RE: A Listing of New and Obsolete/Retired Tax Forms, Instructions, and Schedules;
Errors Found on Hawaii Tax Forms As of April 4, 1996

1. Form N-11, "Individual Income Tax Return - Resident Filing Federal Return"
2. Instructions for Form N-11 (these instructions and the Instructions for Form N-12 have been combined into one single N-11/N-12 instructions packet)
3. Schedule X (Form N-11/N-12/N-13), "Tax Credits for Hawaii Residents"
4. Schedule D (Form N-15), "Capital Gains and Losses"
5. Form N-160, "Label Only Postcard"
6. Form N-848, "Power of Attorney and Declaration of Representative"

1. Schedules A & B (Form N-12), "Itemized Deductions and Interest and Dividend Income" (these schedules are now worksheets in the Instructions for Forms N-11/N-12)
2. Schedule C (Form N-12/N-15/N-40)*, "Profit or (Loss) from Business or Profession"
3. Schedule D (Form N-12), "Capital Gains and Losses" (this schedule is now a worksheet in the Instructions for Forms N-11/N-12)
4. Schedule D-3*, "Gains and Losses from Section 1256 Contracts and Straddles"
5. Schedule E (Form N-12/N-15)*, "Supplemental Income Schedule"
6. Schedule F (Form N-12/N-15/N-20/N-40)*, "Farm Income and Expenses"
7. Instructions for Schedule F - Farm Income and Expenses
8. Form N-13EZ, "Individual Income Tax Return - Resident - For Single and Joint Filers With No Dependents and Adjusted Gross Income of Less Than $30,000"
9. Instructions for Form N-13EZ (these instructions were incorporated into the Instructions for Form N-13)
10. Form N-104, "Income Tax Power of Attorney - Individual Return"
11. Form N-106*, "Employee Business Expenses"
12. Instructions for Form N-106 - Employee Business Expenses
13. Form N-120*, "Multiple Support Declaration"
14. Form N-128*, "Application for Change in Accounting Period"
15. Separate Instructions for Form N-139 - Moving Expenses (these instructions have returned to the back of Form N-139)
16. Form N-141, "Credit for Child and Dependent Care Expenses" (the new Schedule X replaces this form)
17. Instructions for Form N-141 - Credit for Child and Dependent Care Expenses
18. Form N-153, "Credit for Low-Income Household Renters" (the new Schedule X replaces this form)
19. Form N-164*, "Depreciation and Amortization"
20. Instructions for Form N-164 - Depreciation and Amortization
21. Form N-165, "Credit for Child Passenger Restraint Systems"
22. Form N-171*, "Installment Sale Income"
23. Instructions for Form N-171 - Installment Sale Income
24. Form N-184*, "Casualties and Thefts"
25. Instructions for Form N-184 - Casualties and Thefts
26. Form N-213*, "Election to Postpone Determination with Respect to the Presumption that an Activity is Engaged in for Profit"
27. Form N-311, "Food/Excise Tax Credit" (the new Schedule X replaces this form)
28. Form N-858, "Medical Services Excise Tax Credit" (the new Schedule X replaces this form)

* The corresponding federal form or schedule is to be substituted, if needed to be filed. The taxpayer's Hawaii general excise tax license number, if applicable, is to be included on any federal schedule that is filed for Hawaii income tax purposes.

A number of errors have been found on 1995/1996 Hawaii tax forms issued by the Department of Taxation. The list below reflects the errors identified as of April 4, 1996.
 
 

1. Forms N-11 and N-12
• On the left side on the front of the form, the notation which reads: "Attach Copy B of Form W-2 Here", should read: "Attach Copy 2 of Form W-2 Here."

