HAR § 18-235-65 — (Reserved) §18-235-66 Further withholdings at source; crediting of withheld taxes

(a) (Reserved) (b) Credit for tax withheld upon income. Taxes withheld at the source pursuant to section 235-66, HRS, or sections 235-61 to 235-66, HRS, shall be credited against the taxpayer’s income tax liability. Where taxes are withheld by an employer against wages paid during any calendar year pursuant to sections 235-61 to 235-66, HRS, the tax liability of the recipient of the income shall be credited for the amount of tax withheld for the taxable year during which the calendar year began. If the taxpayer has more than one taxable year beginning during the calendar year, the credit shall be applied against the tax liability resulting from the last of the taxable years. Taxes withheld shall be deemed payments of estimated taxes under section 235-97(g), HRS. (1) For purposes of this section, “recipient of the income” is the person who is subject to tax under chapter 235, HRS, upon the wages or other income from which the tax is withheld. (2) Withholding on income. Tax is considered withheld at the source if: (A) The tax has actually been deducted and withheld from the income or wages, even if the employer or person required to withhold the tax has not submitted it to the State; or (B) The tax has been paid to the State by the employer or person required to withhold the tax, and the recipient of the income has actually reimbursed the amount to the employer or person required to withhold it. (3) Application of credit. After the taxpayer has determined the amount of tax for the taxable year, the credit for taxes withheld is applied by the taxpayer against the tax liability to determine whether there is a balance due or whether the return shows an overpayment. An overpayment of tax may be used as a credit against the taxpayer’s estimated tax for the succeeding taxable year or may be refunded pursuant to section 235-110, HRS.