Form N-1 - Declaration Of Estimated Income Tax For Individuals

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STATE OF HAWAII — DEPARTMENT OF TAXATION

2016

FORM

Declaration of Estimated Income Tax for Individuals

N-1

(REV. 2015)

GENERAL INSTRUCTIONS

NOTE: If any due date falls on a Saturday, Sunday, or legal holiday, substitute the next regular workday.

NOTE: References to “married”, “unmarried”, and “spouse” also means “in a civil union”, “not in a civil union”, and “civil union partner”, respectively.

Internet Filing — Form N-1 can be filed and pay-

(2) If married taxpayers file estimated tax returns

If you file your 2016 tax return by January 31,

ment made electronically through the State’s

separately, they are not precluded from filing a

2017, and pay any balance due, then you do not have

Internet portal. For more information, go to:

joint income tax return for the taxable year. If

to make the payment that would otherwise be due

tax.hawaii.gov/eservices/

married taxpayers file their estimated tax return

January 20, 2017.

jointly, they are not precluded from filing separate

1. Purpose of Declaration — For many individu-

Farmers and Fishermen. If at least 2/3 of your gross

income tax returns for the taxable year.

als, the income tax for the year will not be satisfied

income for 2015 or 2016 is from farming or fishing,

through withholding by employers. This may occur,

(3) Death of spouse. A joint filing of an estimated

you may do one of the following:

for instance: (1) when an individual has income from

tax return may not be made after the death of

• Pay all of your estimated tax by January 20,

a business or profession, dividends, interest, rents or

a spouse. The surviving spouse remains liable

2017, or

capital gains; (2) when an individual’s wages are not

for any subsequent payments of estimated tax.

• File your 2016 tax return by March 1, 2017,

subject to withholding; and (3) when an individual’s

The surviving spouse, however, may amend the

and pay the total tax due. In this case, 2016

tax is more than that covered by withholding. The

filing and choose to report the estimated tax for

estimated payments are not required.

Hawaii Income Tax Law requires such persons to

the taxable year separately. See section 18-235-

If any due date falls on a Saturday, Sunday or legal

make quarterly declarations of estimated tax and

97(d), Hawaii Administrative Rules, for further

holiday, use the next regular workday.

payments (except for nonresident aliens who make

information.

5. How to Figure Your Estimated Tax — Use the

three payments) in advance of their annual income

3. Where to File Payment Vouchers — Your payment

Estimated Tax Worksheet and the Tax Rate Schedules

tax returns. To avoid making declarations and esti-

vouchers for 2016 should be filed with the Hawaii

beginning on page 2 in these instructions, and your

mated tax payments, consider asking your employer

Department of Taxation, P.O. Box 1530, Honolulu,

2015 tax return as a guide for figuring your esti-

to withhold more tax out of your earnings. To do

Hawaii 96806-1530.

mated tax.

this, file a new Form HW-4, Employee’s Withholding

The payment vouchers that you file serve as your

Allowance and Status Certificate, with your employer

Every taxpayer, in determining the amount of

declaration of estimated tax.

but make sure you will not owe $500 or more in tax.

gross income reasonably expected for the taxable

4. When to File and Pay Your Estimated Tax — The

year, must take into account the differences between

2. Who Must Make a Declaration — In general,

general rule is that you must file your declaration

the gross income returnable for federal and Hawaii

every individual subject to the provisions of the

by April 20, 2016. Use one of the following charts to

purposes. These differences include:

Hawaii Income Tax Law shall make a declaration

determine your payment due dates. Payments are

of estimated tax payments. However, estimated tax

Taxable by Federal but NOT Hawaii:

due by the dates indicated.

payments are not required if:

(1) Income received from the Employees’ Retirement

You may have a large change in income,

(1) The taxpayer’s estimated tax liability (after taking

System of the State of Hawaii or from any other

deductions, additional taxes, or credits during the

into account all taxes withheld or collected at the

public retirement system.

year that may require you to make estimated tax

source) for the taxable year is less than $500; or

(2) Compensation received in the form of a pension

payments. If you meet the requirements to make

(2) The taxpayer did not have any tax liability for the

for past services.

estimated tax payments after April 1, use Chart B.

preceding taxable year.

Otherwise, use Chart A to determine the payment

(3) Interest on obligations of the United States.

