With tax filing deadlines approaching in April, Hawaii families are being urged to take advantage of available state and federal tax credits that could provide them with thousands of dollars in refunds.
“The combination of federal and state tax credits has continued to benefit vulnerable families in our islands,” Deborah Zysman, executive director of Hawaii Children’s Action Network, said in a news release. “It is money that is theirs for the asking.”
Households earning less than $67,000 can qualify for the Earned Income Tax Credit, receiving up to $7,830 from the IRS and $3,132 from the state. Families that worked in 2024 may also be eligible for the Child Tax Credit, which provides up to $2,000 per child under 17.
Additional credits are available for those paying for child care. The Child and Dependent Care Tax Credit provides as much as $2,100 from the IRS and $3,000 from the state for families that had expenses related to day care, preschool or other care-giving.
Hawaii residents could also benefit from the state’s Food/Excise Tax Credit, which provides up to $220 per family member.
According to HCAN, a joint analysis by the University of Hawaii Economic Research Office and the state Department of Taxation found that in 2021, low- income households in the state were eligible for about $42 million through this credit. However, more than one-third of that amount — $15.3 million — went unclaimed. The report estimated that about 140,000 eligible residents did not file a tax return at all.
“All of these tax credits offer a way for low-income families in Hawai‘i to claim money they are entitled to receive,” Zysman said. “But many Hawai‘i families are leaving money on the table because of the complexity of filing a tax return or because it is cost-prohibitive for them to hire a qualified tax preparer.”
To help families overcome these barriers, HCAN is providing resources for free tax preparation services at hawaii-can.org/getcashback2025 Opens in a new tab.
