Browse articles

This article contains notes about the calculation of different types of Form N-40.

• For a resident return, Hawaii law amounts display on page 1 and Schedule B.
• For a nonresident return with resident beneficiaries, Hawaii law amounts display on Form N-40, Page 1 and Schedule B. Onvio Tax adjusts Page 1, Line 22, Taxable income to show only Hawaii source and generates a statement to support the calculation.
• For a nonresident return with no beneficiaries or all nonresident beneficiaries, Hawaii source amounts display on Form N-40, Page 1. Schedule B adds back non-source amounts so the beneficiary calculation is based on Hawaii law amounts and then adjusts the distribution deduction back to a Hawaii source amount.
• Per HI instructions, a charitable remainder (section 664) trust, Form 41, line 15b has an adjustment to bring taxable income to zero.

Hawaii overview (1041)