Question: Regarding the Oahu property tax break for lower-income residents (808ne.ws/818kline), does SSI count as income?
Answer: Yes. Supplemental Security Income, regular Social Security benefits, veterans disability benefits and other types of income all count toward the $60,000 income ceiling for this tax credit, which also has eligibility requirements unrelated to income. Here are key rules for Oahu’s Real Property Tax Credit for Homeowners, according to the application and Honolulu County’s accompanying brochure:
>> The applicant must have a home exemption for the property for both the 2022 and 2023 tax years. A home exemption means the house is owner-occupied.
>> None of the home’s titleholders can own any other property anywhere.
>> Combined total gross income of all the property’s titleholders for the 2021 calendar year cannot exceed $60,000. Gross income includes taxable and non-taxable income, including wages, interest, dividends, business profits/losses, capital gains/losses, pensions and annuities, IRA distributions, Security Security benefits, SSI benefits, veterans disability benefits, alimony, rents/royalties, debt write-offs, gambling winnings and other income.
>> None of the titleholders can have filed a fraudulent application or attested to false statements with the intent to defraud the city or evade the payment of property taxes.
The value of this credit varies according to the value of the property. The deadline to apply is Sept. 30. Download the application at 808ne.ws/rpcapp.
Q: In Sunday’s paper you wrote about a shredding event to be hosted by AARP next month. I looked on the link and could only find neighbor islands, but not the Oahu/Aiea event you mentioned. Could you clarify? I have a pandemic’s worth of papers to shred.
A: Registration for the Oahu event filled quickly after Sunday’s column was published and the registration link has therefore been removed, an AARP spokesperson said. As of deadline Tuesday, spots remained only for the Hilo and Wailuku events. See more information at aarp.cvent.com/hifraud.
With so much paperwork to shred, you might want to buy a personal shredder for home use or try a business that offers secure document shredding for a fee, such as the UPS Store or FedEx; check online or call ahead to confirm that your preferred location offers the service.
Q: Is money made from apps like TikTok taxable? If not, why? If yes, how?
A: Yes, if it meets an income threshold. “You must file a tax return if you have net earnings from self-employment of $400 or more from gig work, even if it’s a side job, part time or temporary,” including through a digital platform such as a website or app, according to the Internal Revenue Service. That includes creating content for TikTok, Instagram, YouTube and other platforms, and covers income paid in any form, including cash, property, goods or virtual currency. You may reduce your tax liability by deducting legitimate business expenses related to producing or marketing your content.
If you are paid by TikTok through its Creator Fund for independent contractors, you would receive a 1099 Form via the app; the information also is reported to the IRS. Other brands and businesses that pay you also may issue 1099 forms, which generally are sent by the end of January.
However, you are responsible for paying applicable taxes even if you don’t receive 1099 forms, the IRS says. Read more at irs.gov/businesses/gig-economy-tax-center.
Websites for online tax-filing software also have information on this subject. See a relevant blog post from TurboTax, 808ne.ws/tiktax.
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.
