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Hawaii Credit for Low-Income Household Renters

Article ID: 34914 Print
Question
Hawaii Credit for Low-Income Household Renters

Answer

Each resident taxpayer who occupies and pays rent for real property within the State as his or her residence and who files an individual income tax return for the taxable year, including those who have no income or no income taxable under chapter 235, HRS, may claim a tax credit of $50 per qualified exemption, including the additional exemption for taxpayers age 65 or over, provided the following four conditions are met:

  • The taxpayer is not eligible to be claimed as a dependent for federal or State income tax purposes by another taxpayer;
  • The taxpayer has adjusted gross income of less than $30,000; and
  • The taxpayer has paid more than $1,000 in rent during the taxable year.
  • The rented property is NOT exempt from real property tax. Rent paid for property which is partially or fully exempt from real property tax will not qualify for the credit. For example, county or State low-income housing projects, military housing, dormitories in schools, residential real property owned by a nonprofit organization, and homes in which the owner occupies a portion of the property, may have been granted real property tax exemptions by the county. If such exemptions, whether partial or full exemptions, have been granted, the rent paid for such properties will not qualify for the credit. To verify if real property tax exemptions have been granted on the rented property, please inquire with either the landlord, rental agent, or the Real Property Tax Office in the county in which the property is located.

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Article Details
Views: 869 Created on: Jun 15, 2013
Date updated: Sep 16, 2015
Posted in: STATES, Hawaii

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