,
shade the minus (-) in the box to the left of the
amount boxes.
Note: Act 27, Session Laws of Hawaii 2018,
eliminates net operating loss (NOL) carrybacks
(except for farming NOLs which are permit-
ted a two-year carryback), and allows unused
NOLs to be carried forward indefinitely for
NOLs arising in tax years ending after Decem-
ber 31, 2017. Also, the NOL deduction is limited
to 80% of taxable income for NOLs arising in tax
years beginning after December 31, 2017.
Note: If you carry back the farming NOL and
are due a refund from the carryback, you may
use Form N-109, Application for Tentative Re-
fund from Carryback of Net Operating Loss, to
get a quick refund.
You may elect to carry the farming NOL for-
ward instead of first carrying it back to prior
years. If you make this election, then you can
use your farming NOL only in the carryfor-
ward period.
To make this election, attach a statement to
your original return filed by the due date (in-
cluding extensions) for the farming NOL year.
This statement must state that you are electing
to waive the carryback period under section
235-7(d), HRS, and IRC section 172(b)(1)(B)(iv).
If you filed your original return on time but did
not file the statement with it, you can make
this election on an amended return filed with-
in 6 months of the original due date of the re-
turn, but not including any extension. Attach a
statement to your amended return, and write
“Filed pursuant to 26 C.F.R. 301.9100-2” at the
top of the statement. Also include the state-
ment noted above that you are waiving the
carryback period.
Once you elect to waive the carryback period,
it cannot be changed later.
If you do not file this statement on time, the
carryback period cannot be waived and you
must first carry the farming NOL back before
carrying it forward.
Deductions and Taxable
Income Computation
Note: If you can be claimed as a dependent on
another person’s return, fill in the oval above
Page 17
line 21. Complete the “Standard Deduction for
Dependents” worksheet on page 22 and enter
the appropriate amount on line 23 if you do
not itemize your deductions.
Lines 21a to 21f
Itemized Deductions
Taxpayers who itemize their deductions
may deduct certain kinds of expenses from
their adjusted gross income.
Taxpayers who do not itemize their deduc-
tions may reduce their adjusted gross income
by the amount of the standard deduction appro-
priate to their filing status. The amount of the
standard deduction is determined on line 23.
You will fall into one of the following three
classes:
• You MUST itemize deductions,
• You choose to itemize, or
• You do not itemize.
The three classes are described as follows:
You MUST Itemize Deductions
You must itemize deductions if:
You are married, filing a separate return,
and your spouse itemizes.
You are making a return under IRC sec-
tion 443(a)(1) for a period of less than 12
months because of a change in your annual
accounting period.
You Choose to Itemize
You may choose to itemize your deductions
if you are:
Married and filing a joint return, or a qual-
ifying widow(er), and your itemized de-
ductions are more than $4,400.
Married and filing a separate return, or
Single, and your itemized deductions are
more than $2,200.
Head of Household, and your itemized de-
ductions are more than $3,212.
A dependent of another taxpayer and
your itemized deductions are more than
the greater of (1) $500 or (2) your earned
income up to the amount of the standard
deduction for your filing status.
You Do Not Itemize
If your itemized deductions are less than the
amount shown above for your filing status (or
you choose not to itemize), go to line 23 and
enter your standard deduction amount there
(unless you MUST itemize as described ear-
lier).
If you itemize, you can deduct part of your
medical and dental expenses, and amounts
you paid for certain taxes, interest, contribu-
tions, casualty and theft losses, and other mis-
cellaneous expenses. These deductions are
explained on the pages that follow.
If you do itemize, complete Worksheets A-1
through A-6 and enter the amounts on Form
N-11, lines 21a to 21f.
Line 21a
Medical and Dental Expenses
Note: Act 27, Session Laws of Hawaii 2018,
adopts the federal provision that reduces the
medical expense deduction floor to 7.5% of ad-
justed gross income for tax years 2017 and 2018.
Complete Worksheet A-1 on page 38 to fig-
ure your deduction for medical and dental
expenses.
Before you can figure your total deduction
for medical and dental expenses, you must
first figure your adjusted gross income.
You can deduct only the part of your medi-
cal and dental expenses that exceeds 7.5% of
your Hawaii adjusted gross income.
On Worksheet A-1, line 1, include medical
and dental bills you paid for:
• Yourself.
• Your spouse.
• All dependents you claim on your return.
Your child whom you do not claim as a de-
pendent because of the rules explained on
page 10 for Children of divorced or sepa-
rated parents.
Any person you could have claimed as a
dependent on your return except that per-
son received $4,150 or more of gross in-
come or filed a joint return.
Any person you could have claimed as a
dependent except that you, or your spouse
if filing jointly, can be claimed as a depen-
dent on someone else’s 2018 return.
Example—You provided over half of your
mother’s support but cannot claim her as a de-
pendent because she received $4,150 of wages
during 2018. If part of your support was the
payment of her medical bills, you can include
that part in your medical expenses.
You should include all amounts you paid
during 2018, but do not include amounts re-
paid to you, or paid to anyone else, by hospi-
tal, health or accident insurance, or by your
employer, or paid through a medical savings
account or health savings account.
Examples of Medical and
Dental Payments You CAN
Deduct
To the extent you were not reimbursed, you
can deduct what you paid for:
Insurance premiums for medical and den-
tal care, including premiums for qualified
long-term care contracts, subject to dollar
limitations based on a person’s age. See the
federal instructions to Form 1040 for the
dollar limits.
• Prescription medicines or insulin.
Acupuncturists, chiropractors, dentists,
eye doctors, medical doctors, occupational
therapists, osteopathic doctors, physical
therapists, podiatrists, psychiatrists, psy-
choanalysts (medical care only), and psy-
chologists.
Medical examinations, X-ray and labora-
tory services, insulin treatment, and whirl-
pool baths the doctor ordered.
Diagnostic tests, such as a full-body scan,
pregnancy test, or blood sugar test kit.
Nursing help. If you paid someone to do
both nursing and housework, you can de-
duct only the cost of nursing help.
Hospital care (including meals and lodg-
ing), clinic costs, and lab fees.
• Qualified long-term care services.
The supplemental part of Medicare insur-
ance (Medicare B).
The premiums you pay for Medicare Part
D insurance.
A program to stop smoking and for pre-
scription medicines to alleviate nicotine
withdrawal.
A weight-loss program as treatment for a
specific disease (including obesity) diag-
nosed by a doctor.
Medical treatment at a center for drug or
alcohol addiction.
Medical aids such as eyeglasses, contact
lenses, hearing aids, braces, crutches,
wheelchairs, and guide dogs, including the
cost of maintaining them.
Surgery to improve defective vision, such
as laser eye surgery or radial keratotomy.
Lodging expenses (but not meals) while
away from home to receive medical care
in a hospital or a medical care facility re-
lated to a hospital, provided there was no
significant element of personal pleasure,
recreation, or vacation in the travel. Don’t
deduct more than $50 a night for each eli-
gible person.
Ambulance service and other travel costs
to get medical care. If you used your own
car, you can claim what you spent for gas
and oil to go to and from the place you re-
ceived the care; or you can claim 18 cents
per mile. Add parking and tolls to the
amount you claim under either method.
Cost of breast pumps and supplies that as-
sist lactation.
Cosmetic surgery that was necessary to
improve a deformity related to a congeni-
tal abnormality, an injury from an accident
or trauma, or a disfiguring disease.
Examples of Medical and
Dental Payments You
CANNOT Deduct
You cannot deduct the following:
• The cost of diet food.
Cosmetic surgery unless it was necessary
to improve a deformity related to a con-
genital abnormality, an injury from an ac-
cident or trauma, or a disfiguring disease.
Note: If expenses for cosmetic surgery are
NOT deductible as medical expenses, then
amounts paid for insurance coverage for
such expenses are NOT deductible. Fur-
thermore, if an employer health plan re-
imburses you for such expenses, the reim-
bursement must be included in your gross
income.
Life insurance or income protection policies.
The Medicare tax on your wages and tips
or the Medicare tax paid as part of the self-
Page 18
employment tax or household employment
taxes.
The basic cost of Medicare insurance
(Medicare A).
Note: If you were 65 or over but not entitled
to social security benefits, you may deduct
premiums you voluntarily paid for Medi-
care A coverage.
Nursing care for a healthy baby. (You may
qualify for the credit for child and depen-
dent care expenses; see Schedule X, Part
II.)
• Illegal operations or drugs.
Imported drugs not approved by the U.S.
Food and Drug Administration (FDA). This
includes foreign-made versions of U.S.-ap-
proved drugs manufactured without FDA
approval.
Nonprescription medicines, other than in-
sulin (including nicotine gum and certain
nicotine patches).
Travel your doctor told you to take for rest
or a change.
• Funeral, burial, or cremation costs.
Line 21b
Taxes
Note: Act 27, Session Laws of Hawaii 2018 (1)
does not adopt the federal provision that lim-
its the deduction for state and local taxes to
$10,000 ($5,000 for a married taxpayer filing
a separate return) for tax years 2018 through
2025, but (2) does adopt the federal provision
that foreign real property taxes cannot be de-
ducted for tax years 2018 through 2025.
Note: If you claim a credit for income taxes
paid to other states and countries, you can-
not also claim those amounts as an itemized
deduction for state and foreign income taxes
paid to another state or foreign country.
Note: Taxpayers can claim a deduction for
state and local, and foreign, income, war prof-
its, and excess profits taxes if their federal
adjusted gross income is less than $100,000
and they are single or married filing sepa-
rately; or less than $150,000 and they are a
head of household; or less than $200,000 and
they are married filing jointly or a qualifying
widow(er).
Complete Worksheet A-2 on page 38 to fig-
ure your deduction for taxes.
Taxes You CAN Deduct
Note: You can elect to deduct state and local
general sales taxes instead of state and local
income taxes. You cannot deduct both.
State and Local Income Taxes
If you will deduct state and local income
taxes, check box a on line 5 of Worksheet A-2.
Include on this line:
State and local income taxes withheld
from your salary (as shown on your fed-
eral Form W-2) and withheld from your
unemployment compensation (as shown on
your federal Form 1099-G);
State and local income taxes paid in 2018
for a prior year, such as taxes paid with
your 2017 state or local income tax return;
State and local estimated tax payments
made during 2018, including any part of
a prior year refund that you chose to have
credited to your 2018 state or local income
taxes; and
The NET amount of taxes withheld from
the sale of Hawaii real property interests.
If you are a federal employee receiving a
Cost Of Living Allowance (COLA), not all of
your Hawaii income taxes are deductible for
federal purposes. See IRS Revenue Ruling 74-
140, 1974-1 C.B. 50, for more information. En-
ter on line 5a of Worksheet A-2 on page 38 the
entire amount of state and local income taxes
you paid in 2018, even if you reported a differ-
ent amount on federal Form 1040, Schedule A.
Do not reduce your deduction by any:
State or local income tax refund or credit
you expect to receive for 2018, or
Refund of, or credit for, prior year state
and local income taxes you actually re-
ceived in 2018. Instead, see the instruc-
tions for Form N-11, line 10.
For more information about the treatment of
taxes withheld from the sale of real property
interests, see Tax Facts 2010-1, “Understand-
ing HARPTA,” and Tax Information Release
No. 2017-01, “Withholding of State Income
Taxes on the Disposition of Hawaii Real Prop-
erty.”
State and Local General Sales Taxes
Note: For purposes of the deduction for state
and local general sales taxes, Hawaii’s gen-
eral excise tax will qualify as a “sales tax.”
If you elect to deduct state and local general
sales taxes, check box b on line 5 of Worksheet
A-2. To figure your deduction, you can use ei-
ther your actual expenses or the optional sales
tax tables.
Actual Expenses. Generally, you can deduct
the actual state and local general sales taxes
(including compensating use taxes) you paid
in 2018 if the tax rate was the same as the
general sales tax rate. However, sales taxes
on food, clothing, medical supplies, and motor
vehicles are deductible as a general sales tax
even if the tax rate was less than the general
sales tax rate. If you paid sales tax on a motor
vehicle at a rate higher than the general sales
tax rate, you can deduct only the amount of
tax that you would have paid at the general
sales tax rate on that vehicle. Motor vehicles
include cars, motorcycles, motor homes,
recreational vehicles, sport utility vehicles,
trucks, vans, and off-road vehicles. Also in-
clude any state and local general sales taxes
paid for a leased motor vehicle. Do not include
sales taxes paid on items used in your trade
or business.
Note: You must keep your actual receipts
showing general sales taxes paid to use this
method.
Refund of general sales taxes. If you re-
ceived a refund of state or local general sales
taxes in 2018 for amounts paid in 2018, reduce
your actual 2018 state and local general sales
taxes by this amount. If you received a refund
of state or local general sales taxes in 2018
for prior year purchases, do not reduce your
2018 state and local general sales taxes by
this amount. But if you deducted your actual
state and local general sales taxes in the ear-
lier year and the deduction reduced your tax,
you may have to include the refund in income
on line 10 (if not already included on line 7).
See Recoveries in federal Publication 525 for
details.
Optional Sales Tax Tables. Instead of using
your actual expenses, you can use the tables
in the instructions for federal Form 1040 to
figure your state and local general sales tax
deduction. You may also be able to add the
state and local general sales taxes paid on cer-
tain specified items.
To figure your state and local general sales
tax deduction using the tables, see the instruc-
tions for federal Form 1040.
Real Estate Taxes
Note: You cannot deduct foreign taxes you
paid on real estate.
Include taxes you paid on real estate you
own that was not used for business.
If your mortgage payments include your
real estate taxes, you can deduct only the
amount the mortgage company actually paid
to the taxing authority in 2018.
Personal Property Taxes
Include personal property taxes you paid,
but only if the taxes were based on value alone
and were imposed on a yearly basis.
Note: Hawaii does not have a personal prop-
erty tax. However, you may include personal
property taxes you paid to other states.
Other Taxes
If you had any deductible tax not listed on
Worksheet A-2, lines 5, 6, or 7 (such as foreign
income taxes), write the amount on Worksheet
A-2, line 8.
Taxes You CANNOT Deduct
• Federal income tax.
Federal excise tax on personal property,
transportation, telephone, and gasoline.
• Social security tax (FICA).
• Medicare tax.
• Federal unemployment tax (FUTA).
• Railroad retirement tax (RRTA).
• Customs duties.
• Federal estate and gift taxes.
• Certain state and local taxes, including:
a. Tax on gasoline.
b. Hawaii motor vehicle registration fees,
including car inspection fees.
c. Assessments for sidewalks or other im-
provements to your property.
d. Tax you paid for someone else.
e. License fees. (marriage, driver’s, dog,
hunting, auto, etc.)
f. Tax on liquor, beer, wine, cigarettes, and
tobacco.
g. Inheritance tax.
Page 19
h. Taxes paid for your business or profes-
sion. (These business taxes are deducted
elsewhere.)
Line 21c
Interest You Paid
Note: Act 27, Session Laws of Hawaii 2018,
does not adopt the federal provisions that (1)
suspends the deduction for interest paid on
home equity loans, and (2) lowers the dollar
limit on mortgages qualifying for the home
mortgage interest deduction for tax years 2018
through 2025.
Complete Worksheet A-3 on page 38 to fig-
ure your deduction for interest.
You should show on Worksheet A-3 interest
on non-business items only. Business-related
interest is deducted elsewhere.
Except for certain mortgage interest, the
amount of your personal interest expense
(such as credit card interest) is not allowed as
an itemized deduction on Worksheet A-3.
Home Mortgage Interest
A home mortgage is any loan that is secured
by your main home or second home. It in-
cludes first and second mortgages, home eq-
uity loans, and refinanced mortgages.
A home can be a house, condominium, co-
operative, mobile home, boat, or similar prop-
erty. It must provide basic living accommo-
dations including sleeping space, toilet, and
cooking facilities.
Limit on home mortgage interest. If you
took out any mortgages after October 13,
1987, your deduction may be limited. Any ad-
ditional amounts borrowed after October 13,
1987, on a line-of-credit mortgage you had
on that date are treated as a mortgage taken
out after October 13, 1987. If you refinanced
a mortgage you had on October 13, 1987, treat
the new mortgage as taken out on or before
October 13, 1987. But if you refinanced for
more than the balance of the old mortgage,
treat the excess as a mortgage taken out after
October 13, 1987.
See federal Publication 936 to figure your
deduction if either (1) or (2) next applies. If
you had more than one home at the same time,
the dollar amounts in (1) and (2) apply to the
total mortgages on both homes.
1. You, or your spouse if filing jointly, took
out any mortgages after October 13, 1987, and
used the proceeds for purposes other than to
buy, build, or improve your home, and all of
these mortgages totaled over $100,000 at any
time during 2018. The limit is $50,000 if mar-
ried filing separately. An example of this type
of mortgage is a home equity loan used to pay
off credit card bills, buy a car, or pay tuition.
2. You, or your spouse if filing jointly, took
out any mortgages after October 13, 1987, and
used the proceeds to buy, build, or improve
your home, and these mortgages plus any
mortgages you took out on or before October
13, 1987, totaled over $1 million at any time
during 2018. The limit is $500,000 if married
filing separately.
Note: If the total amount of all mortgages is
more than the fair market value of the home,
additional limits apply. See federal Publica-
tion 936.
Investment Interest
Investment interest is interest paid on mon-
ey you borrowed that is allocable to property
held for investment. It does not include any
interest allocable to a passive activity.
Note: Expenses and interest for royalties and
other income derived from any patents, copy-
rights, and trade secrets by an individual or
a qualified high technology business are de-
ductible.
Complete and attach Form N-158, Invest-
ment Interest Expense Deduction, to figure
your deduction.
Exception. You do not have to file Form
N-158 if ALL of the following apply:
Your investment interest expense is not
more than your investment income from
interest and ordinary dividends.
You have no other deductible investment
expenses.
You have no disallowed investment inter-
est expense from 2017.
For more details, see federal Publication
550, Investment Income and Expenses.
Interest Expense You
CANNOT Deduct
Do not include the interest you paid for—
Personal interest (interest on car loans and
finance charges on credit cards).
• Service charges.
• Annual fees for credit cards.
• Loan fees.
• Credit investigation fees.
Interest to purchase or carry tax-exempt
securities
Line 21d
Gifts to Charity
Note: Act 27, Session Laws of Hawaii 2018,
adopts the federal provisions that (1) increases
the adjusted gross income limitation on cash
contributions from 50% to 60%, effective for con-
tributions made in tax years 2018 through 2025,
(2) repeals the current 80% deduction for con-
tributions made for university athletic seating
rights, effective for contributions made in tax
years beginning after 2017, and (3) repeals the
exception to the contemporaneous written ac-
knowledgement requirement for contributions
of $250 or more when the donee organization
files the required return, effective for contribu-
tions made in tax years beginning after 2016.
Complete Worksheet A-4 on page 38 to figure
your deduction for charitable contributions.
