Who is required to file a Hawaii state tax return?

Who Must File

1. Every individual doing business in Hawaii during the taxable year must file a return, whether or not the individual derives any taxable income from that business. “Doing business” includes all activities engaged 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 control 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 Taxation (Department) of their disability on Form N-172 before filing their income tax return. For individuals who can be claimed as dependents on the tax return of another taxpayer, 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 taxable year must file their own returns to report their income unless their parent or parents report that income. However, the Department will, administratively, 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 deduction 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. Parents 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 Distributions; Form N-312, Recapture of Capital Goods Excise Tax Credit; Form N-338, Recapture 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 Infrastructure Tax Credit; Form N-405, Tax on Accumulation Distribution of Trusts; Form N-586, Recapture of Tax Credit for Low-Income Housing; or Form N-814, Parent’s Election to Report Child’s Interest and Dividends, then you must file a return regardless of income level.