How to File Your Hawaii Tax Return for 2015: Step-by-Step Guide for Individuals and Small Businesses

Filing your Hawaii state tax return for the 2015 calendar year is a critical responsibility for residents, part-year residents, and individuals with income sourced from the state. While the process may seem complex initially, understanding the proper forms to use, the applicable deadlines, and the correct steps to follow can help taxpayers avoid penalties, minimize tax owed, and ensure accurate reporting. This guide is designed to simplify the process, using official instructions and publications provided by the Hawaii Department of Taxation.

Whether you're an individual taxpayer, a sole proprietor, or a small business owner, this step-by-step guide will walk you through everything you need to know to file your Hawaii tax return for 2015. It includes eligibility rules, required Hawaii tax forms, how to e-file or mail your return, and how to make payments or claim refunds. You'll also learn how to avoid common mistakes, track your return status, and manage your tax obligations if you cannot pay your full tax liability on time.

This article is based on official guidance from the Hawaiʻi Department of Taxation and covers all critical details relevant to the 2015 tax year. From identifying which income tax form applies to your situation to understanding how to file tax returns correctly, this resource is tailored for seasoned taxpayers and those unfamiliar with Hawaii’s tax system. Our goal is to help you file with confidence and accuracy.

Who Needs to File a Hawaii State Tax Return for 2015?

Understanding who must file a Hawaii tax return for 2015 is the first step in meeting your legal obligations and avoiding potential penalties. Filing requirements depend on your residency status, income level, and source of income. Even if you lived in Hawaii for only part of the year or earned income while living elsewhere, you may still be required to file.

Residency and Income Guidelines

You must file a Hawaii tax return for 2015 if you fall into any of the following categories:

• You were a resident of Hawaii during 2015 and earned income above the required threshold for your filing status.
• You were a part-year resident who lived in Hawaii for part of 2015 and had Hawaii-source income.
• You were a nonresident who earned income from Hawaii-based sources, such as wages, rental, or business income.

Hawaii 2015 Income Thresholds for Filing a State Tax Return

• Single filers must file if they earned at least $3,344 under age 65 or $4,488 at age 65 or older.
• Head of Household filers must file if they earned at least $4,356 under age 65 or $5,500 at age 65 or older.
• Married Filing Jointly requires filing if the combined income was at least $6,688 under age 65, $7,832 if one spouse was 65 or older, or $8,976 if both spouses were 65 or older.
• Married Filing Separate filers must file if they earned at least $3,344 under age 65 or $4,488 at age 65 or older.
• A qualifying widow(er) with a dependent child must file if income was at least $5,544 under age 65 or $6,688 at age 65 or older.

Even if you earned less than the amount required for your filing status, you may still need to file to claim tax credits, report withholding, or receive a tax refund.

Special Circumstances

Certain groups must also consider filing:

• Military personnel stationed in Hawaii but domiciled elsewhere may need to file as nonresidents if they earn income in the state.
• Students with part-time jobs or scholarships that count as taxable income may be required to file.
• Out-of-state workers who performed services in Hawaii may need to report that income on a Hawaiian return.

If you’re unsure whether you meet the filing threshold, reviewing your total income and checking official instructions from the Hawaii Department of Taxation for your filing status is best.

Key Tax Changes in Hawaii for the 2015 Tax Year

Each year, the Hawaii Department of Taxation updates the state’s tax code to reflect changes in federal law, local economic policies, and legislative adjustments. For the 2015 calendar year, several updates may have affected your income tax return. Understanding these changes can help you use the correct Hawaii tax forms, accurately calculate your tax liability, and avoid filing errors.

Newly Adopted Provisions

Hawaii adopted selected provisions from federal legislation, including key elements of the Achieving a Better Life Experience (ABLE) Act. Specifically, distributions from qualified ABLE accounts are excluded from taxable income if used for approved disability-related expenses. This applies to taxable years beginning after December 31, 2014. The Hawaii law did not adopt the 10% federal penalty for non-qualified distributions.

In addition, Hawaii taxpayers may exclude up to $6,198 of military reserve or Hawaii National Guard duty pay from gross income for taxable years beginning after December 31, 2014. This exclusion supports service members by reducing their overall tax owed.

Expired Federal Provisions Not Recognized in 2015

Several federal provisions that Hawaii had previously conformed to expired at the end of 2014 and were not extended for the 2015 tax year. These include:

• The $250 deduction for teacher classroom supplies
• The election to deduct state and local general sales taxes instead of income taxes
• The deduction for mortgage insurance premiums
• The exclusion of up to $2 million in discharged mortgage debt
• Tax-free charitable IRA distributions for those over age 70½

Taxpayers who relied on these federal benefits in 2014 may notice an increase in their taxable income for 2015 due to their expiration.

