Saturday 6 July 2019

Important Information On Tax Preparation Hawaii

By Harold Wagner


White sandy beaches, blue waters, and rugged landscapes are some of the features that make Hawaii the paradise favored by people of all walks and region. Its amazing features do not, however, assist with the tax preparation Hawaii procedures. Residing in the island means that you should be prepared to file federal and state income returns every year.

The island happens to have one of the most complex tax systems in the United States. The fact that the system has a total of twelve income tax brackets further helps to compound the situation for any person looking to file their returns. Another factor to take into account is that the tax rates can run as high as eleven percent, depending on your prevailing tax bracket.

All taxes in the state are regulated by the Hawaii Department of Taxation. Its offices are located in Honolulu, but it has branches in each and every county in the state. As such, this is where you will go to file your property taxes, general excise tax, as well as your personal income tax. In case you have any questions pertaining to the filing process, consider checking the departmental FAQ page.

Compared to other states, Hawaii residents have some wiggle room when it comes to filing state returns. Once the Federal Tax Day has passed by, residents have until April 22 to ensure that they have submitted their tax returns. If for some reason a person is unable to file by this day, they can always contact the department and request for an extension.

It is important to note that the extension is not without its downsides. Just because you have asked for an extension and been granted one is not to mean that the state will not charge you a penalty for being late. It will charge a penalty and charge an interest for the amount you owe. The interest is charged on a per month basis until the outstanding amount is cleared.

The filing statuses applied by the state are the same as those applied when filing state returns. Basically, what you will see in your federal returns is the same thing you can expect to see in the state returns. It will feature information such as head of household, single, married filing separately, married filing single, and qualifying widow or widower with dependent kids.

As stated earlier, Hawaii uses a progressive tax system. Residents will, as such, fall into one of the 12 tax brackets defined by the state. The brackets are arrived at after calculating your taxable income and your filing status. If unsure about how to proceed, it is recommended that you seek the services of a tax expert, as these two factors can make the entire process more complicated.

Persons looking to file their returns can do so online through the available e-portal. Alternatively, you can have a professional file the returns on your behalf. The Department of Taxation has recommended software for use in its website. The software will help you establish how much money you need to pay based on your earnings.




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