Question

Hawaii State Taxes as a Part-Time/New Resident

Forum|Forum|6 years ago
March 14, 2020
1 reply
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We moved from Colorado to Hawaii as full-time residents on March 28, 2019. In preparing our Hawaii State Taxes in Turbo Tax, we see that we owe taxes on our government pensions. Why do we owe taxes on our government pensions when we read that Hawaii does not tax pensions?

We also received a $10,500 IRA distribution in 2019. There was a Hawaii tax on this amount also. Is that correct?

Thank you.

JohnB5677

IRAs that are funded by an individual employee (rather than by a rollover from an employer plan) are, in general, deferred compensation plans the distributions from which are fully taxable.

Please see section A-3 of HI tax on IRAs.

Hawaii exempts some types of retirement income, including Social Security retirement benefits and public pension income. On the other hand, the state fully taxes income from private pensions and retirement savings accounts.

I suggest that you go back through the questions on your Hawaii return and find the question regarding public vs, private retirement accounts.

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