Law 115 Restitution | Tax Department
Act 115 Refund Distribution Status
frequently asked Questions
1. What is an Act 115 refund?
Act 115, Session Laws of Hawaii 2022 (Act 115) provides a one-time constitutional refund for any qualifying resident taxpayer filing an individual income tax return for the 2021 tax year on or before December 31, 2022.
2. Who is eligible for an Act 115 refund?
Resident taxpayers filing an individual income tax return for the 2021 tax year who have been residents of Hawaii for at least nine (9) months.
Refund is not available for:
1) Any person who is claimed or entitled to be claimed as a dependent of another taxpayer for federal or Hawaiian income tax purposes.
2) Any person convicted of a felony and sentenced to imprisonment and any misdemeanor sentenced to imprisonment for the entirety of tax year 2021.
3. What do I have to do to get the refund?
Submit your 2021 income tax return by December 31, 2022. If you have already submitted your 2021 income tax return, you do not need to do anything else.
4. How much is my Act 115 refund?
Your Act 115 refund amount is based on your filing status, federally adjusted gross income, and the number of exemptions you can claim. Only one refund per person is allowed for the Act 115 credit. Act 115 reimbursement is $100 or $300 per person as follows:
|login status||Adjusted federal gross income||Refund per exemption (person)|
|singles||$100,000 and up||$100|
|head of household||Under $100,000||$300|
|head of household||$100,000 and up||$100|
|Married file storage||Under $200,000||$300|
|Married file storage||$200,000 and up||$100|
|Married couples registering separately (both spouses together)||Under $200,000*||$300|
|Married couples registering separately (both spouses together)||$200,000 and up*||$100|
|Surviving spouse / Eligible widow(er)||Under $200,000||$300|
|Surviving spouse / Eligible widow(er)||$200,000 and up||$100|
* These state AGI thresholds for spouses filing separate applicants are combined for both spouses. These applicants are entitled to the amount of reimbursement they would have been entitled to if they had filed together.
5. When will I receive my Act 115 refund?
Law 115 refunds are made based on the order in which 2021 income tax returns are filed.
The Department of Taxes will begin issuing Law 115 refunds in the first week of September 2022.
Estimated delivery dates for Act 115 refunds are shown in the table below:
|N-11/N-15 Submission Date||1/1/22 – 8/31/22||9/1/22 – 12/31/22|
|Direct deposit refund||Sep 2022||up to 10 weeks after submission|
|Paper check refund||Sep-Nov 2022||up to 12 weeks after submission|
The Department of Taxation continuously monitors and evaluates tax and financial information to prevent fraudulent activity. A refund may be converted from a direct deposit to a paper check if there is information that cannot be validated or if information conflicts with other returns submitted. For security reasons, the validations carried out cannot be disclosed.
If you have not received direct deposit refunds by the estimated time, the Department of Taxation asks that you wait until the end of November. There may be some that are deposited late, declined, or converted to paper checks for various reasons. Paper check refunds of 90,000 per week are released once check balance is received.
An efficient method for questions is to email the Department of Taxation at [email protected]. The taxpayer can also call (808) 587-4242, but email would be a more efficient process.
6. Will I receive my Act 115 refund by electronic direct deposit or paper check?
If you are applying for a refund on your 2021 individual income tax return and have applied for direct electronic filing, your Act 115 refund will be deposited into the same bank account.
You will receive your Act 115 refund by paper check if you have requested a paper check refund, have no additional tax owed, or have additional tax owed.
7. Can I change how I receive my Act 115 refund?
No, the Department of Taxes is not able to change the issuance of an Act 115 refund from a direct electronic deposit to a paper check or vice versa.
8. I receive my Act 115 refund by paper check but have moved since I filed my tax return. What should I do?
Please update your address as soon as possible through Hawaii Tax Online or submit the ITPS COA form. The Department of Taxation cannot update an address via phone call or unsecured email.
To update your address with HTO:
- Sign up for HTO, choose More… Tab, Registration tile, select Manage mailing address
- Use Default postal addresschoose Update postal address
- Enter the required information and select Submit
9. I am receiving my Act 115 refund via direct deposit but have closed my bank account since filing my tax return. What should I do?