Contributions You CAN
Deduct
You may deduct what you gave to organi-
zations that are religious, charitable, educa-
tional, scientific, or literary in purpose. You
may also deduct what you gave to organiza-
tions that work to prevent cruelty to children
or animals. An organization that tells you it is
a “501(c)(3) organization” is telling you that it
falls into this category.
Examples of these organizations are:
Churches, mosques, synagogues, temples,
etc.
Boy Scouts, Boys and Girls Clubs of Amer-
ica, CARE, Girl Scouts, Goodwill Indus-
tries, Red Cross, Salvation Army, United
Way, etc.
Fraternal orders, if the gifts will be used
for the purposes listed above.
• Veterans’ and certain cultural groups.
Nonprofit hospitals, and organizations
whose purpose is to find a cure for, or help
people who have, arthritis, asthma, birth
defects, cancer, cerebral palsy, cystic fi-
brosis, diabetes, heart disease, hemophil-
ia, mental illness or retardation, multiple
sclerosis, muscular dystrophy, tuberculo-
sis, etc.
Most nonprofit educational organizations,
such as colleges, but only if your contribu-
tion is not a substitute for tuition or other
enrollment fees.
Federal, state, and local governments if the
gifts are solely for public purposes.
Contributions can be in cash (including
checks and money orders), property, or out-
of-pocket expenses you paid to do volunteer
work for the kinds of organizations described
above. If you drove to and from the volunteer
work, you can take 14 cents a mile or the ac-
tual cost of gas and oil. Add parking and tolls
to the amount you claim under either method.
But don’t deduct any amounts that were re-
paid to you.
Gifts from which you benefit. If you made
a gift and received a benefit in return, such
as food, entertainment, or merchandise, you
may deduct only the amount that is more than
the value of the benefit. For example, if you
paid $70 to a charitable organization to attend
a fund-raising dinner and the value of the din-
ner was $40, you may deduct only $30.
If you do not know whether you can deduct
what you gave to an organization, check with
that organization.
Gifts of $250 or More. You can deduct a gift
of $250 or more only if you have a statement
from the charitable organization showing the
following information:
The amount of any money contributed and
a description (but not value) of any prop-
erty donated.
Whether the organization did or did not
give you any goods or services in return
for your contribution. If you did receive
any goods or services, a description and
estimate of the value must be included. If
you received only intangible religious ben-
efits (such as admission to a religious cer-
emony), the organization must state this,
but it does not have to describe or value
the benefit.
In figuring whether a gift is $250 or more,
do not combine separate donations. For ex-
Page 20
ample, if you gave your church $25 each week
for a total of $1,300, treat each $25 payment as
a separate gift. If you made donations through
payroll deductions, treat each deduction from
each paycheck as a separate gift. See federal
Publication 526 if you made a separate gift of
$250 or more through payroll deduction.
Note: You must get the statement by the date
you file your return or the due date (including
extensions) for filing your return, whichever is
earlier. Do not attach the statement to your re-
turn. Instead, keep it for your records.
Limit on the amount you can deduct. See
federal Publication 526 to figure the amount
of your deduction if any of the following ap-
plies:
Your cash contributions, or contributions
of ordinary income property, are more
than 30% of your Hawaii adjusted gross
income.
Your gifts of capital gain property are
more than 20% of your Hawaii adjusted
gross income.
You gave gifts of property that increased in
value, or gave gifts of the use of property.
Contributions You CANNOT
Deduct
Travel expenses (including meals and
lodging) while away from home, unless
there was no significant element of per-
sonal pleasure, recreation, or vacation in
the travel.
• Political contributions.
Dues, fees, or bills paid to country clubs,
lodges, fraternal orders, or similar groups.
• Cost of raffle, bingo, or lottery tickets.
• Value of your time or services.
• Value of blood given to a blood bank.
The transfer of a future interest in tangible
personal property (generally until the en-
tire interest has been transferred).
• Gifts to:
a. Individuals and groups that are run for
personal profit.
b. Foreign organizations.
c. Organizations engaged in certain political
activities that are of direct financial inter-
est to your trade or business.
d. Groups whose purpose is to lobby for
changes in the law.
e. Civic leagues, social and sports clubs, la-
bor unions, and chambers of commerce.
Value of benefits received in connection
with a contribution to a charitable orga-
nization.
• Cost of tuition.
Gifts by Cash or Check
On Worksheet A-4, line 15, enter the total
contributions you made in cash or by check
(including out-of-pocket expenses).
Recordkeeping. For any contribution made
in cash, regardless of the amount, you must
maintain as a record of the contribution a bank
record (such as a canceled check or credit card
statement) or a written record from the char-
ity. The written record must include the name
of the charity, date, and amount of the con-
tribution. If you made contributions through
payroll deduction, see federal Publication 526
for information on the records you must keep.
Do not attach the record to your tax return. In-
stead, keep it with your other tax records.
Other Than by Cash or Check
On Worksheet A-4, line 16, enter the total
contributions you made other than by cash or
check. If you gave used items, such as clothing
or furniture, deduct their fair market value at
the time you gave them. Fair market value is
what a willing buyer would pay a willing sell-
er when neither has to buy or sell and both are
aware of the conditions of the sale. For more
details on determining the value of donated
property, see federal Publication 561.
If the amount of your deduction is more
than $500, you must complete and attach fed-
eral Form 8283. For this purpose, the “amount
of your deduction” means your deduction
before applying any income limits that could
result in a carryover of contributions. If you
deduct more than $500 for a contribution of a
motor vehicle, boat, or airplane, you must also
attach a statement from the charitable organi-
zation to your return. If your total deduction is
over $5,000 ($500 for certain contributions of
clothing and household items), you may also
have to get appraisals of the values of the do-
nated property. See federal Form 8283 and its
instructions for more information.
Contributions of clothing and household
items. A deduction for these contributions
will be allowed only if the items are in good
used condition or better. However, this rule
does not apply to a contribution of any single
item for which a deduction of more than $500
is claimed and for which you include a quali-
fied appraisal and federal Form 8283 with
your tax return.
Recordkeeping. If you gave property, you
should keep a receipt or written statement
from the organization you gave the property
to, or a reliable written record, that shows
the organization’s name and address, the date
and location of the gift, and a description of
the property. For each gift of property, you
should also keep reliable written records that
include:
How you figured the property’s value at
the time you gave it. If the value was deter-
mined by an appraisal, keep a signed copy
of the appraisal.
The cost or other basis of the property if
you must reduce it by any ordinary income
or capital gain that would have resulted if
the property had been sold at its fair mar-
ket value.
How you figured your deduction if you
chose to reduce your deduction for gifts of
capital gain property.
• Any conditions attached to the gift.
Line 21e
Casualty and Theft Losses
Note: Act 27, Session Laws of Hawaii 2018,
does not adopt the federal provision that lim-
its the personal casualty loss deduction for
property losses (not used in connection with
a trade or business or transaction entered into
for profit) to apply only to losses incurred as
a result of federally-declared disasters for
losses arising in tax years 2018 through 2025.
Complete Worksheet A-5 on page 38 to figure
your deduction for casualty and theft losses.
Use line 21e to report casualty or theft
loss(es) of property that is not used in a trade
or business, or for income-producing purpos-
es. Complete the 2017 federal Form 4684, Ca-
sualties and Thefts, to figure your loss. Write
the amount from the 2017 federal Form 4684,
line 16 on line 19 of Worksheet A-5 on page 38,
fill in Worksheet A-5, and attach a copy of the
2017 federal Form 4684 to Form N-11.
Losses You CAN Deduct
You may be able to deduct part or all of each
loss caused by theft, vandalism, fire, storm, or
similar causes; car, boat, and other accidents;
and corrosive drywall. You may also be able
to deduct money you had in a financial insti-
tution but lost because of the insolvency or
bankruptcy of the institution.
If your property is covered by insurance,
you must file a timely insurance claim for
reimbursement of your loss. Otherwise, you
cannot deduct the loss as a casualty or theft
loss. However, the part of the loss that is not
covered by insurance is still deductible. You
can deduct personal casualty or theft losses
only to the extent that:
a. The amount of EACH separate casualty or
theft loss is more than $100, and
b. The total amount of ALL losses during the
year (reduced by the $100 limit) is more
than 10% of your adjusted gross income.
Corrosive drywall losses. If you paid for re-
pairs to your personal residence or household
appliances because of corrosive drywall, you
may be able to deduct those amounts paid. See
federal Publication 547 for details.
Use Worksheet A-6, line 25, to deduct the
costs of proving that you had a property loss.
Examples of these costs are appraisal fees
and photographs used to establish the amount
of your loss.
Losses You CANNOT Deduct
• Money or property misplaced or lost.
Accidental breaking of articles such as
glassware or china under normal condi-
tions.
Damage due to progressive deterioration
(steady weakening of a building due to nor-
mal wind and weather conditions; termite
or moth damage; damage or destruction of
trees, shrubs, or other plants by a fungus,
disease, insects, worms, or similar pests).
Line 21f
Miscellaneous Deductions
Note: Act 27, Session Laws of Hawaii 2018,
does not adopt the federal provision that sus-
pends all miscellaneous itemized deductions
that are subject to the 2% floor for tax years
2018 through 2025.
Page 21
Complete Worksheet A-6 on page 38 to fig-
ure your miscellaneous deductions.
In General
Most miscellaneous deductions cannot be
deducted in full. You must subtract 2% of your
adjusted gross income from the total.
Generally, the 2% limit applies to job ex-
penses you paid for which you were not reim-
bursed (line 23). The limit also applies to tax
preparation fees (line 24) and certain expens-
es you paid to produce or collect taxable in-
come or certain tax-exempt income (line 25).
The 2% limit does not apply to certain other
miscellaneous expenses that you may de-
duct. These expenses can be deducted in full
on line 30. Gambling losses (to the extent of
winnings) and certain job expenses of handi-
capped employees can be deducted on line 30.
See the 2017 federal Publication 529, Miscel-
laneous Deductions, for more information.
Expenses Subject to the 2%
Limit
Employee Business Expenses
Note: The 2018 standard mileage rate for busi-
ness use of your vehicle is 54.5 cents a mile.
On Worksheet A-6, line 23, report job ex-
penses you paid for which you were not reim-
bursed. Complete the 2017 federal Form 2106
or 2106-EZ and attach it to Form N-11 if:
1. You claim any travel, transportation, meal,
or entertainment expenses for your job; or
2. Your employer paid you for any of your job
expenses reportable on Worksheet A-6, line
23.
Examples of expenses to include on line
23 of Worksheet A-6 are:
Travel, transportation, meal, or entertain-
ment expenses.
• Union dues.
Safety equipment, small tools, and sup-
plies you needed for your job.
Uniforms required by your employer that
are not suitable for ordinary wear.
Protective clothing required in your work,
such as hard hats, safety shoes, and glasses.
Physical examinations required by your
employer.
Dues to professional organizations and
chambers of commerce.
• Subscriptions to professional journals.
Fees to employment agencies and other
costs to look for a new job in your present
occupation, even if you do not get a new
job.
Certain business use of part of your home,
but only if you use that part regularly and
exclusively for business purposes and for
the convenience of your employer. For de-
tails, including limits that apply, see the
2017 federal Publication 587, Business Use
of Your Home.
Certain education expenses you paid that
meet at least one of the following two tests.
1. The education is required by your em-
ployer or the law to keep your present sal-
ary, status, or job. The required education
must serve a bona fide business purpose
of your employer.
2. The education maintains or improves
skills needed in your present work.
Some education expenses are not deduct-
ible. See Expenses You MAY NOT Deduct on
this page.
Tax Preparation Fees
On Worksheet A-6, line 24, enter the fees you
paid for preparation of your federal and Ha-
waii tax return, including fees paid for filing
your return electronically.
Other Expenses
Note: Expenses and interest for royalties and
other income derived from any patents, copy-
rights, and trade secrets by an individual or
a qualified high technology business are de-
ductible.
On Worksheet A-6, line 25, enter the total
amount you paid to produce or collect tax-
able income and certain tax-exempt income
as stated in the above note, and manage or
protect property held for earning income. But
do not include any personal expenses. Attach
a statement showing the type and amount
of each expense to Form N-11. Examples of
these expenses are:
• Safe deposit box rental.
• Certain legal and accounting fees.
• Clerical help and office rent.
• Custodial (e.g., trust account) fees.
Your share of the investment expenses of a
regulated investment company.
Certain losses on nonfederally insured de-
posits in an insolvent or bankrupt financial
institution. For details, including limits
that apply, see the 2017 federal Publica-
tion 529.
Casualty and theft losses of property used
in performing services as an employee.
Deduction for repayment of amounts un-
der a claim of right. See Repayments in the
2017 federal Publication 525, Taxable and
Nontaxable Income, for more information.
Convenience fee charged by the card pro-
cessor for paying your income tax (includ-
ing estimated tax payments) by credit or
debit card. The deduction is claimed for
the year in which the fee was charged to
your card.
Expenses NOT Subject to the
2% Limit
Other Deductions
List only the following expenses on Work-
sheet A-6, line 30:
Gambling losses, but only to the extent of
gambling winnings reported on federal
Schedule 1 (Form 1040), line 21.
Note: Act 27, Session Laws of Hawaii 2018,
adopts the federal provision that defines
losses from wagering transactions to in-
clude any otherwise allowable deduction
incurred in carrying on wagering transac-
tions (e.g., traveling to and from a casino)
for tax years 2018 through 2025.
Casualty and theft losses of income-pro-
ducing property.
Loss from other activities from federal
Schedule K-1 (Form 1065-B), box 2.
• Hawaii estate and transfer tax.
Amortizable bond premium on bonds ac-
quired before October 23, 1986.
Certain unrecovered investment in an an-
nuity (IRC section 72(b)(3)). For details,
see the 2017 federal Publication 575, Pen-
sion and Annuity Income.
Impairment-related work expenses of a
disabled person.
List the type and amount of each expense
and attach a copy of the list to your return.
Enter one total in the amount space for line
30. For more information on these expenses,
see the 2017 federal Publication 529, Miscel-
laneous Deductions.
Note: Repayments under a claim of right over
$3,000 are subject to the 2% limitation for Ha-
waii income tax purposes.
Expenses You MAY NOT
Deduct
Some expenses are not deductible at all. Ex-
amples are:
• Political contributions.
Legal expenses for personal matters that
do not produce taxable income.
• Lost or misplaced cash or property.
Expenses for meals during regular or ex-
tra work hours.
• The cost of entertaining friends.
• Commuting expenses.
Travel expenses for employment away
from home if that period of employment
exceeds one year.
• Travel as a form of education.
Expenses of attending a seminar, conven-
tion, or similar meeting unless it is related
to your employment.
• Club dues.
• Expenses of adopting a child.
• Fines and penalties.
Expenses of producing tax-exempt income,
except for expenses for royalties and other
income derived from any patents, copy-
rights, and trade secrets by an individual
or a qualified high technology business.
• Education that:
1. Is needed to meet the minimum educa-
tional requirements of your present trade
or business, or
2. Is part of a program of study that will
qualify you for a new trade or business.
Line 22
Total Itemized Deductions
Dependents
If your parent (or someone else) can claim
you as a dependent on his or her return (even
if that person chose not to claim you), fill in
the oval above line 21. If you are claiming the
standard deduction, see Standard Deduction
Page 22
for Dependents on this page to figure your
standard deduction.
Itemized Deductions
Note: Act 27, Session Laws of Hawaii 2018,
does not adopt the federal provision that sus-
pends the overall limitation on itemized de-
ductions for tax years 2018 through 2025.
Note: Taxpayers with Hawaii adjusted gross
income above a certain amount will lose part
of their itemized deductions.
Your state income tax will be less if the total
of your itemized deductions is larger than the
standard deduction. To figure your itemized
deductions, fill in lines 21a to 21f.
Add lines 21a through 21f, and enter the re-
sult on line 22 if the amount on line 20 (Ha-
waii adjusted gross income) is $166,800 or
less ($83,400 if married filing separately).
You may not be able to deduct all of your
itemized deductions if the amount on line 20
(Hawaii adjusted gross income) is more than
$166,800 ($83,400 if married filing separate-
ly).
Use the Total Itemized Deductions Work-
sheet on page 38 to figure the amount you may
deduct.
Line 23
Standard Deduction
Note: Act 27, Session Laws of Hawaii 2018,
does not adopt the federal provision that in-
creases the standard deduction amounts for
tax years 2018 through 2025.
Taxpayers who do not itemize their deduc-
tions may reduce their adjusted gross income
by the amount of the standard deduction ap-
propriate to their filing status. The amount of
the standard deduction for each filing status
is as follows:
Filing Status Standard Deduction
Single $2,200
Married filing jointly 4,400
Married filing separately 2,200
Head of Household 3,212
Qualifying Widow(er) 4,400
Standard Deduction for Dependents. If you
can be claimed as a dependent by someone
else and you do not itemize your deductions,
your standard deduction is limited to the
greater of $500 or your earned income (up to
the full standard deduction for your filing sta-
tus). The standard deduction for an individual
who can be claimed as a dependent on the tax
return of another taxpayer is computed as fol-
lows:
A. Enter your earned income
(defined below). If none,
enter zero. ................................A.
B. Minimum amount ...................B. 500.00
C. Compare the amounts on
lines A and B above. Enter
the LARGER of the two
amounts here ..........................C.
D. Maximum amount. Enter
the full standard deduction for
your filing status, shown in
the chart above, here .............D.
E. Compare the amounts on
lines C and D above. Enter
the SMALLER of the two
amounts here and on
Form N-11, line 23. .................E.
Earned income includes wages, salaries,
tips, professional fees, and other compensation
received for personal services you performed.
It also includes any taxable scholarship or fel-
lowship grant. Generally, your earned income
is the total of the amounts you reported on
federal Form 1040, line 1 (wages), Schedule 1
(Form 1040), lines 12 (business income) and
18 (farming income), minus the amount, if any,
on Schedule 1 (Form 1040), line 27 (deduction
for self-employment tax).
Line 24
Line 20 minus line 22 or 23, whichever ap-
plies. This line MUST be filled in. If line 24 is
a negative number, shade the minus (-) in the
box to the left of the amount boxes.
Line 25
Exemptions
Note: Act 27, Session Laws of Hawaii 2018,
does not adopt the federal provision that sus-
pends the deduction for personal exemptions
for tax years 2018 through 2025.
Caution: If you can be claimed as a dependent
on another person’s tax return, you may not
claim an exemption for yourself.
Regular Exemptions
Residents are allowed $1,144 for each ex-
emption they can claim. Multiply $1,144 by
the total number of exemptions you claimed
on line 6e.
Blind, Deaf, or Totally Disabled
— Definition, Certification, and
Exemptions
Fill in the appropriate oval(s) on line 25
if you are blind, deaf or totally disabled and
your impairment has been certified. You must
submit a completed Form N-172 prior to filing
your return in order to claim this exemption.
If you do not, the exemption will be disal-
lowed and your return processed without the
disability exemption(s) claimed.
