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INSTRUCTION STATE OF HAWAII — DEPARTMENT OF TAXATION
FORM N-210
(REV. 2023) INSTRUCTIONS FOR FORM N-210
Underpayment of Estimated Tax by Individuals, 2023
Estates, and Trusts
(NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.)
GENERAL INSTRUCTIONS zero or you were not required to file an income Waiver of Penalty
tax return.
If you have an underpayment on line 16, the
Purpose of Form Note: If you were a nonresident or a part-year Department can waive all or part of the penalty
You must pay income taxes as you earn income resident in 2022, you do not meet the exception for underpayment if any of the following applies.
during the year, either through withholding or by under number 2.
making estimated tax payments. You may have to If you meet the exception under number 1, you 1. You retired after reaching age 62 or became
disabled in 2022 or 2023 and both the following
make estimated tax payments if the tax withheld do not have to file Form N-210. requirements are met.
from your salary is not enough, or if you receive
income that is not subject to withholding, such If you meet the exception under number 2, do • You had a reasonable cause for not making
as self-employment income, interest, dividends, the following: the payment.
rents, and capital gains. a. Check box Ain Part I. • Your underpayment was not due to willful
You may be charged a penalty (interest on the b. Enter -0- on line 21 and on the estimated tax neglect.
underpayment of estimated tax) if you do not pay penalty line of your return. 2. You didn’t make a payment because of a
enough tax through withholding and estimated tax c. Attach Form N-210 to your return. casualty, disaster, or other unusual circumstance
payments, or if your estimated tax payments are and it would be inequitable to impose the penalty.
late. d. Fill in the oval (or check the box) on the
estimated tax penalty line of your return to To request any of the above waivers, do the
Individuals and fiduciaries of estates and trusts indicate that Form N-210 is attached. following:
use Form N-210 to see if they owe a penalty for Estates and trusts. No penalty applies to either a. Check box Bin Part I.
underpaying their estimated tax and, if so, to of the following: b. Complete Form N-210 through line 20
figure the amount of the penalty.
• A decedent’s estate for any tax year ending without considering the waiver. Enter the amount
Other Methods of Figuring the before the date that is two years after the you want waived in parentheses on the dotted
Penalty decedent’s death. line next to line 21. Subtract this amount from the
There are different ways to figure the correct • A trust that was treated as owned by the total penalty you figured without considering the
penalty. You do not have to use Form N-210 to decedent if the trust will receive the residue waiver, and enter the result on line 21 and on the
figure the penalty as long as you enter the correct of the decedent’s estate under the will (or estimated tax penalty line of your return.
penalty amount on the estimated tax penalty line if no will is admitted to probate, the trust c. Attach Form N-210 to your return.
of your return. primarily responsible for paying debts, d. Attach a statement to your return explaining
taxes, and expenses of administration) for the reasons you were unable to meet the
However, you are required to file Form N-210 if any tax year ending before the date that is estimated tax requirements and the time period
you checked one or more boxes in Part I. You two years after the decedent’s death. for which you are requesting a waiver.
must complete certain lines and enter the penalty
(enter -0- if there is no penalty) on line 21 and on Farmers and fishermen. If you meet both tests e. If you are requesting a waiver due to
the estimated tax penalty line of your return. Also, 1 and 2below, you do not owe a penalty for retirement or disability, attach documentation that
fill in the oval (or check the box) on the estimated underpaying your estimated tax. shows your retirement date (and your age on that
tax penalty line of your return to indicate that 1. Your gross income from farming or fishing date) or the date you became disabled.
Form N-210 is attached. is at least two-thirds of your annual gross income f. If you are requesting a waiver due to a
Who Must Pay the Underpayment from all sources for 2022 or 2023. casualty, disaster, or other unusual circumstance,
Penalty 2. You filed your Hawaii return and paid the attach documentation such as copies of police
entire tax due by March 1, 2024. and insurance company reports.
In general, you may owe the penalty for 2023 if g. Fill in the oval (or check the box) on the
the total of your withholding and timely estimated Note: If you receive a penalty notice, do not
tax payments were less than the smaller of: ignore it. If you receive a penalty notice for estimated tax penalty line of your return to
underpaying estimated tax and you think it is indicate that Form N-210 is attached.