You do not need to take any further action. You will receive your Act 115 refund by paper check.
10. I filed my original 2021 income tax return and also filed an amended 2021 income tax return. Am I entitled to an Act 115 refund?
Yes, your Act 115 refund will be based on your amended 2021 income tax return.
11. My individual income tax return for 2021 showed additional taxes due. Am I entitled to an Act 115 refund?
Yes, whether you owed additional tax or requested a refund on your 2021 individual income tax return, you are entitled to an Act 115 refund.
12. I am 65 years old and am entitled to two tax exemptions on my 2021 income tax return because of my age. Am I entitled to two refunds under Act 115?
No, each person is only allowed one Act 115 refund.
13. I am disabled and eligible to claim a personal allowance of $7,000 on my 2021 income tax return. Am I entitled to more than one Act 115 refund?
No, each person is only allowed one Act 115 refund.
14. I am filing the application with my spouse, we have two children, and our federally adjusted gross income (AGI) is $150,000. How much is my Act 115 refund?
Your Act 155 refund is $1,200 because you have four eligible individuals and are eligible for the $300 refund per person.
15. I am married but filing separately from my spouse, we have no dependents, my state AGI is $150,000 and my spouse’s AGI is $75,000. What is our Act 115 refund?
Married taxpayers filing separately must combine the federal AGIs of both spouses to determine the amount of the refund under Code 115. Since your combined federal AGI is over $200,000, each spouse will receive an Act 115 reimbursement of $100.
16. Will my Act 115 refund be offset against any tax owed?
The Law 115 refund is used to settle taxes owed to the IRS and any outstanding debts to outside agencies, such as government agencies. B. for the payment of child support. However, the Act 115 refund will not be used to offset any taxes owed to the State of Hawaii.
17. Is my Act 115 refund subject to income tax?
The IRS has published guidance on the federal tax liability of Law 115, Session Laws Hawaii 2022 (“Act 115”), which can be found here.
It is the Department’s finding that the treatment of the Law 115 payment is recognized as disallowable for state income tax purposes. This policy applies only to an Act 115 payment and the taxation of any similar future payment will be determined at the time it is issued.
As an additional note, since the Act 115 payment amount was not included in the 1099-G for tax year 2022, no correction is required and taxpayers will not be issued a revised 1099-G form.
18. The bank account on my 2021 income tax return was created by my accountant. How do I get my Act 115 refund?
The Law 115 refund will be paid into the bank account specified in the taxpayer’s individual income tax return 2021. If the bank account was created by a tax adviser, please contact your tax adviser if you have any questions about how to access the Act 115 refund paid into that bank account. If the bank account has been closed by the tax preparer, you will receive your Act 115 refund by paper check.
19. How much will I get if I filed my 2021 income tax return as a married couple living apart, but my spouse hasn’t filed my 2021 income tax return yet? I have three children, my state AGI is $75,000, but I don’t know my spouse’s state AGI.
Married taxpayers filing separately must BOTH file an individual 2021 income tax return in order to calculate the combined federal AGI to determine the amount of the refund under Law 115. Since your combined federal AGI is unknown, you will receive $400 ($100 per eligible person). If your spouse files an individual income tax return for 2021 before December 31, 2022 and your combined federal AGI is less than $200,000, you will receive an additional Act 115 refund of $800 (an additional $200 per eligible person).
20. I received an Act 115 refund for my mother who passed away in 2021. What should I do with the refund? Do I have to send it back?
Law 115 refunds are granted to qualifying resident taxpayers who have filed individual income tax returns for the 2021 tax year, whether living or not. You don’t have to send the refund back. If the check needs to be reissued in the name of the surviving spouse, court-appointed or certified personal representative, or other person, the Declaration of the Person Requesting a Deceased Taxpayer Refund (Form N-110) must be completed and submitted be submitted with the refund check to the Department of Taxation. The refund will be reissued under the appropriate name.
Tax Notice 2022-03