Department of Taxation
Notice of Adoption of Temporary Administrative Rules
Pursuant to Section 231-10.7, Hawaii Revised Statutes (HRS), the Director of Taxation of the State of Hawaii has adopted Temporary Rules Relating to Substantial Gainful Business or Occupation which have been approved by the Governor and which have the same force and effect as any other administrative rule.
The temporary rules amend the definition of “substantial gainful business or occupation” for purposes of determining whether a taxpayer is entitled to certain tax benefits for being a “person totally disabled.” Under existing rules, it is presumed that a person with earned income greater than $30,000 per year is engaged in a substantial gainful business or occupation. The current rule states that earned income includes net earnings from self-employment. These temporary rules change the rule to state that earned income instead includes gross earnings from self-employment, unless the gross earnings are less than $60,000, in which case net earnings will be included in lieu of gross earnings.
Temporary rules become effective seven days after statewide public notice is provided by publication and are effective for 18 months thereafter. The temporary rules are available online at tax.hawaii.gov or ltgov.hawaii.gov. A copy of the temporary rules may also be obtained between the hours of 7:45 a.m. through 4:30 p.m. Monday through Friday, excluding State holidays, at the Rules Office located at the Department of Taxation, Room 219, Princess Ruth Keelikolani Building, 830 Punchbowl Street, Honolulu, Hawaii and at the District Tax Offices located at 3060 Eiwa Street, Lihue, Kauai; 54 High Street, Wailuku, Maui; and 75 Aupuni Street, Hilo, Hawaii.
For more information, or to request a copy of the temporary rules, please call the Department of Taxation, Rules Office at 587-1530.
DATED: Honolulu, Hawaii, _________________________