1. 60% of your 2023 tax, or in error, write to the address on the notice and The Department will review the information you
2. 100% of your 2022 tax. Your 2022 tax return explain why you think the notice is in error. provide and decide whether to grant your request
must cover a 12-month period. Include a computation showing that you met the for a waiver.
gross income from farming or fishing requirement
Penalty figured separately for each required or submit Form N-210. SPECIFIC INSTRUCTIONS
payment. The penalty is figured separately for
each payment due date. Therefore, you may owe See federal Publication 505, Tax Withholding and Part II - Required Annual Payment
the penalty for an earlier due date even if you paid Estimated Tax, for the definition of gross income
enough tax later to make up the underpayment. from farming and fishing. Complete lines 1 through 8 to figure your required
This is true even if you are due a refund when annual payment.
you file your tax return. Lowering or Eliminating the Penalty Enter your tax liability before credits.
Line 1 —
You may be able to lower or eliminate your Enter the amount from Form N-11, line 27; Form
Exceptions to the Penalty penalty if any of the following applies: N-15, line 44; or Form N-40, Schedule G, line 1;
You will not have to pay the penalty if either 1or • You request a waiver. See Waiver of whichever applies.
2 applies: Penalty. Line 2 — Enter the total amount of all the tax
1. The total tax shown on your 2023 return • You use the annualized income installment credits, nonrefundable and refundable, claimed
minus the amount of tax you paid through method. See Schedule A – Required on your tax return.
withholding and tax credits is less than $500. To Installments Using the Annualized Do not include on this line, payments made for:
determine whether the total tax is less than $500, Income Installment Method. Hawaii income tax withheld
complete lines 1-5. •
• Instead of using one-fourth of your
2. You meet all of the following conditions: (1) withholding for each payment period, you • Tax withheld on Individual Housing Account
You were a full-year Hawaii resident in 2022 (or choose to use the amounts actually withheld (IHA) distributions
an estate of a Hawaii decedent or a Hawaii trust), by each due date. See the instructions for • Estimated taxes paid
(2) You had no tax liability for 2022, and (3) Your line 10 under Figure Your Underpayment. • Amount of estimated tax payments applied
2022 tax year covered a 12-month period. You from the 2022 return to the 2023 return
had no tax liability for 2022 if your total tax was
• Amounts paid with extensions

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Instructions for Form N-210 (Rev. 2023)                                                                                                                                   Page 2
•   Credit for taxes withheld  on the sale of                Farmers  and  fishermen.  The instructions for         4. If you file your return and pay the tax due by 
    Hawaii real property by a nonresident                    figuring  your  underpayment  are  modified  as     January 31, 2024, include on line 10, column (d), 
•   Amounts withheld by an S corporation for a               follows:                                            the amount of tax you pay with your tax return.  
    nonresident shareholder                                  1. Skip columns (a), (b), and (c).                  In this case, you will not owe a penalty for the 
                                                                                                                 payment due by January 20, 2024.
Line  4 —  Include on this line Hawaii  income               2. On line 9, column (d), enter the full amount 
tax withheld from wages, IHA distributions, and              on line 8 of Part II.                                  5. Reduce the  amount of  withholding  on the 
                                                                                                                 disposition  of Hawaii  real property included 
sales of Hawaii real property by a nonresident;              3. On line 10, column      (d), enter the total tax on this line by any amount for which you have 
and amounts withheld by an S corporation for a               payments made through January 20,  2024, for        requested a refund on Form N-288C.
nonresident shareholder.                                     the 2023 tax year.
                                                                                                                    6. Any payments made  on  the next working 
Line 5 — If this line is less than $500, you do not          4. Skip all lines in column (d) that are shaded     day after  the  payment due date because of  a 
have to complete the rest of this form.                      in column (a).                                      Saturday, Sunday, or holiday, will be considered 
Line 7—Tax Amount from your 2022 Income                      Figure Your Underpayment                            paid on the payment due date.
