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.

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.