HAR § 18-235-55.8 — Food/excise tax credit

(a) For purposes of section 235-55.8, HRS, and this section: “Resident taxpayer” means an individual whose entire income is subject to income tax under chapter 235, HRS, and as imposed by section 235-4, HRS, without regard to source. “Qualified exemption” means an exemption which is allowed under section 235-54, HRS, except as otherwise provided in this section. Additional exemptions available for blindness, deafness, or total disability under section 235-54, HRS, shall not qualify as an exemption for purposes of section 235-55.8, HRS, and this section. In addition, for purposes of section 235-55.8, HRS, and this section, a parent or guardian may claim an exemption for a dependent minor child receiving support from the department of human services of the State, social security survivor’s benefits, and the like. (b) In general. (1) Taxpayers eligible to claim food/excise tax credit. Pursuant to section 235-55.8, HRS, and this section and except as provided in this section, every resident taxpayer whether or not required to file an individual income tax return for a taxable year may claim the food/excise tax credit. (2) Exceptions. Pursuant to section 235-55.8, HRS, tax credit shall not be available to: (A) A resident taxpayer who is eligible to be claimed as a dependent by another taxpayer for federal or state income tax purposes. While a dependent resident taxpayer may be required to file income tax return, the dependent resident taxpayer is not eligible to claim the food/excise tax credit if the dependent resident taxpayer qualifies as a dependent of another taxpayer under federal or state statutes and rules, as defined in section 152, IRC (dependent defined). The dependent resident taxpayer may not claim the tax credit even if the taxpayer eligible to claim the credit for the dependent does not take it. (B) Any individual who has not physically resided in the State for more than nine months during the taxable year. No exemptions shall be available for individuals who are out of the State for business, vacation, education, or other reasons for more than three months in total during the taxable year. (C) Any individual who has been convicted of a felony, has been committed to prison, and has been physically confined in a prison for the full taxable year. (D) Any individual who would otherwise be eligible to be claimed as a dependent but has been committed to a youth correctional facility and has resided at the facility for the full taxable year. (E) Any misdemeanant who has been committed to jail and has been physically confined for the full taxable year. Example: Jane Doe, a full-time student, works part-time and earned $1,500 during the taxable year. Jane is required to file a Hawaii income tax return. Her father furnished over fifty per cent of her support and is entitled to claim her as a dependent on his federal income tax return. However, he elects not to claim Jane’s dependency exemption on his state income tax return. Jane may not claim the food/excise tax credit since she may be claimed as a dependent on her father’s federal tax return. (c) Calculating the amount of tax credit. The total amount of tax credit available shall be calculated by multiplying the number of qualified exemptions the taxpayer is entitled to take by the sum of: (1) $55, and (2) The amount of credit available to the resident taxpayer based on the resident taxpayer’s adjusted gross income as set forth in section 235-55.8(b)(2), HRS, which shall be doubled for each resident taxpayer age sixty-five or older. If married resident taxpayers file separately, the amount of credit available shall be based on the combined adjusted gross income of the spouses. (d) Application of credits. Credits claimed under section 235-55.8, HRS, shall be deductible from the resident taxpayer’s income tax liability, if any, for the taxable year in which the credits are claimed. If the credits exceed the resident taxpayer’s tax liability for the taxable year, the excess shall be refunded to the resident taxpayer; HRS §235-55.8 §18-235-61-03 provided the resident taxpayer has no tax liability due to the department. No refunds or payment on account of tax credits available under section 235-55.8, HRS, shall be made for an amount less than $1. (e) All claims for tax credit under section 235-55.8, HRS, shall be made on or before the end of the twelfth month following the taxable year for which the credits were claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.