Article: 50237
Overview
Form N-139 is used to calculate and report deductible moving expenses for Hawaii state income tax purposes. Unlike federal tax law—which suspended the moving expense deduction for most taxpayers beginning in 2018 under the Tax Cuts and Jobs Act (TCJA)Hawaii continues to allow the deduction for qualified moves, except for non-military moves under federal restrictions.
Eligibility Criteria
You may claim a deduction for moving expenses if all the following conditions are met:
- The move is closely related to the start of work at a new principal place of employment.
- Distance Test: Your new workplace must be at least 50 miles farther from your old residence than your previous workplace was.
- Time Test:
- Employees must work full-time for at least 39 weeks within the first 12 months after the move.
- Self-employed individuals must work full-time for at least 39 weeks in the first 12 months and 78 weeks in the first 24 months following the move.
- Exception for Military: Active duty members of the U.S. Armed Forces making a Permanent Change of Station (PCS) are exempt from the distance and time tests.
Deductible Expenses
The following expenses may be claimed as part of your moving cost deduction:
- Transportation and storage of household goods and personal effects.
- Travel expenses from your old home to your new home, including lodging (meals are not deductible).
- Use of a personal vehicle, claimed by either:
- Actual expenses (e.g., gas and oil)
- Standard mileage rate
Add Form N-139
To add Form N-139:
- Go to State Taxes.
- Click I’d like to see the forms I’ve filled out or search for a form.
- Click Hawaii to expand the Forms listing.
- Click on the General tab.
- Select N139 – Moving Expenses to add and open the form.
- Enter your information and click Save.
Hawaii allows certain moving expenses to be deducted, subject to state-specific rules that may differ from federal regulations.
Ensure you keep documentation supporting your moving expenses for your records.