The Hawaii Department of Taxation recently updated their 1099 filing requirements to include Form 1099-NEC for tax year 2020 reporting purposes. Hawaii has conformed to the federal use and filing of Form 1099-NEC and will require reporting when the taxpayer is engaged in a trade or business in Hawaii or has a place of business or a fiscal office in Hawaii, and makes payments to recipients in the course of such trade or business in Hawaii. Further, Form N-196 (Annual Summary and Transmittal of Hawaii Information Returns) will be updated and released in January 2021 to include the 1099-NEC so that taxpayers may properly file the form with the Department of Taxation.
For filing purposes, Form 1099-NEC must be filed directly with the Department of Taxation, which means filing must be done using paper copies. Presently Form N-196 must accompany paper returns filed by a taxpayer, and there is no present requirement for a state ID on Form N-196.
To review general information return filing requirements in the state of Hawaii please click here to visit the State of Hawaii Department of Taxation’s website.