“Blind” means a person whose central vi-
sual acuity does not exceed 20/200 in the bet-
ter eye with correcting lenses, or whose visual
acuity is greater than 20/200 but is accompa-
nied by a limitation in the field of vision such
that the widest diameter of the visual field
subtends an angle no greater than 20 degrees.
“Deaf” means a person whose average loss
in the speech frequencies (500-2000 Hertz) in
the better ear is 82 decibels, A.S.A., or worse.
“Person totally disabled” means a person
who is totally and permanently disabled, ei-
ther physically or mentally, which results in
the person’s inability to engage in any sub-
stantial gainful business or occupation. It
is presumed that a person whose earned in-
come exceeds $30,000 for the taxable year is
engaged in a substantial, gainful business or
occupation.
The impairment of sight, deafness or dis-
ability shall be certified on the basis of a writ-
ten report on an examination performed by a
qualified ophthalmologist, qualified optom-
etrist or a qualified otolaryngologist, licensed
audiologist, or a qualified physician, as the
case may be, on Form N-172.
A blind, deaf or totally disabled person who
qualifies, may be allowed a Disability Exemp-
tion of $7,000. The Disability Exemption is
in lieu of the regular personal exemption of
$1,144. The following maximum exemptions
are allowed:
One Individual (any filing status) — $7,000
Taxpayer and Spouse (non-disabled
spouse under 65) — 8,144
Taxpayer and Spouse (non-disabled
spouse age 65 or over) — 9,288
Taxpayer and Spouse (both
disabled) — 14,000
Note: If you claim this special exemption you
will not be able to claim the additional exemp-
tions for your children or other dependents, or
for being 65 or older.
For more information, see Tax Information
Release No. 89-3, “State Tax Benefits Avail-
able to Persons with Impaired Sight, Impaired
Hearing, or Who are Totally Disabled.
Also, see the temporary administrative
rules relating to substantial gainful business
or occupation (section 18-235-1.14(d), HAR).
Line 26
Taxable Income
Line 24 minus line 25, but not less than zero.
Note: Act 27, Session Laws of Hawaii 2018,
does not adopt the federal provision that al-
lows a deduction for qualified business in-
come from a partnership, S corporation, or
sole proprietorship for tax years 2018 through
2025.
Tax Computation
Line 27
Tax
To figure your tax, you will use one of the
following methods. Read the conditions below
to see which you should use, and fill in the
appropriate oval on line 27 if you use the tax
table, tax rate schedules, or alternative tax
on capital gains. Fill in the oval for tax from
the applicable forms if you use Form N-168 or
Form N-615. Then, go to the Tax Computation
Worksheet on page 39.
Tax Table
If your taxable income is less than $100,000,
you MUST use the Tax Table on pages 42
through 53 to find your tax. Be sure you use
the correct column in the Tax Table. After
you have found the correct tax, enter that
amount. There is an example at the beginning
of the table to help you find the correct tax.
Page 23
Tax Rate Schedules
You must use the Tax Rate Schedules on
page 54 to figure your tax if your taxable in-
come is $100,000 or more.
Form N-168
An individual engaged in a farming or fish-
ing business may elect to average their farm-
ing or fishing income over a three-year peri-
od. See Form N-168 for more information.
Form N-615
If a child under age 14 has unearned income
of more than $1,000, use Form N-615, Compu-
tation of Tax for Children Under Age 14 Who
Have Unearned Income of More than $1,000,
to see if any of the child’s unearned income is
taxed at the parent’s rate and, if so, to figure
the child’s tax. See Form N-615 for more in-
formation.
Alternative Tax on Capital Gains
If you have a net capital gain, you may be
able to reduce your tax using the Tax on Capi-
tal Gains Worksheet on page 39 if your taxable
income is over $48,000 ($24,000 for Single,
and Married Filing Separately; or $36,000 for
Head of Household classifications). If your
taxable income is $48,000 ($24,000 for Single,
and Married Filing Separately; or $36,000 for
Head of Household classifications) or under,
do not use the Tax on Capital Gains Worksheet
on page 39.
Some taxpayers will have Hawaii gain ad-
justments. Before filling in the worksheet, de-
termine whether you have adjustments from
the Hawaii Additions Worksheet on page 37,
e (gain adjustment), or j (other adjustments);
from the Hawaii Subtractions Worksheet on
page 37, j (certain income from a qualified
high technology business), or n (other ad-
justments); or from Form N-152 (lump sum
distribution from a pension plan). If you do,
separate the adjustments into long-term gain
adjustments for assets held for more than a
year, and short-term adjustments for assets
held for a year or less.
Total Tax Liability
Use the Tax Computation Worksheet on
page 39 to figure your total tax liability.
Refundable Credits
IMPORTANT! If the amount of payments plus
these credits is at least $1 more than your tax,
the difference will be refunded to you. It is
very important that you carefully read the fol-
lowing instructions for each of these credits to
ensure that you properly claim all the credits
to which you are entitled.
Line 28
Refundable Food/Excise Tax
Credit
If your federal adjusted gross income was
less than $50,000 (less than $30,000 if your fil-
ing status is Single), you may qualify for this
credit.
For more information, see Form N-311, Re-
fundable Food/Excise Tax Credit.
Note: Do not claim this credit if you are being
claimed or eligible to be claimed as a depen-
dent by any taxpayer for federal or Hawaii
income tax purposes.
To claim this credit. Complete Form N-311
and attach it to your return.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Line 29
Credit for Low-Income
Household Renters
If you occupy and pay rent for real prop-
erty within the State as your residence, your
Hawaii adjusted gross income was less than
$30,000, and the rent you paid during 2018
was more than $1,000, you may qualify for
this credit. See the instructions for Schedule
X, Part I, on page 33.
Note: Do not claim this credit if you are being
claimed or eligible to be claimed as a depen-
dent by any taxpayer for federal or Hawaii
income tax purposes.
To claim this credit. Complete Schedule X,
Part I, and attach it to your return.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Line 30
Credit for Child and
Dependent Care Expenses
Certain payments made for child and de-
pendent care (including payments made to the
State of Hawaii A+ Program) may be claimed
as a credit against your tax due. See the in-
structions for Schedule X, Part II, on page 34.
Note: Do not claim this credit if you are being
claimed or eligible to be claimed as a depen-
dent by any taxpayer for federal or Hawaii
income tax purposes.
To claim this credit. Complete Schedule X,
Part II, and attach it to your return.
Line 31
Credit for Child Passenger
Restraint System
Each taxpayer who files an individual in-
come tax return for the taxable year may
claim a tax credit for 2018 for the purchase
of one or more new child passenger restraint
systems which comply with federal motor ve-
hicle safety standards.
Note: This credit is $25 per return regardless
of the cost or the number of restraint systems
purchased.
To claim this credit. Enter $25 in line 31,
and attach a copy of the sales invoice, which
states the type of child restraint system pur-
chased, to your return.
Your claim for this credit may be rejected if
the invoice is not attached, or if 1) or 2) applies
but no statement or explanation is attached.
1) If the invoice doesn’t have your name on
it, you must attach a statement saying that
you and nobody else is claiming the credit
for the purchase described in the invoice.
2) If the invoice has somebody else’s name on
it, you must attach an explanation.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Line 32
Total Refundable Tax Credits
from Schedule CR
If you are claiming any of the following
refundable tax credits, you must use Sched-
ule CR, Schedule of Tax Credits, to summa-
rize the total refundable tax credits claimed.
Complete Part II of Schedule CR, and enter
the amount from Schedule CR, line 27, on line
32. Attach Schedule CR directly behind Form
N-11.
The following refundable tax credits are in-
cluded on Schedule CR:
Capital Goods Excise Tax
Credit
A 4% credit is available to Hawaii businesses
that acquire qualifying business property and
place it in service during the taxable year.
For more information, see the instructions
for Form N-312, Tax Information Release
No. 88-6, “Capital Goods Excise Tax Credit,”
Tax Information Release No. 88-8, “Capital
Goods Excise Tax Credit Recapture,” Tax In-
formation Release No. 89-4, The Taxpayer
Who Is Entitled To The Capital Goods Excise
Tax Credit When The Parties Characterize A
Transaction As A Lease Or Sale-Leaseback,”
and Tax Information Release No. 2001-4,
The Definition of “Cost”; The Payment of Tax
Requirement; and Safe Harbor Guidelines
Pertaining to the Capital Goods Excise Tax
Credit.”
To claim this credit. Complete Form N-312
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
Page 24
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Fuel Tax Credit for
Commercial Fishers
Each principal operator of a commercial
fishing vessel who files an individual income
tax return may claim an income tax credit for
certain fuel taxes paid during the year.
To claim this credit. Complete Form N-163
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Motion Picture, Digital Media,
and Film Production Income
Tax Credit
Note: Act 143, Session Laws of Hawaii 2017,
extends the repeal date of the motion picture,
digital media, and film production income
tax credit from January 1, 2019, to January 1,
2026.
A taxpayer may claim an income tax credit
of (1) 20% of the qualified production costs
incurred before January 1, 2026, by a quali-
fied production in the City and County of Ho-
nolulu, and (2) 25% of the qualified produc-
tion costs incurred before January 1, 2026, by
a qualified production in the Kauai, Maui, or
Hawaii county. The total tax credits claimed
per qualified production shall not exceed
$15,000,000.
For more information, see Form N-340, Mo-
tion Picture, Digital Media, and Film Produc-
tion Income Tax Credit.
To claim this credit. Complete Form N-340
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Refundable Renewable
Energy Technologies Income
Tax Credit (For Systems
Installed and Placed in
Service on or After July 1,
2009)
If you install and place in service an eli-
gible renewable energy technology system in
Hawaii, you may qualify to claim this credit.
You may claim the credit as nonrefundable or
refundable. For information on how to claim
the credit as nonrefundable, see the instruc-
tions for Nonrefundable Renewable Energy
Technologies Income Tax Credit on page 27. A
refundable credit means you will receive a tax
refund if your credit amount is greater than
the amount of income tax you owe. You may
elect to claim the credit as a refundable credit
under the following circumstances:
Reduced Credit
For a solar energy system such as a solar
water heater or photovoltaic system, you must
reduce the credit amount by 30% unless you
meet the conditions described in the “Full
Credit” paragraph below.
Full Credit
For a solar or wind energy system, you may
claim the full credit as a refundable credit if
you are an individual taxpayer and any of the
following apply:
(1) All your (and your spouse’s) income is
retirement income such as pension distribu-
tions, social security, or distributions from a
public retirement system that is exempt from
Hawaii income tax; or
(2) Your Hawaii adjusted gross income
(AGI) is $20,000 or less ($40,000 or less if you
are married filing a joint return).
Irrevocable Election
A taxpayer and spouse who do not file a
joint tax return shall only be entitled to make
this election to the extent that they would
have been entitled to make the election had
they filed a joint tax return.
Once an election is made to treat the tax
credit as refundable, the election cannot be
revoked. An amended return cannot be filed
to change the tax credit from refundable to
nonrefundable.
Total Output Capacity
A system classified under “other solar en-
ergy system” such as a photovoltaic system
must meet the total output capacity require-
ment to qualify for the credit unless an excep-
tion applies.
The total output capacity requirements are:
Single-family residential property — 5
kilowatts per system
Multi-family residential property — 0.360
kilowatts per unit per system
Commercial property — 1,000 kilowatts
per system
For more information, see Form N-342 and
its instructions, and Tax Information Release
No. 2007-02, “Relating to the Renewable En-
ergy Technologies Income Tax Credit,” Tax
Information Release No. 2010-10, “Common
Income Tax & General Excise Tax Issues As-
sociated with the Renewable Energy Tech-
nologies Income Tax Credit, HRS §235-12.5,”
and Tax Information Release No. 2012-01,
Temporary Administrative Rules Relating to
the Renewable Energy Technologies Income
Tax Credit.”
To claim this credit. Complete Form N-342
and Schedule CR and attach them to your re-
turn. Fill in the appropriate oval on Schedule
CR to indicate the type of energy system.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Important Agricultural Land
Qualified Agricultural Cost
Tax Credit
Note: Act 87, Session Laws of Hawaii 2018,
extends through the 2021 tax year the time
in which the Department of Agriculture may
certify important agricultural land qualified
agricultural cost tax credits.
If you are claiming the important agricul-
tural land qualified agricultural cost tax cred-
it, see Form N-344 for information.
To claim this credit. Complete Form N-344
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Tax Credit for Research
Activities
For taxable years from 2013 to 2019, each
qualified high technology business subject to
Hawaii’s income tax can claim an income tax
credit for qualified research activities equal to
the federal credit for increasing research ac-
tivities provided by IRC section 41, provided
that in order to qualify for this tax credit, the
qualified high technology business shall also
claim a federal tax credit for the same quali-
fied research activities under IRC section 41.
Qualified research expenses shall not include
research expenses incurred outside Hawaii.
To claim this credit. Complete Form N-346
and Schedule CR and attach them to your re-
turn. Form N-346A, which must be certified,
and your federal Form 6765 also must be at-
tached to your return.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Other Credits
Pro Rata Share of Taxes Withheld
and Paid by a Partnership, Estate,
Trust, or S Corporation on the Sale
of Hawaii Real Property Interests
If the tax was withheld by a partnership,
estate, trust or S corporation, and you are tax-
able on a pro rata share of the entity’s gain on
the sale, include ONLY the amount of your pro
rata share of any net income taxes withheld
and paid by the partnership, estate, trust or S
Page 25
corporation on Schedule CR, line 26a, and at-
tach a copy of the Schedule K-1 issued to you
by the partnership, estate, trust, or S corpora-
tion.
Note: If the partnership, estate, trust or S cor-
poration filed a Form N-288C, Application for
Tentative Refund of Withholding on Disposi-
tions by Nonresident Persons of Hawaii Real
Property Interests, you may not claim this
credit for your share of the amount being re-
funded to the entity.
Credit From a Regulated Investment
Company
A shareholder of a regulated investment
company is allowed a credit for the tax paid
to the State by the company on the amount of
capital gains which by IRC section 852(b)(3)
(D) is required to be included in the share-
holder’s return. The regulated investment
company will notify you of the undistributed
capital gains amount and the tax paid, if
any. If this credit applies to you, include the
amount on Schedule CR, line 26b, and attach
an explanation.
Line 34
Line 27 minus line 33. Enter the result on
this line.
If line 34 is a negative number, shade the
minus (-) in the box to the left of the amount
boxes.
If you are using nonrefundable credits to
offset your adjusted tax liability (line 34), the
total of the nonrefundable credits used cannot
be greater than your adjusted tax liability. If
line 34 is zero or less, nonrefundable tax cred-
its may not be used. Even if you are not able
to use the nonrefundable tax credits, complete
the forms for any tax credits you qualify for,
and attach the forms to your Form N-11. If the
forms are not attached, no claim for the tax
credit has been made, and you will lose the
carryover of your unused tax credits.
Nonrefundable Credits
Line 35
Total Nonrefundable Tax
Credits from Schedule CR
Note: If line 34 is zero or less, no tax credit
may be used. Enter zero on line 35.
If you are claiming any nonrefundable tax
credits, you must use Schedule CR, Schedule
of Tax Credits, to summarize the total nonre-
fundable tax credits claimed. Complete Part
I of Schedule CR, and enter the amount from
Schedule CR, line 19, on line 35. Attach Sched-
ule CR directly behind Form N-11. The follow-
ing nonrefundable tax credits are included on
Schedule CR:
Credit for Income Taxes Paid
to Other States and Countries
Note: If you claim a credit for income taxes
paid to other states and countries, you can-
not also claim those amounts as an itemized
deduction for state and foreign income taxes
paid to another state or foreign country.
If you have out-of-state income that is taxed
by another state or foreign country and also
by Hawaii, you may claim a credit against
your Hawaii income for the net income tax
you paid to the other state or foreign country
if you meet the following conditions:
The income was earned while you were a
Hawaii resident (or you are married and
filing a joint resident return) and was not
exempt from Hawaii income tax;
The income on which the state or foreign
tax is imposed was derived or received
from sources outside Hawaii;
You were liable for and paid tax to the for-
eign jurisdiction (net amount of tax paid
to a foreign jurisdiction after all credits,
reductions, and refunds allowed or allow-
able by the laws of the foreign jurisdiction
have been deducted);
The tax paid to the other state or foreign
country is an income-based tax that is im-
posed on both residents and nonresidents
of the other state or foreign country, rather
than a sales, gross receipts, withholding,
or value added tax (i.e., taxes withheld on
dividends paid from foreign investments
do not qualify);
No credit is allowed if the foreign income
is excluded on the federal return;
No credit is allowed if the foreign tax cred-
it is allowed on the federal return;
The income must be taxed by the other
state or foreign country for the same tax-
able year for which the Hawaii credit is
claimed;
No credit is allowed for penalties or inter-
est paid to the other state or foreign coun-
try; and
No credit is allowed for city or local in-
come taxes paid to another state.
Out-of-State Tax Refund. If you claim this
credit and you later receive a tax refund from
the other state or foreign country, you MUST
report this to the Department. You may be sub-
ject to penalties if you fail to make this report.
For more information, see section 235-55,
HRS, and section 18-235-55, HAR.
To claim this credit. Complete the Other
State and Foreign Tax Credit Worksheet on
page 39. On line 5 of the worksheet, enter the
net amount of tax paid to the other state after
all credits, reductions, and refunds allowed or
allowable by the laws of the other state have
been deducted (net tax liability).
You must attach the following to your return:
• Schedule CR.
If you entered any amount on line 5, you
must attach a copy of the tax return(s)
from the other state(s).
If you entered any amount on line 6, you
must attach a copy of all federal Form(s)
1116 that you are filing this year. If you
are not required to file federal Form 1116,
attach a copy of the payee statement (such
as federal Form 1099-DIV or 1099-INT)
that you received for your foreign source
income.
Credit for Beneficiaries of Foreign
Trusts
Any resident beneficiary of a trust with a
situs in another State may claim a credit for
income taxes paid by the trust to the other
State on any income that is attributable to as-
sets other than intangibles. This credit is not
allowed for trusts that are resident in a for-
eign country (or in any territory or possession
of the United States).
The trust will inform you of what your
share of the trust’s income is, and how much
of it is long-term capital gains. Include these
amounts on lines 3 and 4, respectively, of the
Other State and Foreign Tax Credit Worksheet
on page 39.
The trust will also tell you your share of
the tax the trust paid to the other state. Find
out how much of the trust’s income was at-
tributable to real property and tangible per-
sonal property (not including stocks, bonds,
mortgages, and other intangibles). Divide
that number by the total amount of the trust’s
income, and multiply your share of the out-
of-state tax by that percentage. Include this
amount on line 5 of the Other State and For-
eign Tax Credit Worksheet on page 39.
Credit for Shareholders of S
Corporations
A shareholder of an S corporation shall be
considered to have paid a tax imposed on the
shareholder in an amount equal to the share-
holder’s pro rata share of any net income tax
paid by the S corporation to a state which
does not measure the income of S corporation
shareholders by the income of the S corpora-
tion. The term “net income tax” means any
tax imposed on or measured by a corpora-
tion’s net income.
