Many people dread tax season, especially if they are unsure of whether they must file a tax return. The requirements for filing taxes are the same in Hawaii as they are in other states. If an individual or business meets specified income and earning limits, they are required to file a tax return. Before filing taxes in Hawaii, you must have a certain amount of income, depending on a number of variables.
The minimum income needed by persons in Hawaii to file taxes is $12,200 for single filers and $24,400 for married couples filing jointly. Even if your income is below these criteria, you could still need to file a tax return if you are self-employed or have other sources of income, such as rental income. If you are unsure if you need to file a tax return, it is always better to speak with a tax expert.
Hawaii residents are expected to pay state taxes in addition to federal taxes. The state income tax in Hawaii has a range of 1.4% to 11%. The actual amount you pay is determined by your filing status and income level. Hawaii also imposes a General Excise Tax (GET) on all commercial activities carried out there. Most firms must pay the GET rate of 4%, however some may have to pay a higher rate.
A Hawaii GE tax license must be obtained if you are opening a business there. You are permitted to collect and send the GET on behalf of your company by virtue of this license. You must register your business with the Hawaii Department of Taxation in order to acquire a GE tax license. This can be done by mail or online. Following business registration, you will be issued a GE tax license number and be required to submit periodic tax returns. You must submit an online application via the IRS website in order to receive an Employer Identification Number (EIN) in Hawaii. A nine-digit number with no duplicates is given to enterprises as an EIN for tax purposes. If you employ people, file certain tax returns, or do business as a partnership or corporation, you must obtain an EIN.
Finally, the Hawaii Department of Commerce and Consumer Affairs is the place to go if you want to confirm a business license in Hawaii. They keep a database of all the state’s active business licenses. A business license can be found using the name, license number, or kind of business.
In conclusion, your filing status and the sort of income you earn will determine how much money you need to earn in order to file taxes in Hawaii. A GE tax license and an EIN are required if you are opening a business in Hawaii. The Department of Commerce and Consumer Affairs in Hawaii is where you may check the validity of a business license. If you are unsure of your tax obligations in Hawaii, it is recommended to speak with a tax expert.