First, for the federal return, all the income earned in 2020 will be reported.
Second, for the state returns: In general, only assign income to the state where the income was sourced.
California would receive the taxes on your income from California.
However, since Hawaii does not tax distributions form a public retirement system, your wife would not have a filing requirement.
Regarding your $450, if the income was from doing business in Hawaii, a return must be filed. If the income was earned from an employer, the filing threshold for nonresidents with income from Hawaii is: $3,344 for individuals under age 65, or $4,488 for individuals over age 65.
To file jointly, file on Form N-11.
- There is a special rule for nonresidents who file a joint return with a Hawaii Resident: By filing a joint return, however, you and your spouse will be taxed on your combined worldwide income for the entire year if the income is reported on Form N-11. (See page 8 of the N-15 instructions.) See 2020 Form N-11 Hawaii Resident Income Tax Instructions for more information about filing jointly with a Hawaiian Resident.
- See: 2020 Form N-15 Hawaii Nonresident and Part-Year Resident Income Tax Instructions, page 4. Every individual doing business in Hawaii during the taxable year must fi le a return, whether or not the individual derives any taxable income from that business. “Doing business” includes all activities engaged in or caused to be engaged in with the object of gain or economic benefit, direct or indirect, except personal services performed as an employee under the direction and control of an employer.
