MANDATORY E-FILE REMINDER: EFFECTIVE JULY 1, 2020

June 10, 2020

As a reminder, all General Excise (G-45, G-49) and Transient Accommodations (TA-1, TA-2) tax returns for taxpayers who are required to file monthly returns (annual estimated tax liability is greater than $4,000) must electronically file (e-file) periodic returns for periods beginning on or after July 1, 2020 and annual returns for tax year beginning on or after January 1, 2020 (See Tax Announcements 2019-16 and 2019-17). The first periodic filing deadline with this requirement is Thursday, August 20, 2020.

Taxpayers whose annual estimated tax liability is greater than $4,000 MUST file returns and pay tax liabilities on Hawaii Tax Online (HTO) at https://hitax.hawaii.gov. Any taxpayer who is required to e-file a tax return and fails to do so shall be imposed a penalty of 2% of the amount of tax required to be shown on the return, in addition to any other applicable penalties and interest.

NOTE: A return must be submitted, even if there is no gross income for the period. If you have no gross income for the period, a return showing “$0” income will need to be filed.

Hawaii Residents expecting an Individual Income tax refund are encouraged to file your individual income tax return electronically for faster processing. Form N-11 is available on Hawaii Tax Online (HTO) for free submission without a HTO account.

If you have filed your individual income tax and are awaiting your refund, you can check the status on HTO. The refund status provided is based on when the refund was released by the Department. If a tax preparer assisted you with your return and is expected to provide your refund on a prepaid card, please check with your tax preparer on the status of your refund.

NEED TAX ASSISTANCE?

March 16, 2020

Volunteer Income Tax Assistance (VITA) is a program under the IRS that offers free tax help to people who generally make $56,000 or less, persons with disabilities and limited English speaking taxpayers. If you qualify, IRS-certified VITA volunteers can you with free basic income tax return preparation with electronic filing. Visit Tax Help Hawaii or Goodwill Industries Hawaii for a list of free tax sites and information on what to bring with you. Please contact sites ahead of time to check on their availability.

Tax Counseling for the Elderly (TCE) is a program under the IRS that offers free tax help for all taxpayers, particularly those who are 60 years of age and older, specializing in questions about pensions and retirement related issues unique to seniors. The AARP Foundation Tax-Aide Program administers all TCE locations in Hawaii. AARP has suspended all tax preparation services at all Tax-Aide sites effective Monday, March 16, until further notice due to concerns about the spread of coronavirus. Visit the program’s website at aarpfoundation.org/taxaide for information and changes in service availability should sites re-open during this tax season.

Military members may contact their legal office for information on free tax assistance.

Free E-Filing is another simple and free method for filing returns for qualified taxpayers.

To file your Federal Individual Income return for free, you may qualify for various e-filing software options through the IRS’ Free File Program. If your 2019 Adjusted gross income was $69,000 or less, visit apps.irs.gov/app/freeFile/ for more information.

Additionally, all taxpayers filing Hawaii Individual Income returns can use Hawaii Tax Online to e-file for free.

2020 TAX UPDATES

Happy New Year! With the New Year, comes some updates and changes to help the Department of Taxation (DOTAX) better serve you.

We are open for business for the 2020 tax season! On January 2, 2020, all returns due in 2020 can be filed on HTO and all updated (Rev. 2019) paper forms will be posted on DOTAX’s website (tax.hawaii.gov/forms) and available at District Offices. [Please note: If you use third party software to submit your Hawaii income tax return, DOTAX will not receive your return until the IRS begins accepting returns on January 27, 2020.]

If you don’t already have an HTO account, we encourage you to sign up for one. HTO allows you to file returns, make payments, check account balances, manage DOTAX issued licenses/permits, and more. Transactions are fast, accurate, and secure.

Please read on for changes in effect this year.

FORM CHANGES

Some of our forms have changed for 2020 to implement new rates, laws and processes. These forms are identified with “Rev. 2019.” To avoid processing delays, use the most current version of the form for the appropriate filing period.

*Not all forms change every year. To ensure that you are using the appropriate form version for the period you are filing for, log onto HTO to file electronically or access the forms page on DOTAX’s website. Using the correct form Rev. ensures that the tax rates are correct and your return will not be unnecessarily delayed.

HAWAII COUNTY (ISLAND OF hAWAII) SURCHARGE INCREASE

Beginning January 1, 2020, the Hawaii County surcharge on the General Excise (GE) tax will increase from 0.25% to 0.50% and businesses may pass on the GE tax and county surcharge to customers at a maximum rate of 4.712%. Oahu, Kauai, and Maui do not have changes to the county surcharge for 2020.

New versions of the G-45/G-49 forms for periods beginning on or after January 1, 2020 will be available January 2, 2020.

- For filing periods beginning prior to January 1, 2020 use the (Rev. 2018) form.

- For filing periods beginning on or after January 1, 2020 use the (Rev. 2019) form.

For more information, see Tax Announcement No. 2019-04 or visit tax.hawaii.gov/geninfo/countysurcharge.

MANDATORY E-FILING

More tax types will be required to mandatory e-file for taxable periods beginning on or after January 1, 2020. Any person who is required to electronically file (e-file) a tax return and fails to do so shall be imposed a penalty of 2% of the amount of tax required to be shown on the return, in addition to any other applicable penalties and interest.

Mandatory E-Filing Tax Types Effective January 1, 2020 Tax Type Form Corporate income N-30 Withholding for employers whose annual liability exceeds $40,000 HW-3, HW-14, HW-26 Franchise F-1 Public service company U-6 Estate and generation-skipping transfer M-6

For General Excise (G-45, G-49) and Transient Accommodations (TA-1, TA-2) tax returns for taxpayers who are required to file monthly returns (annual estimated tax liability greater than $4,000), mandatory e-filing will be effective as follows: Annual returns For tax year beginning on or after January 1, 2020 Periodic returns For periods beginning on or after July 1, 2020

For more information, visit tax.hawaii.gov/geninfo/a2_b2_9tsm5/.