Hawaii N-15 Line 7 is not calculating correctly

[jwdf]

I'm filling out Hawaii Form N-15 (partial-year resident, moved mid-year) and TurboTax is pulling in the wrong number for Line 7, Column A: Total Income (wages, salaries, tips, etc.). It is using my total federal wages (line 1 on my Hawaii W-2 + line 1 on my former state's W-2). However, on my Hawaii W-2, my line 16 value (state wages) is higher than my line 1 federal wages. For the ratio to be correct, this amount should be line 16 on my Hawaii W-2 plus line 1 from my other state W-2.

How do I correct this? 

(Note: Line 7, Column B, is pulled in correctly; it's just Column A that is using the wrong value.)

[AmyC]

Column A value does require an adjustment. As you go through the HI return, there is a box for Other Income. Be careful about your entries. There is a different spot asking for HI wage income. Be sure not to double count this income for HI. Enter as HI income in only one spot.

[jwdf]

Thank you. I made that adjustment in your screenshot to account for the wage differential, but the ratio on line 37 is still not calculating correctly. It seems that the moving expenses deduction on line 25 may be getting applied to Column A erroneously; those are only supposed to apply to Column B. How do I make that adjustment?

[DaveF1006]

it depends.TurboTax is likely pulling your federal wages (Box 1) into Column A. Since your Hawaii wages (Box 16) are higher—likely due to employer-paid moving expenses or different treatment of pretax deductions—Column A needs to reflect that higher amount to maintain a correct ratio.

1. Column A should equal: (Hawaii Box 16) + (Other State Box 1).
2. The Fix in TurboTax: * Navigate to the Hawaii State return section.
3. Look for a screen titled "Adjustments to Hawaii Income" or "Addition to Income." * You are looking for a specific line for "Wages/Salaries" or "Other Income."  Enter the difference between your Hawaii Box 16 and Hawaii Box 1. This "addition" will force Column A to the correct total without double-counting the base wages.

Fixing Line 25 (Moving Expenses)

This is where the math often breaks. Hawaii allows a deduction for moving expenses (Form N-139), but the rules for Column A vs. Column B are strict:

1. Column A: Should include all qualifying moving expenses (as if you were a HI resident).
2. Column B: Only includes expenses for a move to or within Hawaii.

If TurboTax moves you out of your old state in Column A but doesn’t balance it correctly, the ratio on Line 37 (Column B divided by Column A) won’t be accurate. if this is the case.

1. Go to the Hawaii Moving Expenses section (search "moving expenses" in the state search bar). 
2. Ensure you have completed Hawaii Form N-139 within the software. 
3. If the software is "erroneously" putting it in Column A, check if it’s deducting a move away from Hawaii. Hawaii law states that a part-year resident moving away from Hawaii cannot deduct those expenses in Column B, but they must still appear in Column A because Column A is your "total world income/adjustments."

If the ratio still looks off, review the Hawaii Adjusted Gross Income screen. Look for a “Summary” or “Edit” button next to Moving Expenses—this is where you can update the values in Column A and Column B.

[jwdf]

Thank you -- the line 7 issue has been fixed with these instructions.

Moving expenses is still causing an issue — it's still appearing in Column A as a deduction when it should be in Column B only. How do I prevent it from appearing there? 

[jwdf]

I spoke to the HI Department of Taxation and they said moving expenses should be deducted in both Column A and Column B, so it appears this is working correctly.