Updated October 21, 2026. Quick answer: Line 13 of the Hawaii Form N-11 is the Pensions line in the subtractions from federal adjusted gross income. It is where a resident enters qualifying distributions from an employer-funded pension plan or a government retirement system, while distributions such as those from deferred compensation plans are described as possibly taxable. The line feeds the total subtractions on line 19, which then comes off the additions total to reach Hawaii adjusted gross income on line 20.
What this form does
Form N-11 is the Hawaii resident income tax return, and its instructions explain each line. Line 13 sits under the heading “Hawaii Subtractions from Federal AGI”, so it takes an amount that is already inside your federal adjusted gross income and removes it for Hawaii. The instructions give the purpose in one sentence: “Hawaii does not tax qualifying distributions from an employer-funded pension plan.”
The same passage says which plans count: “If you received qualifying distributions from an employer-funded profit sharing, defined contribution, or defined benefit plan, or from a government retirement system”. For how Hawaii treats retirees overall, see Hawaii retirement taxes and whether Hawaii taxes pensions. Military pensions are mentioned in the line 13 text, and Hawaii treatment of military retirement covers that topic on its own.
Who it applies to
The instructions set the test for a qualifying distribution: “For a distribution to qualify, it must be paid by a pension plan by reason of retirement, disability, or death.” They then list three types that line 13 covers. The first is a government system: “Pension or annuity distributions from a public (i.e., government) retirement system”, “unless voluntary contributions were made by an employee under an elective right.”
The second is a private employer plan: “Distributions from a private employer pension plan received upon retirement (including early retirement and disability retirement) if the employee did not contribute to the pension plan.” The third is the required payout: “Distributions from a pension plan at age 73 that are made to comply with the federal mandatory payout rule do qualify as a retirement payment whether or not the employee is still working full time.”
The instructions also say what happens when the employee paid into a private plan: “Distributions from a private employer pension plan received upon retirement are partially taxed by Hawaii if the employee contributed to the pension plan.”
Under the heading “Taxable Pensions and Annuities” the instructions name plans that are not covered by the line 13 test. “Distributions from a deferred compensation plan may be partly or fully taxable.” “Examples include 401(k) plans, salary reduction Simplified Employee Pension (SARSEP) plans, the Federal Thrift Savings Plan, and section 457 plans like the State of Hawaii Deferred Compensation Plan.” For the state view of those accounts, see Hawaii treatment of 401(k) and IRA withdrawals and Hawaii treatment of TSP withdrawals.
The lines, one by one
| Line | What the form says |
|---|---|
| Line 13, heading | “Hawaii Subtractions from Federal AGI” (the group of lines that holds line 13, Pensions) |
| Line 13, what to enter | “Hawaii does not tax qualifying distributions from an employer-funded pension plan.” |
| Line 13, plan types | “If you received qualifying distributions from an employer-funded profit sharing, defined contribution, or defined benefit plan, or from a government retirement system” “enter the qualifying amount here.” |
| Nontaxable distributions | “These qualifying distributions were included in your federal AGI and will be excluded on this line.” |
| Type (1), public systems | “Pension or annuity distributions from a public (i.e., government) retirement system” “unless voluntary contributions were made by an employee under an elective right.” |
| Type (2), private plans | “Distributions from a private employer pension plan received upon retirement (including early retirement and disability retirement) if the employee did not contribute to the pension plan.” |
| Type (3), mandatory payout | “Distributions from a pension plan at age 73 that are made to comply with the federal mandatory payout rule do qualify as a retirement payment whether or not the employee is still working full time.” |
| Nontaxable rollover IRAs | “A rollover IRA is treated as a continuation of the original plan that provided the money that is rolled over.” |
| Taxable: early distributions | “Early distributions from a pension plan that are subject to the 10% federal penalty tax do not qualify and are taxable.” |
| Taxable: deferred compensation | “Distributions from a deferred compensation plan may be partly or fully taxable.” |
| Taxable: annuity plans and IRAs | “Distributions from these plans may be fully or partly taxable, depending on whether your IRAs include deductible or nondeductible contributions.” |
| Hybrid plans | “attach Schedule J to figure the taxable amount.” |
| Lump-sum distributions | “If you received a lump-sum distribution from a pension plan and you are electing to use the special ten-year averaging method, attach Schedule J and Form N-152, Tax on Lump-Sum Distributions, to figure the taxable amount.” |
| Annuity or pension taxable portion | “To compute the taxable portion of your annuity or pension, use Schedule J.” |
Everything above sits under the single line 13 instruction. The instructions have one Pensions line and a set of explanatory headings beneath it, which is why the table lists headings rather than separate line numbers. Income that arrives on a 1099-R is described on Form 1040 lines 5a and 5b and Form 1040 lines 4a and 4b, and the 1099-R boxes explained guide shows which box is which.
The figures the form prints
Two figures appear inside running sentences in the line 13 text. The first is the age in the required payout rule: “Distributions from a pension plan at age 73 that are made to comply with the federal mandatory payout rule do qualify as a retirement payment whether or not the employee is still working full time.”
The second is the percentage tied to early distributions: “Early distributions from a pension plan that are subject to the 10% federal penalty tax do not qualify and are taxable.”
Where the result goes next
Line 13 is one of the subtraction lines that line 19 adds up: “Add the amounts on lines 13 through 18. Enter the result on this line.” Line 19 is headed “Total Hawaii Subtractions from Federal AGI”.
Line 20 then brings the totals together: “Subtract line 19 from line 12. Enter the result on this line.” Line 20 is headed “Hawaii Adjusted Gross Income”.
Edition and line numbers
This page reads the 2025 Form N-11 Instructions for tax year 2025, the current file Hawaii Department of Taxation served on 2026-10-21. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Entering a payout from a plan that carries an early-distribution penalty. The instructions say “Early distributions from a pension plan that are subject to the 10% federal penalty tax do not qualify and are taxable.”
- Treating every employer plan as the same. The instructions say “Distributions from a deferred compensation plan may be partly or fully taxable.” and list 401(k) and similar plans as examples.
- Leaving out the employee-contribution test for private plans. The instructions say “are partially taxed by Hawaii if the employee contributed to the pension plan.”
Related: Hawaii retirement taxes, whether Hawaii taxes pensions, Hawaii treatment of 401(k) and IRA withdrawals, Hawaii treatment of military retirement, and Hawaii treatment of TSP withdrawals.
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Answer againSources
- 2025 Form N-11 Instructions, Hawaii Department of Taxation: files.hawaii.gov
- Related official page (not quoted): Tax Information Release 96-05, Taxation of Pensions Under the Hawaii Net Income Tax Law, Hawaii Department of Taxation: files.hawaii.gov
Read from the state revenue documents linked above on October 21, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.