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arogan3
New Member

Both my Hawaii State Retirement pension and my Social Security is not taxable by the State of Hawaii. Why am I paying so much tax to the State of Hawaii.

 
5 Replies
rmpark17tax
New Member

Both my Hawaii State Retirement pension and my Social Security is not taxable by the State of Hawaii. Why am I paying so much tax to the State of Hawaii.

If you use Form N-15 as part-time resident, does the same rule apply?
HelenaC
New Member

Both my Hawaii State Retirement pension and my Social Security is not taxable by the State of Hawaii. Why am I paying so much tax to the State of Hawaii.

See the instructions below on how to enter your Hawaii pension so it is not taxable. 

TurboTax Hawaii uses the following pension code (Form N-11 filers only): G - Government, military, other qualified retirement (if employee did not contribute).

If your distribution qualifies, you can deduct it from your Hawaii taxable income. To qualify, the distribution must be one of the following:

  • From a government retirement system (e.g., federal civil service annuity, military pension, state or county retirement system)
  • From a private employer pension plan received when you retire (including early retirement and disability retirement) if you did not contribute to the pension plan when you were working. This includes mandatory amounts taken after age 70 1/2 to comply with federal pension rules.
  • From an IRA account funded with a rollover distribution from a private employer pension plan if you did not contribute to the plan when you were working.

To get the Hawaii state pension deduction, you will first have to enter the necessary information in your Federal Income tax return and then in the Hawaii state income tax return.

Here are the steps to enter your exempt Hawaii state employee pension :

  1. On the left navigation bar, click on Federal.
  2. In the search box, type in 1099-R
  3. Click on Jump to 1099-R
  4. On the Your 1099-R Entries screen, Edit your 1099-R.
  5. Continue with the onscreen interview until you get to the Where Is This Distribution From? screen
  6. Select one of the first two options and enter the Hawaii Distribution Amount, Hawaii withholding, if any, and the Payer's HI State ID No.
  7. Click on Continue
  8. Click on From a Qualified Plan
  9. Continue answering the questions.
  10. On the Any Periodic Payments screen, click Yes.
  11. Continue with the onscreen questions until complete.

On the Hawaii state return portion: Review the Pension Deduction Summary for the deduction.

Rsk21
New Member

Both my Hawaii State Retirement pension and my Social Security is not taxable by the State of Hawaii. Why am I paying so much tax to the State of Hawaii.

How do you correct the social security as not taxable for hawaii?

Rsk21
New Member

Both my Hawaii State Retirement pension and my Social Security is not taxable by the State of Hawaii. Why am I paying so much tax to the State of Hawaii.

There is no pension deduction summary in the hawaii state tax section.

 

BillM223
Expert Alumni

Both my Hawaii State Retirement pension and my Social Security is not taxable by the State of Hawaii. Why am I paying so much tax to the State of Hawaii.

Since Social Security is entered on a unique form on the federal return, states that do not tax Social Security don't need to be told what it is - the SS is automatically removed from state income.

 

As for your state pension, after you enter the 1099-R on the federal return, there will be a screen that ask "Where is your distribution from?" Check off that this is a "Government, military or other qualified pension where employees don’t contribute".

 

This is the only way that TurboTax can know how to handle your state pension.

 

@Rsk21

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