Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
PuzzledbyHARPTA
New Member

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

I understand HARPTA is not a tax (merely an estimate of HI income taxes that might be due following a sale of property), so, presumably, I may not include it as other taxes paid in my itemized federal return, or am I wrong?

It seems the simplest thing would be to include it as a selling expense in connection with the property sale (a condo in this case).  Most other expenses that reduced the proceeds I received from the sale count as valid selling expenses, but does HARPTA withholding also count?  If not, where do I report the HARPTA withholding in my federal return?

Thank you in advance.

13 Replies
IsabellaG
Employee Tax Expert

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

You are wrong. You can include it as a state tax paid. It is withholding of HI state tax that you'll get credit for when you file your Nonresident Hawaii tax return. Enter the withholding under Estimates and Other Taxes, under Other Income Taxes Paid in 2017, specifically Withholding not already entered on a W-2 or 1099. See the screenshot.

Then enter the amount and the state for the withholding. Then proceed to prepare your HI return, and you'll get credit for the tax you already paid. You'll either get a refund or owe additional tax depending on your situation.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
haretx
New Member

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

Hi

 

A related question related to the Hawaii tax withheld at settlement -  If the sale of the real estate was a trade / business rental activity reported on Schedule C, would the HI taxes be deductible for Federal taxes on the Schedule C as a business tax expense rather than the Schedule A?

 

Critter
Level 15

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

NO. 

macrammer
New Member

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

My 2019 taxes showed no capital gain for my condo sale in Kauai.  it took me almost 9 months to finally get my 7.5% HI withholding.  Hawaii filed a 1099 for 2020 showing my :refund" of my sales proceeds.  It was not a refund.  it was simply my sales proceeds that my 2019 taxes showed no gain.    I did not itemize in 2020......It seems IRS is holding up my 2020 taxes due to this 1099???

DaveF1006
Employee Tax Expert

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

Amend your 2020 return and include the 1099 as income and then subtract it out. Follow these steps in performing this action.

  1. Log into Turbo Tax assuming you use Turbo Tax online
  2. When you reach the landing page, scroll to the bottom where your tax returns and documents are.
  3. Select 2020, and click on the option to amend and change return.
  4. Answer the questions about why you are amending
  5. Once you begin working in your return, your refund monitor will reset to 0. 
  6. Go to federal>income and expenses>Other Common Income>
  7. i assume it's a 1099 Misc. If so, select Form 1099-MISC>start
  8. As you are filling in the information, be sure to check that your form has other information in Boxes 1-17. You will want to report if you paid federal or state tax on this, if applicable.
  9. Finish out the interview. Make sure you answer the questions carefully relating to if this was a job. it was also not an intent to earn money.
  10. Now since you have entered this as income, you may subtract it out by:
  11. Go to federal>wages and income>less common income>show more
  12. Go to Miscellaneous Income, 1099-A, 1099-C>start
  13. Go to other reportable income>start
  14. The second screen should be entitled Other Taxable Income
  15. In the description, give reference to the 1099-MISC(or NEC) if that is the case, that these were sales proceeds that were already reported in you original return
  16. Here enter the amount as -xxxx, which will simply negate the amount from the 1099 MISC. 
  17.  
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
davoti2
Level 2

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

I saw your information, I had similar issue, sold a condo and sate withheld HARPTA, which line on N15 should I put the HARPTA withholding amount to get refund?

 

Thank you very much

Dave

nanileilanilio
Returning Member

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

This must be too old to go by because I don't see any of what you are talking about on the 2021 tax forms.

JulieS
Employee Tax Expert

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

If you have HARPTA tax withheld on the sale of real estate, you can enter it in the federal return as other state tax withheld.

 

Here is how to do that in TurboTax:

  1. Select Federal, then Deductions and Credits.
  2. Scroll down/ expand the list and find Estimates and Other Taxes Paid.
  3. Select Other Income Taxes.
  4. Scroll and select Withholding not already entered on W-2 or 1099.
  5. Answer the question Yes and Continue.
  6. Select your state and enter the HARPTA state tax withheld.