Tax  Return.—Enter 100%  of your 2022  tax.                                                                      If line 10 is equal to or more than line 9 for all 
Figure your 2022 tax using the taxes and credits             Line 9 — Enter on line 9, columns    (a) through    payment periods, stop here. You do not have to 
shown on your 2022 tax return.  Use the same                 (d), the amount of your required installment for    complete the rest of the form.
type of taxes and credits shown on lines 1 and 2             the due date shown in each column heading.  For 
of Form N-210.                                               most  taxpayers, this is one-fourth of the required Line  16 — If  line 16 is zero for all payment 
If you are filing a joint return for 2023, but you did       annual payment shown on line 8 of Part  II.         periods, you do not owe a penalty.   But  if you 
not file a joint return for 2022, add your 2022 tax          However, it may be to your benefit to figure your   checked one or more boxes in Part I, you must 
to your spouse’s 2022 tax and enter the total on             required installments by  using the  annualized     file Form N-210 with your return.
line 7. If you filed a joint return for 2022 but you         income installment method. See the Schedule A       If  line 16 shows an underpayment for any 
are not filing a joint return for 2023, see federal          instructions on page 3.                             payment period, see Waiver of Penalty on page 
Publication 505 to figure your share of the 2022             Line  10 — Enter the taxes withheld  from           1. In certain circumstances, the Department will 
tax to enter on line 7.                                      wages, IHA distributions, and sales of Hawaii       waive all or part of the underpayment penalty.
If  you  did  not  file  a  return  for  2022,  or  if  your real  property by a nonresident;  estimated tax 
2022 tax year was less than 12 months,    do not             payments; and amounts withheld  by an S             Part IV — Figure the Penalty
complete line 7. Instead, enter the amount from              corporation for a nonresident shareholder if the    The underpayment penalty is computed on a 
line 6 on line 8. However, see the Exceptions to             S corporation’s payment is made within your tax     monthly basis. This means the penalty is imposed 
the Penalty on page 1.                                       year in the column for the period during which the  on the amount of the underpayment of estimated 
                                                             payment is made.                                    tax at the rate of 2/3% (.00667) a month or part 
Line 8 — Compare the amounts on lines 6 and 7.                                                                   of a month.
Enter the smaller of the two amounts on line 8.              In column (a), enter the tax payments you made 
                                                             by April 20, 2023, for the 2023 tax year; in column Use  Part  IV  to  figure  the  penalty  for  any 
If the amount on line 4 is equal to or more than the         (b),  enter  the  payments you made  after  April   underpayment to which none of the exceptions 
amount on line 8, you will not have to complete or           20 through June 20, 2023; in column   (c), enter    apply. If you made more than one payment 
attach Form N-210 unless the following Caution               the payments you made after June 20 through         for any payment period, attach your penalty 
applies to you.                                              September 20, 2023; and in column (d), enter the    computation  for each payment.  The penalty is 
Caution:  If the amount you entered on line 8 is             payments you made after September 20, 2023,         applied  to the number of months, or part of a 
your prior year tax (from line 7), and you filed or          through  January 20, 2024.                          month, that the installment  was not paid.  You 
are filing a joint return for either 2022 or 2023 but        When  figuring  your  payment  dates  and  the      figure  the  period  of  underpayment  by  counting 
not for both years, do the following even if you do          amounts  to enter on  line  10 of each  column,     the number of months after the due date of the 
not owe a penalty:                                           apply the following rules:                          installment to and including the date of payment 
                                                                                                                 or April 20, 2024, whichever is earlier. If you are 
a. Check box  Ein Part I.                                    1. For withheld  income tax on wages, you           a  fiscal  year  taxpayer,  use  the  20th  day  of  the 
b. Complete Form N-210 and enter the amount                  are considered to have paid one-fourth of these     4th month following the close of your fiscal year 
from line 21 on the estimated tax penalty line of            amounts on each payment due date unless you         instead of April 20, 2024.
your return.                                                 can show otherwise. If you treat withholding as 
                                                             paid  for estimated tax purposes  when it was       Line 19 — Count  the number  of months from 
c. Attach Form N-210 to your return.                         actually withheld, do the following:                the due date of the payment shown above the 
                                                                                                                 column to the date on line 18. A month, for the 
d. Fill in the oval (or check the box) on the                a. Check box  Din Part I.                           purposes of computing the penalty, is the period 
estimated tax penalty line  of your return to 
indicate that Form N-210 is attached.                        b. Complete Form N-210 and enter the amount         from the 21st day of the current calendar month 
                                                             from line 21 on the estimated tax penalty line of   through the 20th day of  the  following calendar 
Part III - Figure Your Underpayment                          your return.                                        month. Enter the number of months, rounding up 
Nonresident alien. If  you are a “Nonresident                c. Attach Form N-210 to your return.                any parts of a month. A part of a month is counted 
                                                                                                                 as one month.
