Hawaii is a well-liked vacation spot that is renowned for its stunning beaches, crystal-clear ocean, and picturesque scenery. As a result, a lot of people decide to buy timeshares in Hawaii to continually take advantage of its beauty. However, timeshare owners have specific tax responsibilities that they must be aware of. The Hawaii timeshare occupancy tax is one of these responsibilities. The Hawaii Timeshare Occupancy Tax is what, exactly? The renting of timeshare units is subject to the Hawaii timeshare occupancy tax. Whether the owner is a resident of Hawaii or not, this tax is applicable to all timeshares that are rented or leased in Hawaii. Hawaii currently levies an occupancy tax on timeshares at a rate of 10.25% of the rental or lease payment. Can I Use a Credit Card to Pay My Hawaii State Taxes? Yes, you can use a credit card to pay your Hawaii state taxes. However, the business that handles payments levies a convenience fee. The convenience fee varies based on the company utilized for payment processing and is normally a percentage of the total tax payment. How Much Money Must You Earn in Hawaii in Order to File Taxes? Age and filing status are two variables that affect Hawaii’s income threshold for tax filing. The threshold is $4,000 for single taxpayers under the age of 65. The threshold is $8,000 for married individuals filing jointly who are under the age of 65. The barrier is $6,000 for solo filers and $12,000 for married couples filing jointly for taxpayers over the age of 65. What does a Hawaii Resale Certificate entail? In Hawaii, a timeshare buyer can avoid paying the state’s general excise tax by presenting a resale certificate. The Hawaii Department of Taxation issues the resale certificate, which is only valid if the buyer of the timeshare plans to utilize it for personal or family purposes. Has Hawaii Prolonged the Tax Deadline?
The deadline for filing taxes in Hawaii for the 2020 tax year has been extended to May 17, 2021. State income tax filing and payment are also subject to this extension. It’s crucial to remember that this extension does not cover the payment of additional taxes, such as the Hawaii timeshare occupancy tax.
In conclusion, timeshare owners in Hawaii have specific tax responsibilities that they must be aware of. The renting of timeshare units is subject to the Hawaii timeshare occupancy tax. There is a convenience fee when paying Hawaii state taxes with a credit card. Depending on filing status and age, Hawaii has different income thresholds for filing taxes. In Hawaii, a timeshare buyer can avoid paying the state’s general excise tax by presenting a resale certificate. The tax filing deadline in Hawaii has now been extended to May 17, 2021, for the 2020 tax year.
Hawaii doesn’t tax Social Security benefits, unfortunately. Benefits from Social Security are exempt from Hawaii’s state income tax.