N-35 Sch. K1: Shareholder’s Share of Income, Credits, Deductions, etc. (2025)
Hawaii · Hawaii DoTax · Used for tax years 2025
Hawaii Schedule K-1 (Form N-35) reports a shareholder’s share of an S corporation’s income, losses, deductions, credits, and other tax items. It separates amounts attributable to Hawaii from amounts attributable elsewhere for use in preparing the shareholder’s Hawaii income tax r
Who files this form
The S corporation prepares Schedule K-1 (Form N-35) for each shareholder to report that shareholder’s share of income, credits, deductions, and other items.
As a shareholder, you must include your share of the corporation’s income on your tax return, whether or not the corporation distributed it to you. Keep your Schedule K-1 for your records.
What you'll need
Use these documents when reporting your Schedule K-1 items:
- Your Hawaii Schedule K-1 (Form N-35), including supplemental information on line 30 and any attached statements.
- The Shareholder’s Instructions for Schedule K-1, which the form says to consult before entering information on your return.
- Your federal Schedule K-1 (Form 1120S) to identify any differences from the Hawaii amounts. Use the Hawaii Additions Worksheet and/or Hawaii Subtractions Worksheet in the Form N-11 or N-15 instructions for the necessary adjustments.
- Form 1099-DIV, if the corporation paid you actual dividend distributions. Those distributions are reported separately from Schedule K-1.
For applicable credit items, the schedule also refers to attached Form N-756A, Form N-342A, and Form N-312, Part II.
How to file
The corporation must prepare Schedule K-1 in triplicate for each shareholder:
- Copy 1: File with Form N-35.
- Copy 2: S corporation’s copy.
- Copy 3: Shareholder’s copy.
Shareholders use the schedule and the Shareholder’s Instructions to report the items on their Hawaii income tax return, and keep Schedule K-1 for their records.
Common mistakes
- Entering amounts without checking the instructions. The form cautions shareholders to refer to the Shareholder’s Instructions for Schedule K-1 before entering information on their tax return.
- Not keeping the schedule. The form specifically tells shareholders to keep Schedule K-1 for their records.
Questions people ask
Do I report income even if I did not receive a distribution?
Yes. You are liable for income tax on your share of the corporation’s income, whether or not it was distributed, and must include that share on your tax return.
How does my residency affect which amounts I use?
Hawaii residents report the combined amounts attributable to Hawaii and elsewhere. Nonresidents and part-year residents use both the amounts attributable to Hawaii and the combined totals when preparing their Hawaii income tax returns.
Does Schedule K-1 show actual dividend distributions?
No. The corporation must report actual dividend distributions to you on Form 1099-DIV. For resident shareholders filing Form N-11, those distributions are already included in federal adjusted gross income.
Where do I find details for lines marked “attach schedule”?
For lines 10, 12, 13, 14, and 22a, look at line 30. If more space was needed, the corporation will have attached a statement with the information.