 

 

2. Instructions for Forms N-11 and N-12
• On Page 9, first column, instructions for Line 7, which reads:

". . . Form 1040EZ, line 3 . . .", should read:
". . . Form 1040EZ, line 4 . . ."
• On Page 9, State Tax Refund Worksheet, Line 4, which reads:

". . . If zero or less, stop here; . . .", should read:
". . . If zero or less, go to line 8; . . . ."
• On Page 11, first column, instructions for Lump-Sum Distributions, which reads:

"Note: If your lump-sum distribution included capital gain amounts and you made the capital gain election on Form N-152, you may be able to reduce your tax by including the capital gain amounts in the Tax on Capital Gains Worksheet. See the instructions on page 18.", should read:
"Note: If your lump-sum distribution included capital gain amounts, you may be able to reduce your tax by including the capital gain amounts on Form N-152 and electing the capital gains treatment. See Form N-152 Instructions for more information."
• On Page 16, first column, instructions for Line 20f, Miscellaneous Deductions, which reads:

". . . take the amounts on Form 1040 or 1040PC, Schedule A, lines 23, 27, and 28 and write them on lines 23, 27 and 28 of Worksheet A-6 . . .", should read:
". . . take the amounts on Form 1040 or 1040PC, Schedule A, lines 23 and 27 and write them on lines 23 and 28 of Worksheet A-6 . . . "
• On Page 27, Capital Gain/Loss Worksheet, which reads:

"23. Line 20 minus line 23 . . .", should read:
"23. Line 19 minus line 22 . . ."
• On Page 30, Worksheet A-7 is incorrect. See the copy of the original worksheet and the corrected worksheet on the back of page 5 of this Announcement.**

**The Department of Taxation does not have the corrected Worksheet A-7 available in downloadable pdf format at this time. Please call the Technical Review Office at (808) 587-1557 for a hard copy of the corrected Worksheet. Thank you.

3. Schedule J (Form N-11/N-12/N-15/N-40)
• Line 7, which reads:

". . . skip lines 9 through 13 and enter zero on line 14", should read:
". . . skip lines 8 and 9 and enter zero on line 10."
 
 
4. Schedule X (Form N-11/N-12/N-13)
• On Page 2, Part III, Line 12, which reads:

". . . enter your spouse's earned income on line 17)", should read:
". . . enter your spouse's earned income on line 10)."
 
 
5. Instructions for Form N-20
• On Page 4, second column, Note for travel and entertainment expenses, which reads:

". . . a deduction for meal and entertainment expenses is limited to 80% . . .", should read:
". . . a deduction for meal and entertainment expenses is limited to 50% . . . ."
 
 
6. Instructions for Form N-35
• On Page 4, first column, instructions for Line 19, which reads:

". . . The deductions for business meals and entertainment expenses are limited to 80% . . .", should read:
". . . The deductions for business meals and entertainment expenses are limited to 50% . . ."
7. Schedule K-1 (Form N-40)
• On Line 5a, column (c), which reads:

"Form N-11, line 54", should read:
"Form N-11, line 55."
 
 
8. Form N-220
• On Page 3, Line 23, which reads:

"Figure the tax on line 22 following . . .", should read:
"Figure the tax on the net capital gain and ordinary income in each column on line 22 by following . . ."
 
 
9. Instructions for Form N-220
• On Page 2, first column, instructions for Part III, Line 19, which reads:

". . . The penalty for the April 20 installment is figured to June 10 (3 months). . .", should read:
". . . The penalty for the April 20 installment is figured to June 10 (2 months) . . ."
 
 
10. Form N-312
• On the front of the form, Part I, column (b), which reads:

"Date property purchased or placed in service, whichever is earlier", should read:
"Date property placed in service."
 
 
11. Form N-312A
• On the front of the form, Part I, column (b), which reads:

"Date property purchased or placed in service, whichever is earlier", should read:
"Date property placed in service."
 
 
12. Instructions for Form N-312/N-312A
• In the General and Specific Instructions, the phrase which reads:

". . . purchased and placed in service . . .", should read:
". . . placed in service . . . ."
• In the Specific Instructions, instructions for Part I, Line 1(a), which reads:

". . . property purchased during the year . . .", should read:
". . . property placed in service during the year . . ."