Form N-40

This topic includes notes about the calculation of different types of Form N-40.

For a resident return, Hawaii law amounts print on page 1 and Schedule B.
For a nonresident return with resident beneficiaries, Hawaii law amounts print on Form N-40, Page 1, and Schedule B. Page 1, Line 22, Taxable income is adjusted to be the only Hawaii source with a statement to support the calculation.
For a nonresident return with no beneficiaries or all nonresident beneficiaries, Hawaii source amounts print on Form N-40, Page 1. Schedule B adds back non-source amounts so the beneficiary calculation is based on Hawaii law amounts and then adjusts the distribution deduction back to a Hawaii source amount.
Per HI instructions, a charitable remainder (section 664) trust, Form 41, line 15b, has an adjustment to bring taxable income to 0.