N-364: Claim of Right Tax Credit (2025)

Who files this form

Use Form N-364 to figure and claim Hawaii’s claim of right tax credit if you repaid income that you included in an earlier year.

• The amount repaid must be more than $3,000 to qualify for the credit.
• If Hawaii did not tax the income you repaid, no deduction or credit is allowed.
• You may be able to take a deduction or a credit for the year of repayment, whichever results in the least tax.

To claim the credit, complete and attach Form N-364 and Schedule CR to your Hawaii income tax return.

What you'll need

To complete and claim the credit, you need:

• Form N-364, Schedule CR, and your Hawaii income tax return.
• Your name as shown on your tax return and your Social Security number or FEIN.
• The total amount of income repaid during the tax year.
• The prior taxable year’s ending date and the tax amount from the Hawaii return filed for that year.
• A recalculation of that prior year’s Hawaii tax without the income you repaid.
• Information from your federal return showing whether you took a deduction instead of a credit for the repayment.

How to file

Attach Form N-364 to Schedule CR and your Hawaii income tax return. The supplied text does not give a mailing address or e-filing instructions.

1. Enter your name, tax year, and Social Security number or FEIN.
2. On line 1, enter the income repaid during the tax year. On line 2, indicate whether you took a federal deduction instead of a credit.
3. On line 3, enter the prior taxable year’s ending date in MM/DD/YYYY format. Enter the tax from that year’s Hawaii return on line 4.
4. On line 5, enter the refigured prior-year tax without the repaid income. Subtract line 5 from line 4 and enter the credit on line 6.
5. Transfer line 6 to Schedule CR, line 9.

If the repayment covers income reported in more than one prior tax year, complete a separate Form N-364 for each year. Add the line 6 amounts, enter the total on Schedule CR, line 9, and attach all Forms N-364.

Common mistakes

• Figuring a credit for $3,000 or less. If line 1 is $3,000 or less, stop. You do not qualify to figure this credit.
• Claiming relief for income Hawaii did not tax. No deduction or credit is allowed for that income.
• Taking both a Hawaii deduction and credit for the same repayment. This is not allowed. If you took a federal deduction and are claiming the Hawaii credit, add back the line 1 amount as “Other Hawaii additions to federal AGI” on Form N-11, line 10; Form N-15, line 19; or the applicable line on your return.
• Using the wrong tax rates. Use Hawaii tax rates when comparing a deduction with a credit.
• Combining multiple prior years on one form. Complete a separate Form N-364 for each prior tax year involved, total the credits on Schedule CR, line 9, and attach every Form N-364.

Questions people ask

Can I claim the credit if I repaid exactly $3,000?

No. The form says to stop if the amount on line 1 is $3,000 or less.

How is the credit calculated?

Refigure your prior-year Hawaii tax without the income you repaid. Subtract that amount from the tax shown on the Hawaii return filed for that prior year. The difference is your credit for the current tax year.

What if I took a deduction on my federal return?

Check “Yes” on line 2. To claim the Hawaii credit, add back the line 1 amount as “Other Hawaii additions to federal AGI.” You cannot take both a Hawaii deduction and credit for the same repayment.

What if the repaid income came from several prior tax years?

File a separate Form N-364 for each prior tax year. Add all line 6 amounts and enter the total on Schedule CR, line 9. Attach all Forms N-364.

Where can I find help choosing between a deduction and a credit?

The form refers you to the Repayment section of federal Publication 525, Taxable and Nontaxable Income. Use Hawaii tax rates in your calculations.

Official sources

• https://files.hawaii.gov/tax/forms/current/n364_i.pdf