The COVID-19 epidemic has had a profound effect on people’s lives and companies all around the world. The pandemic’s repercussions include the extending of tax filing deadlines to help taxpayers. The Department of Taxation in Hawaii has announced a postponement of the filing date for the 2020 tax year.
May 17, 2021 has been set as the new due date for submitting Hawaii state income tax forms and paying any outstanding taxes. All taxpayers, including individuals, partnerships, corporations, estates, and trusts, are included by this extension. The extension does not, however, apply to federal tax returns or taxes payable to the Internal Revenue Service (IRS), which must be kept in mind.
Knowing which forms to utilize is crucial for people who haven’t yet submitted their Hawaii state income tax filings. The G-45 tax form is one of the documents that can be needed. For enterprises operating in Hawaii, this form is used to record and pay the general excise tax (GET) and transient accommodations tax (TAT). You can submit the G-45 form electronically or via mail.
People might also need to fill the N-11 form in addition to the G-45 form. Individuals’ Hawaii state income tax is reported using this form. To prevent fines and interest, it’s crucial to make sure that all required forms are submitted precisely and on time.
Hawaii’s high cost of living is one factor that may contribute to the state’s high tax rates. Hawaii has one of the highest costs of living in the country, which could result in greater taxes to pay for government services and initiatives. The COVID-19 pandemic has also had a substantial impact on tourism, which is a major source of revenue for the state and could result in higher taxes. Hawaii is regarded as a tax-friendly state for retirees despite the high cost of living and potential for higher taxes. Benefits from Social Security are not subject to state taxation, and certain retirement income is subject to tax discounts. In addition, compared to other states, Hawaii has a low property tax rate.
The tax filing date for the 2020 tax year has now been extended by the Hawaii Department of Taxation to May 17, 2021. In order to avoid penalties and interest, taxpayers must make sure that the proper documents are submitted precisely and on time. Hawaii’s high cost of living and emphasis on tourism may result in high taxes, but because of the state’s tax cuts for specific retirement income, it is regarded as a tax-friendly jurisdiction for retirees.