Hawaii Form N-11 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form N-11, the Hawaii Individual Income Tax Return. If you don't live in Hawaii, not to worry, we'll be tackling the other 34 states soon enough.
With only 53 Lines the Hawaiian Department of Taxation has made it's residential tax form fairly easy to move through. And while it may be 4 pages, it's really easy on the eyes. If you have all your stuff together, the N-11 should take no longer than 1 hour. Therefore, I'll give it a 7 on the user-friendly meter. Though you'll need a crayon for all the shading you'll have to do.
As with all these state forms, begin by filling in your name, address, and social security number at the very top. Next, shade in the oval that describes your filing status. If you're 65, shade the oval on Line 6a and 6b. If you have any dependent children, write that amount on Line 6c.
If you have other dependent members of your family they go on Line 6d. When ready, add up the number of exemptions (Lines 6a through 6d) and put the total on Line 6e.
On Line 7 enter your Federal adjusted gross income, you can get this amount from your main Federal tax form. On Line 8, enter any difference between your state and federal recognized wages. These differences could be due to things like a cost of living adjustment, just see page 11 of the instruction booklet to see what applies.
On Line 9 include interest on any out of state bonds, even tax exempt municipal bonds. Why? Because muni bonds are only tax exempt if you bought them within the state you reside. On Line 10 include any other additions to your federal AGI, again check page 11 of the booklet for direction.
Now add Lines 8 through 10 and put your total Hawaiian AGI additions on Line 11. Then add Lines 7 and 11 with that total going on Line 12. If you had a pension that was taxed by the federal government, but not by Hawaii, enter that amount on Line 13. If you received any social security benefits they go on Line 14.
Your first $5,609 of military reserve or national guard pay is exempt from tax and goes on Line 15. Any payments you made to a housing account go on Line 16. Line 17 is a tree deduction (it has to be exceptional) while Line 18 is for any other subtractions to your Hawaiian AGI that hasn't already been mentioned. No really, that aforementioned deduction is called an exceptional tree deduction, seriously.
Now add Lines 13 through 18 to get your total subtractions to your AGI, this amount goes on Line 19. Next subtract your total additions (Line 12) by subtractions (Line 19) and enter your final Hawaiian AGI on Line 20.
If you don't itemize skip down to Line 23. But if you do itemize, you'll have to attach the applicable 6 worksheets and enter those totals on Lines 21a through 21f, put the total on Line 22. The standard Hawaiian deduction is $2,000 for a single, $2,920 for a head of household, and $4,000 for married folks. Just enter the larger on Line 23. Now subtract Line 20 from Line 23 and put that amount on Line 24.
If Line 20 is $89,981 or less multiply $1,040 by the total number of exemptions you claimed on Line 6e. If your income is more than that amount, your exemption credit starts to get phased out, just check page 21 of the booklet to see by how much. Now subtract Line 24 from Line 25 to reveal your taxable income, just put it on Line 26.
On Line 27 you need to figure your tax, just fill in the appropriate oval if you got it from either the tax table, the tax rate schedule, or if it's a capital gains tax. If you've incurred a capital gains tax look up page 37 of the instruction booklet and enter the net capital gain from Line 14 of that worksheet on Line 27 of this form. Also if there is any tax from the Capital Gains Tax Worksheet, enter capital gain from line 14 of that worksheet on Line 27a.
If any nonrefundable tax credits apply to you, enter their total on Line 28 and attach a schedule CR. Then subtract Line 26 from Line 28 and enter that total on Line 29. On Line 30 record your withholdings, which you can find on your W-2. Line 31 is for any estimated tax payments you've already made, while Line 32 is for prepaid tax you've carried into this year.
If you were able to get an extension, enter the amount of the interest you have to pay on Line 33. If credits like refundable food, low income renters, child and dependent care expenses, apply, attach the appropriate schedules and enter the totals on Lines 33 through 39. When you're set, add Lines 30 through 39 to get your total payments and credits, which gets recorded on Line 40.
If Line 40 is larger than Line 29, then you've overpaid. Simply subtract Line 29 from 40 to find out how much. At this point if you want money to go a number of good causes fill in the appropriate ovals and enter the total amount on Line 43. Then subtract Line 43 from Line 41 and put the total on Line 44.
If you want some or all of Line 44 to be applied to next year, record that amount of Line 45. Line 46a is the amount of Line 44 you want refunded to you. Just be sure to record the your banking information on Lines 46 b, c, and d.
If you owe, that is, Line 29 is larger than Line 40, subtract the smaller from the larger to find out how much. This amount then goes on Line 47 and your check should be made out to the Hawaii State Tax Collector.
If you've incurred an estimated tax penalty enter that amount on Line 48, just check page 28 of the booklet for guidance. If you had to fill out an amended return, fill in the appropriate amount on either Line 49 or Line 50.
Lines 51 through 53 only apply if you had to fill out a schedule for business or rental activity. If none of that applies, you can skip down to end of this Form. Finish up your return by signing, dating, stating your occupation, and recording your phone number. If you had a tax pro help you with your return, they have to record their vitals as well.
Provided you're organized, Form N-11 shouldn't give you too much trouble to complete. Then you can kick back and order another pina colada. Your tax return will be the furthest thing from your mind, as you relax, and watch the sun fade over the horizon. Ah Hawaii. Aloha!
