Filing your Hawaii tax return for the 2018 tax year is a legal obligation for many individuals who lived, worked, or earned income there. Understanding how to file your Hawaii tax return for 2018 is essential to ensure compliance with Hawaii tax laws, avoid late-filing penalties, and accurately claim deductions and credits. This guide provides a step-by-step overview of the process to help you prepare and submit your return correctly.

This guide applies to full-year residents, part-year residents, and nonresidents who received income from Hawaii sources during 2018. It is intended for taxpayers of all experience levels, including first-time filers and those completing a prior-year return. Each section explains the process in clear, practical terms, so you can understand your obligations whether you prepare your taxes, use tax filing software, or work with a professional tax preparer.

By following the instructions, you will learn to determine if you need to file, identify the correct forms, and organize the necessary documentation. The guide also covers filing deadlines, payment options, and how to track the status of your refund. By approaching the filing process methodically, you can reduce errors, meet critical deadlines, and take full advantage of the income tax credits and deductions available to eligible taxpayers.

Overview of Hawaii State Income Tax for 2018

Hawaii’s state income tax system applies to residents, part-year residents, and nonresidents with income from Hawaii sources. For 2018, filing requirements were based on income thresholds, age, and residency status. Residents report all income from any source, while nonresidents and part-year residents report only income earned in Hawaii.

Who Needs to File

For 2018, the income thresholds varied by filing status and age. For example, a single filer under age 65 was required to file if gross income was at least $3,344, while married couples filing jointly under age 65 had a threshold of $6,688. Individuals engaged in business in Hawaii, including earning rental income, had to file even if expenses exceeded income.

Filing Deadlines and Extensions

The original due date for the 2018 tax return in Hawaii was April 22, 2019. Hawaii provided an automatic six-month extension for filing, moving the deadline to October 20, 2019, if you met certain conditions. However, this extension applied only to filing; any taxes owed were due by the April deadline to avoid interest and penalties.

Key Tax Changes for 2018

Hawaii adopted several federal tax provisions in 2018 that affected state returns:

  • The medical expense deduction threshold was reduced from 10% to 7.5% of adjusted gross income.

  • The charitable contribution limit for cash donations increased from 50% to 60% of adjusted gross income.

  • A new Hawaii earned income tax credit was introduced, equal to 20% of the federal earned income tax credit.

  • The exclusion for reserve or National Guard pay has increased to $6,564.

  • Higher income tax brackets were reinstated for high-income taxpayers.

For more details on filing requirements, forms, and instructions, visit the Hawaii Department of Taxation.

What Forms to Use

The forms you need to file your 2018 Hawaii state tax return depend on your residency status and income earned during the year. Choosing the correct form is essential to ensure your return is processed accurately and without delay.

Main Forms

Form N-11 – Hawaii Individual Income Tax Return (Resident)
This form is for individuals who were Hawaii residents for the entire 2018 tax year. Married couples may file jointly on Form N-11 if at least one spouse was a resident for the year.

Form N-15 – Hawaii Individual Income Tax Return (Nonresident and Part-Year Resident)
This form is used if you were a nonresident for the whole year, lived in Hawaii for part of the year, or if both spouses were nonresidents when filing jointly. Part-year residents generally report income earned while living in Hawaii and any Hawaii-source income received as nonresidents.

Common Schedules and Credits

  • Schedule CR—Used to claim various Hawaii-specific tax credits, such as renewable energy technology and low-income housing credits.

  • Schedule X—For residents claiming credits like the child and dependent care expenses credit and the Hawaii earned income tax credit.

  • Form N-311 – Refundable food/excise tax credit for qualifying lower-income taxpayers.

  • Form N-356—This is for claiming the Hawaii earned income tax credit.

Where to Get Forms

Tax forms and instructions for 2018 can be accessed online, requested by phone, or obtained at any district tax office in Hawaii. Visit the 2018 Hawaii Tax Forms and Publications page to download the correct filing status and situation forms.

Step-by-Step Instructions to Complete Your Return

Completing your 2018 Hawaii tax return requires careful preparation, accurate reporting, and a clear understanding of available credits. Following each step will help you file your tax documents correctly, claim the deductions and credits you qualify for, and improve your chances of receiving the maximum refund.

Step 1 – Gather Required Documents to File Your Tax

Start by collecting all income and deduction records you need to file your tax return. Having complete, organized paperwork will prevent delays and reduce the chance of errors. Be sure to include:

  • W-2 forms from each employer, showing your total wages and state tax withheld.

  • Federal Form 1099 for interest, dividends, freelance work, or other miscellaneous income.

  • K-1 forms are used to report your share of profits or losses.

  • Benefit statements for unemployment, Social Security, or retirement plan distributions.

  • Deduction records include medical care receipts, property tax payments, charitable donations, and business expenses if you plan to itemize.

Step 2 – Determine Your Filing Status and Residency for Federal Tax Return Purposes

Your filing status and residency classification affect your Hawaii and federal tax returns. Selecting the right category ensures correct tax calculation:

  • Resident—You lived in Hawaii for a year and must report all worldwide income.

