Question: Auwe. The state earned income tax credit established by HB 209 provides no tax relief for low-income working people age 65 and older who do not claim a qualifying child.
Answer: We sought verification of your complaint from Tom Yamachika, president of the Tax Foundation of Hawaii, a nonprofit organization that educates taxpayers and lawmakers about taxation and public finance. Here is his response:
“The reader is correct. However, it is not a peculiarity of our state law. Under the federal rules, an individual without a qualifying child can be eligible for the federal EITC only if that individual is between 25 and 65 as of the close of the taxable year (Internal Revenue Code sec. 32(c)(1)(A)(ii)(II)). The state EITC is 20 percent of the federal credit allowed and properly claimed on the individual’s federal income tax return. Thus, an individual ineligible for the federal credit would be ineligible for the state credit as well. I guess the Auwe should be directed at the U.S. Congress.”
House Bill 209 was signed into law in July as Act 107, which you can read at 808ne.ws/HIEITC.
More than 23 percent of Hawaii residents 65 and older worked in 2016, according to a state labor report, which did not specify their earnings or say how many claimed dependents on their income taxes.
The labor participation rate of the 65-and-over cohort rose 52 percent from 2006 to 2016 in Hawaii, more than double the national average. Overall, the U.S. recorded a 25.3 percent increase in employment among that age group during the same period.
Q: Does the automatic extension for state income tax returns take effect right away?
A: Yes. The temporary administrative rule granting business entities an automatic extension to file Hawaii income tax returns that individual taxpayers have long enjoyed takes effect Jan. 10. It covers individuals and business entities such as corporations, partnerships, estates, trusts and real estate mortgage investment conduits. To be clear, this six-month delay is for filing a tax return, not paying taxes owed. The automatic extension is granted only if the taxpayer properly estimates tax liability for the year and pays by the regular deadline. You can read more at the state Department of Taxation’s website, 808ne.ws/autoext.
Women’s worth
Women working full time in Hawaii typically earn 83 percent of what men earn, according to research by the American Association of University Women. While there are many reasons for this, one way to help close the wage gap is for women to negotiate the best salary, benefits and promotion opportunities in whatever field they enter. The AAUW Honolulu offers free Work Smart seminars teaching this essential career skill.
>> Jan. 21 from 1:30 to 4 p.m. at the Pearl City Library, 1138 Waimano Home Road
>> Feb. 1 from 5:30 to 8 p.m. at the AARP Hawaii office, 1132 Bishop St., Suite 1920
Preregistration is required. Find links to RSVP for either date at honolulu-hi.aauw.net. Participants will learn how to conduct market research so they can determine a fair target salary; create a pitch; and strategically respond to offers, according to the workshop description. They’ll also have a chance to practice a salary negotiation.
For background, see the fall 2017 edition of the AAUW study “The Simple Truth About the Gender Pay Gap” at 808ne.ws/paystdy.
Mahalo
On Dec. 16 at about 11 a.m., my wife lost her balance and fell in the parking lot at the Marukai store in Kalihi. A couple in the van parked next to me assisted my wife, along with two other gentlemen. Thank you to all of them for caring. My wife is doing well at home. — Kaneohe senior
Write to Kokua Line at Honolulu Star-Advertiser, 7 Waterfront Plaza, Suite 210, 500 Ala Moana Blvd., Honolulu 96813; call 529-4773; fax 529-4750; or email kokualine@staradvertiser.com.
