N-168: Income Averaging for Farmers and Fisherman (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Form N-168 calculates 2024 income tax using income averaging for farmers and fishermen. It uses elected farm income and income and tax amounts from 2021 through 2023, and is attached to Form N-11 or N-15 only if used to figure your tax.
Who files this form
Form N-168 is for farmers and fishermen using income averaging to figure their 2024 tax. Attach it to Form N-11 or N-15 only if you use it to figure your tax.
What you'll need
Have these forms available for the amounts requested:
- Your 2024 Form N-11 or N-15, for taxable income.
- Your 2021, 2022, and 2023 Forms N-11 or N-15, for prior-year taxable income and tax, unless the form directs you to use a prior Form N-168 instead.
- Prior Forms N-168 for 2021, 2022, or 2023, if you used them to figure your tax. The lines you need depend on which years you used income averaging.
The form also asks for your name, Social Security number, and elected farm income.
How to file
Attach Form N-168 to your 2024 Form N-11 or N-15 if you use it to figure your tax.
Include the tax from Form N-168, line 22, in the total tax on Form N-11, line 27, or Form N-15, line 44.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Do not enter elected farm income on line 2 that is greater than the taxable income on line 1.
- Do not assume income averaging gives you the lowest tax. The form cautions that your tax may be less using the 2024 Tax Table, Tax Rate Schedules, or Capital Gains Tax Worksheet.
- Do not attach Form N-168 unless you are using it to figure your tax.
Questions people ask
Where do I find the taxable income for line 1?
Use your 2024 Form N-11, line 26, or Form N-15, line 43.
How is elected farm income divided on the form?
Line 6 tells you to divide the elected farm income on line 2 by 3.0. That amount is also entered on lines 10 and 14.
Which tax years' rates does the form use?
Use 2024 tax rates for line 4, 2021 rates for line 8, 2022 rates for line 12, and 2023 rates for line 16.
What if I used Form N-168 in an earlier year?
The form gives separate directions for using amounts from earlier Forms N-168. Follow the directions on lines 5, 9, 13, and 18 through 20 based on which years you used the form.