Solved: If I work in Maui for a couple of months as a contractor, but my residence is in Washington State, do I need to file a return in Hawaii?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

If I work in Maui for a couple of months as a contractor, but my residence is in Washington State, do I need to file a return in Hawaii?

I have a Washington state LLC.  Would it be best to have the employer pay the LLC rather than me personally?

1 Best answer

Accepted Solutions
New Member

If I work in Maui for a couple of months as a contractor, but my residence is in Washington State, do I need to file a return in Hawaii?

It depends -

Here are the HI nonresident filing requirements -

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.

The work that you did in HI would be considered HI -sourced so if your LLC is considered a disregarded entity for federal income tax purposes and reported on Schedule C, then you will need to file a nonresident HI state income tax return if you meet the filing requirements (whether or not the employer pays you or the LLC).

Even if you have a multi-member LLC and file a partnership return (1065), the sourcing on your K-1 would still be HI sourced for this income and you would need to file a nonresident HI income tax return to report K-1 income.

Usually, you get a state tax credit in your home state for state income taxes paid to a nonresident state but since WA has no state income taxes, there is not credit available.

View solution in original post

1 Reply
New Member

If I work in Maui for a couple of months as a contractor, but my residence is in Washington State, do I need to file a return in Hawaii?

It depends -

Here are the HI nonresident filing requirements -

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.

The work that you did in HI would be considered HI -sourced so if your LLC is considered a disregarded entity for federal income tax purposes and reported on Schedule C, then you will need to file a nonresident HI state income tax return if you meet the filing requirements (whether or not the employer pays you or the LLC).

Even if you have a multi-member LLC and file a partnership return (1065), the sourcing on your K-1 would still be HI sourced for this income and you would need to file a nonresident HI income tax return to report K-1 income.

Usually, you get a state tax credit in your home state for state income taxes paid to a nonresident state but since WA has no state income taxes, there is not credit available.

View solution in original post

Dynamic Ads
v
Privacy Settings