Question: My son goes to college on the mainland. He works a few hours a week. We live on Oahu and claim him as a dependent on our taxes. He didn’t earn any money in Hawaii this year, only in Arizona (where he’s in college). Does he have to file Hawaii income taxes, Arizona income taxes or both?
Answer: Both, assuming his income meets the filing threshold. This requirement is not limited to Arizona — it would apply to college students from Hawaii who are working as they attend school in other states as well.
Frank Ruff of the state Department of Taxation’s Technical Section explains:
“Although the son is attending college in Arizona, unless he has abandoned Hawaii as his state of residence, he is still considered a Hawaii resident. Section 235-4(a), Hawaii Revised Statutes (HRS), provides that the worldwide income (i.e., income from all sources) of a resident of Hawaii is subject to Hawaii income tax. This means besides filing a nonresident Arizona income tax return to report the income the son earned in Arizona, section 235-4(a), HRS, requires that he file a Hawaii resident income tax return (Form N-11) to report for Hawaii the same income earned in Arizona. To relieve the issue of double taxation of the same income in both Hawaii and Arizona, the son can take a credit on his Hawaii return against his Hawaii tax for the tax paid to Arizona.”
For more information on the credit for taxes paid to another state that a Hawaii resident can claim on a Hawaii income tax return, see the instructions for Form N-11, which you can find at 808ne.ws/n11info.
The link will take you to a PDF because the form has been updated but not yet posted for filing by taxpayers. The Tax Department reviews Hawaii tax forms annually. The official versions that may be filed by taxpayers are posted to the department’s website at tax.hawaii.gov/forms in January of each year.
Since you live in Hawaii, are claiming your son as a dependent and he is living temporarily in Arizona, he wouldn’t qualify as having abandoned Hawaii as his state of domicile. For more information about that and other tax matters, see tax.hawaii.gov.
Q: Is the Medicare card still honored for the discounted senior fare on TheBus, and will it be after bus fares go up Jan. 1?
A: Yes and yes. The U.S. Medicare fare on Oahu’s public bus system is $1 for a one-way ride or $2 for an all-day pass, and will remain so next year.
Present your Medicare card as you board the bus to pay the reduced fare. As a side note, Kokua Line has heard from several senior citizens saying that this transportation bargain is why they carry their Medicare cards around with them even when they aren’t going to the doctor. Anti-fraud experts advise people not to routinely carry their Medicare cards, because losing them (to thieves or by mistake) raises the risk of identity theft. Seniors we heard from said they are as careful with their Medicare cards as they are with cash or credit cards, and intend to continue the practice.
Getting back to bus fares: Only the regular adult fare will rise Jan. 1, according to the new fare brochure posted on the system’s website, thebus.org. The cost of a regular adult fare will rise to $2.75 for a single ride (from $2.50) and to $5.50 for an all-day pass (from $5).
Mahalo
On Dec. 12 I took a little tumble while crossing Kapiolani Boulevard to get to the mall. It was a misstep. I tripped on the curb a little but caught myself and wasn’t hurt. Oh my, the people who rushed up to see if I needed help the rest of the way! It warmed my heart. Thank you to all them. — Elderly pedestrian
Write to Kokua Line at Honolulu Star-Advertiser, 7 Waterfront Plaza, Suite 210, 500 Ala Moana Blvd., Honolulu 96813; call 529-4773; fax 529-4750; or email kokualine@staradvertiser.com.
