Understanding Hawaii Personal Exemption and Related Tax Forms

What is Hawaii personal exemption?
The personal exemption amount is $1,144 per exemption, including an additional exemption for those age 65 or older. If you are blind, deaf or totally disabled and your impairment has been certified, submit Form N-172 prior to filing your return in order to claim the disability exemption of $7,000.
Read more on tax.hawaii.gov

On their state income tax forms, residents can deduct the Hawaii Personal Exemption from their taxes. Taxpayers may claim a specific amount for themselves, their spouse, and any dependents. The personal exemption in Hawaii is $1,144 per person for 2021. The total personal exemptions that a family of four can claim on their state tax return is $4,576.

Taxpayers must submit a Hawaii Resident Income Tax Return (Form N-11) in order to claim the personal exemption. All income generated in Hawaii must be reported on this form, together with any applicable deductions or credits. All sources of income, including wages, salaries, tips, and self-employment income, must be reported by taxpayers. Any income derived from investments, rental properties, or enterprises must also be disclosed.

Hawaii requires lone proprietors to register their businesses with the state. Through the Hawaii Business Express site, this can be done online. After your business has been registered, you must submit a General Excise Tax (GET) return. The GET is a tax on your company’s gross income, and the rate is determined on the kind of business you run. If you rent out a vacation home or another type of housing, you might also need to submit a Transient Accommodation Tax (TAT) return.

You can access a Form 1099-G that you have received from the State of Hawaii online at the website of the Hawaii Department of Taxation. Your Social Security number, Taxpayer ID number, and zip code are required in order to access your 1099-G. You can print or save your form for your records after you’ve accessed it. In Hawaii, the General Excise Tax is reported and paid using the G-45 and G-49 forms. While the G-49 is an annual return, the G-45 is a quarterly return. While the G-49 is due at the end of the tax year, the G-45 must be submitted and paid for every quarter. The G-49 is used to claim any credits or refunds that may be due as well as to reconcile the overall amount of GET paid throughout the year.

Taxpayers must first obtain a Hawaii Tax ID number in order to file a G-49 in Hawaii. The Hawaii Department of Taxation can help them with this by registering their firm there. Once they receive a Tax ID number, they can use the Hawaii Tax Online website to submit their G-49 return online. On the G-49 form, taxpayers must disclose all of their gross income, deductions, and potentially applicable credits and refunds.

In conclusion, taxpayers may deduct certain expenses from their federal income tax returns by claiming the Hawaii Personal Exemption. Taxpayers must submit a Hawaii Resident Income Tax Return (Form N-11) in order to claim the personal exemption. The state requires sole proprietors to register their business and submit a General Excise Tax (GET) return. The GET is reported and paid for using the G-45 and G-49 forms, with the G-49 serving as an annual return. The Hawaii Tax Online website allows taxpayers to submit their G-49 return electronically.

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