Sch. J: Supplemental Annuities Schedule (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Schedule J computes the taxable portion of pension and annuity distributions, including applicable pension exclusions and recovery of employee contributions. It attaches to Form N-11, N-15, or N-40 and calculates the pension adjustment to Hawaii adjusted gross income for F
Who files this form
Use 2024 Schedule J to figure the taxable portion of pension and annuity distributions. The form says you must use it if you received payments from:
- A privately purchased annuity.
- A profit-sharing plan or pension plan to which you made employee contributions.
- A death benefit as the beneficiary of a deceased employee.
- A qualified retirement plan as a lump-sum distribution that you report on Form N-152 using the capital gain election or 10-year averaging method.
- A hybrid plan combining pension and deferred compensation features, such as a 401(k) with employer matching or a profit-sharing component.
Important exceptions: Do not use Schedule J for an annuity outside an employer pension plan if you made no contributions or recovered your entire cost before July 1, 1989, under the former three-year recovery rule. Generally, do not use it for a pension funded entirely by the employer, but the instructions provide an exception for certain lump-sum distributions reported on Form N-152.
Public retirement system distributions generally do not require Schedule J. If you made voluntary contributions under an elective right, use it to calculate the pension income subject to Hawaii tax.
What you'll need
Have the following information available to complete Schedule J:
- Your name and Social Security number or FEIN, as shown on Form N-11, N-15, or N-40.
- Your annual annuity amount, payments received during the year, and annuity dividends or other variable payments.
- Employee contributions, separated into previously taxed and pretax amounts, and employer contributions. Your employer or plan administrator should be able to provide contribution information.
- The multiple used for federal purposes to determine the contract’s expected return.
- Your first Schedule J, if you completed it in an earlier year. It contains figures you will reuse.
- For Form N-11 filers, the federally taxable portion of the annuity.
If you are reporting a lump-sum distribution on Form N-152 and electing to include net unrealized appreciation in employer securities in current taxable income, use the applicable amount from federal Form 1099-R.
How to file
Attach Schedule J to Form N-11, N-15, or N-40. Complete a separate Schedule J for each plan.
- Complete Part I only for the first year you receive the annuity. Keep a copy for future years.
- Complete Part II for each year you receive the annuity.
- Complete Part III only if you file Form N-11.
Transfer the result as directed:
- Form N-15: Enter Schedule J, line 22, on line 16, Column A.
- Form N-40: Enter Schedule J, line 22, on line 8.
- Form N-11: Enter Schedule J, line 24, on line 13.
- Lump-sum distributions reported on Form N-152: Enter Schedule J, line 20, on Form N-152, Part III, line 14. You do not need to complete the rest of Schedule J.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Combining plans: Complete a separate Schedule J for each plan.
- Recalculating Part I every year: Complete it only in the first year and keep a copy for later years.
- Putting variable payments on line 1: Line 1 is only for fixed, definite amounts. Put variable or indefinite amounts on line 15.
- Claiming an exclusion twice: Employer contributions already deducted under other provisions cannot be deducted again. If an annual death benefit exclusion applies, follow the line 10 instructions to avoid a double exclusion.
- Overstating recovery of your investment: For an annuity starting after 1986, the tax-free recovery cannot exceed the unrecovered contract cost. Once the investment is fully recovered, do not enter a recovery amount on line 19.
Questions people ask
Does the pension exclusion cover employee contributions?
No. The pension exclusion applies only to amounts attributable to employer contributions. Schedule J separately calculates recovery of the employee’s previously taxed investment.
What if I received payments for only part of the year?
On line 1, enter the fixed annual amount you would have received for a full 12 months. If the annuity began after the first day of the year, the exclusions on lines 13 and 19 are prorated for the first and last years based on the months payments were received.
Where can I find my contribution amounts?
Your employer or plan administrator should be able to tell you your cost in the plan and the employer’s contributions.
Can payments qualify as a pension while I am still working?
Yes. Required distributions received by pension plan participants who have reached age 73 and are still employed by their employers qualify as pensions under the instructions.