HOUSE OF REPRESENTATIVES

H.B. NO.

2283

TWENTY-SEVENTH LEGISLATURE, 2014

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO INCOME TAXATION OF SENIORS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"235- Income tax exemption for seniors. (a) Any law to the contrary notwithstanding, every taxpayer 65 years of age or older at any time during the taxable year whose federal and Hawaii adjusted gross income does not exceed the applicable level set forth in subsection (b) shall be exempt from the tax imposed by this chapter.

(b) Applicable levels for purposes of this section are:

(1) $45,000 in the case of a taxpayer filing a joint return as provided by section 235-93;

(2) $35,000 in the case of a taxpayer filing as a head of household (as defined in Section 2(b) of the Internal Revenue Code); and

(3) $25,000 in the case of a taxpayer who is not married and not a head of household, or in the case of a taxpayer who is married filing separately.

(c) In the case of a jointly filing taxpayer in which only one of the joint filers is 65 years of age or older at any time during the taxable year, to qualify for an exemption under this section the federal and Hawaii adjusted gross income of the joint filing shall not exceed the applicable level for taxpayers filing jointly and the joint filer who is 65 years of age or older at any time during the tax year must demonstrate he or she would qualify for the exemption under subsection (a) if he or she filed as married filing separately. The maximum amount of income that may be exempted under this subsection shall be $25,000.

(d) Nothing in this section shall be construed to exempt a qualifying taxpayer or his or her employer from the tax withholding requirements of this chapter.

(e) Any taxpayer otherwise required to file a return under this chapter must file a return to qualify for the exemption under this section."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2014.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST


 


 

Report Title:

Taxation; Income Tax Exemption for Seniors

 

Description:

Provides an income tax exemption to taxpayers over 65 years of age who have federal adjusted gross income below certain thresholds.

 

 

 

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