The S corporation will inform you of what
your share of its income is, and how much
of it is long-term capital gains. Include these
amounts on lines 3 and 4, respectively, of the
Other State and Foreign Tax Credit Worksheet
on page 39.
The S corporation will also tell you your
share of the tax paid to the other state. Include
this amount on line 5 of the Other State and
Foreign Tax Credit Worksheet on page 39.
Carryover of the Credit for
Energy Conservation
Note: The credit for energy conservation ex-
pired on June 30, 2003. This credit may be
claimed only if you have a carryover of the tax
credit from a prior year.
Each individual resident taxpayer who files
an individual income tax return and who has
unused credits for energy conservation from
the prior year may claim a tax credit against
its individual income tax liability. Tax credits
that exceed the individual’s income tax li-
ability are not refunded but may be used as
a credit against the individual’s income tax
liability in subsequent years until exhausted.
Page 26
For more information, see Form N-323, Car-
ryover of Tax Credits.
To claim the carryover of this credit. Com-
plete Form N-323 and Schedule CR and attach
them to your return.
See the discussion for the Renewable En-
ergy Technologies Income Tax Credit (For
Systems Installed and Placed in Service on or
After July 1, 2009), for the credit available for
current system installations.
Enterprise Zone Tax Credit
A qualified enterprise zone business may
claim a credit for a percentage of net income
tax due to the State attributable to the conduct
of business within a zone and a percentage of
the amount of unemployment insurance pre-
miums paid based on the payroll of employees
employed at the business firm establishments
in the zone. The applicable percentage is 80%
the first year; 70% the second year; 60% the
third year; 50% the fourth year; 40% the fifth
year; 30% the sixth year; and 20% the seventh
year. This credit is not refundable and any un-
used credit may NOT be carried forward.
For more information, see Form N-756, En-
terprise Zone Tax Credit.
To claim this credit. Complete Form N-756
and Schedule CR and attach them to your re-
turn.
Tax Credit for Low-Income
Housing
Note: Do not confuse this credit with the credit
for low-income household renters.
Hawaii’s tax credit for low-income housing
is equal to 50% of the tax credit allocated by
the Hawaii Housing Finance and Develop-
ment Corporation for qualified buildings lo-
cated within the State of Hawaii.
Contact the Hawaii Housing Finance and
Development Corporation for qualifying re-
quirements and further information.
To claim this credit. Complete Form N-586
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Credit for Employment of
Vocational Rehabilitation
Referrals
The amount of the tax credit for the taxable
year is equal to 20% of the qualified first-year
wages for that year. The amount of the quali-
fied first-year wages which may be taken into
account with respect to any individual shall
not exceed $6,000.
“Qualified wages” means the wages paid or
incurred by the employer during the taxable
year to an individual who is a vocational reha-
bilitation referral and more than one-half of
the wages paid or incurred for such an indi-
vidual is for services performed in a trade or
business of the employer.
“Qualified first-year wages” means, with re-
spect to any vocational rehabilitation referral,
qualified wages attributable to service ren-
dered during the one-year period beginning
with the day the individual begins work for
the employer.
The credit allowed shall be claimed against
net income tax liability for the taxable year.
A tax credit which exceeds the taxpayer’s
income tax liability may be used as a credit
against the taxpayer’s income tax liability in
subsequent years until exhausted.
For more information, see Form N-884,
Credit for Employment of Vocational Reha-
bilitation Referrals.
To claim this credit. Complete Form N-884
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Carryover of the High
Technology Business
Investment Tax Credit
Note: The high technology business invest-
ment tax credit is not available for invest-
ments made after December 31, 2010. You
may claim the tax credit only if you have a
carryover of the tax credit from a prior year.
Each taxpayer who files an individual in-
come tax return and who has unused high
technology business investment tax credits
may claim a tax credit against its individual
income tax liability. A tax credit which ex-
ceeds the taxpayer’s income tax liability may
be used as a credit against the taxpayer’s in-
come tax liability in subsequent years until
exhausted.
For more information, see Form N-323, Car-
ryover of Tax Credits.
To claim the carryover of this credit. Com-
plete Form N-323 and Schedule CR and attach
them to your return.
Carryover of the Individual
Development Account
Contribution Tax Credit
Note: The individual development account
contribution tax credit is not available for tax-
able years beginning after December 31, 2004.
This credit may be claimed only if you have a
carryover of the tax credit from a prior year.
Each individual taxpayer who files an indi-
vidual income tax return and who has unused
credits for contributions of matching funds to
an individual development account from the
prior year may claim a tax credit against its
individual income tax liability. Tax credits
that exceed the individual’s income tax li-
ability are not refunded but may be used as
a credit against the individual’s income tax
liability in subsequent years until exhausted.
For more information, see Form N-323, Car-
ryover of Tax Credits.
To claim the carryover of this credit. Com-
plete Form N-323 and Schedule CR and attach
them to your return.
Carryover of the Technology
Infrastructure Renovation Tax
Credit
Note: The technology infrastructure renova-
tion tax credit is not available for taxable years
beginning after December 31, 2010. This credit
may be claimed only if you have a carryover of
the tax credit from a prior year.
Each individual taxpayer who files an indi-
vidual income tax return and who has unused
credits from the prior year for renovation
costs to provide a commercial building with
technology enabled infrastructure may claim
a tax credit against its individual income tax
liability. Tax credits that exceed the individu-
al’s income tax liability are not refunded but
may be used as a credit against the individu-
al’s income tax liability in subsequent years
until exhausted.
For more information, see Form N-323, Car-
ryover of Tax Credits.
To claim the carryover of this credit. Com-
plete Form N-323 and Schedule CR and attach
them to your return.
School Repair and
Maintenance Tax Credit
Licensed contractors, pest control operators,
and professional engineers, architects, survey-
ors and landscape architects who are subject to
Hawaii’s income tax may claim an income tax
credit for contributions of in-kind services for
the repair and maintenance of public schools.
The credit shall be an amount equal to 10% of
the value of the services contributed. Certain
other limitations and restrictions apply.
The credit allowed shall be claimed against
net income tax liability for the taxable year.
A tax credit which exceeds the taxpayer’s
income tax liability may be used as a credit
against the taxpayer’s income tax liability in
subsequent years until exhausted.
For more information, see Form N-330,
School Repair and Maintenance Tax Credit.
To claim this credit. Complete Form N-330
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Page 27
Carryover of the Hotel
Construction and Remodeling
Tax Credit
Note: The 10% nonrefundable hotel construc-
tion and remodeling tax credit may not be
claimed for qualified construction or renova-
tion costs incurred after June 30, 2003. This
credit may be claimed only if you have a car-
ryover of the tax credit from a prior year.
Each individual taxpayer who files an indi-
vidual income tax return and who has unused
credits for qualified construction or renova-
tion costs from the prior year may claim a tax
credit against its individual income tax liabil-
ity. Tax credits that exceed the individual’s
income tax liability are not refunded but may
be used as a credit against the individual’s
income tax liability in subsequent years until
exhausted.
For more information, see Form N-323, Car-
ryover of Tax Credits, and Tax Information
Release No. 2000-2, “Hotel Construction and
Remodeling Tax Credit.”
To claim the carryover of this credit. Com-
plete Form N-323 and Schedule CR and attach
them to your return.
Carryover of the Residential
Construction and Remodeling
Tax Credit
Note: The residential construction and re-
modeling tax credit may not be claimed for
construction or renovation costs incurred af-
ter June 30, 2003. This credit may be claimed
only if you have a carryover of the tax credit
from a prior year.
Each individual taxpayer who files an indi-
vidual income tax return and who has unused
credits for qualified construction or renovation
costs from the prior year may claim a tax credit
against its individual income tax liability. Tax
credits that exceed the individual’s income tax
liability are not refunded but may be used as
a credit against the individual’s income tax li-
ability in subsequent years until exhausted.
For more information, see Form N-323, Car-
ryover of Tax Credits, and Tax Information
Release No. 2002-3, “Residential Construction
and Remodeling Tax Credit.”
To claim the carryover of this credit. Com-
plete Form N-323 and Schedule CR and attach
them to your return.
Carryover of the Renewable
Energy Technologies Income
Tax Credit (For Systems
Installed and Placed in
Service Before July 1, 2009)
Note: This credit may be claimed only if you
have a carryover of the renewable energy
technologies income tax credit for systems
installed and placed in service before July 1,
2009.
Each taxpayer who files an individual in-
come tax return and who has unused renew-
able energy technologies income tax credits
for systems installed and placed in service
before July 1, 2009, may claim a tax credit
against its individual income tax liability.
A tax credit which exceeds the taxpayer’s
income tax liability may be used as a credit
against the taxpayer’s income tax liability in
subsequent years until exhausted.
For more information, see Form N-323, Car-
ryover of Tax Credits.
To claim the carryover of this credit. Com-
plete Form N-323 and Schedule CR and attach
them to your return.
See the discussion for the Renewable En-
ergy Technologies Income Tax Credit (For
Systems Installed and Placed in Service on or
After July 1, 2009), for the credit available for
current system installations.
Nonrefundable Renewable
Energy Technologies Income
Tax Credit (For Systems
Installed and Placed in Service
on or After July 1, 2009)
If you install and place in service an eligible
renewable energy technology system in Ha-
waii, you may qualify to claim this credit. You
may claim the credit as nonrefundable or re-
fundable. For information on how to claim the
credit as refundable, see the instructions for
Refundable Renewable Energy Technologies
Income Tax Credit on page 24. A nonrefund-
able credit means your credit will be applied
towards the amount of income tax you owe.
If your nonrefundable credit is greater than
the amount of income tax that you owe, then
you may carryover the remaining credit and
apply it towards next year’s income tax. You
may continue to carryover the credit until it
is used up.
Total Output Capacity
A system classified under “other solar en-
ergy system” such as a photovoltaic system
must meet the total output capacity require-
ment to qualify for the credit unless an excep-
tion applies.
The total output capacity requirements are:
Single-family residential property — 5
kilowatts per system
Multi-family residential property — 0.360
kilowatts per unit per system
Commercial property — 1,000 kilowatts
per system
For more information, see Form N-342 and
its instructions, and Tax Information Release
No. 2007-02, “Relating to the Renewable En-
ergy Technologies Income Tax Credit,” Tax
Information Release No. 2010-10, “Common
Income Tax & General Excise Tax Issues As-
sociated with the Renewable Energy Tech-
nologies Income Tax Credit, HRS §235-12.5,”
and Tax Information Release No. 2012-01,
Temporary Administrative Rules Relating to
the Renewable Energy Technologies Income
Tax Credit.”
To claim this credit. Complete Form N-342
and Schedule CR and attach them to your re-
turn. Fill in the appropriate oval on Schedule
CR to indicate the type of energy system. Also,
enter the amount of the credit claimed that is
attributed to a credit carryforward from pre-
vious years, if applicable.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Capital Infrastructure Tax
Credit
The capital infrastructure tax credit, which
helps tenants who were displaced by the Ka-
palama container terminal project, is effec-
tive for taxable years beginning after Decem-
ber 31, 2013. The credit will not be available
for taxable years beginning after December
31, 2019.
The tax credit is the lesser of 50% of the cap-
ital infrastructure costs paid or incurred by a
qualified infrastructure tenant during the tax-
able year or $2,500,000.
For more information, see Form N-348, Cap-
ital Infrastructure Tax Credit.
To claim this credit. Complete Form N-348
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Cesspool Upgrade,
Conversion or Connection
Income Tax Credit
Note: Act 133, Session Laws of Hawaii 2018,
repeals the provision that restricts the Depart-
ment of Health from certifying more than two
residential large capacity cesspools as quali-
fied cesspools, effective for taxable years be-
ginning after December 31, 2017.
A taxpayer may claim a credit for the costs
to upgrade or convert a qualified cesspool into
a septic system or an aerobic treatment unit
system, or to connect a qualified cesspool to a
sewer system, effective for taxable years be-
ginning after December 31, 2015. The credit
will not be available for taxable years begin-
ning after December 31, 2020.
The tax credit is equal to the qualified ex-
penses of the taxpayer, up to a maximum of
(1) $10,000 per cesspool, or (2) $10,000 per
residential dwelling connected to a residential
large capacity cesspool.
For more information, see Form N-350,
Cesspool Upgrade, Conversion or Connection
Income Tax Credit.
To claim this credit. Complete Form N-350
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
Page 28
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Renewable Fuels Production
Tax Credit
Note: Act 143, Session Laws of Hawaii 2018,
expands the availability of the renewable fu-
els production tax credit by lowering the pro-
duction threshold and expanding the types of
renewable fuel eligible for the credit, effective
for taxable years beginning after December
31, 2017.
Each taxpayer producing renewable fuels
may claim a nonrefundable renewable fuels
production tax credit for taxable years begin-
ning after December 31, 2016, and before De-
cember 31, 2021.
The tax credit is the lesser of 20 cents per
76,000 British thermal units of renewable fu-
els using the lower heating value sold for dis-
tribution in Hawaii or $3,000,000 per taxable
year. The taxpayer’s production of renewable
fuels cannot be less than 2.5 billion British
thermal units of renewable fuels per year.
For more information, see Form N-352, Re-
newable Fuels Production Tax Credit.
To claim this credit. Complete Form N-352
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Organic Foods Production
Tax Credit
A qualified taxpayer incurring qualified
expenses associated with the production or
handling of organic foods may claim a nonre-
fundable organic foods production tax credit
for taxable years beginning after December
31, 2016, and before December 31, 2021.
The tax credit is 100% of qualified expenses
up to a maximum of $50,000 per qualified tax-
payer. The amount of tax credits certified in
any given tax year cannot exceed $2,000,000.
For more information, see Form N-354, Or-
ganic Foods Production Tax Credit.
To claim this credit. Complete Form N-354
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Earned Income Tax Credit
Act 107, Session Laws of Hawaii 2017, pro-
vides that a qualifying individual taxpayer
may claim a new nonrefundable Earned In-
come Tax Credit equal to 20 percent of the
federal earned income credit claimed on the
taxpayer’s federal income tax return for tax-
able years 2018 through 2022.
A qualifying individual taxpayer is a taxpay-
er that: (1) files a federal income tax return
for the taxable year and claims the earned
income credit under IRC section 32, and (2)
files a Hawaii income tax return for the tax-
able year using the same filing status used on
the federal income tax return, and claiming
the same dependents claimed on the federal
income tax return.
For more information, see Form N-356,
Earned Income Tax Credit.
To claim this credit. Complete Form N-356
and Schedule CR and attach them to your re-
turn.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Line 36
Line 34 minus line 35. Enter the result on
this line.
If line 36 is a negative number, shade the
minus (-) in the box to the left of the amount
boxes.
Tax Already Paid
Line 37
Total Hawaii Income Tax
Withheld
Add the Hawaii income tax withheld as
shown on federal Form(s) W-2 and 1099-G
(unemployment compensation), State Form
N-2, and any other forms that show Hawaii
income tax withheld. Enter the total on this
line. Attach a copy of federal Form(s) W-2 and
1099-G, and Form N-2 showing the withhold-
ing. If not attached, the withholding may be
disallowed.
Note: If taxes were withheld on the sale of Ha-
waii real property, report this amount on line
38, “2018 Estimated Tax Payments.”
Line 38
2018 Estimated Tax Payments
Enter on this line your estimated Hawaii
income tax payments made on Form N-1 for
2018. Do not include your 2017 overpayment
you requested to have applied to your 2018 es-
timated tax (this amount is to be reported on
line 39).
Also include on this line the amount of taxes
withheld on the sale of Hawaii real property
computed as follows:
1. Amount of taxes withheld as
shown on Form(s) N-288A,
“Statement of Withholding on
Dispositions by Nonresident
Persons of Hawaii Real
Property Interests” ................
2. Amount of refund you already
applied for on Form(s) N-288C,
Application for Tentative
Refund of Withholding on
Dispositions by Nonresident
Persons of Hawaii Real
Property Interests” ................
3. Line 1 minus line 2. Include this
amount on Form N-11, line 38.
Note: Attach a copy of the Form(s) N-288A
showing the withholding.
If the tax was withheld for you through a
partnership, estate, trust, or S corporation,
see the Instructions for Pro Rata Share of Tax-
es Withheld and Paid by a Partnership, Estate,
Trust, or S Corporation on the Sale of Hawaii
Real Property Interests on page 24.
If you and your spouse jointly filed Forms
N-1 or have a joint Form N-288A but are now
filing separate returns, you can enter the total
amount paid with Forms N-1 or Form N-288A
on either of your separate returns or you and
your spouse can divide the payments in any
agreed amount. Use Form L-12, Request for
Allocation of Tax Amounts for Individuals, to
allocate the Forms N-1 or Form N-288A pay-
ments between you and your spouse. Also en-
ter the social security numbers of both spous-
es on the separate returns.
If you and your spouse each filed separate
Forms N-1 or have separate Forms N-288A
but are now filing a joint return, enter the total
paid with both Forms N-1 or From N-288A on
your joint return.
Follow the above instructions even if your
spouse died during the year.
Line 39
2017 Overpayment Applied to
2018 Estimated Tax
Enter on this line any overpayment from
your 2017 return that you applied to your 2018
estimated tax.
Line 40
Amount Paid with Extension
If you made a payment with Form N-101A,
enter the amount you paid on this line.
If you and your spouse jointly filed Form N-
101A but are now filing separate returns, you
can enter the total amount paid with Form N-
101A on either of your separate returns or you
and your spouse can divide the payment in
any agreed amount. Use Form L-12, Request
for Allocation of Tax Amounts for Individuals,
to allocate the Form N-101A payment between
you and your spouse. Also enter the social se-
curity numbers of both spouses on the sepa-
rate returns.
Page 29
If you and your spouse each filed separate
Forms N-101A but are now filing a joint re-
turn, enter the total paid with both Forms N-
101A on your joint return.
Line 41
Total Payments
Add lines 37 through 40. Enter the amount
on this line.
Refund or Balance Due
Line 42
Amount Overpaid
If line 41 is larger than line 36, and line 36
is zero or more, subtract line 36 from line 41
and show the difference on line 42. This is the
amount overpaid.
However, if line 36 is less than zero, com-
plete the following worksheet:
1. Amount from line 36 (enter as
a positive number)..............
2. Amount from line 41. .........
3. Add line 1 and line 2. ..........
Enter the amount from line 3 of the work-
sheet on line 42. This is the amount overpaid.
If you have an underpayment of estimated
tax penalty on line 50, do not include the pen-
alty amount on this line. Your overpayment
will be reduced automatically by the amount
of the penalty.
Line 43a
Contribution to the Hawaii
Schools Repairs and
Maintenance Fund
The Hawaii School-Level Minor Repairs
and Maintenance Special Fund provides mon-
eys for school-level minor repairs and mainte-
nance. If you have an overpayment of at least
$2 ($4 if married and filing a joint return), you
can choose to contribute to the Hawaii School-
Level Minor Repairs and Maintenance Spe-
cial Fund.
