Hawaii Form N-15: Filing for Non-Residents

Hawaii Form N-15 is the state’s individual income tax return for individuals with financial ties to Hawaii who do not live there year-round. It allows non-residents and part-year residents to report and pay tax on income earned from Hawaiian sources. This form is distinct from Form N-11, which is used by full-year residents of the state. The filing process requires allocating income and deductions to determine the tax liability owed to Hawaii.

Determining Your Filing Requirement

Your filing requirement for Form N-15 depends on your residency status. The Hawaii Department of Taxation (DOTAX) defines a part-year resident as an individual who moved to or from the state during the tax year. You are considered a resident if you are domiciled in Hawaii or are physically present in the state for more than 200 days of the tax year. If you do not meet these criteria but have income from a Hawaiian source, you are a non-resident filer.

You must file a Hawaii tax return if your gross income subject to the state’s tax laws is more than the sum of your standard deduction and personal exemption. An exception applies to those engaged in business in Hawaii. If you conduct business in the state, you are required to file a return regardless of whether you have any taxable income from that business.

Part-year residents must file if their income from all sources while a resident, combined with their Hawaii-source income while a non-resident, meets the filing threshold. Part-year residents are taxed on all income earned during their period of residency and only on Hawaii-source income for the period they were a non-resident. Due to these requirements, it is possible to owe Hawaii income tax even if you do not owe any federal income tax.

Information and Documentation to Prepare

A completed copy of your federal income tax return, such as Form 1040, is needed, as many figures transfer directly to the state form. You will also need all income-reporting documents, like W-2s and 1099s, that are attributable to work performed or sources within Hawaii.

You should also collect records that support any Hawaii-specific adjustments, itemized deductions, or tax credits you may claim. This includes documentation for expenses that can be directly allocated to Hawaii income or those that must be prorated. The official Form N-15 and its instructions can be downloaded from the Hawaii Department of Taxation website. These documents are updated annually and provide line-by-line guidance.

Calculating Your Hawaii Taxable Income

Form N-15 calculates tax liability by separating your worldwide income from your Hawaii-specific income using a two-column format. Column A requires you to report your total income from all sources, which should mirror your federal tax return. Column B is for income derived from Hawaiian sources, such as wages for work performed in Hawaii or rental income from a property in the state.

After reporting your income, you calculate your Hawaii Adjusted Gross Income (AGI). For non-residents, this is the AGI from Hawaii sources only. For part-year residents, it is the total AGI from all sources during the period of residency plus the Hawaii-source AGI from the non-resident period.

The next step involves prorating your deductions and personal exemptions, as you cannot claim your full federal deductions against Hawaii income. You must calculate a ratio by dividing your Hawaii AGI by your Federal AGI. This percentage is then applied to your standard or itemized deductions and personal exemptions to determine the portion you can claim on your Hawaii return.

Submitting Your Completed Form N-15

When filing a paper return, the mailing address depends on whether a payment is enclosed. Returns with a payment are sent to a different address than refund or zero-balance returns; the specific addresses are listed in the Form N-15 instructions. If you owe tax, include a check or money order payable to “Hawaii State Tax Collector” along with Form N-200V, the payment voucher.

Electronic filing is another option and is encouraged for faster processing. You can file through the state’s official portal, Hawaiʻi Tax Online, or use approved third-party tax preparation software. These systems allow for direct debit payments from a bank account.

Processing times for refunds can vary. E-filed returns are processed within several weeks, while paper returns may take longer. You can check the status of your refund on the Hawaii Department of Taxation website using your Social Security number and the exact refund amount claimed on your return.