Alien” (see definition in Form N-15 Instructions)            d. Fill in the oval (or check the box) on the 
and did not receive  wages  as an employee                   estimated  tax penalty line  of your return to         For example, Mr. Aloha has an underpayment 
subject to Hawaii income tax  withholding,  the              indicate that Form N-210 is attached.               for the April 20th installment of $1,000.  The June 
instructions  for  figuring  your  underpayment  are                                                             20th installment  requires  a payment of $2,500.  
modified as follows:                                         2. Include all estimated tax  payments you          On June 10th, Mr. Aloha  pays $2,500  to cover 
                                                             made for each period. Include any overpayment       the  June  20th installment. However,  $1,000 of 
1. Skip column (a).                                          from your 2022 tax return you elected to apply to   this payment will be considered to be for the April 
2. On line 9, column (b), enter one-half of the              your 2023 estimated tax. If your 2022 return was    20th installment.  The penalty for the April 20th 
amount on line 8 of Part II (unless you are using            fully paid by the due date, treat the overpayment   installment  is  figured  to  June  10th  (2  months).  
the annualized income installment method).                   as a payment made on April 20, 2023. If you mail    The amount of the payment to be applied  to 
3. On line 10, column    (b), enter the total tax            your estimated tax payments, use the date of the    the June 20th installment will be the remaining 
payments made through June 20, 2023, for the                 U.S. postmark as the date of payment.               $1,500.  Please note that if Mr. Aloha does not 
2023 tax year. If you are treating Hawaii income             3. If an  overpayment is generated on  your         make an additional payment by June 20th to 
tax as having  been withheld  evenly throughout              2022 return from a payment made after  the          cover the remaining $1,000 due for the June 
the year, you are considered to have paid one-               due  date, treat the payment  as made  on the       20th installment, the underpayment penalty will 
third of these amounts on each payment due                   date of  payment. For  example, you  paid $500      be applied when it is subsequently paid.
date.                                                        due on your 2022  return on July 1, 2023, and       Payment of your entire 2023 estimated tax liability, 
4. Skip all lines in column (b) that are shaded              later amended the return and were due a $400        or any balance due, by January 20, 2024, or filing 
in column (a).                                               refund which you elected to have applied to your    of your 2023  income  tax return and payment 
                                                             estimated taxes. The $400 overpayment would         of the tax shown  on the return by January  20, 
                                                             be treated as paid on July 1.                       2024, will not relieve you of  the penalty if you 
                                                                                                                 did not pay the estimated income tax due earlier

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Instructions for Form N-210 (Rev. 2023) Page 3
in your tax year. If you file your return and pay columns (c) and (d), enter one-fourth of that 11. Multiply line 10 by .03........
the tax due by January 31, 2024, you will have amount. 12. Enter the smaller of line 7
no penalty for the January installment, and the 5. Skip column (b) of lines 19 and 22. or line 11 ............................
periods of underpayment for earlier installments
will end on January 20, 2024. Annualized Income Installments 13. Line 5 minus line 12.
Enter the result here
Reminder for farmers and fishermen: If your To figure the amount of each required installment, and on Sch. A, line 6. ........
gross income from farming or fishing is at least Schedule A selects the smaller of the annualized Nonresidents and part-year residents,
two-thirds of your annual gross income from all income installment or the regular installment Line 7 —
sources for 2022 or 2023, and you file your return (that has been increased by the amount saved by enter the amount of your standard deduction
and pay the tax due by March 1, 2024, you will using the annualized income installment method multiplied by the ratio of your Hawaii adjusted
not have to pay the penalty or file this form. in figuring any earlier installments). gross income to total adjusted gross income from
all sources.