What Tax Forms You’ll Need

Choosing the correct Hawaii tax form is essential for filing an accurate return. The form you use depends on your residency status, income type, and filing complexity. Each taxpayer must file the appropriate state tax form to report income, calculate tax liability, and claim eligible tax credits.

Primary Hawaii Income Tax Forms

Which Hawaii Tax Form to Use Based on Residency Status

• Form N-11: This is the standard income tax return for full-year residents. Most Hawaii taxpayers will file using this form unless they meet the simplified eligibility requirements for Form N-13.
  
  
• Form N-13: A simplified form available for full-year residents with income limited to wages, interest, dividends, and unemployment compensation, and adjusted gross income under $100,000.
  
  
• Form N-15: This form is used by nonresidents or part-year residents who earned Hawaii-source income during the year. You must file this form if you were a part-year resident or a nonresident with Hawaii-source income.

These forms are available online through the Hawaii Department of Taxation at tax.hawaii.gov and must be submitted using the correct version for the calendar year 2015.

Supporting Forms and Schedules

In addition to your primary return, you may need to file other state tax forms depending on your situation:

• Schedule CR – General tax credits available to individuals
• Schedule X – Credits for Hawaii residents
• Form N-101A – Extension request for additional time to file
• Form N-200V – Payment voucher for paper returns
• Form N-311 – Refundable food/excise tax credit
• Form N-1 – Declaration of estimated tax for individuals

Reminder for Outdated or Incorrect Forms

Always use the 2015 version of each form when filing for this tax year. Submitting a form from a later year may delay processing or result in rejection by the department.

By selecting the correct form, you ensure your Hawaii tax return complies with local requirements and minimizes errors that could impact your refund or result in unexpected tax owed.

Additional Filing Requirements for Small Business Owners

If you owned or operated a small business in Hawaii during 2015, you may have additional state filing requirements beyond the standard individual income tax return. The Hawaii Department of Taxation requires business owners to report income and business-related tax obligations, such as General Excise Tax (GET). Filing the correct tax forms ensures compliance and helps avoid interest or penalties on unpaid taxes.

Federal Forms for Reporting Business Income

Small business owners, including sole proprietors and freelancers, must report income and expenses using federal forms attached to their Hawaii return:

• Schedule C – Reports profit or loss from business activities
• Schedule E—Reports rental income, royalties, or income from pass-through entities like partnerships or S corporations

Depending on your residency status, these forms should be submitted with your Hawaii Form N-11 or N-15. Be sure to include your Hawaii tax license number and all gross income earned in the state.

General Excise Tax Obligations

In Hawaii, most business activities are subject to the General Excise Tax, which differs from a sales tax. If you operated a business, rented property, or performed services in Hawaii, you likely owe GET and must file separate returns:

• Form G-45 – Periodic GET return (monthly, quarterly, or semiannually)
• Form G-49 – Annual GET reconciliation return

These forms are filed with the Hawaii Department of Taxation and are not included in your income tax return.

Special Rule for Low-Volume Sellers

If you only made sales in Hawaii and:

• Didn’t own or rent physical property in the state
• Had annual gross sales under $100,000

You may be eligible to file Form N-310, which allows you to pay a flat 0.5% tax on gross sales. This option simplifies filing for small businesses and out-of-state sellers with minimal Hawaii activity.

Step-by-Step Instructions for Filing Form N-11

Form N-11 is the standard individual income tax return for full-year Hawaii residents. Filing it correctly requires gathering the proper documents, following the instructions line by line, and double-checking your math. Below is a complete guide to help you prepare your 2015 Hawaii tax return.

Before You Begin: Gather Required Documents

Before filling out your return, have the following information on hand:

• Forms HW-2 and W-2 showing wages and tax withholding
• Form 1099 for interest, dividends, or miscellaneous income
• Records of other income, such as rental payments or self-employment earnings
• Records of deductible expenses (e.g., medical costs, charitable contributions)
• Your federal tax return (Form 1040) for cross-reference
• Social Security numbers for you, your spouse, and dependents
• A copy of your 2014 Hawaii tax return, if available

