N-40 T: Allocation of Estimated Tax Payments to Beneficiaries (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Form N-40T lets a fiduciary elect to treat estimated tax payments made by a trust or a decedent’s estate as payments made by its beneficiaries. It reports the total allocated and each beneficiary’s share and proration percentage. Once made, the election is irrevocable.
Who files this form
The fiduciary files Form N-40T to elect to treat some or all of a trust’s estimated tax payments as payments made by its beneficiaries. A decedent’s estate may make this election only for its final tax year.
This form is used to make the election, which cannot be changed once made.
When it's due
- 2024 calendar tax year: File by March 6, 2025.
- The filing deadline is the 65th day after the close of the tax year shown on the form. If the deadline falls on a Saturday, Sunday, or holiday, file on the next business day.
If Form N-40T is not filed on time, the beneficiaries cannot use the estimated tax payments.
What you'll need
Have the following information and forms ready:
- The trust’s or estate’s name and federal employer identification number (FEIN).
- The total estimated tax payments you elect to allocate.
- Each beneficiary’s name, mailing address, identifying number, allocated payment amount, and proration percentage. Use an SSN for an individual and a FEIN for other entities.
- Form N-40, Schedule G, to report the total allocation on line 6(d).
- Schedule K-1 (Form N-40) for each beneficiary, to report that beneficiary’s allocation on line 9a.
- An additional sheet following the format of line 2 if you have more than 15 beneficiaries.
If filing separately from Form N-40, provide the fiduciary’s name, title, and mailing address, and sign and date Form N-40T. The telephone number is optional.
How to file
Use the 2024 form for calendar year 2024 or a fiscal year beginning in 2024 and ending in 2025. For a fiscal year or short tax year, fill in the tax year space at the top. Check the final-year box if applicable.
- Enter the total allocation on line 1 and on Form N-40, Schedule G, line 6(d).
- List beneficiaries on line 2, with individual beneficiaries first and all other beneficiaries afterward. Enter each allocation on Schedule K-1 (Form N-40), line 9a, as well.
- For each beneficiary’s proration percentage, divide column (d) by line 1 and enter the result as a percentage.
- If there are more than 15 beneficiaries, attach a sheet following the line 2 format and enter its total on line 3.
- Add line 2, column (d), and line 3. Enter the total on line 4, which must equal line 1.
Attach Form N-40T to Form N-40 only if making the election with that return. Otherwise, file Form N-40T separately. Fill in the fiduciary’s name and address and sign the form only when filing separately.
The instructions say Form N-40T must be mailed to:
Hawaii Department of Taxation
Attn: Account Management Section
P. O. Box 259
Honolulu, HI 96809-0259
Common mistakes
- Filing late: Beneficiaries cannot use the estimated tax payments if Form N-40T is not timely filed.
- Leaving out a valid beneficiary SSN or FEIN: This may delay processing and could result in penalties for the beneficiary.
- Forgetting the related entries: Include line 1 on Form N-40, Schedule G, line 6(d), and each beneficiary’s allocation on Schedule K-1 (Form N-40), line 9a.
- Using totals that do not match: Line 4 must equal line 1.
- Expecting to change the election later: Once made, the election is irrevocable.
Questions people ask
Can a decedent’s estate use Form N-40T every year?
No. A decedent’s estate may make this election only for its final tax year.
When are the allocated payments treated as paid to the beneficiaries?
They are treated as paid or credited to the beneficiaries on the last day of the trust’s or estate’s tax year.
What if there are more than 15 beneficiaries?
List the additional beneficiaries on an attached sheet using the format of line 2. Enter the total from the additional sheets on line 3.
Do I need a beneficiary’s spouse’s SSN?
It is optional. If the beneficiary files a joint return, providing the spouse’s SSN, if known, can help the Department of Taxation credit the proper account.