Instructions For Form N-210 - Department Of Taxation State Of Hawaii

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INSTRUCTION

STATE OF HAWAII — DEPARTMENT OF TAXATION

FORM N-210

INSTRUCTIONS FOR FORM N-210

2012

(REV. 2012)

Underpayment of Estimated Tax by Individuals,

Estates, and Trusts

(NOTE: References to “married”, “unmarried”, and “spouse” also means “in a civil union”, “not in a civil union”, and “civil union partner”, respectively.)

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A trust that was treated as owned by the

The Department will review the information you

GENERAL INSTRUCTIONS

decedent if the trust will receive the residue

provide and decide whether or not to grant your

Purpose of Form

of the decedent’s estate under the will (or

request for a waiver.

if no will is admitted to probate, the trust

Attach this form to your return.

Use Form N-210 to see if you owe a penalty for

primarily responsible for paying debts,

underpaying your estimated tax and, if you do, to

SPECIFIC INSTRUCTIONS

taxes, and expenses of administration) for

figure the amount of the penalty. This form is used

any tax year ending before the date that is 2

by individuals and fiduciaries of estates and trusts.

Part II

years after the decedent’s death.

Other Methods

Special Rules for Farmers and

All filers must complete lines 1-8.

Fishermen

We realize that there are many different ways to

Line 1 — Enter your tax liability before credits.

figure the correct penalty. You do not have to use

Enter the amount from Form N-11, line 27; Form

If you meet both tests 1 and 2 below, you do not

the method prescribed by Form N-210 as long

N-13, line 16; Form N-15, line 43; or Form N-40,

owe a penalty for underpaying your estimated

as you enter the correct penalty amount on the

Schedule G, line 1; whichever applies.

tax.

penalty line of your return.

Line 2 — Enter the total amounts of all the tax

1. Your gross income from farming and fishing

However, if you are required to file Form N-210

credits, nonrefundable and refundable, claimed

is at least two-thirds of your annual gross income

because one or more of the boxes in Part I

on your tax return.

from all sources for 2011 or 2012.

applies to you, you must complete certain lines.

Do not include on this line, payments made for:

2. You filed your Hawaii return and paid the

You must complete lines 1-17 and enter the

entire tax due by March 1, 2013.

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penalty on line 21.

Hawaii income tax withheld

Note: If you receive a penalty notice, do not

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Tax withheld on IHA distributions

Who Must Pay the Underpayment

ignore it, even if you think it is in error. You may get

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Penalty

Estimated taxes paid

a penalty notice even though you filed your return

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on time, attached Form N-210, and met the gross

Amount of estimated tax payments applied

You may be charged a penalty if you did not pay

income from farming or fishing requirement.

from the 2011 return to the 2012 return

enough estimated tax by any of the due dates

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If you receive a penalty notice for underpaying

or if you did not have enough Hawaii income tax

Amounts paid with extensions

estimated tax and you think it is in error, write to

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withheld. This is true even if you are due a refund

Credit for taxes withheld on the sale of

the address on the notice and explain why you

when you file your tax return. The penalty is

Hawaii real property

think the notice is in error. Include a computation

figured separately for each due date. Therefore,

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showing that you met the gross income from

Amount withheld by an S corporation for a

you may owe the penalty for any earlier payment

farming or fishing requirement.

nonresident shareholder

due date, even if you paid enough tax later to

make up the underpayment.

Line 4 — Include on this line Hawaii income tax

Get federal Publication 505, Tax Withholding and

withheld from wages, IHA distributions, and sales

Estimated Tax, for the definition of gross income

In general, you may owe the penalty for 2012 if

of real property by nonresidents; and amounts

from farming and fishing.

you did not pay at least the smaller of:

withheld by an S corporation for a nonresident

1. 60% of your 2012 tax liability; or

Waiver of Penalty

shareholder.

2. 100% of the tax shown on your 2011 tax

If you have an underpayment on line 16, all or

Line 5 — If this line is less than $500, you do not

return.

part of the penalty for that underpayment will be

have to complete the rest of this form.

Exceptions to the Penalty

waived if the Department determines that:

Line 7—Tax Amount from your 2011 Income

1. The underpayment is due to a casualty,

You will not have to pay the penalty if either 1 or

Tax Return.—Enter 100% of your 2011 tax.

disaster, or other unusual circumstance and it

2 applies:

Figure your 2011 tax using the taxes and credits

would be inequitable to impose the penalty, or

shown on your 2011 tax return. Use the same

1. You had no tax liability for 2011, you were

type of taxes and credits shown on lines 1 and 2

2. In 2011 or 2012, you retired after age 62 or

a U.S. citizen or resident of Hawaii for the entire

of Form N-210.

become disabled, and your underpayment was

year, and your 2011 Hawaii income tax return

due to reasonable cause.

was (or would have been had you been required

If you did not file a return for 2011, or if your

to file) for a full 12 months. You had no tax liability

2011 tax year was less than 12 months, do not

To request either of the above waivers, do the

for 2011 if your total tax was zero or you did not

complete line 7. Instead, enter the amount from

following:

need to file an income tax return.

line 6 on line 8. However, see the Exceptions to

a. Check the box in Part I, line a.

the Penalty on this page.

2. The total tax shown on your 2012 return

b. Complete Form N-210 through line 20

minus the amount of tax you paid through

Filing Status Change.—If you are filing a joint

without regard to the waiver. Write the amount

withholding and applicable tax credits is less than

return for 2012, but you did not file a joint return

you want waived in parentheses on the dotted

$500. To determine whether the total tax is less

for 2011, add the tax shown on your 2011 return

line next to line 21. Subtract this amount from

than $500, complete lines 1-5.

to the tax shown on your spouse’s 2011 return

the total penalty you figured without regard to the

and enter the total on line 7. If you filed a joint

If you meet the exception under number 1, attach

waiver, and enter the result on line 21.

return for 2011 but you are not filing a joint return

a statement that under the penalties set forth in

c. Attach Form N-210 and a statement to your

for 2012, see federal Publication 505 to figure

section 231-36, HRS, you were not required to

return explaining the reasons you were unable

your share of the 2011 tax to enter on line 7.

file a Hawaii income tax return for 2011 because

to meet the estimated tax requirements and the

your 2011 gross income was less than your filing

Line 8 — Compare the amounts on lines 6 and 7.

time period for which you are requesting the

threshold and the Hawaii income tax return would

Enter the smaller of the two amounts on line 8.

waiver.

have been for a full twelve months had you been

If the amount on line 4 is equal to or more than the

d. If you are requesting a penalty waiver

required to file a 2011 income tax return. Attach

amount on line 8, you will not have to complete

due to a casualty, disaster, or other unusual

this statement directly behind Form N-11, N-13,

or attach Form N-210 unless the Caution below

circumstance, attach documentation such as

N-15, or N-40. If you filed Schedule CR, attach

applies to you.

police and insurance company reports.

the statement directly behind Schedule CR.

Caution: If the amount you enter on line 8 is

e. If you are requesting a penalty waiver due to

Estates and trusts. No penalty applies to either

your prior year tax (from line 7), and you filed or

retirement or disability, attach documentation that

of the following:

are filing a joint return for either 2011 or 2012 but

shows your retirement date (and your age on that

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A decedent’s estate for any tax year ending

not for both years, you must check Box d in Part

date) or the date you became disabled.

before the date that is 2 years after the

I, and complete and attach Form N-210 to your

decedent’s death.

return, even if you do not owe a penalty.

Instructions For Form N-210 - Department Of Taxation State Of Hawaii - 2012

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