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Question: I need a federal income tax transcript from the IRS to file for a property tax credit from Honolulu County. The problem is that I cannot get the transcript, even though I mailed in my tax return last March and have followed all instructions since. I have called IRS, written letters, checked online — nothing works and the responses are vague. What do I do? The deadline is coming up!
Answer: You are one of numerous readers in this bind, waiting on the IRS for a tax transcript (which summarizes information from a federal tax return) that may be needed to apply for a mortgage, loan, financial aid or certain government benefits, as in your case. You’re applying for Honolulu County’s real property tax credit for Oahu homeowner-occupants whose gross annual income does not exceed $60,000. The application is due by Sept. 30.
You finally received a response from the IRS this week, telling you to refile your 2021 federal tax return because it could not locate your Form 1040. That makes it unlikely you’ll receive a tax transcript before the county’s deadline, because it takes about six weeks for a transcript to become available for someone who mails in their tax return, the IRS says. The wait is up to four weeks for those who file electronically, it says.
However, a tax transcript is not the only option for applicants seeking a real property tax credit for homeowners on Oahu, although it is preferred. Applicants who filed a 2021 federal income tax return and are unable to obtain a tax transcript may submit the first two pages of their Form 1040 or the first three pages of their Form 1049-SR as an alternative, said Ian Scheuring, a spokesperson for the Honolulu mayor’s office. Copies of these pages must be signed by the applicant, he said.
Assuming that you made a copy of your Form 1040 before mailing it to the IRS, this solution should work for you, and others.
For more information about this Honolulu property tax credit, see the brochure at 808ne.ws/broch and the application at 808ne.ws/rpcapp.
To answer another reader’s question, no, this credit does not automatically renew — it’s different from Oahu’s homeowner’s exemption. For the tax credit, you must reapply every year, proving that you are eligible according to income and other factors, which include living in the home (with an owner-occupant home exemption in effect) and not owning any other property.
Q: Does the $60,000 limit include the whole household?
A: The limit applies to the total, combined gross income of all owners listed on the property’s title.
Q: How much is the credit?
A: The value of the credit varies, according to the titleholder’s income and their total property taxes. To calculate the credit’s value, total gross income is multiplied by 3% and the product is subtracted from the property tax bill. For example, titleholders with combined gross income of $25,000 and a property tax bill of $2,500 would receive a credit of $1,750 on the following year’s tax bill, according to the city.
Q: This rise in monkeypox is bad. When will they increase vaccination?
A: Hawaii’s Department of Health has expanded availability of monkeypox vaccine, which is now being given to Hawaii residents 18 and older in any of the following categories:
>> Had close contact in the past 14 days with a person known or suspected of being infected with monkeypox.
>> Gay, bisexual, and other men who have sex with men and transgender individuals who have multiple or anonymous sex partners.
>> People with severely compromised immunity (for example, advanced or poorly controlled HIV infection, active cancer treatment, high-dose steroids) or certain skin conditions, such as eczema; and who have a household member or sex partner at high risk for monkeypox.
>> People in occupations deemed at risk of exposure, such as lab workers performing monkeypox diagnostic testing and certain health care response teams; this category is limited.
To make a vaccine appointment, go to health.hawaii.gov/docd/mpxvax/ or call 808-586-4462.
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.
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