Hawaii allows spouses who filed a joint federal return (Married Filing Jointly or MFJ) to choose Married Filing Separately (MFS) for Hawaii purposes. If you make this election, Hawaii requires certain income, deductions, credits, and tax payments to be allocated between spouses when preparing separate Hawaii returns.
The Hawaii MFS Allocation for State Purposes Only section helps assign income, deductions, credits, and tax payments to the correct spouse for the Hawaii return. This allocation affects only your Hawaii return and does not change your federal filing status.
Why do I need to complete this allocation?
When filing separate Hawaii returns, each spouse generally reports:
- Income they earned individually
- Their own deductions and adjustments to income
- Credits and tax payments that belong to them
- Their share of income, deductions, credits, and payments from jointly owned assets or accounts
Because your federal return was filed jointly, some amounts may need to be reviewed and assigned to the appropriate spouse under Hawaii's filing rules.
What types of items may need to be allocated?
Examples include:
- Interest and dividend income
- Capital gains and losses
- Rental or royalty income
- State tax refunds
- Certain deductions and credits
- Tax withholding and estimated tax payments
- Income or expenses from jointly owned property or accounts
How these items are allocated depends on the facts and circumstances of your situation, including who earned the income, who owns the asset, and who paid the expense.
Helpful Tip
Do not automatically split all amounts 50/50. Income, deductions, credits, and tax payments should generally be assigned based on ownership and your specific circumstances. Keep records showing how amounts were allocated between spouses in case you need to support the figures reported on your return.
Choosing MFS for Hawaii may affect eligibility for certain Hawaii tax benefits and can result in a different tax outcome than filing jointly. Review your information carefully before making this election.
For additional guidance on Hawaii Married Filing Separately rules and allocation requirements, see the instructions for Hawaii Form N-11.
Program Pathway
- State
- Hawaii
- Basic Information
- Change Filing Status from MFJ to MFS for State Purposes Only