How does Hawaii tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Hawaii.
• If you're considered a full-year or part-year resident of Hawaii, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Hawaii.
• Hawaii taxes income earned for personal services performed while in Hawaii (even if you're a nonresident). This includes remote work for an employer or clients based outside Hawaii if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states.
3. My employer was based in Hawaii.
• If your employer was based in Hawaii, they may have withheld Hawaii taxes from your Hawaii wages as shown on your W-2. However, if you didn't live or work in Hawaii, you won't owe Hawaii taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold Hawaii taxes and you were a nonresident of Hawaii, you probably don't need to file a Hawaii return at all unless you otherwise have a Hawaii nonresident filing requirement.

If your wages were minimal and you didn't do any other business in Hawaii, it's possible you'll be exempt from filing regardless of residency. See the Hawaii N-11 or N-15 instructions for more information.