N-40: Fiduciary Income Tax Return (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Form N-40 is Hawaii’s Fiduciary Income Tax Return for estates and trusts. It reports income, deductions, taxable income, tax credits, payments, and tax liability, and includes schedules for charitable and income distribution deductions.
What you'll need
The form calls for these supporting documents when they apply:
- Income schedules: Federal Schedule E for partnership, estate, trust, rental, or royalty income; federal Schedules C and F for business and farm income; and Schedule D (Form N-40) for capital gains or losses.
- Beneficiary schedules: Schedules K-1 (Form N-40) with the income distribution deduction on line 19.
- Deduction details: Explanations in Schedule C for deductions on lines 10, 11, 12, 14, 15, and 16. Attach a separate schedule if more space is needed.
- Charitable deductions: A statement giving the names and addresses of the charitable organizations.
- Tax credits and withholding: Schedule CR for the fiduciary’s share of credits, and supporting documents for tax withheld.
- Elections and special returns: A copy of federal Form 8855 for an IRC section 645(a) election; Schedule AMD for an amended return or NOL carryback; and Schedule J (Form N-40) if a trust had an accumulation distribution.
- Tax-exempt income expenses: A computation of the expense allocation if expenses allocable to tax-exempt income were deducted.
How to file
The fiduciary, or an officer representing the fiduciary, must sign and date the return and print or type their name and title.
For payment, the form says to send a check or money order payable to “Hawaii State Tax Collector.” Attach the check or money order and Form N-4 in the space marked on page 1.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Treating preparer permission as a power of attorney: The form reminds you that permission for the Department of Taxation to discuss the return with the preparer does not replace Form N-848, Power of Attorney.
- Including more than the fiduciary’s share of credits: The credit sections direct you to enter only the fiduciary’s share on Schedule CR and attach it.
- Using the wrong charitable deduction line: Schedule A says to carry line 6 to page 1, line 13 only if all charitable distributions are to be used exclusively in Hawaii. Otherwise, complete Schedule A, line 7.
Questions people ask
What exemption amount does the form list for an estate?
Line 20 lists a $400 exemption for an estate. For trusts, it refers to the instructions, which were not supplied.
Can an overpayment be applied to next year’s estimated tax?
Yes. On this 2024 return, Schedule G, line 12 lets you enter the amount to be credited to 2025 estimated tax. Line 13 is for the amount to be refunded.
Do I need to attach beneficiary Schedules K-1?
Line 19, for the income distribution deduction, directs you to attach Schedules K-1 (Form N-40). Item B asks for the number attached.
What if the trust had an accumulation distribution?
Answer the accumulation distribution question on page 4. If the answer is yes, the form directs you to attach Schedule J (Form N-40).