Fill in the appropriate oval(s) if you want to
contribute $2 to the Hawaii School-Level Mi-
nor Repairs and Maintenance Special Fund
(or $4 if you are filing a joint return and your
spouse also wants to contribute). No other
amounts can be accepted. Your contribution
will reduce your refund. Once made, the con-
tribution cannot be revoked.
Line 43b
Contribution to the Hawaii
Public Libraries Fund
Note: Act 170, Session laws of Hawaii 2018, in-
creases the amount that taxpayers may desig-
nate from their individual income tax refunds
to the Hawaii Public Libraries Special Fund
from $2 to $5 ($4 to $10 if filing a joint return)
for tax years after 2017.
The Hawaii Public Libraries Special Fund
provides moneys to support the operations of
the library system. If you have an overpay-
ment of at least $5 ($10 if married and filing
a joint return), you can choose to contribute
to the Hawaii Public Libraries Special Fund.
Fill in the appropriate oval(s) if you want to
contribute $5 to the Hawaii Public Libraries
Special Fund (or $10 if you are filing a joint
return and your spouse also wants to contrib-
ute). No other amounts can be accepted. Your
contribution will reduce your refund. Once
made, the contribution cannot be revoked.
Line 43c
Contribution to the Domestic
and Sexual Violence / Child
Abuse and Neglect Funds
The Hawaii Children’s Trust Fund provides
moneys for the award of grants for primary
and secondary prevention activities to pre-
vent child abuse and neglect. The Domestic
Violence and Sexual Assault Special Fund
provides moneys for programs and grants or
purchases of service that support or provide
domestic violence and sexual assault inter-
vention or prevention. The Spouse and Child
Abuse Special Accounts provide moneys for
staff programs, and grants or purchases of
service that support or provide spouse or child
abuse intervention or prevention. If you have
an overpayment of at least $5 ($10 if married
and filing a joint return), you can choose to
contribute to these funds.
Fill in the appropriate oval(s) if you want to
contribute $5 to the Hawaii Children’s Trust
Fund, the Domestic Violence and Sexual As-
sault Special Fund, and the Spouse and Child
Abuse Special Accounts (or $10 if you are fil-
ing a joint return and your spouse also wants
to contribute). No other amounts can be ac-
cepted. Your contribution will reduce your
refund. Once made, the contribution cannot
be revoked.
Line 46
Applied to 2019 Estimated Tax
Enter the amount from line 45 that you want
applied to your estimated tax for 2019.
If you have an underpayment of estimated
tax penalty on line 50, do not include the pen-
alty amount on this line. The amount applied
to your 2019 estimated tax will be reduced au-
tomatically by the amount of the penalty.
If you and your spouse filed a joint return
for 2018 but will file separate returns for 2019,
you can request that the 2019 estimated tax
be applied to either of your separate returns
or you and your spouse can divide the esti-
mated tax to be applied in any agreed amount.
Use Form L-12, Request for Allocation of Tax
Amounts for Individuals, to allocate the esti-
mated tax to be applied between you and your
spouse. Also enter the social security num-
bers of both spouses on the separate returns.
Line 47a
Refund
Line 45 minus line 46. This is the amount
that will be refunded to you.
If you have an underpayment of estimated
tax penalty on line 50, do not include the pen-
alty amount on this line. The amount of your
refund will be reduced automatically by the
amount of the penalty.
Note: Fill in the oval under line 47a if the ulti-
mate destination of your refund is to a foreign
(non-U.S.) bank account. Do not complete
lines 47b through 47d. Due to rules for inter-
national ACH transactions, the direct deposit
of your refund into a foreign (non-U.S.) bank
account will not be available. A check will be
sent to you instead.
Note: If you are filing a Hawaii income tax
return for the first time, you will not be al-
lowed to have your refund directly deposited
into your checking or savings account. Do not
complete lines 47b through 47d. A check will
be sent to you instead.
Note: If you are filing your return after the
prescribed due date, the refund shown may
be limited or disallowed due to the statute of
limitations. In general, a claim for refund or
credit for overpaid income taxes must be filed
within three years after the return is filed for
the taxable year, within three years of the due
date for filing the return, or within two years
from when the tax is paid, whichever is later.
For purposes of determining whether a refund
or credit is allowed, taxes paid on or before
the due date of the return (e.g., taxes withheld
from an employee’s pay, or estimated tax pay-
ments) are considered paid on the due date of
the return, without considering an extension
of time to file the return.
Lines 47b Through 47d
Direct Deposit of Refund
Complete lines 47b through 47d if you want
the Department to directly deposit the amount
shown on line 47a into your checking or sav-
ings account at a bank or other financial in-
stitution (such as a mutual fund, brokerage
firm, or credit union) instead of sending you
a check.
Note: If the ultimate destination of your re-
fund is to a foreign (non-U.S.) bank account,
do not complete lines 47b through 47d. See the
instructions for line 47a.
Note: If you are filing a Hawaii income tax re-
turn for the first time, do not complete lines
47b through 47d. See the instructions for line
47a.
Note: If you owe certain past-due debt, such
as child support, and all or part of the over-
payment on line 42 is used (offset) to pay the
past-due amount, you will not be allowed to
have your refund directly deposited into your
checking or savings account. A check will be
sent to you instead.
Page 30
Why Use Direct Deposit?
You get your refund fast – even faster if
you e-file!
Payment is more secure – there is no check
to get lost.
More convenient. No trip to the bank to
deposit your check.
Saves tax dollars. A refund by direct de-
posit costs less than a check.
You can check with your financial institu-
tion to make sure your deposit will be accept-
ed and to get the correct routing and account
numbers. The Department is not responsible
for a lost refund if you enter the wrong ac-
count information.
If you file a joint return and fill in lines 47b
through 47d, you are appointing your spouse
as an agent to receive the refund. This ap-
pointment cannot be changed later.
Some financial institutions will not allow a
joint refund to be deposited into an individual
account. If the direct deposit is rejected, a
check will be sent instead. The Department
is not responsible if a financial institution re-
jects a direct deposit.
Routing Number
The routing number must be nine digits.
The first two digits must be 01 through 12 or
21 through 32. Otherwise, the direct deposit
will be rejected and a check sent instead.
Your check may state that it is payable
through a financial institution different from
the one at which you have your checking ac-
count. If so, do not use the routing number
on that check. Instead, contact your financial
institution for the correct routing number to
enter on line 47b.
Type of Account
On line 47c, fill in the applicable oval to in-
dicate whether you want your refund depos-
ited into your checking or savings account.
Account Number
Contact your financial institution for the
correct account number to enter on line 47d.
The account number can be up to 17 charac-
ters (both numbers and letters). Omit spaces,
hyphens, and special symbols. Enter the num-
ber from left to right and leave any unused
boxes blank. Be sure not to include the check
number.
Line 48
Balance Due
If line 36 is larger than line 41, the difference
is your balance due.
Note: If you include penalty and/or interest
for the late filing of your return with your pay-
ment, identify and enter these amounts on a
separate sheet of paper and attach to Form
N-11. Do not include the penalty and/or inter-
est amounts for the late filing of your return on
this line. Also, if you have an underpayment
of estimated tax penalty on line 50, do not in-
clude the penalty amount on this line.
Line 49
Payment Amount
Enter the amount of your payment, includ-
ing any penalty and interest. You can pay on-
line at hitax.hawaii.gov or by check or money
order payable to “Hawaii State Tax Collec-
tor.” Write your social security number, day-
time phone number, and “2018 Form N-11” on
your check or money order, and attach it to the
front of Form N-11.
Note: Form N-200V is no longer required when
making a payment with your return.
Note: If you cannot pay the full amount you
owe, you can request to enter a payment
agreement after you receive the billing notice.
Please be aware that penalty and interest con-
tinue to accrue on the unpaid tax amount even
though you have not received the billing no-
tice. Payments will be accepted and applied
to your tax liability; however, to ensure your
payments are applied correctly, your check or
money order must have: (1) your name clearly
printed on the check as it is printed on the
tax return (if filing a joint return, also print
your spouse’s name), (2) your social security
number (if filing a joint return, also write your
spouse’s social security number), (3) your
daytime phone number, and (4) the tax year
and form number you filed (e.g., 2018 N-11).
Line 50
Underpayment of Estimated
Tax Penalty
See the instructions for Penalties and Inter-
est on page 32 and Form N-210, Underpay-
ment of Estimated Tax by Individuals, Es-
tates, and Trusts, to see if you owe a penalty
for the underpayment of estimated taxes. If
you owe a penalty, enter the penalty amount
on Form N-11, line 50. Do not include the pen-
alty amount on lines 42, 46, 47a, or 48. If you
have an overpayment, your overpayment (and
the amount applied to your 2019 estimated tax
or the amount of your refund) will be reduced
automatically by the amount of the penalty. If
you have any taxes due, include the amount of
the penalty on line 49.
Fill in the oval at line 50 if Form N-210 is
attached.
Note: If you are a farmer or fisherman, you
may receive a penalty notice for underpaying
estimated tax even though you filed your re-
turn on time, attached Form N-210, and met
the gross income from farming or fishing re-
quirement. If you receive a penalty notice and
you think it is in error, write to the address on
the notice and explain why you think the no-
tice is in error. Include a computation showing
that you met the gross income from farming or
fishing requirement.
Amended Returns
If you are filing an amended return, fill in
the amended return oval at the top of Form
N-11. Complete your amended return using
corrected amounts through line 50. Attach
Schedule AMD, Explanation of Changes on
Amended Return, to the income tax return
Form N-11. Also attach all forms and state-
ments required to file a complete return. If
you are claiming any tax credits, remember
to attach the required forms, such as Schedule
CR and Schedule X, even if you claimed the
credits on the original return.
If you are filing an amended return due to a
farming net operating loss carryback, also fill
in the NOL Carryback oval and attach a copy
of your original federal income tax return for
the loss year.
If you are filing an amended return due to
an IRS adjustment, also fill in the IRS Adjust-
ment oval.
See page 33 of the instructions for more in-
formation.
Line 51
Amount Paid (Overpaid) on
Original Return
Enter on line 51 the amount paid on your
original 2018 Form N-11, line 48 (plus the
amount of estimated tax penalty on line 50, if
any); or the amount overpaid on your original
2018 Form N-11, line 42 (less the amount of
estimated tax penalty on line 50, if any). If the
amount is an overpayment, shade the minus
(-) in the box to the left of the amount boxes.
Attach Schedule AMD, Explanation of
Changes on Amended Return. Also attach all
forms and statements required to file a com-
plete return. If you are claiming any tax cred-
its, remember to attach the required forms,
such as Schedule CR and Schedule X, even if
you claimed the credits on the original return.
Line 52
Balance Due (Refund) With
Amended Return
If no amount was entered on line 51, enter
on line 52 the amount, if any, from line 47a
(less the amount of estimated tax penalty on
line 50, if any) or line 48 (plus the amount of
estimated tax penalty on line 50, if any) of the
amended return.
If there is an amount on line 51, complete
one of the worksheets below. When complet-
ing the worksheet, enter all amounts as posi-
tive numbers.
If there is an amount on line 51 and that
amount is:
a. A payment and there is an amount on line
42, complete the following worksheet:
1. Amount from line 42 (less
the amount of estimated tax
penalty on line 50, if any) ..
2. Amount from line 51 ..........
3. Add line 1 and line 2 ..........
Enter the amount from line 3 of the work-
sheet on line 52. This is the amount of your
overpayment on your amended return. Shade
the minus (-) in the box to the left of the
amount boxes.
b. A payment and there is an amount on line
48, complete the following worksheet:
Page 31
1. Amount from line 48 (plus
the amount of estimated tax
penalty on line 50, if any) ..
2. Amount from line 51 ..........
3. Line 1 minus line 2 .............
Enter the amount from line 3 of the work-
sheet on line 52.
If the amount on line 1 of the worksheet is
larger than the amount on line 2 of the work-
sheet, this is the amount you owe on your
amended return.
If the amount on line 2 of the worksheet is
larger than the amount on line 1 of the work-
sheet, this is the amount of your overpayment
on your amended return. Shade the minus (-)
in the box to the left of the amount boxes.
c. An overpayment and there is an amount on
line 42, complete the following worksheet:
1. Amount from line 42 (less
the amount of estimated tax
penalty on line 50, if any) ..
2. Amount from line 51 ..........
3. Line 1 minus line 2 .............
Enter the amount from line 3 of the work-
sheet on line 52.
If the amount on line 1 of the worksheet is
larger than the amount on line 2 of the work-
sheet, this is the amount of your overpayment
on your amended return. Shade the minus (-)
in the box to the left of the amount boxes.
If the amount on line 2 of the worksheet is
larger than the amount on line 1 of the work-
sheet, this is the amount you owe on your
amended return.
d. An overpayment and there is an amount on
line 48, complete the following worksheet:
1. Amount from line 48 (plus
the amount of estimated tax
penalty on line 50, if any) ..
2. Amount from line 51 ..........
3. Add line 1 and line 2 ..........
Enter the amount from line 3 of the work-
sheet on line 52. This is the amount you owe
on your amended return.
If you have an overpayment on your amend-
ed return, you may contribute to the (1) Hawaii
Schools Repairs and Maintenance Fund (line
43a) if line 43a on your original return was
blank, (2) Hawaii Public Libraries Fund (line
43b) if line 43b on your original return was
blank, and/or (3) Domestic and Sexual Vio-
lence/Child Abuse and Neglect Funds (line 43c)
if line 43c on your original return was blank.
Subtract the amount contributed to the
above funds from the amount of overpayment
available and enter the difference on line 52.
Shade the minus (-) in the box to the left of
the amount boxes. Be sure that the sum of the
amounts entered on lines 43a, 43b, 43c, and 52
is not more than the overpayment available.
If you have an amount due on your amended
return, send your payment to the Department
by attaching your check or money order to
the front of Form N-11. Write your social se-
curity number, daytime phone number, and
“2018 Amended Form N-11” on your check or
money order.
Attach Schedule AMD, Explanation of
Changes on Amended Return. Also attach all
forms and statements required to file a com-
plete return. If you are claiming any tax cred-
its, remember to attach the required forms,
such as Schedule CR and Schedule X, even if
you claimed the credits on the original return.
Taxpayer Questionnaire
All taxpayers MUST complete lines 53, 54,
and 55.
Line 53
Schedule C
If you filled in Schedule C or Schedule C-EZ
for federal Form 1040 (for taxpayers receiving
income from operating a business or practicing
a profession as a sole proprietorship), check
“Yes.” If you checked “No,” go on to line 54.
Hawaii Gross Receipts
Enter your Hawaii gross receipts or sales,
net of returns and allowances. This will be the
Hawaii amount from Schedule C, line 3; or
Schedule C-EZ, line 1. If you do not have any
Hawaii gross receipts or sales, enter zero (0).
If you filed more than one Schedule C, enter
the total of your Hawaii gross receipts.
Main Business Activity and Product
Report the business activity that accounted
for the most gross income included here. Also,
enter the business product or service. For ex-
ample, business activity: wholesale, business
product: groceries; or business activity: retail,
business product: hardware.
Hawaii Tax Identification Number
If you are operating a business or practic-
ing a profession as a sole proprietorship in
Hawaii, enter your Hawaii Tax Identification
Number for this activity. If you are not operat-
ing a business or practicing a profession as a
sole proprietorship in Hawaii, and do not have
a Hawaii Tax Identification Number for this
activity, leave the boxes blank.
If more than one identification number ap-
plies, enter the identification number that ac-
counted for the most gross income included
here. On a separate sheet, list the other iden-
tification number(s), along with the Hawaii
gross receipts, main business activity, and
main business product relating to that identi-
fication number(s).
Line 54
Rents on Schedule E
If you received rental income and reported
it on Schedule E, federal Form 1040, check
“Yes.” If you checked “No,” go on to line 55.
Hawaii Gross Receipts
Enter your Hawaii gross rents. In most
cases, this will be the Hawaii amount from
Schedule E, line 3. If you do not have any Ha-
waii gross rents, enter zero (0).
If you filed more than one Schedule E, enter
the total of your Hawaii gross rents.
Hawaii Tax Identification Number
If you received rental income from prop-
erty located in Hawaii, enter your Hawaii Tax
Identification Number for this activity, even
if you wrote the same number down on line
53. If you did not receive rental income from
property located in Hawaii, and do not have
a Hawaii Tax Identification Number for this
activity, leave the boxes blank.
If more than one identification number ap-
plies, enter the identification number that
accounted for the most gross rents included
here. On a separate sheet, list the other iden-
tification number(s), along with the Hawaii
gross rents relating to that identification
number(s).
Line 55
Schedule F
If you completed Schedule F for federal
Form 1040 (for those receiving farming in-
come), check “Yes.” If you checked “No,” go
to Step 7 on this page.
Hawaii Gross Receipts
Enter your Hawaii gross receipts or sales,
net of returns and allowances. This will be
the Hawaii amount from Schedule F, line 9. If
you do not have any Hawaii gross receipts or
sales, enter zero (0).
Main Business Activity and Product
Report the business activity that accounted
for the most gross income included here. Also,
enter the business product or service. For ex-
ample, business activity: ranching, business
product: cattle.
Hawaii Tax Identification Number
If you are operating a farm in Hawaii, en-
ter your Hawaii Tax Identification Number
for this activity, even if you wrote the same
number down on line 53 or 54. If you are not
operating a farm in Hawaii, and do not have
a Hawaii Tax Identification Number for this
activity, leave the boxes blank.
If more than one identification number ap-
plies, enter the identification number that ac-
counted for the most gross income included
here. On a separate sheet, list the other iden-
tification number(s), along with the Hawaii
gross receipts, main business activity, and
main business product relating to that identi-
fication number(s).
Now continue with Step 7
below.
Step 7
Check your return to make
sure it is correct.
Step 8
Third Party Designee
If you want to authorize the Department to
discuss the processing of your tax return with
a person that you designate, enter the name of
Page 32
your third party designee, telephone number,
and identification number. You are authoriz-
ing the Department to call your third party
designee to answer any questions that may
arise during the processing of your tax return.
This designation does not allow your third
party designee to call the Department for in-
formation about the processing of your return
or for other issues relating to your return.
Note: This designation is not a full power of
attorney and does not replace Form N-848.
Step 9
Hawaii Election Campaign Fund
(For Hawaii State and County Elections)
This Fund supports the Hawaii Campaign
Spending Commission, a watchdog agency
that works to ensure that all campaign dona-
tions and expenditures are made public and
comply with campaign finance laws to pre-
vent corruption in politics. The Fund also
supports the public financing of political cam-
paigns which makes qualified candidates less
dependent on private special interest donors
to fund their campaigns.