If the individual serves with or in support of the U.S.

due dates. If you are a nonresident alien, use Chart

(4) Compensation received by a patient affected

Armed Forces in a combat zone, paying estimated

C. (See charts below.)

by leprosy employed by the United States or

taxes shall be deferred. This deferral applies to the

Whether you have steady or unexpected income,

Hawaii.

period of service or associated hospitalization inside

you do not have to make the payment due January

(5) Income received by each member of their reserve

or outside the United States, and for an additional

20, 2017, if you:

components of the army, navy, air force, marine

180 days.

• File your tax return by January 31, 2017, and

corps, coast guard of the United States of America

In most cases, you must make estimated tax

and the Hawaii national guard as compensation for

• Pay the entire balance due with the return.

payments if you expect to owe, after subtracting

performance of duty equivalent to pay received for

Chart A—Individuals With Steady Income. You may

your withholding and credits, at least $500 in tax for

forty-eight drills (equivalent of twelve weekends)

pay all of your estimated tax by April 20, 2016, or in

2016, and you expect your withholding and credits

and fifteen days of annual duty at an E-5 pay grade

four equal amounts by the dates below.

to be less than the smaller of:

after eight years of service.

Estimated payments due by:

• 60% of the tax shown on your 2016 tax return, or

Taxable by Hawaii but NOT Federal:

1st Payment ........................April 20, 2016

• 100% of the tax shown on your 2015 tax return.

Federal employees’ cost-of-living allowances.

2nd Payment ......................June 20, 2016

However, if you did not file a 2015 tax return or that

3rd Payment .......................Sept. 20, 2016

Treatment of Residents, Part-year Residents, and

return did not cover all 12 months, the 100% of the

4th Payment .......................Jan. 20, 2017

Nonresidents for Hawaii taxes:

tax shown on your 2015 tax return discussed above

Chart B—Individuals With Unexpected Income.

(1) As a resident, the tax is based upon your entire

does not apply.

Use the amount on line 13 of the estimated tax work-

income irrespective of geographical source, except

Generally, you do not have to pay estimated tax if

sheet.

that in the case of an individual who took up

you were a Hawaii resident or nonresident for all of

If the requirement

Payment

Of the

residence in Hawaii after attaining the age of 65

2015 and you had no tax liability for the full 12-month

to pay estimated tax

date

estimated

years and before July 1, 1976, the tax base is the

is met after:

is:

2015 tax year. Also, for nonresident aliens, you do

tax due,

income from sources in Hawaii.

pay:

not have to pay estimated tax if your 2016 income

(2) As a resident, you are subject to the income

Apr. 1 and before June 2

June 20, 2016

1/3

tax return will show (1) a tax refund, or (2) a tax

tax upon your compensation received from the

June 1 and before Sept. 2

Sept. 20, 2016

1/2

liability of less than $500.

Sept. 1

Jan. 20, 2017

all

United States for services as a member of the

The estimated tax requirements apply to:

uniformed services of the United States. (But see

Chart C—Nonresident Aliens. If you received wages

• Hawaii residents, and

(5) above.)

subject to Hawaii income tax withholding, make

your first estimated tax payment by April 20, 2016.

• Hawaii nonresidents, including nonresident

(3) As a nonresident, the tax is based upon your

Otherwise, make it by June 20, 2016.

aliens.

income from sources in Hawaii. The ratio of

Hawaii adjusted gross income to total adjusted

Even if you are not required to make an estimated

Joint or separate filing of estimated tax by married

gross income from all sources will be applied to

tax payment on April 20, or June 20, 2016, you

taxpayers:

your standard deduction and personal exemption.

may meet the requirements to make estimated tax

(1) In general. A taxpayer and spouse may file

This treatment also applies to part-year resident

payments later. In this case, make your estimated

estimated tax returns jointly even though they are

taxpayers.

tax payments as follows:

not living together. However, a joint filing may not

If the requirement to

Payment

Of the

(4) The status of an alien (an individual who is not a

be made if the spouses are legally separated under

pay estimated tax is

date

estimated

United States citizen) as a resident or nonresident

a decree of divorce or of separate maintenance;

met after:

is:

tax due,

for Hawaii income tax purposes is determined

one of the spouses is a nonresident alien, except

pay:

by all of the factual circumstances. The special

under an election to treat the nonresident alien

Apr. 1 and before June 2

June 20, 2016

1/2

rules applicable to individuals who are considered

spouse as a United States resident; or the spouses

June 1 and before Sept. 2

Sept. 20, 2016

3/4

nonresident aliens for federal income tax purposes

have different taxable years.

Sept. 1

Jan. 20, 2017

all

Form N-1 - Declaration Of Estimated Income Tax For Individuals - 2016

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