State tax from rental income in Hawaii for California resident

[mtn]

I am California resident and have rental income from rental homes in Hawaii. 

1) Do I have to file state tax for Hawaii? 

2) If yes, can I get credit of the state tax paid in Hawaii on my CA state tax return?  Or will I get double taxed in HI and CA?

3) Will TT ask me during tax return that I need to file Hawaii state tax return?  

Thanks, T

[TomD8]

1.  Yes, you must file a non-resident HI return.  Rental income from property located in Hawaii is taxable by Hawaii, whether or not you are an HI resident.  You must also include that income on your CA return.

2.  Yes, you can take a credit on your CA return for the tax paid to HI.  You won't be double-taxed.

3.  In the Personal Info section of TT, indicate that you had Other State Income from Hawaii.  This will cause TT to generate the proper forms.

[mtn]

Thanks for the information. A few more questions, If I had a loss, do I still need to file?  Do I need a Hawaii tax ID (or GET ID) to file that part of the Hawaii income tax? Or my SS# is sufficient?

[TomD8]

Yes, you still need to file.  Hawaii law is that every individual doing business in Hawaii during the taxable year must file a return, whether or not the individual derives any taxable income from that business. Renting property in Hawaii is specifically considered "doing business."  You will enter your "net rental income or loss" on line 17 of Hawaii Form N-15, its non-resident tax form.  In TurboTax, this information will carry over to the Hawaii return from your federal Schedule E.  Hawaii Form N-15 does not require your GET ID.
http://files.hawaii.gov/tax/forms/2016/n15ins.pdf">http://files.hawaii.gov/tax/forms/2016/n15ins.pdf...

[davoti2]

Thank you very much for your help. At the end of TT HI state tax filing, when check for error, it said worksheet error, indicating the rental property income does not have GET ID and ask my to correct it. So should I ignore this error since I have a loss on the rental?

[lindaruthe]

Of course, I know that. But that does not answer my question. Is there a place in Turbo Tax to enter my Hawaii expenses? If so, where?

[Critter]

The expenses are entered in the federal Sch E and are carried to the HI return...please review the completed form WHEN it is fully operational probably sometime in January. 

[Carl]

One final note:

When completing more than one state return it is ***IMPORTANT*** that you do the resident state return ***LAST***. That way, the program will be able to take into account the reciprical tax agreements between the different states so that you are not double-taxed on the income.

In a case where one moved from one state to another thus changing their resident state mid year, you complete the **NEW** resident state return **LAST** for the same reasons.