Insights & Stories

State of Hawaii Tax Refund: What To Know

Reading Time: 5 Minutes

September 10th, 2022

Hawaii State Capitol Building Hawaii State Capitol Building

Earlier this year, Governor Ige signed Act 115 into law, which authorizes the State of Hawaii Department of Taxation to issue a one-time tax refund to qualifying resident taxpayers who filed an individual income tax return for the 2021 tax year (on or before December 31, 2022). The Department of Taxation has recently announced that payments will begin this month, so to make this your refund as smooth as possible, here's what you need to know:

Most people don't need to do anything to receive their refund.

The State of Hawaii Department of Taxation will begin issuing Act 115 refunds in early September, and no action is required for most people. The Department of Taxation will calculate and automatically distribute payments, either directly deposited into the same bank account where you receive your tax refunds or in the form of a paper check by mail.

Some residents may see a pending direct deposit payment or a provisional payment in their bank accounts before their official payment date. Most banks will process the payment on the effective date, which is the date the Department of Taxation instructs the bank to make the funds available.

If you do not have direct deposit to a current bank account set up with the Department of Taxation, then it's important to make sure your mailing address is up-to-date. Funds that cannot be deposited to a valid bank account will be re-issued, via paper check, and sent to the address they have on file. As of the time of this article, paper checks are expected to start being mailed in September, through October 2022.

To update your address, visit Hawaii Tax Online or file their form, ITPS-COA as soon as possible. As a note, the Department of Taxation is not able to update an address by phone or through unsecured email.

Act 115 refund amounts

If you are eligible to receive an Act 115 refund, the amount will be based on your filing status, your federal adjusted gross income (AGI), and the number of exemptions you're allowed to take. Only one refund per person is allowed, and the amount will be either $100 or $300, per person (exemption).

At a high level, if you're filing single and make under $100,000, you will receive $300 per person. If you are filing single and make $100,000 or over, you will receive $100 per person. Or, if you are a Head of Household making under $100,000 you will receive $300 per person (exemption), if you make $100,000 or over, you will receive the $100 per person.

For a full breakdown of the refund amounts by filing status, visit the State of Hawaii Department of Taxation's website page on Act 115. There, you'll find a table with a full breakdown of refund amounts as well as answers to frequently asked questions.

It is worth noting, according to the Department of Taxation, Act 115 refunds will not be used to offset taxes owed to the State of Hawaii. However, they can be used to offset taxes owed to the Internal Revenue Service (IRS) or to offset debts owed to external agencies, such as child support payments. Your Bank will not be able to access or check this information, so be sure to check with the IRS or any external agencies you work with directly if you do not receive the refund you're expecting.

What to Do Next

Sign Up for Online Banking

Accessing your bank accounts through online banking or the Bank of Hawaii mobile app is a great way to check your balances or view recent transactions, like deposits! It's available 24/7, there's no waiting, and you can check it from the comfort of your couch.

If you haven't signed up for online banking yet, get started today.

Have online banking but want to use your phone? Download the Bank of Hawaii mobile app, and login with your online banking credentials.

Set Up Alerts

If you want to receive alerts about deposits so that you don't have to remember to check your accounts, you can set up an alert through online banking. Learn more about the power of online banking, here.

Deposit Paper Checks through ATMs or Mobile Banking

If you are receiving a paper check, as a Bank of Hawaii customer you can deposit it through the Bank of Hawaii mobile app or at any Easy Deposit ATM, without having to visit a branch or wait in line to see a teller.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax or investment advice. Consultation with a legal, tax or accounting advisor is advised.

For the most up-to-date information on Act 115 refunds, please visit the State of Hawaii Department of Taxation's page on Act 115.

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