  • Part-Year Resident—You lived in Hawaii for only part of the year and reported Hawaii's income plus income earned as a resident.

  • Nonresident—You lived outside Hawaii but earned Hawaii-source income.

Special provisions apply to military personnel, students, and civil union partners, so review the rules carefully.

Step 3 – Complete the Return and Claim Eligible Income Tax Credit

Move to the credits section once your personal and income details are complete. The income tax credit category includes state-specific and federally linked credits that can lower your total tax owed. Read instructions closely to avoid missing benefits for which you qualify.

Step 4 – Apply for the Hawaii Earned Income Tax Credit to Max Refund

The earned income tax credit offers significant savings for eligible taxpayers and can increase your max refund. For 2018, Hawaii’s credit was equal to 20% of the federal EITC. Your eligibility depends on your income, filing status, and number of dependents, so check the criteria before applying.

Step 5 – Choose How to E-File or Paper File Your Return with Expert Help

Hawaii supports both e-file and paper filing options. E-filing provides faster processing, reduces errors through built-in checks, and issues confirmation upon receipt. If you are unsure of the process or have complex tax issues, seek expert help from a certified tax preparer or use trusted tax software.

Step 6 – Review for Errors and Consider Audit Support Options

Before submitting your return, verify that all details are accurate and complete. Check that your Social Security numbers are correct, signatures are present, and all required schedules are attached. Many filing services include audit support, which can be valuable if the Hawaii Department of Taxation or the IRS selects your return for review.

Filing Methods

Hawaii offers two main options for submitting your 2018 state tax return: electronic filing and paper filing. The best choice depends on your comfort level, available resources, and preference for speed or a more hands-on approach.

Electronic Filing (E-File)

E-filing is the preferred method for many taxpayers, particularly those preparing taxes. The process is guided, efficient, and well-suited to today’s busy tax season. Benefits include:

  • Step-by-step guidance: The system asks simple questions based on your income, deductions, and credits, making it easy for first-time filers to follow the entire process without confusion.

  • Faster processing and confirmation: Returns are typically accepted within hours, and you can check your account online to track refund status or payment updates.

  • Lower chance of mistakes: Built-in accuracy checks help ensure each figure is correct before submission.

  • Variety of services: Depending on your needs and cost considerations, you can choose between a free basic filing option or a paid program with added tools, such as guidance from tax experts.

  • Convenience: E-filing helps avoid last-minute delays by allowing you to submit anytime before the deadline.

Paper Filing

While less common, paper filing remains a valid option, especially for individuals who prefer traditional methods or have filed this way for several years. Reasons some taxpayers choose this method include:

  • Complete control of documentation: You handle all tax information directly, ensuring every entry and calculation meets your standards.

  • Physical records: Paper filing provides permanent copies for your past and future reference.

  • Personal review: Completing the forms lets you double-check each step before you sign and mail the return.

  • Familiar process: Some feel more comfortable working directly with printed forms than relying on a company or online service.

  • Guaranteed delivery options: Sending your return by certified mail or similar services can offer a form of guarantee that it was sent and received on time.

Making Payments When Filing Your Taxes

If your 2018 tax return for Hawaii shows a balance due, paying the amount promptly to avoid penalties and interest is essential. Whether you prepared your taxes or worked with a preparer, Hawaii offers several payment options to make the process straightforward and secure.

Online Payment Options for Maximum Refund Protection

Paying online is the fastest and most secure way to submit your payment, helping protect your financial information while ensuring timely processing. Options include:

  • ACH bank transfer: Allows you to transfer funds directly from your bank account at no extra charge.

  • Credit or debit card payments: Convenient for those who prefer flexibility. However, processing fees will apply and may slightly reduce your maximum refund if you adjust amounts owed from a refund.

  • Hawaii Tax Online: The state’s official portal lets you make payments, view your account history, and access past payment confirmations anytime.

  • Scheduling payments in advance: Allows you to decide the date funds are withdrawn, which can help with budgeting.

Traditional Payment Methods

For those who prefer not to pay online, Hawaii still accepts paper-based payment options:

  • Check or money order: Make payable to “Hawaii State Tax Collector” and include your Social Security number, tax year, and form number on the memo line.

  • Payment vouchers: Use Form N-200V for balance-due payments and Form N-101A for extension payments, ensuring they are included with your return.

  • Mailing securely: Send payments to the correct address for returns with or without payments, and consider certified mail for proof of delivery.

Avoiding Penalties and Interest

To avoid extra costs, pay the full amount you owe by the April deadline, even if you have an extension to file. If you cannot pay in full, submit as much as possible to reduce the interest and penalties that will apply to the remaining balance. Hawaii Tax Online also allows you to set up a payment plan, giving you more time to pay while staying in good standing with the state.

