Your resident state taxes all of your income, so if you reside in Hawaii, then no adjustments are necessary. If you do not reside in Hawaii, you would prepare a Hawaii non-resident return and would only allocate the rental income to that return. In this case, your resident state would give you a credit for tax paid to Hawaii.
Do I have to file tax returns in more than one state?
Why would I have to file a nonresident state return?
How do I file a nonresident state return?
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