Are you a Hawaii resident who has filed taxes for the 2021 tax year? If so, check out this article for information on Act 115, which gives a tax refund to qualifying Hawaii taxpayers.
Earlier this year, Governor Ige signed Act 115 into law, which authorizes the State of Hawaii Department of Taxation to issue a one-time tax refund to qualifying resident taxpayers who filed an individual income tax return for the 2021 tax year (on or before December 31, 2022). The Department of Taxation has recently announced that payments will begin this month, so to make this your refund as smooth as possible, here's what you need to know:
The State of Hawaii Department of Taxation will begin issuing Act 115 refunds in early September, and no action is required for most people. The Department of Taxation will calculate and automatically distribute payments, either directly deposited into the same bank account where you receive your tax refunds or in the form of a paper check by mail.Some residents may see a pending direct deposit payment or a provisional payment in their bank accounts before their official payment date. Most banks will process the payment on the effective date, which is the date the Department of Taxation instructs the bank to make the funds available.If you do not have direct deposit to a current bank account set up with the Department of Taxation, then it's important to make sure your mailing address is up-to-date. Funds that cannot be deposited to a valid bank account will be re-issued, via paper check, and sent to the address they have on file. As of the time of this article, paper checks are expected to start being mailed in September, through October 2022.To update your address, visit Hawaii Tax Online or file their form, ITPS-COA as soon as possible. As a note, the Department of Taxation is not able to update an address by phone or through unsecured email.
If you are eligible to receive an Act 115 refund, the amount will be based on your filing status, your federal adjusted gross income (AGI), and the number of exemptions you're allowed to take. Only one refund per person is allowed, and the amount will be either $100 or $300, per person (exemption).At a high level, if you're filing single and make under $100,000, you will receive $300 per person. If you are filing single and make $100,000 or over, you will receive $100 per person. Or, if you are a Head of Household making under $100,000 you will receive $300 per person (exemption), if you make $100,000 or over, you will receive the $100 per person.For a full breakdown of the refund amounts by filing status, visit the State of Hawaii Department of Taxation's website page on Act 115. There, you'll find a table with a full breakdown of refund amounts as well as answers to frequently asked questions.It is worth noting, according to the Department of Taxation, Act 115 refunds will not be used to offset taxes owed to the State of Hawaii. However, they can be used to offset taxes owed to the Internal Revenue Service (IRS) or to offset debts owed to external agencies, such as child support payments. Your Bank will not be able to access or check this information, so be sure to check with the IRS or any external agencies you work with directly if you do not receive the refund you're expecting.
Accessing your bank accounts through online banking or the Bank of Hawaii mobile app is a great way to check your balances or view recent transactions, like deposits! It's available 24/7, there's no waiting, and you can check it from the comfort of your couch.If you haven't signed up for online banking yet, get started today.Have online banking but want to use your phone? Download the Bank of Hawaii mobile app, and login with your online banking credentials.
If you want to receive alerts about deposits so that you don't have to remember to check your accounts, you can set up an alert through online banking. Learn more about the power of online banking, here.