Tuesday, June 18, 2024
Hawai'i Free Press

Current Articles | Archives

Tuesday, April 5, 2022
The Great Earned Income Tax Credit Hunt
By Tom Yamachika @ 3:30 PM :: 2532 Views :: Tax Credits

Earned Income Tax Credit: Great, but Where Is It?

by Tom Yamachika, President Tax Foundation Hawaii

A few years ago, in 2017 to be exact, our lawmakers enacted an Earned Income Tax Credit (EITC), which then was touted as a truly wonderful way to deliver tax relief to working families.

If it is properly claimed, that is.

One alert reader, in a Star-Advertiser letter to the editor, wondered out loud how people are supposed to figure out how to claim the credit…and with good reason. So, we are going to walk through the return and give you some spoilers.

Most working families in Hawaii, and any that would qualify for the EITC, would need to file Form N-11, which is the Hawaii income tax returns for residents of this state. The form, however, does not mention earned income tax credit. At all.

Going to the instructions for Form N-11 doesn’t help much. The form mentions “earned income tax credit” in a couple of places, both while talking about other things. It does not tell you how to claim this credit.

So, where do you even put down a number for the Hawaii earned income tax credit once you figure out what the number is?

Here’s the spoiler! It goes on line 35, which says, “Total nonrefundable tax credits (attach Schedule CR).”

Okay, so we now know that we need to pull another form, called Schedule CR, to claim the EITC.

Where do we find this form? If you look through the Department of Taxation’s website and look through all the forms starting with the letter N (which is a logical place to look because that’s where you would find Form N-11 and its instructions), you won’t find it.

Spoiler: Look through the Department’s website under “Tax Forms Beginning with S.” Because “Schedule CR” starts with S.

Okay, now we have Schedule CR. Where on the form does it mention the EITC? Well, it doesn’t.

Off to the Schedule CR instructions we go. Aha! There is indeed something that mentions the EITC. It says that the EITC amount is reported on Line 25, and that you will need to attach Form N-356.

On Schedule CR itself, line 25 simply says, “Attach Form N-356 (N-11 and N-15 filers only).” But alas! There are three different columns on line 25. Column (a) says, “Total New Credit Claimed for this Tax Year.” Column (b) says, “Total Credit Applied to this Tax Year.” Column (c) says, “Unused Credit to Carryover to Next Tax Year.”

Fortunately, once you pull Form N-356 and get through both pages, the form will tell you how much to put in Columns (a), (b), and (c).

So, here’s the ultimate spoiler: To claim the EITC, you need to pull Form N-356 and Schedule CR, and you need to attach them both to your income tax return.

To those of you who want to claim the EITC and you (or your tax preparer) have found this article: Congratulations! Now you know what forms to pull and where the amounts from the forms go to.

For those you who want to claim the EITC and you (or your tax preparer) have not found this article: Good luck! You’re going to need it.

And, if you’re a lawmaker or you’re at the Department of Taxation, you might want to consider making this credit easier to find so the working families that we want to help at least have a fighting chance at getting this relief.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii