Hawaii N-11 Tax Return

[rpuhalla]

The earned wage on my Federal Schedule K-1 reflects a positive number. The value on my state K-1 shows a loss. How do I deal with those two numbers on my state return relative to my federal AGI?

[ThomasM125]

A K-1 schedule shows your share of partnership, corporate or Trust income, loss or other items. Wages are reported on a form W-2. So I'm not sure why you are referring to wages on a k-1 form. What line are they showing up on and what entity is the K-1 associated with?

Maybe the two figures are not representing the same income. 

[rpuhalla]

Thanks for offering your thoughts on my question.  It turns out that Hawaii allows some deductions for business expenses that are not allowed on a federal return.  As a result, the monetary distribution on the Hawaii Schedule K-1 is often less than the value on a federal Schedule K-1.  There is a line on the Hawaii personal income tax form to adjust the Hawaii AGI and rectify the difference.  Problem solved.  Mahalo.