Hawaii

EARNED INCOME TAX CREDIT (EITC)

Rate (Non-Refundable): 20% of the federal credit

Latest Legislative Action: In January 2018, several lawmakers introduced legislation to make Hawaii’s EITC refundable.

Notes:

  • In  July 2017, Hawaii enacted a nonrefundable state-level EITC worth 20 percent of the federal credit.
  • Lawmakers considered legislation in 2014 and 2016 that that would have created a refundable state EITC, but neither passed due to concerns of insufficient funding.

CHILD TAX CREDIT (CTC)

Hawaii does not currently offer a state-level CTC.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rate (Fully-Refundable):

Calculated as a percentage of qualifying expenses, not as a percentage of the federal credit. However, the state credit covers the same kind of expenses but is limited to $2,400 for one child/dependent and $4,800 for two children/dependents. Rates are dependent upon earned income levels as shown below.

 

INCOME PERCENTAGE
<$22,001 25%
$22,001-$24,000 24%
$24,001-$26,000 23%
$26,001-$28,000 22%
$28,001-$30,000 21%
$30,001-$32,000 20%
$32,001-$34,000 19%
$34,001-$36,000 18%
$36,001-$38,000 17%
$38,001-$40,000 16%
≥$40,001 15%

 

Eligibility Requirements: To be eligible for the credit, a filer must maintain a household which includes at least one qualified dependent and may not be claimed as a dependent themselves. The filer must also have qualifying care expenses.

Source:

  1. 2015 N-13 Resident Income Tax Forms and Instructions, Hawaii Department of Taxation

For More State Information

Nicole Woo, Senior Policy Analyst
Hawaii Appleseed Center for Law & Economic Justice

www.hiappleseed.org
(808) 587-7605
nicole@hiappleseed.org