Completing Form N-11: Line-by-Line Overview

• 1. Personal Information
  Enter your full name, current mailing address, and Social Security number. If your address changed in 2015, mark the “Address Change” box.
• 2. Filing Status and Exemptions
  Select your filing status (e.g., Single, Married Filing Jointly) and enter details for personal and dependent exemptions.
• 3. Federal Adjusted Gross Income (AGI)
  Copy your AGI from your federal Form 1040, line 37, to line 7 of Form N-11.
• 4. Hawaii Adjustments to Income
  Enter any Hawaii-specific additions or subtractions (e.g., IRA deductions, student loan interest) on lines 8–11.
• 5. Hawaii Adjusted Gross Income
  After adjustments, calculate your Hawaii AGI on line 12.
• 6. Deductions
  Choose between the standard deduction and itemized deductions. Enter the appropriate amount on line 19 (standard) or 21a (itemized).
• 7. Personal Exemptions
  List your total number of exemptions and multiply by the exemption amount. Subtract this from your AGI to determine taxable income.
• 8. Calculate Tax
  Use the 2015 Hawaii tax table or tax rate schedule to calculate your tax liability and enter it on line 25.
• 9. Tax Credits and Payments
  Apply eligible tax credits (e.g., food/excise credit, low-income credit) on lines 27–31. Enter taxes already paid or withheld on lines 37–48.
• 10. Refund or Amount Owed
  Determine whether you are owed a refund or have additional tax owed—complete lines 49–53 accordingly.
• 11. Sign and Date
  If filing jointly, both spouses are required to sign. If applicable, include a daytime phone number and any third-party designee information.

Common Mistakes to Avoid

• Using the wrong tax table or rate schedule
• Forgetting to attach the W-2 or HW-2 forms to the front page
• Incorrect Social Security numbers
• Math errors and skipped lines
• Not signing the return or leaving the date blank
• Claiming inapplicable tax credits

Essential Notes on Form N-13 and N-15

• Form N-13 is for full-year residents with simple returns and income under $100,000.
• Form N-15 is required for nonresidents and part-year residents with Hawaii-source income.

Each form follows a similar structure but is tailored to specific situations. Be sure to use the correct version for the 2015 tax year.

How to File Your Return (E-File and Paper Filing)

Once your Hawaii tax return is complete, the next step is to file it with the Hawaii Department of Taxation. You can choose to e-file electronically or mail a paper return. Each option has its benefits, and selecting the proper method can affect your processing time, refund speed, and risk of errors.

E-Filing Your Return

E-filing is the preferred option for most taxpayers. You can e-file through:

• Tax preparation software that supports Hawaii returns
• A certified tax professional
• The Hawaii Tax Online portal (for limited forms)

Benefits of e-filing include:

• Faster processing, often within 14 days
• Fewer mistakes, as the software flags common errors
• Electronic confirmation that your return was received
• Direct deposit options for faster refunds

When e-filing, you do not need to submit paper copies unless requested by the department.

Paper Filing Instructions

If you choose to file by mail, be sure to send your return to the correct address:

If enclosing a payment:

Hawaii Department of Taxation

Attn: Payment Section

P.O. Box 1530

Honolulu, HI 96806-1530

If NOT enclosing a payment:

Hawaii Department of Taxation

P.O. Box 3559

Honolulu, HI 96811-3559

If you are making a payment by check or money order, use Form N-200V. Write your Social Security number, tax form, and year on the check.

Filing Tips

• Enclose only one return per envelope
• Attach W-2 or HW-2 forms to the front of your return
• Use sufficient postage and send before the filing deadline
• Keep a full copy of your return for your records

Whether you choose e-file or paper filing, ensure your tax return is accurate, signed, and submitted on time to avoid penalties.

Making a Payment on Your Hawaii Return

If your 2015 Hawaii tax return shows that you owe additional tax, submitting your payment by the deadline is essential to avoid penalties and interest. The Hawaii Department of Taxation offers several secure options to pay what you owe, whether you file electronically or by paper.

Payment Methods

You can pay your tax liability using one of the following methods:

1. Online Payment

• Visit the Hawaii Tax Online portal at tax.hawaii.gov/eservices
• Pay using a bank account (ACH) or credit/debit card
• This is the fastest and most secure way to pay your state tax

2. Check or Money Order

• Make your check payable to: Hawaii State Tax Collector
• Write your Social Security number, tax year (2015), and form type (e.g., N-11) on the check
• Include Form N-200V (Payment Voucher) with your check if filing a paper return
• Do not staple your check to the tax form

Payment Deadline

For 2015 returns, payment was due by April 20, 2016, even if you received a filing extension. Extensions apply only to the filing date—not to the tax owed.

Late payments are subject to:

• A failure-to-pay penalty of 0.5% per month (up to 25% total)
• Interest at the statutory rate on unpaid taxes

If You Can’t Pay in Full

If you can’t pay the full amount:

• File your return on time to avoid the failure-to-file penalty
• Pay as much as you can to reduce future interest
• After receiving a billing notice, contact the department to request an installment agreement

Partial payments do not prevent interest from accruing, but they can reduce penalties over time. You can also seek assistance from a tax professional to help negotiate a plan or evaluate your options under Hawaii’s taxation rules.

How to Track a Refund or Tax Bill

After filing your 2015 Hawaii tax return, you may expect a tax refund or a notice showing additional tax owed. Tracking your return status is simple with the tools provided by the Hawaii Department of Taxation.

