Haw. Code R. § 18-235-66 - Further withholdings at source; crediting of withheld taxes
(a) (Reserved)
(b) Credit for tax withheld upon income.
Taxes withheld at the source pursuant to section
235-66,
HRS, or sections
235-61
to
235-66,
HRS, shall be credited against the taxpayer's income tax liability. Where taxes
are withheld by an employer against wages paid during any calendar year
pursuant to sections
235-61
to
235-66,
HRS, the tax liability of the recipient of the income shall be credited for the
amount of tax withheld for the taxable year during which the calendar year
began. If the taxpayer has more than one taxable year beginning during the
calendar year, the credit shall be applied against the tax liability resulting
from the last of the taxable years. Taxes withheld shall be deemed payments of
estimated taxes under section
235-97(g),
HRS.
(1) For purposes of this section,
"recipient of the income" is the person who is subject to tax under chapter
235, HRS, upon the wages or other income from which the tax is
withheld.
(2) Withholding on
income. Tax is considered withheld at the source if:
(A) The tax has actually been deducted and
withheld from the income or wages, even if the employer or person required to
withhold the tax has not submitted it to the State; or
(B) The tax has been paid to the State by the
employer or person required to withhold the tax, and the recipient of the
income has actually reimbursed the amount to the employer or person required to
withhold it.
(3)
Application of credit. After the taxpayer has determined the amount of tax for
the taxable year, the credit for taxes withheld is applied by the taxpayer
against the tax liability to determine whether there is a balance due or
whether the return shows an overpayment. An overpayment of tax may be used as a
credit against the taxpayer's estimated tax for the succeeding taxable year or
may be refunded pursuant to section
235-110,
HRS.
Notes
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