HI HB761

Exempts income received as unemployment compensation benefits under Chapter 383 from Hawaii state income tax by adding a new exclusion to Section 235-7(a).

Removes the requirement that individuals filing for unemployment benefits be advised that compensation is subject to state income tax, modifying Section 383-163.6(a)(1) to reference only federal income tax.

Retains advisory requirements for individuals to be informed about federal income tax withholding, estimated tax payments, and options to elect state and local income tax withholding from unemployment compensation.

Takes effect retroactively on January 1, 2021.