N-356: Earned Income Tax Credit (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Form N-356 is used to figure and claim Hawaii’s earned income tax credit. It calculates the refundable credit based on your federal earned income credit and accounts for unused credit carried over from prior years. Attach it and Schedule CR to Form N-11 or Form N-15.
Who files this form
Use Form N-356 to figure and claim Hawaii’s earned income tax credit or use an unused credit carryover. Attach it and Schedule CR to your Hawaii income tax return.
To qualify for a new credit, you must:
- File a federal income tax return and claim the federal earned income credit for the same tax year.
- Use the same filing status on your Hawaii and federal returns.
- Claim the same dependents on both returns. Having no dependents on either return also meets this requirement.
You cannot claim the credit if a final administrative or judicial decision found your credit claim was due to fraud within the prior ten taxable years, or disallowed your credit claim within the prior two taxable years.
If you are claiming only an unused carryover, skip lines 1 through 7 and begin on line 8.
When it's due
- 2024 credit claims: The stated deadline, including amended claims, is 12 months after the close of your taxable year. You cannot claim or amend the credit after that deadline, except for the IRS adjustment rule below.
- IRS adjustments: If the IRS adjusts your federal earned income credit because of an adjustment to federal taxable income after the 12-month deadline, you must amend your Hawaii credit. File the amended Hawaii return within 90 days after the IRS adjustment is finally determined.
- Carryovers from tax years 2018 through 2021: These cannot be used for taxable years beginning after December 31, 2024.
What you'll need
To claim the credit or use a carryover, complete and attach Form N-356 and Schedule CR to Form N-11 or Form N-15.
Have the following information available, as applicable:
- Your federal Form 1040 or 1040-SR, including the federal earned income credit amount.
- Your Hawaii return’s filing status, dependents, and adjusted tax liability.
- For part-year residents and nonresidents, Hawaii adjusted gross income from Form N-15, Column B, and federal adjusted gross income from Form N-15.
- The amount of unused earned income tax credit carried over from a prior year.
- Amounts for the other nonrefundable credits listed in the Credit Worksheet, if you claim them.
How to file
Complete Form N-356 and Schedule CR, then attach both to your Hawaii income tax return, Form N-11 or Form N-15.
- Enter the new refundable credit from line 7 on the appropriate line of Schedule CR.
- For carryovers, report line 11 in Schedule CR, Column (a), and line 12 in Column (c). Report any unused carryover from line 13 in Column (d).
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Completing the new-credit calculation for a carryover-only claim: Skip lines 1 through 7 and start on line 8.
- Continuing after answering “No” to a qualifying question: For a new credit, a “No” to any question on line 1 means you do not qualify. Do not complete the form.
- Using the income-ratio calculation as a resident: Residents must skip lines 4 and 5 and enter “1.00” on line 6.
- Forgetting Schedule CR: The form requires you to transfer the credit and carryover amounts to the appropriate Schedule CR lines and columns.
- Claiming a credit before the IRS supplies the amount: If you ask the IRS to calculate your federal credit and do not receive the amount before your Hawaii filing deadline, file Form N-11 or N-15 without this credit. You may amend the return once the IRS sends the amount.
- Carrying older credits forward too far: Unused credits from tax years 2018 through 2021 cannot be used for taxable years beginning after December 31, 2024.
Questions people ask
How much is the 2024 Hawaii earned income tax credit?
The new credit is refundable and equals 40% of the federal earned income credit claimed on your federal return. Part-year residents and nonresidents must also apply the Hawaii-to-federal adjusted gross income ratio.
Can I qualify if I have no dependents?
Yes, having no dependents on either your Hawaii or federal return meets the same-dependents requirement. Check “Yes” on line 1c. You must still meet the other qualifying requirements.
What if I am claiming only an unused credit from a prior year?
Skip lines 1 through 7 and start on line 8. Complete and attach Form N-356 and Schedule CR to your Hawaii return. The instructions identify unused credits from tax years 2018 through 2022 for line 11, with a restriction on using 2018 through 2021 credits for taxable years beginning after December 31, 2024.
What if I also claim other nonrefundable tax credits?
Certain other credits must reduce your tax liability before an earned income tax credit carryover can be applied. Complete the Credit Worksheet and enter its total on line 9. If you claim none of the nonrefundable credits listed in the worksheet, enter zero on line 9.