Checking Your Refund Status

You can check the status of your refund using either of the following methods:

Online

• Visit the Hawaii refund status page:
  https://tax.ehawaii.gov/hoihoi/refund.html
• Enter your Social Security number and the refund amount from your return

By Phone

• Call 808-587-4242 (Oahu) or 1-800-222-3229 (toll-free)

When to Check

• E-filed returns: Allow 4–6 weeks
• Paper returns: Allow 8–10 weeks

Refunds are typically issued by direct deposit unless you selected a paper check. First-time filers and international bank accounts are not eligible for direct deposit.

If You Receive a Tax Bill

If the department determines that you owe additional income tax, they will send a formal notice by mail. Here's what to do:

• Review the Notice Carefully. Check the reason for the assessment and verify the amounts listed.
• Agree with the balance?
  Pay promptly to limit penalties and interest.
• Disagree?
  Contact the Hawaii Department of Taxation within the timeframe provided to resolve the issue.

Failure to respond to a notice may result in enforced collections, additional fees, or loss of the right to appeal.

Final Filing Checklist Before Submission

Before you submit your 2015 Hawaii tax return, it's vital to ensure everything is accurate, complete, and properly organized. Use the checklist below to avoid delays in processing, rejected returns, or missed refunds.

Final Review Checklist

• Did you complete the correct tax form?
  Ensure you're using the 2015 version of Form N-11, N-13, or N-15, depending on your residency status and income type.
• Are all Social Security numbers accurate?
  Double-check your SSN, spouse’s SSN (if applicable), and those of any dependents.
• Have you attached the required documents?
  
  • W-2 or HW-2 forms for reported wages
  • 1099 forms if Hawaii income tax was withheld
  • All required schedules (e.g., Schedule CR, N-311)
• Did you sign and date the return?
  Your return is not valid without your signature. If you're filing jointly, both spouses must sign.
• Are you submitting the return to the correct address?
  Use the proper mailing address based on whether you’re enclosing a payment.
• Did you include your payment, if required?
  Attach Form N-200V with your check or money order. Do not staple the check to your return.
• Have you kept a copy for your records?
  Store a full copy of your filed return, supporting documents, and receipts for at least three years.
• Did you apply sufficient postage?
  If you are filing by mail, please ensure your envelope is sealed correctly and has sufficient postage to ensure timely delivery.

Completing this checklist reduces your risk of filing errors and increases your chance of receiving your refund immediately.

Frequently Asked Questions (FAQs)

What if I missed the deadline for April 20, 2016?

If you missed the 2015 Hawaii tax return deadline, please file at your earliest convenience to minimize penalties. The state imposes a 5% failure-to-file penalty per month, up to a 25% maximum. If you are owed a refund, you can file late without penalty, but you must file within three years. Late returns may also accrue interest on any unpaid tax owed.

Can I file for free online?

While the Hawaii Department of Taxation does not provide its free e-filing service, some tax preparation software companies offer free state and federal e-filing to eligible taxpayers. Qualifications usually depend on income level, age, or student status. Check with providers like FreeTaxUSA, Credit Karma Tax, or TaxAct to see if you qualify for free online filing for your 2015 Hawaii income tax return.

What if I made a mistake after filing?

If you discover an error on your 2015 Hawaii tax return, you must file an amended return using the same form originally filed (N-11, N-13, or N-15), marked as amended. Include Schedule AMD and all corrected schedules or statements. Revise any misreported income, tax credits, deductions, or tax payments. Filing an amended return promptly can help prevent penalties and interest from accumulating.

Can military personnel file as nonresidents?

Active-duty military personnel stationed in Hawaii may file as nonresidents if they do not intend to make Hawaii their permanent home. In that case, they report only Hawaii-source income on Form N-15 and file their primary return with their state of legal residence. This status applies even if they lived in Hawaii for more than 200 days in 2015, as long as residency was not established.

How do I file jointly if I moved mid-year?

If one spouse was a full-year Hawaii resident, whereas the other was not, you may still file a joint return using Form N-15. However, the nonresident spouse must report their worldwide income unless the couple elects to file separately. Filing jointly may be beneficial for claiming certain tax credits or deductions, but it can also increase your tax liability depending on total household income and residency status.

How long should I keep my Hawaii tax records?

You should retain all Hawaii tax records—including your return, W-2s, 1099s, and supporting documents—for at least three years from the date the return was filed or the original due date, whichever is later. Keep records even longer for certain deductions involving real estate, business assets, or long-term investments. Keeping organized documentation helps if you're audited or need to amend a return in the future.

What deductions are commonly overlooked?

Taxpayers often miss deductions such as state income taxes paid to other jurisdictions, medical expenses that exceed 10% of adjusted gross income, charitable contributions with proper documentation, home office expenses for self-employed individuals, and qualifying educational expenses. Reviewing Hawaii’s official instructions and publications can help ensure you claim all available tax credits and deductions.