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This version of the form is not currently in use and is provided for reference only. Download this version of
Form N-168
for the current year.
Form N-168 Income Averaging for Farmers and Fishermen - Hawaii
What Is Form N-168?
This is a legal form that was released by the Hawaii Department of Taxation - a government authority operating within Hawaii. Check the official instructions before completing and submitting the form.
FAQ
Q: What is Form N-168?
A: Form N-168 is a tax form for income averaging specifically designed for farmers and fishermen in Hawaii.
Q: Who is eligible to use Form N-168?
A: Farmers and fishermen who meet the eligibility requirements in Hawaii may use Form N-168.
Q: What is income averaging?
A: Income averaging is a method that allows farmers and fishermen to reduce their tax liability by spreading their income over a period of several years.
Q: How does income averaging work?
A: Under income averaging, a farmer or fisherman can calculate their tax liability based on the average income of the past three years.
Q: Why is income averaging beneficial for farmers and fishermen?
A: Income from farming and fishing can be highly variable from year to year. Income averaging helps to smooth out the tax burden by reducing the tax liability during years of high income.
Q: What are the requirements to use Form N-168?
A: To use Form N-168, farmers and fishermen must meet certain criteria, such as deriving at least two-thirds of their total gross income from farming or fishing activities.
Q: When is the deadline to file Form N-168?
A: The deadline to file Form N-168 is usually the same as the individual incometax filing deadline, which is April 20th in Hawaii.
Q: Are there any penalties for filing Form N-168 incorrectly?
A: Yes, there can be penalties for filing Form N-168 incorrectly. It is important to carefully review the instructions and seek professional advice if needed.
Q: Can I use income averaging in other states?
A: Income averaging rules vary by state. Form N-168 is specifically designed for farmers and fishermen in Hawaii, so it may not be applicable in other states.
Form Details:
- Released on January 1, 2021;
- The latest edition provided by the Hawaii Department of Taxation;
- Easy to use and ready to print;
- Quick to customize;
- Compatible with most PDF-viewing applications;
- Fill out the form in our online filing application.
Download a fillable version of Form N-168 by clicking the link below or browse more documents and templates provided by the Hawaii Department of Taxation.
