You'll need to sign in or create an account to connect with an expert.
Some states have issued guidance for this situation, indicating you do not need to file or pay state for a temporary stay. Hawaii, so far, is not one of them. Reference: https://www.hodgsonruss.com/assets/htmldocuments/Telecommuting_5.22.20.pdf
Technically, you are required to file a HI return, but "nobody" does. See http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/
The general rule is: your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. You will have to file a non resident HI state return and pay HI tax on the income earned there.. You will also file a CA full year resident return and calculate tax on ALL your income. CA will give you a credit, or partial credit, for the tax you pay HI. So, there will be little or no double taxation, but you have the cost and hassle of filing two state returns. Do the nonresident state return first.
Hawaii taxes non-residents only on Hawaii-source income. See this reference for Hawaii's definition of Hawaii-source income:
https://files.hawaii.gov/tax/legal/taxfacts/tf97-4.pdf
As @Hal_Al pointed out, you may claim a credit on you CA resident tax return for taxes paid to HI on the portion of your income that is taxed by both states.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
stephw180
New Member
StevenHubbell
Returning Member
Axbettamio
Returning Member
user17701524502
Level 1
tcl2025
New Member