Kokua Line: Can I keep Hawaii rebate sent to deceased spouse?

Question: I finally received my rebate check but it was for $600, even though my husband passed away three months ago. I deposited the check, but now I am wondering, must I send half of it back?

Answer: No, Act 115 refunds issued to people who died since filing their taxes don’t need to be paid back, according to Hawaii’s Department of Taxation, which answers a similar question on its website. It says:

“Act 115 refunds are issued to qualifying resident taxpayers who filed individual income tax returns for the 2021 tax year, whether or not still living. You do not need to return the refund. If the check needs to be reissued in the name of the surviving spouse, court-appointed or certified personal representative, or other person, the Statement of Person Claiming Refund Due a Deceased Taxpayer (form N-110) must be completed and submitted along with the refund check to the Department of Taxation. The refund will be re-issued in the appropriate name.”

You were able to deposit your joint rebate check, so it does not need to be re-issued. However, others who need a check re-issued in their name alone can download form N-110 at 808ne.ws/formN110.

Act 115 provides a rebate for Hawaii residents who file a 2021 state income tax return by the end of this year. The amount is $100 or $300 per eligible exemption, based on filing status and income.

Q: I read about the Act 115 refund and according to my status — married filing separate with income under $200,000 — expected a $300 refund. I was surprised to receive a check for $100. Our combined incomes do not add up to $200,000. What office do I call to rectify this issue?

A: We’ll provide the DOTAX contact information below, but note first that you may have received $100 because your spouse has not filed a 2021 Hawaii income tax return. We’ve heard from several readers in this situation, unaware that their rebate amount is based on combined income, even though they file separately from their spouse, and that both spouses must file for either to receive the maximum $300 per exemption. If only one spouse has filed, the rebate is $100 per exemption because the state can’t calculate the combined income, DOTAX says. Any outstanding amount will be paid if the other spouse files by the end of this year, it says. You may expect an additional refund check of $200 if this applies to you and your spouse files in time.

If you both have already filed and you believe that DOTAX made a mistake, email tax.refunds@hawaii.gov or call 808-587-4242. DOTAX says email is more efficient.

Q: We still haven’t gotten our refund people started getting back in September. Who can we contact?

A: DOTAX is now asking folks to be patient through the end of November, although it is making progress issuing paper checks, having earlier completed the bulk of electronic direct deposits.

As of Friday, it had issued 196,736 paper checks, out of about 300,000, and made 287,483 direct deposits, according to the department’s website. About 90,000 checks are being mailed out each week. If you want to follow up anyway, see the previous answer for contact information.

Mahalo

Mahalo to the gentleman who was driving by our house in Hawaii Kai the afternoon of Oct. 30 and saw my sister on our driveway in obvious distress after she had fallen. I wanted to let him know that she’s OK except for a scraped face and a bump on her forehead. In all the commotion, I failed to get his name so I hope he reads Kokua Line. My sister and I are very grateful. — Thankful seniors

Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.