The amount will flow into your Hawaii return and reduce your state tax due.

@nanileilanilio

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
nanileilanilio
Returning Member

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

I had the HARPTA tax withheld but I filled out the N-288C form and got a refund for the overcharge. The amount withheld was $27912, the refund was $26395, the tentative tax on gain was $1517. I need to know exactly where to put these numbers on the non resident Hawaii state income tax form and the federal tax form. The one way I filled out the Hawaii form, I owe around $3000 more. The other way I fill it out, Hawaii owes me about $24,000, which isn't possible. As it is, I owe the feds and Hawaii more than I make in a year, so it's critical I figure this out and no tax services are taking new clients.

Thank you.

MarilynG
Expert Alumni

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

Follow the steps as outlined by Expert @JulieS above.

 

The amount of withholding you will enter at Step 6 is the $1517 that was actually withheld. 

 

Click this link for more info from the State of Hawaii. 

 

@nanileilanilio

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
russm133
New Member

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

Have a related question - sold property in Hawaii in 2022 and the escrow agent withheld tentative tax (HARPTA) to be reconciled on my 2022 non-resident income tax return.  I filed Form N-288-C and received a partial credit (they with-hold tax on the full purchase price amount - no credit for basis, improvements, etc.).  HI sent me a 1099-G (2022) for the refunded amount.  The balance will be reconciled on my HI 2022 Form N-15 Non-Resident return.

 

In T-Tax, I entered the HARPTA tax withheld under "Estimates and Other Taxes Paid" -> "Other Income Taxes" -> "Withholding not already entered on a W-2 or 1099".  So far so good - now I have to report the partial credit that HI reported on the 1099-G.

 

In T-Tax -> "Wages & Income" -> "1099-MISC and Other Common Income" -> "State and Local Tax Refunds on Form 1099-G" where I report the Hawaii 1099-G partial refund.  My questions/problems are:

 

1. Not sure what to put in the "Total of all your payments and withholdings" - $0, the full amount originally withheld or the amount remaining after the partial credit?

 

2. "Tax Year Refund" does not allow me to select 2022 as the year (only 2021 or years earlier).  The 1099-G clearly shows it is for 2022.  There does not appear to a way to over-ride this to set to 2022 or provide an explanation.

 

Any advice much appreciated.!

KrisD15
Employee Tax Expert

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

In your situation, subtract the refunded amount that was credited to you (the amount on the 1099-G) from the amount of state tax originally withheld and enter that number as the amount of "Withholding not already entered on a W-2 or 1099" 

 

The TurboTax program is reading the 1099-G as a tax refund. 

State tax refunds are always received the year after the tax year that they pertain to, for example, if you earn a state tax refund for tax year 2022, you'll get that refund in 2023.

 

Your situation is similar to some state rebates. The program has no way to subtract that income from a previously made payment. The Tax Payer (you) need to do the math and enter the final answer into the program. 

Entering the 1099-G like a state tax refund can only end one of two ways, the tax refund is disregarded or treated as income. 

Rebates and Other Types of Refunds are not treaded as Income, but do lower the deduction you are allowed for the original payment. 

 

Keep the 1099-G and records of the HARPTA tax collected at closing with your tax file.

@russm133 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
russm133
New Member

Hi, I am not sure how to report HARPTA Withholding shown on my Settlement Statement for a property sold in 2017. Is it a valid selling expense? Where do I capture it?

Thank you for the quick response!  I will reduce the amount I report withheld by the refunded amount.

 

Another question - I have prior experience not reporting income to the IRS for an IRA rollover many years ago.  Having never taken possession of the money I assumed this was a "wash transaction" and did not report either the distribution or the rollover deduction.  Not a good thing - had to file an amended return to straighten it out.  Since IRS gets a copy of the 1099-G and since I took the standard deduction for 2021, the 1099-G should have no effect on my 2022 tax liability.  It would seem appropriate to report the 1099-G and let Turbo-Tax determine no tax is due.  There may be an issue with my state (OR) resident return, which I will have to look at once the federal return is complete.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v