Yes, you’ll still benefit. The changes to the standard deduction and tax brackets apply to everyone, including those who are self-employed or work as freelancers. You’ll likely see your overall tax burden decrease. Just remember, you’ll need to adjust your estimated tax payments throughout the year to account for the lower tax rates.
Individual & Family FAQs

If I’m self-employed or work as a freelancer, will I still benefit from the new tax changes?
If I work part-time, will I still benefit from the new tax changes?
Absolutely. Whether you work full-time or part-time, everyone who pays Hawai‘i income tax will be impacted by the new tax law. You’ll likely see a reduction in the amount of state income tax withheld from your paychecks.
If I receive government assistance, like SNAP, Medicare or housing aid, will this tax cut affect my eligibility for those programs?
This is an important question, and you should contact the specific agency that administers each program to confirm how the tax cuts might affect your eligibility. In general, many assistance programs are based on your gross income (before taxes). So, while you’ll pay less in taxes, it might not directly impact your eligibility for those benefits.
Will my eligibility for childcare subsidies or preschool assistance change because of this tax cut?
Just like with other government assistance programs, it’s best to reach out to the agency or organization that handles your childcare subsidies or preschool assistance to get specific guidance on how the tax cuts might impact your situation. Eligibility rules can vary, and they’ll have the most up-to-date information.
Is there a free tax filing service to claim these new tax cut benefits?
Yes, the Hawai‘i State Department of Taxation provides information on free tax preparation services for Hawai‘i taxpayers. One notable resource is the MyFreeTaxes Partnership, which offers free online state and federal tax preparation for individuals or families with a combined household income below a certain threshold. This service is part of the Internal Revenue Service’s Facilitated Self Assistance Program and serves as a self-service alternative to the Volunteer Income Tax Assistance Program.
For more information, the Hawai‘i State Department of Taxation’s Taxpayer Services can provide guidance and answer questions related to tax preparation. They may be reached at 808-587-4242 or toll-free at 1-800-222-3229.
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