Schedule A—Required Installments Line 1 — For each period (column), figure your For each column, multiply $1,144
Using the Annualized Income total income minus your adjustments to income. Line 10 —
Installment Method Include your share of partnership or S corporation by the number of exemptions you claimed on
income or loss items for the period. Form N-11, line 6e, or Form N-15, line 6e. If
you claimed the disability exemption, enter that
If your income varied during the year because, If you are self-employed, be sure to take amount. Nonresidents and part-year residents,
for example, you operated your business on a into account the deductible part of your self- enter the amount of your personal exemptions
seasonal basis or had a large capital gain late in employment tax. For more information on how to multiplied by the ratio of your Hawaii adjusted
the year, you may be able to lower or eliminate figure this amount for each period, see federal gross income to total adjusted gross income from
the amount of one or more required installments Publication 505 and Form 2210 Instructions. all sources.
by using the annualized income installment
method. Use Schedule A to figure the required Line 2 — Estates and trusts, do not use the Line 12 — To compute the tax, use the Tax
installments to enter on Form N-210, Part III, line amounts shown in columns (a) through (d). Table, Tax Rate Schedules, Capital Gains Tax
9. Instead, use 6, 3, 1.71429, and 1.09091, Worksheet in the Form N-11 Instructions or in
If you use Schedule A for any payment due date, respectively, as the annualization amounts. the Form N-15 Instructions, Form N-168, or Form
you must use it for all payment due dates. Line 6 — If you itemized deductions, multiply line N-615.
4 of each column by line 5 and enter the result Line 13 — Enter all of the additional taxes you
To use the annualized income installment on line 6. But if line 3 is more than $166,800 owed because of events that occurred during the
method to figure the penalty, you must do all of ($83,400 if married filing separately), use the months shown in the column headings. Include
the following: following worksheet to figure the amount to enter the following:
a. Check box Cin Part I. on line 6. Form N-2, Individual Housing Account
•
b. Complete Schedule A. Enter the amounts 1. Enter the amount from Form N-103, Sale of Your Home
from Schedule A, line 24, in each column of Form Sch. A, line 4 ..................... •
N-210, Part III, line 9. 2. Enter the amount included • Form N-152, Tax on Lump Sum Distributions
c. Complete Form N-210 and enter the amount on line 1 for medical and • Form N-312, Capital Goods Excise Tax
from line 21 on the estimated tax penalty line of dental expenses, investment Credit Recapture
your return. interest, casualty or theft • Form N-325, Historic Preservation Income
d. Attach Form N-210 to your return. losses, and gambling losses Tax Credit Recapture
e. Fill in the oval (or check the box) on the 3. Line 1 minus line 2 ............ • Form N-338, Recapture of Tax Credit for
estimated tax penalty line of your return to 4. Enter the number from Flood Victims
indicate that Form N-210 is attached. Sch. A, line 5 ..................... • Form N-344, Important Agricultural Land
Nonresident alien. If you did not receive wages 5. Multiply line 1 by line 4 ...... Qualified Agricultural Cost Tax Credit
as an employee subject to Hawaii income tax Note: If line 3 is zero, your Recapture
withholding, the instructions for Schedule A are deduction is not limited. • Form N-348, Capital Infrastructure Tax
modified as follows: Stop here and enter the Credit Recapture
1. Skip column (a). amount from line 5 on Form N-405, Tax on Accumulation
2. Beginning with column (b), enter on line Sch. A, line 6. •
Distribution of Trusts
1 your income for the period that is effectively 6. Multiply line 3 by line 4 ...... Form N-586, Tax Credit for Low Income
•
connected with a Hawaii trade or business. 7. Multiply line 6 by .80.......... Housing Recapture
3. Increase the amount on line 16 by the 8. Enter the amount from • Form N-814, Parent’s Election to Report
amount determined by multiplying your income Sch. A, line 3 ..................... Child’s Interest and Dividends
for the period that is not effectively connected
with a Hawaii trade or business by the following: 9. Enter $166,800 ($83,400 if Line 15 — Enter the credits you are entitled
married filing separately) ... to because of events that occurred during the
• In column (b), 72%. months shown in the column headings. When
10. Line 8 minus line 9 ............
• In column (c), 45%. figuring your credits, you must annualize any
Note: If line 10 is zero or
• In column (d), 30%. less, your deduction is not item of income or deduction used to figure the
4. Enter on line 21, column (b), one-half of limited. Stop here and enter credit.
the amount from Form N-210, Part II, line 8. In the amount from line 5 on
Sch. A, line 6.

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