HRS § 235-54 — Exemptions


§235-54 Exemptions. (a) In computing
the taxable income of any individual, there shall be deducted, in lieu of the
personal exemptions allowed by the Internal Revenue Code, personal exemptions
computed as follows: Ascertain the number of exemptions which the individual
can lawfully claim under the Internal Revenue Code, add an additional exemption
for the taxpayer or the taxpayer's spouse who is sixty-five years of age or
older within the taxable year, and multiply that number by $1,144, for taxable
years beginning after December 31, 1984. A nonresident shall prorate the
personal exemptions on account of income from sources outside the State as
provided in section 235-5. In the case of an individual with respect to whom
an exemption under this section is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual's taxable year
begins, the personal exemption amount applicable to such individual under this
subsection for such individual's taxable year shall be zero.
(b) In computing the taxable income of an
estate or trust there shall be allowed, in lieu of the deductions allowed under
subsection (a), the following:
(1) An estate shall be allowed a deduction of $400.
(2) A trust which, under its governing instrument, is
required to distribute all of its income currently shall be allowed a deduction
of $200.
(3) All other trusts shall be allowed a deduction of
$80.
(c) A blind person, a deaf person, and any
person totally disabled, in lieu of the personal exemptions allowed by the
Internal Revenue Code, shall be allowed, and there shall be deducted in
computing the taxable income of a blind person, a deaf person, or a totally
disabled person, instead of the exemptions provided by subsection (a), the
amount of $7,000.