If you have a tax liability of at least $3 ($6
if married and filing a joint return), you can
choose to contribute to the Hawaii Election
Campaign Fund. If you fill in the “Yes” oval,
$3 will go from the State General Fund to the
Hawaii Election Campaign Fund. If you are
filing a joint return, and your spouse wants $3
to go to the Fund, fill in the second “Yes” oval.
Filling in “Yes” will not increase your tax or
reduce your refund.
Once made, the designation cannot be re-
voked for this taxable year.
See the Hawaii Campaign Spending Com-
mission website at hawaii.gov/campaign or
call 808-586-0285 for more information.
Step 10
Sign and date your return.
Form N-11 is not considered a valid return
unless you sign it. If you are unable to sign the
return (due to disease or injury, etc.), you can
appoint an agent to sign your return. A return
signed by an agent must have a power of at-
torney attached that authorizes the agent to
sign for you. You can use Form N-848, Power
of Attorney.
Be sure to date your return. If you have
someone else prepare your return, you are still
responsible for the correctness of the return.
Joint Return. Your spouse must also sign
Form N-11 if it is a joint return. If your spouse
cannot sign because of disease or injury and
tells you to sign, you can sign your spouse’s
name in the proper space on the return fol-
lowed by the words “By (your name), Spouse.”
Be sure to also sign in the space provided for
your signature. Attach a dated statement,
signed by you, to the return. The statement
should include the form number of the return
you are filing, the tax year, and the reason
your spouse cannot sign, and that your spouse
has agreed to your signing for him or her.
If you are the guardian of your spouse who
is mentally incompetent, you can sign the re-
turn for your spouse as guardian.
If your spouse is unable to sign the return
because he or she is serving in a combat zone,
and you do not have a power of attorney or
other statement, you can sign for your spouse.
Attach a signed statement to your return that
explains that your spouse is serving in a com-
bat zone.
If your spouse cannot sign the joint return
for any other reason, you can sign for your
spouse only if you are given a valid power of
attorney. Attach the power of attorney to your
tax return.
If you are filing a joint return as the surviv-
ing spouse, see Death of Taxpayer on page 6.
Child’s Return. If your child cannot sign the
return, sign your child’s name in the space
provided. Then, add “By (your signature),
parent for minor child.”
Occupation. Write your occupation in the
space provided. If married and filing a joint
return, also write your spouse’s occupation in
the space provided.
Step 11
Did you have someone else
prepare your return?
If you fill in your own return, the Paid Pre-
parer’s space should remain blank. If some-
one prepares your return and does not charge
you, that person should not sign your return.
Generally, anyone who is paid to prepare
your tax return must sign your return and fill
in the other blanks in the Paid Preparer’s In-
formation area of your return. The preparer
may furnish his or her alternative identify-
ing number for income tax return preparers
(PTIN) instead of his or her social security
number.
If you have questions about whether a pre-
parer is required to sign your return, please
contact our Taxpayer Services staff.
The preparer required to sign your return
MUST complete the required preparer infor-
mation and:
Sign it in the space provided for the pre-
parer’s signature.
Give you a copy of your return in addition
to the copy to be filed with the Department.
Hawaii conforms to Internal Revenue Ser-
vice Notice 2004-54 which authorizes paid tax
return preparers to sign tax returns by means
other than by hand.
For more information, see Department of
Taxation Announcement No. 2009-33, “Con-
formity to Internal Revenue Service Notice
2004-54, Relating to Alternative Methods of
Signatures for Paid Tax Return Preparers.”
Step 12
Attachments
Reminder: Federal Schedules C, E, and F
are not required to be attached to Form N-11.
However, keep these schedules with your re-
cords until the statute of limitations runs out
for that return.
Attach a copy of your Form(s) HW-2 and
N-2, or federal Form(s) W-2 and 1099-G (un-
employment compensation), to the front of
Form N-11 in the area designated. To the back
of your return attach, in the following order:
• Schedule CR.
Any other schedules, in alphabetical order.
Other Hawaii – series forms, in numerical
order.
Any other federal forms, in numerical or-
der, used as a substitute for state forms
(see Related Federal/Hawaii Tax Forms
on page 3).
• Any other required statements.
A return without the required forms and
statements is incomplete. You must file a
complete return on time to avoid paying pen-
alties and interest for late filing.
If you need more space on forms or sched-
ules, attach separate sheets and use the same
arrangement as the printed forms. But show
your totals on the printed forms. Please use
sheets that are the same size as the forms and
schedules. Be sure to put your name and social
security number on these separate sheets.
If you owe tax, be sure to send your payment
to the Department by attaching your check or
money order to the front of Form N-11.
Reminders
Processing of Your Tax Return
In general, refunds due to you are issued
within eight weeks from the date your return
is filed with the Department. However, it may
take additional time if you filed your return
close to the April 22 filing deadline, if errors
were made in completing your return, or you
moved and did not change your address with
the Department by completing Form ITPS-
COA, Change of Address Form.
You may call our Taxpayer Services Branch
to obtain automated information about your
individual income tax refunds 24 hours a day,
7 days a week. Automated refund information
should be available four to six weeks after
your return is filed with the Department. You
may also check your refund status through
the Department’s website. See page 6 for the
Department’s telephone numbers and website
address.
Penalties and Interest
Late Filing of Return. The penalty for fail-
ure to file a return on time is assessed on the
tax due at a rate of 5% per month, or part of a
month, up to a maximum of 25%.
Extensions. If you are unable to file your
Hawaii tax return by April 22, 2019, you are
automatically granted a 6-month extension
without the need to file anything with the De-
partment unless an additional tax payment
must be made. As long as the following condi-
tions are met, you are deemed to have made
an application for the 6-month extension to
Page 33
file an income tax return on the prescribed
due date:
1. On or before April 22, 2019, 100% of the
properly estimated tax liability is paid;
2. The tax return is filed on or before the expi-
ration of the 6-month extension period;
3. The tax return is accompanied by full pay-
ment of any tax not already paid; and
4. A court has not ordered you to file the tax
return on or before the prescribed due date.
If you must make an additional payment
of tax on or before April 22, 2019 in order to
meet the condition requiring payment of 100%
of the properly estimated tax liability, you
must file Form N-101A with your payment.
Federal Form 4868, Application for Automatic
Extension of Time To File U.S. Individual In-
come Tax Return, may not be used in lieu of
Form N-101A.
Interest. Interest at the rate of 2/3 of 1% per
month or part of a month shall be assessed on
unpaid taxes and penalties beginning with the
first calendar day after the date prescribed
for payment, whether or not that first calen-
dar day falls on a Saturday, Sunday, or legal
holiday.
Failure to pay tax after filing timely re-
turns. The penalty for failure to pay the tax
after filing a timely return is 20% of the tax
unpaid within 60 days of the prescribed due
date.
Underpayment of estimated taxes. You may
be subject to a penalty for not paying enough
estimated tax if your tax payments, including
withholding, do not total the smallest of:
1) 60% of the 2018 tax liability; or
2) 100% of the tax shown on the 2017 return.
There are special rules for farmers and fish-
ermen.
For more information, see Form N-210, Un-
derpayment of Estimated Tax by Individuals,
Estates, and Trusts.
Change of Address
If your mailing address changes after you
file your return, you must notify the Depart-
ment of the change by completing Form
ITPS-COA, Change of Address Form. Failure
to do so may prevent your address from being
updated, any refund due to you from being de-
livered (the U.S. Postal Service is not permit-
ted to forward your State refund check), and
delay important notices or correspondence to
you regarding your return.
How Long Should Records Be
Kept?
Keep records of income, deductions, and
credits shown on your tax return, as well as
any worksheets you used, until the statute of
limitations runs out for that return. Usually
this is three years from the date the return
was due or filed, whichever is later. Also keep
copies of your filed tax returns and any fed-
eral Forms W-2 or 1099 you received as part of
your records. You should keep some records
longer. For example, property records (in-
cluding those on your home) should be kept as
long as they are needed to figure the basis of
the original or replacement property.
Amended Return
If you file your income tax return and later
become aware of any changes you must make
to income, deductions, or credits, you may file
an amended return on Form N-11 to change
the Form N-11 you already filed. Use the Form
N-11 for the year you are amending. (You can-
not file a 2017 amended return on a 2018 Form
N-11.) Fill in the amended return oval at the
top of Form N-11, and fill in the return with
all of the correct information. Attach Schedule
AMD, Explanation of Changes on Amended
Return, to Form N-11. Also attach all forms
and statements required to file a complete
return. If you are claiming any tax credits,
remember to attach the required forms, such
as Schedule CR and Schedule X, even if you
claimed the credits on the original return.
If you contributed to the Hawaii Schools Re-
pairs and Maintenance Fund, Hawaii Public
Libraries Fund, and/or Domestic and Sexual
Violence/Child Abuse and Neglect Funds on
your original return, your contribution(s) can-
not be revoked, and you must make the same
designation(s) on your amended return.
If you did not contribute to the Hawaii
Schools Repairs and Maintenance Fund, Ha-
waii Public Libraries Fund, and/or Domestic
and Sexual Violence / Child Abuse and Neglect
Funds on your original return, you may con-
tribute to these funds on an amended return
filed within twenty months and ten days after
the due date for the original return for such
taxable year. Once made, the contribution can-
not be revoked.
If you are filing an amended return due to a
farming net operating loss carryback, also fill
in the NOL Carryback oval and attach a copy
of your original federal income tax return for
the loss year.
If you are filing an amended return due to
an IRS adjustment, also fill in the IRS Adjust-
ment oval. See Change in Federal Taxable In-
come, below.
See the instructions for Form N-11, lines 51
and 52.
For information on the statute of limitation
periods within which you may file an amend-
ed return to claim a refund or credit of over-
paid taxes, see the instructions for Form N-11,
line 47a (Refund) on page 29.
You can get prior year forms from our web-
site, by calling our Taxpayer Services Branch,
and at any district tax office. See page 6 for
the Department’s website address and for the
phone number to request the forms you need.
If your original return was filed on an incor-
rect form, file an original return on the correct
form. For example, if you filed an original re-
turn on Form N-11 and should have filed Form
N-15, file an original return on Form N-15.
Change in Federal Taxable Income
In general, a change to your federal return,
whether it is made by you (on federal Form
1040X) or by the Internal Revenue Service,
must be reported to the State of Hawaii.
1) Section 235-101(b), HRS, requires a report
(an amended return) to the Director of Tax-
ation if the amount of IRC taxable income
is changed, corrected, adjusted or recom-
puted as stated in (3).
2) This report must be made:
a) Within 90 days after a change, correction,
adjustment or recomputation is finally
determined.
b) Within 90 days after an amended federal
return is filed.
3) A report within the time set out in (2) is re-
quired if:
a) The amount of taxable income as returned
to the United States is changed, corrected,
or adjusted by an officer of the United
States or other competent authority.
b) A change in taxable income results from
a renegotiation of a contract with the Unit-
ed States or a subcontract thereunder.
c) A recomputation of the income tax im-
posed by the United States under the
Internal Revenue Code results from any
cause.
d) An amended income tax return is made
to the United States.
4) The report referred to above shall be in the
form of an amended Hawaii income tax re-
turn.
5) The statutory period for the assessment of
any deficiency or the determination of any
refund attributable to the report shall not
expire before the expiration of one year
from the date the Department is notified by
the taxpayer or the Internal Revenue Ser-
vice, whichever is earlier, of such a report
in writing. Before the expiration of this one-
year period, the Department and the tax-
payer may agree in writing to the extension
of this period. The period so agreed upon
may be further extended by subsequent
agreements in writing made before the
expiration of the period previously agreed
upon.
Instructions for
Schedule X — Tax Credits
Note: Use Form N-311 to claim the refundable
food/excise tax credit.
Purpose
Use Schedule X to claim the credit for low-
income household renters and the credit for
child and dependent care expenses. You may
qualify to claim these credits, and receive a
refund, even if you have no taxable income.
If you claim any of the tax credits, both pages
of Schedule X must be attached to your Form
N-11.
Part I
Credit for Low-Income
Household Renters
Each resident taxpayer who occupies and
pays rent for real property within the State
as his or her residence and who files an in-
dividual income tax return for the taxable
year, including those who have no income or
no income taxable under chapter 235, HRS,
may claim a tax credit of $50 per qualified ex-
Page 34
emption, including the additional exemption
for taxpayers age 65 or over, provided the fol-
lowing four conditions are met:
The taxpayer is not eligible to be claimed
as a dependent for federal or State income
tax purposes by another taxpayer;
The taxpayer has adjusted gross income of
less than $30,000; and
The taxpayer has paid more than $1,000 in
rent during the taxable year.
The rented property is NOT exempt from
real property tax. Rent paid for property
which is partially or fully exempt from real
property tax will not qualify for the credit.
For example, county or State low-income
housing projects, military housing, dormi-
tories in schools, residential real property
owned by a nonprofit organization, and
homes in which the owner occupies a por-
tion of the property, may have been grant-
ed real property tax exemptions by the
county. If such exemptions, whether par-
tial or full exemptions, have been grant-
ed, the rent paid for such properties will
not qualify for the credit. To verify if real
property tax exemptions have been grant-
ed on the rented property, please inquire
with either the landlord, rental agent, or
the Real Property Tax Office in the county
in which the property is located.
Note: Minor children receiving more than
half of their support from the State Depart-
ment of Human Services, Social Security
benefits, and the like, which you can claim
as dependents, are considered qualified
exemptions for purposes of claiming this
credit.
A “residence” is defined as the dwelling
place that constitutes the principal residence
of the taxpayer or his or her immediate family
in this State.
“Rent” means the amount paid in cash
in any taxable year for the occupancy of a
residence. Rent does not include:
Charges for utilities, parking stalls, stor-
age of goods, yard services, furniture, fur-
nishings, and the like;
Rental claimed as a deduction from gross
income or adjusted gross income for in-
come tax purposes;
Ground rental paid for use of land only; and
Rental allowances or rental subsidies re-
ceived (i.e., housing allowance received
from the armed forces or the Hawaii Hous-
ing Authority.).
Line 1
Adjusted Gross Income
If the adjusted gross income (Form N-11,
line 20) shown on your return is $30,000 or
more, stop here; you cannot take this credit.
Married filing separately. If you are mar-
ried filing separately, you must add your
spouse’s adjusted gross income to your own.
If you are married filing separately and your
spouse is a nonresident, you need to determine
your spouse’s adjusted gross income from all
sources, within and outside of Hawaii, and
add that amount to your own adjusted gross
income. If the total is $30,000 or more, you
cannot claim this credit.
Line 2
Resident for More Than Nine
Months
If you are a resident who has not been physi-
cally present in Hawaii for more than nine
months in 2018, stop here; you cannot take
this credit.
Line 3
Dependent of Another
Taxpayer
If you can be claimed as a dependent on
another person’s return, whether or not that
person claims you, stop here; you cannot take
this credit.
Line 4
Your Addresses
List your most recent address. Fill in all of
the required information. If you lived in more
than one location during 2018, attach a sepa-
rate sheet listing the same information for the
other locations.
Do not list any location that was partly or
wholly exempt from real property tax, such
as:
County or State low-income housing proj-
ects;
• Military housing;
• Dormitories in schools;
Residential real property owned by a non-
profit organization; or
Homes in which the owner occupies a por-
tion of the property.
Line 5
Rent You Paid
Enter the total amount of rent you paid dur-
ing 2018 to all of the locations listed on line
4. If you are sharing or were sharing the rent
with somebody else, list only your share of the
rent here.
Line 6
Exclusions
Enter that portion of the amount on line 5
which:
Is for ground rent, utilities, goods, or ser-
vices;
You claimed as a deduction anywhere on
your tax return; or
You were reimbursed, through a rental al-
lowance or rental subsidy from any source.
Line 7
Line 5 minus line 6. If this amount is $1,000
or less, stop here; you cannot take this credit.
Line 8
Qualified Exemptions
On line 8, enter the names of the qualified
exemptions. Start with yourself. Enter your
spouse’s name if you are married and filing a
joint return or married and filing separately
where your spouse is not filing a Hawaii re-
turn, had no income, and was not the depen-
dent of someone else. Then list your depen-
dents and enter the dependent’s relationship
to you. Include minor children receiving more
than half of their support from public agen-
cies which you can claim as dependents.
If married filing separately, only one spouse
may claim the dependents.
Enter the number of qualified persons on
line 8.
Line 12
Amount of the Credit
Line 11 times $50. Enter this amount on
Form N-11, line 29.
Deadline for claiming this credit. If you
are a calendar year taxpayer, the deadline to
claim the credit, including amended claims,
is December 31, 2019. If you are a fiscal year
taxpayer, the deadline to claim the credit, in-
cluding amended claims, is 12 months after
the close of your taxable year. You cannot
claim or amend the credit after the deadline.
Part II
Credit for Child and
Dependent Care
Expenses
If you maintain a household that included a
child under age 13 or a dependent or spouse
incapable of self-care, you may be allowed
this credit for expenses you paid during the
taxable year to care for your dependent so you
could work.
Who May Claim the Credit
If you are a resident taxpayer who files an
individual income tax return for a taxable
year, you are not claimed or eligible to be
claimed as a dependent on another taxpayer’s
federal or Hawaii income tax return, and you
maintain a household which includes one or
more qualifying persons (as defined on page
35), you may be allowed a credit against your
income tax. The credit ranges from 15% to
25% of employment-related expenses (up to
certain limitations) PAID during the taxable
year in order to enable you to work either full
or part time for an employer or as a self-em-
ployed individual.
Maintaining a Household
You will be treated as maintaining a house-
hold for any period only if you furnish over
half the cost of maintaining the household for
that period. If you are married during that
time, you and your spouse must provide over
half the maintenance cost for the period.
Page 35
The expenses of maintaining a household in-
clude property taxes, mortgage interest, rent,
utility charges, upkeep and repairs, property
insurance, and food consumed on the prem-
ises. They do not include the cost of clothing,
education, medical treatment, vacations, life
insurance, and transportation.
Qualifying Person
A qualifying person is any one of the follow-
ing persons:
a. Any person under age 13 whom you claim
as a dependent (but see Special Rule (4) on
this page, Children of Divorced or Sepa-
rated Parents).
b. Your disabled spouse who is mentally or
physically unable to care for himself or
herself.
c. Any disabled person who is mentally or
physically unable to care for himself or
herself and whom you claim as a depen-
dent, or could claim as a dependent (as a
qualifying relative) except that he or she
had income of $4,150 or more.
Employment-related Expenses
Employment-related expenses are those
paid for the following, but only if paid to en-
able you to be gainfully employed:
(1) Expenses for Household Services. Ex-
penses will be considered for household ser-
vices in your home if they are for the ordinary
and usual services necessary for the operation
of the home, and bear some relationship to the
qualifying person. For example, payment for
services of a domestic maid or cook ordinar-
ily will be considered expenses for household
services if performed at least partially for the
benefit of the qualifying person.
(2) Expenses for the Care of a Qualifying
Person. Expenses will be considered for the
care of one or more qualifying persons if their
main purpose was to assure that individual’s
well-being and protection. You can include
amounts paid for items other than the care of
your child (such as food and schooling) only if
the items are incidental to the care of the child
and cannot be separated from the total cost.
