N-40: Fiduciary Income Tax Return (2025)
Hawaii · Hawaii DoTax · Used for tax years 2025
Form N-40 is Hawaii’s Fiduciary Income Tax Return for estates and trusts. It reports income, deductions, taxable income, tax credits, and payments, and includes schedules for calculating charitable and income distribution deductions and tax liability.
What you'll need
The form calls for these attachments when they apply:
- Income schedules: Federal Schedule E for partnership, estate, trust, rent 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 information: Schedules K-1 (Form N-40) for the income distribution deduction, and Schedule NT for withholding on income of nonresident beneficiaries.
- 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. For Schedule A, submit a statement listing charitable organizations’ names and addresses.
- Tax credits and withholding: Schedule CR for the fiduciary’s share of credits, and Form N-4 or other supporting documents for tax withheld.
- Special situations: 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: Attach a computation of the expense allocation if you deducted expenses allocable to tax-exempt income.
How to file
Complete the estate or trust information, applicable income and deduction schedules, tax computation, and additional questions on page 4. The fiduciary or an officer representing the fiduciary must sign and date the return and provide their printed name and title.
For a payment, the form says to send a check or money order payable to “Hawaii State Tax Collector.” Page 1 marks a place to attach the check or money order and Form N-4.
The supplied form text does not give a mailing address or e-file instructions.
Common mistakes
- Including more than the fiduciary’s share of credits: The form says to enter only the fiduciary’s share on Schedule CR and attach it.
- Treating preparer discussion permission as a power of attorney: The form warns that this designation does not replace Form N-848, Power of Attorney.
- Using Schedule A, line 6 directly when charitable distributions are not exclusively for use in Hawaii: The form directs you to complete line 7 in other cases.
- Leaving out deduction explanations: Schedule C calls for explanations of deductions claimed on page 1, lines 10, 11, 12, 14, 15 and 16, with a separate schedule if needed.
Questions people ask
What exemption amount is printed for an estate?
Line 20 lists a $400 exemption for an estate. For trusts, it refers to instructions, which are not included in the supplied text.
How is the income distribution deduction entered?
Schedule B, line 17 uses the smaller of lines 15 and 16. Enter that amount on page 1, line 19, and attach Schedules K-1 (Form N-40).
Can an overpayment go toward next year’s estimated tax?
Yes. On this 2025 return, Schedule G, line 14 lets you enter the amount of the overpayment to credit to 2026 estimated tax. Line 15 is for the amount to be refunded.
Can the Department of Taxation discuss the return with the preparer?
The signature area has Yes and No boxes for this permission. The form states that the designation does not replace Form N-848, Power of Attorney.