N-168: Income Averaging for Farmers and Fisherman (2025)
Hawaii · Hawaii DoTax · Used for tax years 2025
Hawaii Form N-168 calculates 2025 income tax using income averaging for farmers and fishermen. It uses elected farm income and income and tax amounts from 2022 through 2024, 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 income averaging for farmers and fishermen. Attach it to Form N-11 or N-15 only if you are using it to figure your tax.
What you'll need
Have these forms and tax references available:
- Your 2025 Form N-11 or N-15, for your taxable income.
- Your 2022, 2023, and 2024 Forms N-11 or N-15, for prior-year taxable income and tax amounts.
- Any Forms N-168 you used to figure your tax for 2022, 2023, or 2024. The form tells you which prior-year lines to use based on when you last used income averaging.
- Tax rates for 2022, 2023, 2024, and 2025, for the calculations on lines 4, 8, 12, and 16.
How to file
Attach the completed Form N-168 to your 2025 Form N-11 or N-15 if you are using 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-file directions.
Common mistakes
- Do not enter elected farm income on line 2 that is more 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 2025 Tax Table, Tax Rate Schedules, or Capital Gains Tax Worksheet.
- Attach Form N-168 only if you are using it to figure your tax.
Questions people ask
Where do I find the taxable income for line 1?
Use your 2025 Form N-11, line 26, or Form N-15, line 43.
Is there a limit on the elected farm income I enter?
Yes. The amount on line 2 cannot be more than the amount on line 1.
Which prior years does the 2025 form use?
The form uses amounts and tax rates for 2022, 2023, and 2024. If you used Form N-168 in those years, follow the line-specific directions for selecting amounts from your earlier forms.
Will Form N-168 always lower my tax?
No. The form cautions that your tax may be less if you use the 2025 Tax Table, Tax Rate Schedules, or Capital Gains Tax Worksheet instead.
Where does the final tax amount go?
Include Form N-168, line 22, in the total tax on Form N-11, line 27, or Form N-15, line 44.