Hawaii N-11 Subtractions Worksheet Adjustments n separate explanation form

[bwcland]

Hello, for determining state of Hawaii AGI as a full time Hawaii resident, I’m wondering if income earned on a K-1 as an S-Corp from outside of the state of Hawaii can be subtracted from federal AGI to determine state of Hawaii AGI.  The W-2 income is part of Hawaii AGI, but a portion of my K-1 income is derived from outside the state of Hawaii.  Being a S-Corp, my Federal AGI is combination of K-1 and W-2.  I feel that the Hawaii Subtractions Worksheet Page 31 of the N-11 instructions line item “n” is for this reason with a supporting separate attached explanation to Form N-11 as to why the out of state income is withheld from the Hawaii AGI.  Or is this incorrect assumption?   Any tips would be appreciated.   Thank you.