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 following instructions for each of these credits to ensure that you properly claim all the credits to which you are entitled.
General Income Tax Credit
Eligibility Requirement for General Income Tax Credit:
- Must be a resident of Hawaii for at least 9 months;
- was not confined in prison, a youth correctional facility, or jail for the full taxable year, and
- not eligible to be claimed as a dependent by another taxpayer.
Refundable Food/Excise Tax Credit
Each resident taxpayer who files an individual income tax return for the taxable year, including those who have no income or no income taxable under chapter 235, HRS, may claim this credit provided that the taxpayer is not eligible to be claimed as a dependent for federal or State income tax purposes by another taxpayer.
The refundable food/excise tax credit may be claimed for each resident individual who:
- Was a resident of Hawaii and was physically present in Hawaii for more than nine months during the taxable year;
- Is not claimed and is not eligible to be claimed as a dependent by any taxpayer for federal or Hawaii individual income tax purposes; and
- Was not confined in jail, prison, or a youth correctional facility for the full taxable year.
For Whom the Credit May Be Claimed
A resident taxpayer filing Form N-11 or N-13, or a part-year resident taxpayer filing Form N-15 may claim the credit for any of the following people who are “qualified exemptions” as defined above:
- The taxpayer’s self;
- The taxpayer’s spouse if the taxpayer is married and filing a joint return or married and filing separately where the spouse is not filing a Hawaii return, had no income, and was not the dependent of someone else;
- The taxpayer’s dependents; and
- The taxpayer’s minor children receiving support from the Department of Human Services of the State, social security survivor benefits, and the like.
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 individual 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 exemption, including the additional exemption for taxpayers age 65 or over, provided the following 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.
Note: Do not claim this credit if you are being claimed or eligible to be claimed as a dependent by any taxpayer for federal or Hawaii income tax purposes.
Credit for Income Taxes Paid to Other States and Countries
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 or joint part-year resident return) and was not exempt from Hawaii income tax;
- You did not file an Election Under Act 60, SLH 1976;
- 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 foreign jurisdiction (net amount of tax paid to a foreign jurisdiction after all credits, reductions, and refunds allowed or allowable 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 imposed 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 credit is allowed on the federal return;
- The income must be taxed by the other state or foreign country for the same taxable year for which the Hawaii credit is claimed;
- No credit is allowed for penalties or interest paid to the other state or foreign country; and
- No credit is allowed for city or local income 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 of Taxation. You may be subject to penalties if you fail to make this report.
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