Travel Nurse: Resident of Ohio, worked in Hawaii for 2 months, but paid thru a temp agency located in Ohio

Forum|Forum|4 years ago
February 3, 2022
2 replies
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Hello. I am an RN. I am a resident of Ohio. Worked most of 2021 in Ohio (have correct W-2 for this job). Began travel nursing towards end of 2021. First assignment was in Hawaii, however was paid thru an Ohio temp agency (W-2 lists wages as Ohio, no reference to "earned" in Hawaii). Note: I did call the State of Hawaii Department of Taxation and talked to a rep. She explained that if I was paid by an Hawaiian employer, then yes, I would owe Hawaii State Taxes, but if my temp employer was located outside of Hawaii, then I would NOT owe Hawaii State Taxes (regardless of the fact I was working in Hawaii). Of course, I want to report these wages correctly, and would like clarification about how to do that. Thank you in advance for your help.

DMarkM1

Level 15

If you physically worked in HI then the income is HI source income and taxed as a non-resident of HI. Here is a link for reference from the HI Tax Authority.

In the "My Info" section you should indicate that your resident state is OH and didn't live in any other states. Then scroll to the bottom of the "My Info" summary page and "Edit" the "Other State Income" topic. You will indicate you earned money in another state and select HI.

This will generate a resident OH return and HI non-resident return. Next you will enter your W2's in the federal interview as normal. Then start your HI state interview and allocate the wage income earned in HI. Take note at the end of the interview of the income taxed and the amount of tax paid to HI. You will use those numbers in your OH return for a credit.

Finally complete your OH resident return. OH will tax all income from all sources as your resident state. However, you will claim a credit for taxes paid to another state on your OH return. Look for that topic as you go through the credits section.

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Hal_Al

Level 15

All you income is taxable by OH. The question is: is part of it also taxable by HI. If it is, OH will give you a credit or partial credit for the tax you pay HI. So, there will be little or no double taxation. You just have the hassle and cost of doing a 2nd return.

You could probably get away with not filing a HI return. But, I'm of the opinion that the advice by the HI tax employee is technically wrong. From the HI tax web site: "If you temporarily visited or were in transition through Hawaii, but have your domicile somewhere else, you are a nonresident. However, you must file a nonresident tax return with Hawaii if you are under 65, and made more than $1,040 of taxable income from Hawaiian sources or if you are above 65 and made more than $2,080 of taxable income in Hawaii." This is how it's done in almost all states.

Refernce: https://taxhow.net/state/hawaii#:~:text=However%2C%20you%20must%20file%20a,%2C%20use%20Form%20N%2D15.

Definition of "Hawaiian sources" income: https://files.hawaii.gov/tax/legal/taxfacts/tf97-4.pdf ,which says, in part, "The source of income from the performance of personal services is the place where the services are performed".

Also see: https://www.thegypsynurse.com/blog/tax-home/

Non resident form https://files.hawaii.gov/tax/forms/2020/n15_f.pdf

Instructions https://files.hawaii.gov/tax/forms/2021/n15ins.pdf