N-358: Healthcare Preceptor Income Tax Credit (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Form N-358 is used to figure and claim the nonrefundable Healthcare Preceptor Income Tax Credit. It records the Department of Health's certification of qualified training rotations and calculates the credit applied for the year and any unused credit carried forward.
Who files this form
Use Form N-358 if you are claiming Hawaii’s healthcare preceptor income tax credit for qualified volunteer-based supervised clinical training rotations certified by the Department of Health.
A qualifying preceptor must be a Hawaii resident who maintains a professional primary care practice in Hawaii and is a licensed physician, osteopathic physician, advanced practice registered nurse, or pharmacist.
A qualifying rotation is uncompensated training of an eligible student and totals at least 80 hours of supervisory time annually. Eligible students include qualifying medical, advanced practice registered nurse, and pharmacy students.
Claim the credit for the taxable year in which the Department of Health certifies your qualified rotations.
When it's due
For tax year 2024, the deadline to claim the credit, including an amended claim, is 12 months after the close of your taxable year. You cannot claim or amend the credit after that deadline.
The form states this relative deadline but does not print a calendar due date.
What you'll need
- Form N-358, with Part II completed.
- Department of Health credit certificate, verifying your qualified rotations and certified credit amount. Part I is completed only by the Department of Health.
- Schedule CR.
- Form N-11 or N-15, including your adjusted tax liability.
- Your prior-year unused healthcare preceptor credit amount, if you have a carryover.
- The healthcare preceptor credit worksheet on page 2, if you are claiming other nonrefundable credits listed on that worksheet.
How to file
- Obtain Department of Health certification of your qualified rotations and credit amount.
- Complete Part II of Form N-358. Enter the certified new credit, any prior-year carryover, your adjusted tax liability, and applicable other nonrefundable credits.
- Enter the required credit amounts on Schedule CR: the new credit in column (b), the credit applied in column (c), and any unused carryover in column (d).
- Attach Form N-358 and Schedule CR to Form N-11 or N-15. File the Department of Health certificate with your tax return with the Department of Taxation.
You may obtain the request for certification by mail from:
Department of Health
Preceptor Credit Assurance Committee
651 Ilalo St.
Medical Education Building, Room 224M
Honolulu, HI 96813
Certification contact information:
- Phone: (808) 956-5211
- Email: ptc@hawaii.edu
- Website: preceptortaxcredit.hawaii.edu
This address is for obtaining the certification request. The text does not provide a tax-return mailing address or e-filing instructions.
Common mistakes
- Completing Part I yourself. The Department of Health must complete this certificate section.
- Missing required attachments. Attach Form N-358 and Schedule CR to your Hawaii income tax return, and file the Department of Health certificate with the return.
- Skipping the ordering of credits. Certain other nonrefundable credits must reduce your tax liability before this credit is applied. Use the worksheet when applicable.
- Claiming more than the remaining tax liability. Part II, line 7 must be the smaller of lines 3 and 6, rounded to the nearest dollar.
- Claiming or amending too late. The form says you cannot claim or amend the credit after the deadline.
Questions people ask
How much is the credit?
The credit is $1,000 for each qualified volunteer-based supervised clinical training rotation, up to $5,000 per taxable year, regardless of the number of rotations supervised.
Is the credit refundable?
No. It is nonrefundable. Credit that exceeds your tax liability may be carried forward to subsequent tax years until exhausted.
Can a paid training rotation qualify?
No. A qualifying rotation must be uncompensated. The Department of Health verifies that the taxpayer was not compensated.
Is there a limit on the total credits certified each year?
Yes. The Department of Health may certify no more than $1,500,000 in total credits per taxable year. It certifies credits on a first come, first served basis and stops certifying when the annual limit is reached.