Hawaii has made the following changes to tax law for the 2021 tax year:
- Hawaii has assumed the following provisions as apart of the Consolidated Appropriations Act (CAA)
- Exclusion from gross income of loans forgiven under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) is extended.
- Increase of the charitable deduction of up to $300 for single and $600 ($300 per taxpayer) for joint filers for those who do not itemized their returns is extended.
- Increase to certain charitable contribution limits is extended
- Medical Expense deduction floor for medical expenses that exceed the 7.5% of adjusted gross income, decreased from historic 10% threshold for itemized deduction.
- Exclude the amounts received as "recovery rebates" under the CAA (stimulus payments) from gross income.
- Low-Income Housing Tax Credit has been amended to clarify when and how members can claim the credit. It now requires taxpayers to file federal Form 8609 to claim the credit, "...providing additional tax provisions with respect to building and projects placed in service after December 31, 2020, and extending to the sunset date December 31, 2027."
- Taxpayers may exclude up to $7,152 of their military reserve or Hawaii National Guard duty pay from their income, effective for taxable years beginning after December 31, 2020. (Act 197, SLH 2004)