You may NOT include any amount paid for
services outside your household at a camp
where the qualifying person stays overnight.
Do not include services outside your house-
hold as employment-related expenses for
your spouse or a dependent age 13 or older.
However, services outside your household
are employment-related expenses for a de-
pendent who has not reached his or her 13th
birthday or for an individual who regularly
spends at least eight hours each day in your
household.
You may include expenses incurred for
qualified dependent care centers as employ-
ment-related expenses. The dependent care
center must comply with all applicable laws,
rules, and regulations of Hawaii if the center
is located within Hawaii. If the center is lo-
cated outside Hawaii, the center must com-
ply with all applicable laws, rules, and regu-
lations of the state or country in which the
center is located. Furthermore, these centers
must provide care for more than six individu-
als (other than individuals who reside at the
center), and must receive a fee, payment, or
grant providing services for any of the indi-
viduals (regardless of whether such center is
operated for profit).
Note: Payments made to the State of Hawaii
A+ Program qualify for the credit.
Medical Expenses
Some dependent care expenses may qualify
as medical expenses. If you cannot use all the
medical expenses to qualify for this credit
because of the dollar limit or earned income
limit (explained later), you can take the rest
of these expenses as an itemized deduction
for medical expenses. But if you deduct the
medical expenses first on Worksheet A-1,
you cannot use any part of these expenses on
Schedule X.
Special Rules
(1) Married Couples Must File Joint Re-
turns. If you are married at the end of the tax-
able year, the credit is allowable only if you
and your spouse file a joint return for the tax-
able year.
(2) Marital Status. If you are legally separat-
ed from your spouse under a decree of divorce
or separate maintenance, you are not consid-
ered married.
(3) Certain Married Individuals Living Apart
and Filing Separate Returns. If during the last
six months of the taxable year your spouse was
not a member of your household and you (a)
maintained a household which was for more
than one-half of the taxable year the principal
place of abode of a qualifying person, and (b)
furnished over half of the cost of maintaining
such household during the taxable year, then
you are not considered married for purposes
of the credit or the exclusion.
(4) Children of Divorced or Separated Par-
ents. If you were divorced, legally separated,
or lived apart from your spouse during the last
six months of 2018, you may be able to claim
the credit even if your child is not your de-
pendent. Even if you cannot claim your child
as a dependent, he or she is treated as your
qualifying person if:
The child was under age 13 or was not
physically or mentally able to care for him-
self or herself, and
You were the child’s custodial parent. The
custodial parent is the parent with whom
the child lived for the greater number of
nights in 2018. If the child was with each
parent for an equal number of nights, the
custodial parent is the parent with the
higher adjusted gross income. For details
and an exception for a parent who works at
night, see federal Publication 501.
The noncustodial parent cannot treat the
child as a qualifying person even if that parent
is entitled to claim the child as a dependent
under the special rules for a child of divorced
or separated parents.
(5) Payments to a Related Individual. Yo u
can count work-related expenses you pay to
relatives who are not your dependents, even if
they live in your home. However, do not count
any amounts you pay to:
1. A dependent for whom you (or your spouse
if you are married) can claim an exemp-
tion, or
2. Your child who is under age 19 at the end
of the year, even if he or she is not your de-
pendent.
Line 1
Care Providers
Complete columns (a) through (e) for each
person or organization that provided the care.
If you do not give the information asked for in
each column, or if the information you give is
not correct, your credit and, if applicable, the
exclusion of employer-provided dependent
care benefits may be disallowed.
You can use Form HW-16, Dependent Care
Provider’s Identification and Certification,
to get the correct information from the care
provider. (This form is available at our web-
site, by calling our Taxpayer Services Branch,
and at any district tax office.) If the provider
does not comply with your request to certify
the information, complete the entries you
can, such as the provider’s name and address.
Write “See attached” in the columns for which
you do not have the provider’s certification of
information. Attach a statement that you re-
quested the information from the care provid-
er, but the provider did not comply with your
request. You must keep records to show that
you exercised due diligence in attempting to
provide the required information. For more
details, including what is considered “due
diligence,” see federal Publication 503.
Columns (a) and (b). Enter the care provid-
er’s name and address. If you were covered
by your employer’s dependent care plan and
your employer furnished the care (either at
your workplace or by hiring a care provider),
enter your employer’s name in column (a),
write “See W-2” in column (b), and leave col-
umns (c) through (e) blank. But if your em-
ployer paid a third party (not hired by your
employer) on your behalf to provide the care,
you must give information on the third party
in columns (a) through (e).
Column (c). If the care provider is an indi-
vidual, enter his or her social security number
(SSN). If the individual is an alien and was is-
sued an individual taxpayer identification
number (ITIN) by the IRS, enter the ITIN.
If the individual has applied for an ITIN but
the IRS has not yet issued the ITIN, write
Applied For.” For other than an individual,
enter provider’s federal employer identifica-
tion number (FEIN). If the provider is a tax-
exempt organization, write “Tax-Exempt” in
column (c).
Column (d). Enter the care provider’s Ha-
waii Tax I.D. Number. If the provider is a tax-
exempt charitable organization (IRC section
501(c)(3)), enter “Tax-Exempt.”
Column (e). Enter the total amount you ac-
tually paid during the taxable year to the care
provider. Also include amounts your employ-
er paid on your behalf to a third party. It does
Page 36
not matter when the expenses were incurred.
Do not reduce this amount by any reimburse-
ment you received.
Line 2
Dependent Care Benefits
If you received dependent care benefits
from an employer (you have a federal form
W-2 that has an amount in Box 10), enter the
amount shown in Box 10 of your W-2 form(s).
If you were self-employed or a partner, in-
clude amounts you received under a depen-
dent care assistance program from your sole
proprietorship or partnership.
Line 4
Amount Forfeited or Carried
Over to 2019
If you participated in an employee plan in
which the amount you contributed to an em-
ployer-paid dependent care benefit plan was
deducted from your income, and you did not
receive the full benefit from this plan, you
may be entitled to deduct the amount forfeited
on this line. See your employer for the forfeit-
ed amount you are allowed to deduct.
Also include on this line any amount you did
not receive but are permitted by your employ-
er to carry forward and use in the following
year during a grace period.
Line 8
Your Earned Income
In general, earned income is wages, salaries,
tips, and other employee compensation. It also
includes net earnings from self-employment.
For more information, see the instructions to
lines 23 and 24.
Line 9
Spouse’s Earned Income
If your filing status is Married Filing Joint-
ly, enter your spouse’s earned income on this
line.
If your filing status is Married Filing Sepa-
rately, see Certain Married Individuals Living
Apart and Filing Separate Returns discussed
earlier. If you are considered unmarried
under that rule, enter your earned income
(from line 8) on this line. If you are not con-
sidered unmarried under that rule, enter your
spouse’s earned income on line 9.
If your spouse was a student or disabled in
2018, see If You or Your Spouse Was a Student
or Disabled.
All other taxpayers should enter the amount
on line 8.
Line 16
Taxable Benefits
The taxable portion of employer-paid de-
pendent care benefits for federal income tax
purposes is included in your federal AGI. If
the taxable portion of employer-paid depen-
dent care benefits is the same for federal and
Hawaii income tax purposes, no additional ad-
justment needs to be made. If the taxable por-
tion of employer-paid dependent care benefits
is different for federal and Hawaii income tax
purposes, an adjustment needs to be made to
arrive at Hawaii AGI.
Line 21
Qualifying Person(s)
Complete columns (a) through (d) for each
qualifying person. If you have more than two
qualifying persons, attach a statement to your
return with the required information. Be sure
to put your name and social security number
on the statement. Also, write “See attached”
on the dotted line next to line 22.
Column (a). Enter each qualifying person’s
name.
Column (b). Enter the qualifying person’s
relationship to you.
Column (c). Enter the qualifying person’s
social security number.
Column (d). Enter the qualified expenses
you incurred and paid in 2018 for the person
listed in column (a). Do not include in column
(d) qualified expenses:
You incurred in 2018 but did not pay until
2019. You may be able to use these expens-
es to increase your 2019 credit.
You incurred in 2017 but did not pay until
2018. Instead, see the instructions for line
28 on this page.
You prepaid in 2018 for care to be provided
in 2019. These expenses may only be used
to figure your 2019 credit.
Lines 23 and 24
Earned Income Limit
The amount of your qualified expenses can-
not be more than your earned income or, if
married filing a joint return, the smaller of
your earned income or your spouse’s earned
income.
In general, earned income is wages, salaries,
tips, and other employee compensation. It also
includes net earnings from self-employment.
Unmarried taxpayers. If you are unmar-
ried at the end of 2018 or are treated as being
unmarried at the end of the year, enter your
earned income on line 23.
Married Taxpayers. If you are married fil-
ing a joint return, figure each spouse’s earned
income separately and disregard community
property laws. Enter your earned income on
line 23 and your spouse’s earned income on
line 24.
If You or Your Spouse Was a Student or
Disabled. Your spouse’s earned income. Your
spouse was a full-time student if he or she was
enrolled as a full-time student at a school for
some part of each of five calendar months
during 2018. The months need not be consecu-
tive. A school does not include an on-the-job
training course, correspondence school, or a
school offering courses only through the In-
ternet. Your spouse was disabled if he or she
was not physically or mentally capable of self-
care. Figure your spouse’s earned income on
a monthly basis.
For each month or part of a month your
spouse was a student or was disabled, he or
she is considered to have worked and earned
income. His or her earned income for each
month is considered to be at least $200 ($400
if more than one qualifying person was cared
for in 2018). If your spouse also worked dur-
ing that month, use the higher of $200 (or
$400) or his or her actual earned income for
that month.
For any month that your spouse was not a
student or disabled, use your spouse’s actual
earned income if he or she worked during the
month.
Your earned income. These rules for a
spouse who was a student or disabled also ap-
ply to you if you were a student or disabled.
For each month or part of a month you were
a student or disabled, your earned income is
considered to be at least $200 ($400 if more
than one qualifying person was cared for in
2018). If you also worked during that month,
enter the higher of $200 (or $400) or your ac-
tual earned income for that month.
Both spouses were students or disabled. If,
in the same month, both you and your spouse
were either students or disabled, only one of
you can be treated as having earned income
in that month under these rules.
Self-employment Income. You must reduce
your earned income by any loss from self-
employment. If you only have a loss from self-
employment, or your loss is more than your
other earned income, you cannot take the
credit.
Line 28
Amount of the Credit
If you had qualified expenses for 2017 that
you did not pay until 2018, you may be able to
increase the amount of credit you can take in
2018. To do this, multiply the 2017 expenses
you paid in 2018 by the applicable percent-
age from the table on line 27 that applies to
your 2017 adjusted gross income. Your 2017
expenses must be within the 2017 limits. At-
tach a computation showing how you figured
the increase. If you can take a credit for your
2017 expenses, write “PYE” and the amount
of the credit on the dotted line next to line 28.
Enter the total amount of the credit on line 28.
Also enter this amount on Form N-11, line 30.
Page 37
Worksheets
Form N-11 – State Tax Refund Worksheet
1. Enter your State tax overpayment (line 42) from your 2017 Form N-11
return. Do not enter more than the amount of your state and local income
taxes shown on your 2017 Itemized Deduction Worksheet A-2, line 5 ...........
2. Enter from your 2017 Form N-11 the following:
a. Refundable food/excise tax credit (line 28) ..................................
b. Credit for low-income household renter (line 29) ........................
c. Credit for child and dependent care expenses (line 30) .............
d. Credit for child passenger restraint system(s) (line 31) ..............
e. Carryover of the residential construction and remodeling tax credit (Sch. CR, line 11) ....
3. Add lines 2a through 2e .................................................................
4. Line 1 minus line 3. If zero or less, enter “0” here and on
line 8, skip lines 5-7; otherwise continue on to line 5 ..................
5. Enter amount from your 2017 Form N-11, line 22 ......................
6. Enter the amount shown below for the filing status you
claimed on your 2017 Form N-11 ................................................
Single or married filing separately— $2,200
Married filing jointly or qualifying widow(er)— 4,400
Head of household— 3,212
7. Line 5 minus line 6. Enter the result, but not less than zero ......
8. Compare the amounts on lines 4 and 7 above and enter
the SMALLER of the two amounts here .....................................
9. Enter the taxable part of your refund reported on your 2018
Schedule 1 (Form 1040), line 10. If this amount is blank,
enter zero here ...............................................................................
10. If line 8 is LARGER than line 9, subtract line 9 from line 8.
Enter the result here and on line b of the Hawaii
Additions Worksheet OR
If line 8 is SMALLER than line 9, subtract line 8 from
line 9. Enter the result here and on line b of the
Hawaii Subtractions Worksheet OR
If line 8 EQUALS line 9, enter zero and stop here .....................
Hawaii Additions Worksheet
a Taxable amount relating to Individual Housing Account ............
b Hawaii tax refund adjustment ........................................................
c Peace Corps compensation..........................................................
d
Depreciation adjustment ................................................................
e Gain adjustment .............................................................................
f Excluded income earned outside the U.S. ..................................
g Student loan interest deduction ....................................................
h Employer-provided adoption benefits ..........................................
i Qualified tuition program distributions for elementary
and secondary school expenses .................................................
j Other adjustments (attach separate explanation to Form N-11) .................
k Add lines a to j. Enter here and on Form N-11, line 10 ............
Hawaii Subtractions Worksheet
a Interest on federal obligations. But subtract the amount
from line 14 of federal Form 8815 ................................................
b Hawaii tax refund adjustment ........................................................
c Interest earned by an Individual Housing Account .....................
d Qualifying compensation to Hansen’s disease patient ..............
e Expenses connected with federal credits ....................................
f Child’s interest and dividend income on federal
Form 8814 that is not reported on Form N-814 .........................
g Premiums on and benefits from prepaid legal services plans ...............
h Student loan interest deduction ....................................................
i Employer-provided adoption benefits ..........................................
j Certain income from a qualified high technology business .......
k Individual development accounts .................................................
l Moving expenses ...........................................................................
m Qualified bicycle commuting reimbursement ..............................
n Other adjustments (attach separate explanation to Form N-11) ..............
o Add lines a to n. Enter here and on Form N-11, line 18 ............
Page 38
Worksheets (continued)
Itemized Deductions Worksheet
WORKSHEET A-1– Medical and Dental Expenses
1. Enter amount of medical and dental expenses (see
page 17 of Instructions). ................................................................
2. Enter the amount from Form N-11, line 20 (Hawaii AGI). .........
3. Multiply line 2 by 7.5% (.075). If zero or less, enter zero. ............
4. Line 1 minus line 3. If zero or less, enter zero. Enter
the result here and on Form N-11, line 21a. ...............................
WORKSHEET A-2Taxes You Paid
Note: You can claim a deduction for state and local, and foreign,
income, war profits, and excess profits taxes if your federal AGI is less
than $100,000 and you are single or married filing separately; or less
than $150,000 and you are a head of household; or less than $200,000
and you are married filing jointly or a qualifying widow(er).
5. State and local (check only one box):
a
 
Income taxes, or
b
 
General sales taxes ............................................................
6. Real estate taxes. ...........................................................................
7. Personal property taxes. ................................................................
8. Other taxes. .....................................................................................
9. Add lines 5 through 8. Enter the total here and on
Form N-11, line 21b. ......................................................................
WORKSHEET A-3 – Interest You Paid
10.
Home mortgage interest and points reported to you on
federal Form 1098. .........................................................................
11. Home mortgage interest not reported to you on federal
Form 1098. ......................................................................................
12. Points not reported to you on federal Form 1098
(see federal instructions to Form 1040, Schedule A). ................
13. Investment interest (attach Form N-158). ....................................
14. Add lines 10 through 13. Enter the total here and on
Form N-11, line 21c. ......................................................................
WORKSHEET A-4—Gifts to Charity
15.
Enter amount of gifts by cash or check (if any gift of
$250 or more, see page 20 of Instructions). ...............................
16. Other than by cash or check (if any gift of $250 or more,
see page 20 of Instructions) (attach federal Form 8283
if over $500). ...................................................................................
17. Carryover from prior year. ..............................................................
18. Add lines 15 through 17. Enter total here and on
Form N-11, line 21d. ......................................................................
WORKSHEET A-5—Casualties and Thefts
19. Total casualty and theft loss(es) from the 2017 federal
Form 4684, line 16 (see instructions on page 20). .....................
20. Enter the amount from Form N-11, line 20 (Hawaii AGI). .........
21. Multiply line 20 by 10% (.10). If zero or less, enter zero. ............
22. Line 19 minus line 21. If zero or less, enter zero.
Enter the result here and on Form N-11, line 21e. .....................
WORKSHEET A-6—Miscellaneous Deductions
23.
Unreimbursed employee business expenses—job travel,
union dues, job education (attach the 2017 federal
Form 2106 or Form 2106-EZ if required). ...................................
24. Tax preparation fees. ......................................................................
25. Other expenses (investment, safe deposit box, etc.) (list
type and amount, and attach the list to your return). ..................
26. Add lines 23 to 25. ..........................................................................
27. Enter the amount from Form N-11, line 20 (Hawaii AGI). .........
28. Multiply line 27 by 2% (.02). If zero or less, enter zero. ..............
29. Line 26 minus line 28. If zero or less, enter zero. .......................
30. Other deductions not subject to 2% AGI limit (see in-
structions on page 21) (list type and amount, and attach
the list to your return). .....................................................................
31. Add lines 29 and 30. Enter total here and on
Form N-11, line 21f. ........................................................................
32. Total itemized deductions. Add lines 4, 9, 14, 18, 22,
and 31. .............................................................................................
Note: If your Hawaii adjusted gross income is above a certain amount,
you may not be able to deduct all of your itemized deductions. See page
22 of the Instructions.
Itemized Deductions Worksheet (continued)
Total Itemized Deductions Worksheet
1. Enter the amount from line 32 of the Itemized Deductions
Worksheet. ......................................................................................
2. Enter from the Itemized Deductions Worksheet the following:
a. Medical and dental expenses (Worksheet A-1, line 4). ..........
b. Investment interest (Worksheet A-3, line 13). .........................
c. Casualty and theft losses (Worksheet A-5, line 22). ...............
d. Any gambling and casualty or theft losses included in
Worksheet A-6, line 30. .............................................................
3. Add lines 2a through 2d. ................................................................
4. Is the amount on line 3 less than the amount on line 1?
No. Your deduction is not limited. Enter the amount from
line 1 of this worksheet on Form N-11, line 22. Do not
complete the rest of this worksheet.
Yes. Line 1 minus line 3. ................................................................
5. Multiply line 4 by 80% (.80). ...........................................................
6. Enter the amount from Form N-11, line 20 (Hawaii AGI). .........
7. Enter $166,800 ($83,400 if married filing separately).................
8. Is the amount on line 7 less than the amount on line 6?
No. Your deduction is not limited. Enter the amount from
line 1 of this worksheet on Form N-11, line 22. Do not
complete the rest of this worksheet.
