Troops earn break on Hawai'i taxes
By Karen Blakeman and Curtis Lum
Advertiser Staff Writers
Soldiers, sailors, Marines and airmen are getting a break from the Hawai'i Department of Taxation this year.
State Tax Director Kurt Kawafuchi says military members serving in a combat zone or a combat zone support area can set aside filing their tax returns and responding to tax notices until 180 days after they come home.
The list of countries and places that qualify for the extended deadlines can be found on the federal Internal Revenue Service Web site, under the heading "Armed Forces Tax Benefits."
"The last thing those deployed in a combat zone should worry about," Kawafuchi said, "is their Hawai'i taxes."
A number of other state tax relief measures have been established for military members, Kawafuchi said. They include freedom from taxes on combat pay and forgiveness of taxes for service members killed in a combat zone.
Military members not in a combat zone may qualify for benefits as well. Those who are unable to pay on time because of military service may qualify for a tax deferral with an interest rate of 6 percent instead of the usual 8 percent per year.
Military members with questions about their taxes can contact the Taxation Department at its toll-free number, (800) 222-7572, or at 587-7572 on O'ahu. Further information can be found at the department's Web site.
For civilians and military members not covered by the relief provisions, Hawai'i state taxes are due today. Last-minute drive-up service will be provided on O'ahu, said Cathleen Tokishi, a tax department spokeswoman. Volunteers will be stationed along Punchbowl and Halekauwila streets at the Princess Ruth Keelikolani Building from 5 p.m. to midnight.
Also on the federal benefits level, military families will not lose government disability benefits because a member of the household has been sent to combat, the Social Security Administration said.
People receiving Supplemental Security Income disability payments and Medicaid coverage will continue to do so even if family income rises because a family member is receiving special combat-related supplements to military pay. As a rule, if family income goes up, the SSI payment goes down.
But Social Security Commissioner Jo Anne Barnhart has ensured families that they will not see a reduction in benefits if they were not receiving the additional pay before deployment.
Aged, blind or disabled people whose families have limited means can qualify for monthly SSI benefits.
"If one hand of government is providing some additional income to compensate soldiers for the sacrifices they are making for our country, we're not going to let another hand of government take that money away from their disabled child or spouse," Barnhart said.
