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New Member
posted Jun 6, 2019 12:04:38 PM

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?

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1 Best answer
New Member
Jun 6, 2019 12:04:39 PM

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.

1 Replies
New Member
Jun 6, 2019 12:04:39 PM

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.