Tracking Refunds and Balances

After you have submitted your 2018 Hawaii state tax return, it is essential to monitor the status of any refund or balance due. Whether you prepared your taxes or used a professional service, keeping track of these details ensures you stay informed and avoid surprises. Hawaii provides online and phone options to simplify checking your refund or balance.

Checking Your Refund Status

If you expect a refund, the fastest way to check its status is through the Hawaii Tax Online portal. You can log in to see whether your return has been processed, confirm your refund amount, and view the expected deposit or mailing date. You must provide your Social Security number and the exact refund amount from your return. Refunds from electronically filed returns are usually processed within four to six weeks, while paper-filed returns may take eight to twelve weeks.

Reviewing Your Balance Due

For those with a remaining balance after filing taxes, Hawaii Tax Online also allows you to review your current amount owed, payment history, and any interest or penalties that may have accrued. If you cannot pay the full balance immediately, the system can help you set up an installment plan.

Recordkeeping for Future Reference

It is good practice to save all confirmations, whether you receive them online or by mail. Keeping organized records makes it easier to respond to questions from the Hawaii Department of Taxation and to prepare future returns. Having accurate payment and refund documentation can also help resolve discrepancies quickly.

Final Filing Checklist

Before submitting your 2018 Hawaii tax return, take a few minutes to ensure everything is accurate and complete. A careful review can prevent delays, reduce the risk of penalties, and improve the overall filing experience.

Verify All Required Forms and Attachments

  • Confirm that you are using the correct form for your residency status (Form N-11 or N-15).

  • Attach all W-2 and 1099 forms to your paper return, if applicable.

  • Include any required schedules or credit forms, such as Schedule CR or Schedule X.

Check Payment and Refund Details

  • Verify that direct deposit information is correct to avoid delays in receiving your refund.

  • Confirm the payment method, amount, and mailing address if making a payment.

  • Include payment vouchers if sending a bank draft or money order with your return.

Review for Accuracy

  • Double-check calculations for income, deductions, and credits.

  • Confirm that all Social Security numbers are correct.

  • Ensure all required signatures are present on joint and individual returns.

Maintain Copies for Your Records

Save a complete copy of your return and all supporting documents for at least three years. These records are essential for future reference, especially if you need to verify information or respond to questions from the Hawaii Department of Taxation. For additional guidance, you can review the official 2018 Hawaii N-11 Instructions.

Frequently Asked Questions (FAQs)

What should I do if I missed the deadline for April 22, 2019?

File your 2018 Hawaii state tax return as soon as possible, even past the deadline. Filing promptly reduces additional penalties and interest. The failure-to-file penalty is generally higher than the failure-to-pay penalty, so it is better to submit now and arrange payment if needed. You can also request a payment plan through Hawaii Tax Online if you cannot pay in full immediately.

Can I e-file my Hawaii tax return for free?

Hawaii Tax Online offers a no-cost e-filing option for basic returns, including direct deposit for refunds and ACH bank transfers for payments. Some commercial tax software providers also offer free e-filing for eligible taxpayers, often based on income level or filing complexity. Review each option carefully to confirm features and limitations before starting your return to ensure it meets your needs without unexpected fees.

What deductions do Hawaii taxpayers often overlook?

Commonly missed deductions include state disability insurance (SDI) payments, general excise tax paid to contractors, unreimbursed professional development expenses, and qualifying home office costs for self-employed individuals. Military reserve or National Guard pay exclusions are also sometimes missed. Reviewing the complete list of available deductions in the Hawaii tax instructions can help ensure you claim every deduction you qualify for, potentially lowering your total tax liability.

How do I request a filing extension?

For 2018, Hawaii automatically granted a six-month filing extension without requiring a separate form, provided you paid 100% of your estimated tax by April 22, 2019. You should include the payment with Form N-101A if you owe additional tax. Remember, an extension applies only to filing the return—not to paying taxes due. Interest and penalties accrue on unpaid balances from the original due date.

Can I file jointly if I moved to or from Hawaii mid-year?

Yes, but your filing form depends on your residency status. If either spouse was a full-year Hawaii resident, you can file jointly using Form N-11, reporting worldwide income for both. Form N-15 reports only Hawaii-source income if both were part-year residents or non-residents. Consider how each option affects credits and deductions before deciding which form to use for your joint return.

What are the rules for military personnel stationed in Hawaii?

Active-duty military personnel generally retain their home state residency unless they make Hawaii their permanent residence. Income from active-duty military service is typically taxed in the home state, and nonmilitary income must be reported on a Hawaii return. The Military Spouses Residency Relief Act may exempt a spouse’s income from Hawaii tax if specific residency requirements are met under federal law.

What options are available if I cannot afford to pay my taxes?

If you cannot pay your balance in full, file your return on time to avoid the higher failure-to-file penalty. Pay as much as possible by the due date to reduce interest and late-payment penalties. Hawaii offers installment payment plans through Hawaii Tax Online or by contacting the Department of Taxation directly. Prompt action helps you maintain compliance and prevents further collection measures from the state.