Form N-5 - Declaration Of Estimated Income Tax For Estates And Trusts

Clear Form

FORM

STATE OF HAWAII — DEPARTMENT OF TAXATION

2014

N-5

DECLARATION OF ESTIMATED INCOME TAX FOR ESTATES AND TRUSTS

(REV. 2013)

GENERAL INSTRUCTIONS

1. PURPOSE OF DECLARATION — This declaration provides a basis for cur-

4. AMENDED DECLARATIONS — In the making of a declaration, an estate or

rently paying the income tax of estates and trusts. This form is to be used by

trust must take into account the then existing facts and circumstances as well

estates and trusts required to file Form N-40, if the estate or trust expects a tax

as those reasonably anticipated relating to prospective gross income and al-

liability of $500 or more for the taxable year. Trusts required to file Form N-70NP

lowable deductions for the taxable year. An amended or revised declaration

must use Form N-3, Declaration of Estimated Income Tax for Corporations. See

may be made in any case in which the estate or trust estimates that its gross

Form N-70NP instructions for an Estimated Tax Computation Schedule.

income and deductions will materially change the estimated tax reported on an

earlier declaration. Make the amendment on the next quarterly payment date,

2. ESTATES AND TRUSTS WHICH MUST MAKE A DECLARATION — A dec-

and pay the estimated tax or amount remaining unpaid in equal installments

laration of estimated tax must be made by every estate or trust unless excused

on that and the succeeding quarterly payment dates.

from filing under section 235-97(a)(6), HRS, which provides that a declaration

of estimated tax and the payment of estimated tax are not required if the tax

5. PENALTY — In the case of any underpayment of estimated tax, there may

liability of an estate or trust is less than $500 and can expect its withholding

be added to the tax, an amount determined at the rate of 2/3 of 1% a month, or

and tax credits to be less than the smaller of:

fraction of a month, on the amount of tax underpaid as provided under section

235-97(f), HRS. Willful failure to make a required declaration of estimated tax

1. 60% of the tax shown on the 2014 tax return; or

is an offense punishable as provided by section 235-105, HRS. The penalty

2. 100% of the tax shown on the 2013 tax return.

for the underpayment of estimated taxes as provided under section 235-97(f),

However, if a return was not filed for 2013 or that return did not cover a full

HRS, will be enforced. See Form N-210, Underpayment of Estimated Tax by

12 months, item 2 does not apply. Estates, and certain trusts (see federal

Individuals and Fiduciaries, for more information.

Form 1041-ES), are only required to make estimated tax payments for any

ESTIMATED TAX COMPUTATION WORKSHEET

tax year ending 2 or more years after the decedent’s death. In addition to

the declaration, an estate or trust must file an annual income tax return after

the close of its taxable year. At that time, the balance of tax due, if any, over

1. Enter the total expected 2014 taxable

the amount paid as estimated tax must be paid in a single payment with the

income of the fiduciary (Form N-40) .......

tax return.

2. Net capital gain taxable to the estate

3. WHEN AND WHERE TO FILE DECLARATION AND PAY ESTIMATED

or trust. If this line is zero, go to line 9 .....

TAXES — The payment vouchers that the estate or trust files serve as its

3. Difference — line 1 minus line 2 .............

declaration of estimated income tax. The declaration of estimated tax for an

estate or trust using a calendar tax year must be filed on or before April 20,

4. Enter the greater of line 3 or $20,000 .....

following the close of the preceding tax year. An estate or trust using a fiscal

5. Tax on amount on line 4. If line 4 is

(not calendar) tax year must file its declaration by the 20th day of the fourth

$20,000, enter $1,128.00. See Tax Rate

month following the close of the preceding tax year.

Schedule below ......................................

Payment of the estimated tax due may be made in full at the time the

declaration is made or may be paid in four equal amounts which are due

6. Difference — line 1 minus line 4 .............

on April 20, June 20, September 20, and January 20, for calendar year

7. Multiply the amount on line 6 by 7.25% ..

taxpayers and on the 20th days of the fourth, sixth, ninth, and thirteenth

months following the close of the preceding tax year for fiscal year taxpayers.

8. Tax — add lines 5 and 7 .........................

If at least 2/3 of gross income for 2013 or 2014 is from farming or fishing,

9. Tax on the amount on line 1 ....................

only one estimated payment of at least 60% of the tax due is required to

10. Enter the smaller of line 8 or line 9 .........

be paid by January 20, 2015. If any due date falls on a Saturday, Sunday,

or legal holiday, use the next regular work day. A check or money order,

11. Estimated available tax credits ...............

drawn on a U. S. bank in U.S. funds, in payment of the tax should be made

12. Estimated tax due —

payable to the “Hawaii State Tax Collector”. Include the Federal Employer

line 10 minus line 11 ...............................

I. D. Number (FEIN) of the estate or trust and the notation “2014 Form N-5”

13. If the first required payment voucher is

on the check or money order. Do not send cash.

due April 20, 2014, enter 1/4 of the

In some cases, such as a change in income, it may be necessary to file a

amount on line 12 here and on

declaration after April 20th.

the payment voucher ..............................

If the requirement is met after:

the filing date is:

NOTE: If a declaration is not required at this time, it may be necessary to file



April 1 and before June 2,

June 20

one at a later date. See General Instructions item 3.



June 1 and before September 2,

September 20



September 1,

January 20

The declaration and payments must be filed with the Hawaii Department of

Taxation at P.O. Box 1530, Honolulu, HI 96806-1530.

2014 TAX RATE SCHEDULE FOR ESTATES AND TRUSTS

If the taxable income is:

The tax shall be:

Not over $2,000 ............................................................................... 1.4% of taxable income

Over $2,000 but not over $4,000 ..................................................... $28.00 plus 3.2% of excess over $2,000

Over $4,000 but not over $8,000 ..................................................... $92.00 plus 5.5% of excess over $4,000

Over $8,000 but not over $12,000 ................................................... $312.00 plus 6.4% of excess over $8,000

Over $12,000 but not over $16,000 ................................................. $568.00 plus 6.8% of excess over $12,000

Over $16,000 but not over $20,000 ................................................. $840.00 plus 7.2% of excess over $16,000

Over $20,000 but not over $30,000 ................................................. $1,128.00 plus 7.6% of excess over $20,000

Over $30,000 but not over $40,000 ................................................. $1,888.00 plus 7.9% of excess over $30,000

Over $40,000 .................................................................................. $2,678.00 plus 8.25% of excess over $40,000

Form N-5 - Declaration Of Estimated Income Tax For Estates And Trusts - 2014

Related Articles

Related forms

Related Categories