Yes. Line 6 minus line 7. ................................................................
9. Multiply line 8 by 3% (.03). .............................................................
10. Enter the smaller of line 5 or line 9. .............................................
11. Total itemized deductions. Line 1 minus line 10. Enter the
result here and on Form N-11, line 22. ........................................
Page 39
Worksheets (continued)
Tax Computation Worksheet
Enter the tax amount calculated from a or b.
a Tax Table, Tax Rate Schedule, or Tax on Capital Gains Worksheet ................
b Form N-168 or Form N-615 ..........................................................
c Enter any additional tax from Form N-2, Distribution from
an Individual Housing Account. ....................................................
d Enter any additional tax from Form N-103, Sale of Your Home
e Enter any additional tax from Form N-152, Tax on Lump-Sum Distributions ....
f Enter any additional tax from Form N-312, Recapture
of Capital Goods Excise Tax Credit .............................................
g Enter any additional tax from Form N-338, Tax Credit for Flood Victims.............
h
Enter any additional tax from Form N-344, Recapture of Important
Agricultural Land Qualified Agricultural Cost Tax Credit .......................................
i Enter any additional tax from Form N-348, Recapture of
Capital Infrastructure Tax Credit ...................................................
j Enter any additional tax from Form N-405, Tax on
Accumulation Distribution of Trusts ..............................................
k Enter any additional tax from Form N-586, Recapture of
Tax Credit for Low-Income Housing.............................................
l Enter any additional tax from Form N-814, Parent’s
Election to Report Child’s Interest and Dividends ......................
m Add lines a or b, and c through l. This is your total tax.
Enter the result here and on Form N-11, line 27 ........................
Note: If you entered any amount in lines b through l, fill in the oval
before “. . . if tax . . . is included. on Form N-11, line 27.
Tax on Capital Gains Worksheet
Note: If your taxable income is $48,000 ($24,000 for Single, and Married
Filing Separately; or $36,000 for Head of Household classifications) or
under, do not use this worksheet.
1. Enter your taxable income from Form N-11, line 26...................
2. Enter your net long-term capital gain (Form 1040, Sch. D,
line 15; or Schedule 1 (Form 1040), line 13 if Sch. D is
not required)....................................................................................
3. Combine your Hawaii long-term adjustments, if any,
and enter the total here (see page 23 of the Instructions) ....................
4. Combine lines 2 and 3. This is your Hawaii net long-term
capital gain ......................................................................................
5. Enter your net capital gain (Form 1040, Sch. D, line 16; or
Schedule 1 (Form 1040), line 13 if Sch. D is not required) .......
6. Combine your Hawaii short-term adjustments, if any,
and enter the total here (see page 23 of the Instructions) ....................
7. Combine lines 3, 5, and 6. This is your Hawaii net
capital gain ......................................................................................
8. Enter the smaller of line 4 or line 7 ..............................................
9. If you are filing Form N-158, enter the amount from
line 4e of Form N-158 ...................................................................
10. Line 8 minus line 9 (If this amount is zero or less, stop
here; you cannot use this worksheet to figure your tax.) ........
11. Line 1 minus line 10 .......................................................................
12. Enter the amount shown below for the filing status you claimed ...................
Single or Married filing separately— $24,000
Married filing jointly or qualifying widow(er)— 48,000
Head of household— 36,000
13. Enter the greater of line 11 or line 12 ..........................................
14. Line 1 minus line 13. This is the amount of net capital
gains eligible for alternative tax. ....................................................
15. Compute the tax on the amount on line 13 using the
Tax Table or Tax Rate Schedules, whichever applies ................
16. Multiply line 14 by 7.25% (.0725) and enter the result ...............
17. Line 15 plus line 16. .......................................................................
18. Compute the tax on the amount on line 1 using the
Tax Table or Tax Rate Schedules, whichever applies ................
19. Enter the smaller of line 17 or line 18 here and on line a
of the Tax Computation Worksheet above. If line 17 is
smaller, enter the amount from line 14 in the space provided
beside Form N-11, line 27a .........................................................
Other State and Foreign
Tax Credit Worksheet
Note: If you claim a credit for income taxes paid to other states and
countries, you cannot also claim those amounts as an itemized
deduction for state and foreign income taxes paid to another state or
foreign country.
1. Enter taxable income from Form N-11, line 26 ...........................
2. Enter amount of long-term capital gain from the space
provided beside Form N-11, line 27a ..........................................
3. Enter the amount of your out-of-state income,
including capital gains. Do not include any income that
is exempt in Hawaii such as employer-funded pensions ...........
4. Enter the amount of long-term capital gains from sources
outside the State ............................................................................
5. Enter the amount of tax you paid to other States, except
for tax paid on income that is exempt in Hawaii (attach a
copy of the tax return(s) from the other state(s)) ........................
6. Enter the amount of tax you paid to foreign countries or
to U.S. possessions, except for tax paid on income that
is exempt in Hawaii (attach a copy of federal Form(s) 1116,
or federal Form(s) 1099-DIV or 1099-INT if federal Form(s)
1116 is not required) ......................................................................
7. Enter the amount of the federal foreign tax credit you
were allowed to take this year. Do not include amounts
carried over to other years, or amounts from prior years
that were carried forward to this year ...........................................
8. Line 6 minus line 7 ..........................................................................
9. Line 5 plus line 8. This is the total amount of out-of-state
tax eligible for the credit .................................................................
10. Line 1 minus line 3. This is your Hawaii source income ............
11. Line 2 minus line 4. This is your Hawaii source long-term
capital gain. If line 4 exceeds line 2, enter zero here .................
12. Line 10 minus line 11. This is your Hawaii
ordinary income .............................................................................
13. Enter your tax amount from line a or line b of the Ta x
Computa tion Worksheet on this page .........................................
14. Figure the Hawaii tax on the amount on line 12. Use the
Tax Table or Tax Rate Schedules .................................................
15. Multiply the amount on line 11 by 7.25% (0.0725) .....................
16. Add lines 14 and 15 .......................................................................
17. Line 13 minus line 16 .....................................................................
18. Enter the smaller of line 9 or line 17. ...........................................
19. Enter the amount from Form N-11, line 34 .................................
20. Enter the smaller of line 18 or line 19 here and on Schedule
CR, line 1. Any excess cannot be carried forward ....................
Page 40
Adoption Benefits Worksheet
Caution: See the federal instructions to Form 8839, Qualified Adoption Expenses, before completing this worksheet.
Child 1 Child 2
1. Maximum exclusion per child................................................................................................... $10,000 $10,000
2. Did you receive employer-provided adoption benefits for a prior year for the same child?
No. Enter -0-.
Yes. See the federal instructions for the amount to enter. .......................................................
3. Subtract line 2 from line 1. .......................................................................................................
4. Employer-provided adoption benefits you received in 2018.
This amount should be shown in box 12 of your 2018 Form(s) W-2 with code T ....................
5. Add the amounts on line 4 ................................................................................................................................................................
6. Enter the smaller of line 3 or line 4. But if the child was a child with special needs and
the adoption became final in 2018, enter the amount from line 3 ...........................................
7. Enter your Hawaii modified adjusted gross income* .......................................................................................................................
8. Is line 7 more than $150,000?
No. Skip lines 8 - 9 and enter -0- on line 10.
Yes. Subtract $150,000 from line 7 ..................................................................................................................................................
9. Divide line 8 by $40,000. Enter the result as a decimal (rounded to at least three places). Do not
enter more than 1.000 ......................................................................................................................................................................
10. Multiply each amount on line 6 by line 9 ..................................................................................
11. Excluded benefits. Subtract line 10 from line 6 .....................................................................
12. Add the amounts on line 11 ..............................................................................................................................................................
13. Taxable benefits. Is line 12 more than line 5?
No. Subtract line 12 from line 5.
Yes. Subtract line 5 from line 12. Enter the result as a negative number. ........................................................................................
14. Enter the taxable adoption benefits as reported on your 2018 federal return ..................................................................................
15. If line 13 is LARGER than line 14, subtract line 14 from line 13. Enter the result here and on line
h of the Hawaii Additions Worksheet on page 37 OR
If line 13 is SMALLER than line 14, subtract line 13 from line 14. Enter the result here and on line
i of the Hawaii Subtractions Worksheet on page 37 .........................................................................................................................
*Hawaii modified adjusted gross income is your Hawaii adjusted gross income before subtracting any deduction for student loan interest, plus the
amount of employer-provided adoption benefits from the Adoption Benefits Worksheet, line 5.
Student Loan Interest Deduction Worksheet
1. Enter the total interest you paid in 2018 on qualified student loans. Do not enter
more than $2,500. ...................................................................................................................
2. Enter your Hawaii modified adjusted gross income** . ............................................................
Note: If line 2 is $65,000 or more if single, head of household, or qualifying widow(er) OR
$130,000 or more if married filing jointly, stop here. You cannot take the deduction.
3. Enter: $50,000 if single, head of household, or qualifying widow(er);
$100,000 if married filing jointly. ..............................................................................................
4. Is the amount on line 2 more than the amount on line 3?
No. Skip lines 4 and 5, enter -0- on line 6, and go to line 7.
Yes. Subtract line 3 from line 2. ...............................................................................................
5. Divide line 4 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal
(rounded to at least three places). If the result is 1.000 or more, enter 1.000. ........................
6. Multiply line 1 by line 5. ............................................................................................................
7. Student loan interest deduction. Subtract line 6 from line 1. Enter the result here. .............
8. Enter the student loan interest deduction as reported on your 2018 federal return. ................
9. If line 7 is LARGER than line 8, subtract line 8 from line 7. Enter the result here and on
line h of the Hawaii Subtractions Worksheet on page 37 OR
If line 7 is SMALLER than line 8, subtract line 7 from line 8. Enter the result here and
on line g of the Hawaii Additions Worksheet on page 37. .......................................................
**Hawaii modified adjusted gross income is your Hawaii adjusted gross income before subtracting any deduction
for student loan interest.
Worksheets (continued)
Page 41
2018
TAX TABLES
Tax Table Must Be Used By Persons With Taxable
Income Of Less Than $100,000
Page 42
2018 Hawaii Tax Table
Based on Taxable Income
For persons with taxable
incomes of less than
$100,000
Example:
Mr. & Mrs. Brown are filing a joint return. Their taxable income on line 26 is
$23,275. First, they find the $23,250 - 23,300 income line. Next, they find the column for
married filing jointly and read down the column. The amount shown where the income
line and filing status column meet is $1,010. This is the tax amount they must write on
line 27 of their return.
At But Single or Married Head
least less Married filing of a
than filing jointly house-
sepa- hold
rately
*
23,250 23,300 1,301 1,010 1,136
23,300 23,350 1,305 1,013 1,139
23,350 23,400 1,309 1,016 1,143
If line 26 If line 26 If line 26
(taxable And you are
__
(taxable And you are
__
(taxable And you are
__
income) is — income) is — income) is —
At But Single or Married Head At But Single or Married Head At But Single or Married Head
least less Married filing of a least less Married filing of a least less Married filing of a
than filing jointly house- than filing jointly house- than filing jointly house-
sepa- hold sepa- hold sepa- hold
rately
*
rately
*
rately
*
Your tax is
__
Your tax is
__
Your tax is
__
*This column must also be used by qualifying widow(er) Continued on next page
0 50 0 0 0
50 100 1 1 1
100 150 2 2 2
150 200 2 2 2
200 250 3 3 3
250 300 4 4 4
300 350 5 5 5
350 400 5 5 5
400 450 6 6 6
450 500 7 7 7
500 550 7 7 7
550 600 8 8 8
600 650 9 9 9
650 700 9 9 9
700 750 10 10 10
750 800 11 11 11
800 850 12 12 12
850 900 12 12 12
900 950 13 13 13
950 1,000 14 14 14
1,000
1,000 1,050 14 14 14
1,050 1,100 15 15 15
1,100 1,150 16 16 16
1,150 1,200 16 16 16
1,200 1,250 17 17 17
1,250 1,300 18 18 18
1,300 1,350 19 19 19
1,350 1,400 19 19 19
1,400 1,450 20 20 20
1,450 1,500 21 21 21
1,500 1,550 21 21 21
1,550 1,600 22 22 22
1,600 1,650 23 23 23
1,650 1,700 23 23 23
1,700 1,750 24 24 24
1,750 1,800 25 25 25
1,800 1,850 26 26 26
1,850 1,900 26 26 26
1,900 1,950 27 27 27
1,950 2,000 28 28 28
2,000
2,000 2,050 28 28 28
2,050 2,100 29 29 29
2,100 2,150 30 30 30
2,150 2,200 30 30 30
2,200 2,250 31 31 31
2,250 2,300 32 32 32
2,300 2,350 33 33 33
2,350 2,400 33 33 33
2,400 2,450 35 34 34
2,450 2,500 36 35 35
2,500 2,550 38 35 35
2,550 2,600 40 36 36
2,600 2,650 41 37 37
2,650 2,700 43 37 37
2,700 2,750 44 38 38
2,750 2,800 46 39 39
2,800 2,850 48 40 40
2,850 2,900 49 40 40
2,900 2,950 51 41 41
2,950 3,000 52 42 42
3,000
3,000 3,050 54 42 42
3,050 3,100 56 43 43
3,100 3,150 57 44 44
3,150 3,200 59 44 44
3,200 3,250 60 45 45
3,250 3,300 62 46 46
3,300 3,350 64 47 47
3,350 3,400 65 47 47
3,400 3,450 67 48 48
3,450 3,500 68 49 49
3,500 3,550 70 49 49
3,550 3,600 72 50 50
3,600 3,650 73 51 51
3,650 3,700 75 51 52
3,700 3,750 76 52 54
3,750 3,800 78 53 56
3,800 3,850 80 54 57
3,850 3,900 81 54 59
3,900 3,950 83 55 60
3,950 4,000 84 56 62
4,000
4,000 4,050 86 56 64
4,050 4,100 88 57 65
4,100 4,150 89 58 67
4,150 4,200 91 58 68
4,200 4,250 92 59 70
4,250 4,300 94 60 72
4,300 4,350 96 61 73
4,350 4,400 97 61 75
4,400 4,450 99 62 76
4,450 4,500 100 63 78
4,500 4,550 102 63 80
4,550 4,600 104 64 81
4,600 4,650 105 65 83
4,650 4,700 107 65 84
4,700 4,750 108 66 86
4,750 4,800 110 67 88
4,800 4,850 111 68 89
4,850 4,900 114 69 91
4,900 4,950 117 71 92
4,950 5,000 120 73 94
5,000
5,000 5,050 122 74 96
5,050 5,100 125 76 97
5,100 5,150 128 77 99
5,150 5,200 131 79 100
5,200 5,250 133 81 102
5,250 5,300 136 82 104
5,300 5,350 139 84 105
5,350 5,400 142 85 107
5,400 5,450 144 87 108
5,450 5,500 147 89 110
5,500 5,550 150 90 112
5,550 5,600 153 92 113
5,600 5,650 155 93 115
5,650 5,700 158 95 116
5,700 5,750 161 97 118
5,750 5,800 164 98 120
5,800 5,850 166 100 121
5,850 5,900 169 101 123
5,900 5,950 172 103 124
5,950 6,000 175 105 126
6,000
6,000 6,050 177 106 128
6,050 6,100 180 108 129
6,100 6,150 183 109 131
6,150 6,200 186 111 132
6,200 6,250 188 113 134
6,250 6,300 191 114 136
6,300 6,350 194 116 137
6,350 6,400 197 117 139
6,400 6,450 199 119 140
6,450 6,500 202 121 142
6,500 6,550 205 122 144
6,550 6,600 208 124 145
6,600 6,650 210 125 147
6,650 6,700 213 127 148
6,700 6,750 216 129 150
6,750 6,800 219 130 152
6,800 6,850 221 132 153
6,850 6,900 224 133 155
6,900 6,950 227 135 156
6,950 7,000 230 137 158
If line 26 If line 26 If line 26
(taxable And you are
__
(taxable And you are
__
(taxable And you are
__
income) is — income) is — income) is —
At But Single or Married Head At But Single or Married Head At But Single or Married Head
least less Married filing of a least less Married filing of a least less Married filing of a
than filing jointly house- than filing jointly house- than filing jointly house-
sepa- hold sepa- hold sepa- hold
rately
*
rately
*
rately
*
Your tax is
__
Your tax is
__
Your tax is
__
*This column must also be used by qualifying widow(er) Continued on next page
2018 Hawaii Tax Table (Continued)
Page 43
7,000
7,000 7,050 232 138 160
7,050 7,100 235 140 161
7,100 7,150 238 141 163
7,150 7,200 241 143 164
7,200 7,250 243 145 167
7,250 7,300 246 146 170
7,300 7,350 249 148 173
7,350 7,400 252 149 176
7,400 7,450 254 151 178
7,450 7,500 257 153 181
7,500 7,550 260 154 184
7,550 7,600 263 156 187
7,600 7,650 265 157 189
7,650 7,700 268 159 192
7,700 7,750 271 161 195
7,750 7,800 274 162 198
7,800 7,850 276 164 200
7,850 7,900 279 165 203
7,900 7,950 282 167 206
7,950 8,000 285 169 209
8,000
8,000 8,050 287 170 211
8,050 8,100 290 172 214
8,100 8,150 293 173 217
8,150 8,200 296 175 220
8,200 8,250 298 177 222
8,250 8,300 301 178 225
8,300 8,350 304 180 228
8,350 8,400 307 181 231
8,400 8,450 309 183 233
8,450 8,500 312 185 236
8,500 8,550 315 186 239
8,550 8,600 318 188 242
8,600 8,650 320 189 244
8,650 8,700 323 191 247
8,700 8,750 326 193 250
8,750 8,800 329 194 253
8,800 8,850 331 196 255
8,850 8,900 334 197 258
8,900 8,950 337 199 261
8,950 9,000 340 201 264
9,000
9,000 9,050 342 202 266
9,050 9,100 345 204 269
9,100 9,150 348 205 272
9,150 9,200 351 207 275
9,200 9,250 353 209 277
9,250 9,300 356 210 280
9,300 9,350 359 212 283
9,350 9,400 362 213 286
9,400 9,450 364 215 288
9,450 9,500 367 217 291
9,500 9,550 370 218 294
9,550 9,600 373 220 297
9,600 9,650 376 222 299
9,650 9,700 379 225 302
9,700 9,750 382 228 305
9,750 9,800 385 231 308
9,800 9,850 388 233 310
9,850 9,900 392 236 313
9,900 9,950 395 239 316
9,950 10,000 398 242 319
10,000
10,000 10,050 401 244 321
10,050 10,100 404 247 324
10,100 10,150 408 250 327
10,150 10,200 411 253 330
10,200 10,250 414 255 332
10,250 10,300 417 258 335
10,300 10,350 420 261 338
10,350 10,400 424 26