The following information has been provided to assist in the
preparation of
Single Taxpayers:
If you were single at calendar year end, consider yourself single for the whole year and use filing status 1.
Married Taxpayers:
You may file Joint, Separate, or Combined Separate Delaware
returns even if you filed Joint federal returns. However, if you filed separate
federal returns, you must file separate
NOTE: Generally, separate returns will be advantageous if both spouses have a Delaware AGI in excess of $9,400. If you elect to use Filing Status 3 or 4, both you and your spouse must compute your taxable income the same way. This means that if one itemizes deductions, the other must itemize. If one takes the standard deduction, the other must take the standard deduction in computing taxable income.
Head of Household:
If you filed as Head of Household on your federal return or
qualify as certain married persons living apart, you may file as Head of
Household on your
Enter the number of federal exemptions for the spouse.
Complete the worksheet if you paid state income tax on income earned in another state and are claiming the Other State Tax Credit.
Spouse (Filing Status 4 Only): Complete the worksheet if spouse paid state income tax on income earned in another state and are claiming the Other State Tax Credit.
The law allows a credit of $400 against the income tax liability of Delaware residents who are active firefighters, or members of fire company auxiliaries or rescue squads. To qualify for the credit, you must be an active volunteer firefighter on call to fight fires on a regular basis, a member of a fire company auxiliary or active member of an organized rescue squad in a Delaware Volunteer Company. Active status of the members is verified annually
by the Division of Revenue with the Volunteer Firefighter Companies.
You must enter the Fire Company number where you volunteer on Line 11, Column A and/or Column B, to qualify for the credit. Only one $400 credit may be claimed by each spouse
DE State Tax Refund:
Enter DE state tax refund on worksheet, line 1, column B. If filing status 4, enter spouse's portion of refund on the worksheet, line 1, column A.
DE Lottery Winnings:
Enter DE lottery winnings on worksheet, line 2, column B. If filing status 4, enter spouse's lottery winnings on the worksheet, line 2, column A.
Gambling Losses:
Wagering losses can be deducted only to the extent of wagering gains. Under some circumstances Delaware Lottery Winnings may exceed the amount of net wagering gain subject to federal tax. The amount of subtraction is therefore limited to the lesser of:
a. The difference between the amount of net gambling winnings included in federal adjusted gross income and the amount of gambling losses allowable in determining federal itemized deductions; or
b. The amount of gain from Delaware Lottery winnings.
The lesser amount is calculated on line 3 of the worksheet.
Fiduciary Adjustment:
Net subtractions from fiduciary adjustments derived from income received from an estate or trust, as shown on your Federal Form K-1, Beneficiary’s Share of Income and Deductions, should be included on line 4 of the worksheet for Line 36.
Work
The law allows a deduction for the portion of wages paid but disallowed as a deduction for federal tax purposes by reason of claiming the work opportunity credit on the federal return. That portion of the deduction for wages, which is disallowed for federal purposes, should be entered on Line 36. In order to claim this modification, you must attach Federal Form 5884.
Travelink Program:
Enter any income you received by virtue of your employer's providing or subsidizing a vehicle for your commuting to and from work, provided:
1. Your employer is an approved participant in the Department of Transportation Travelink Program; and
2. The amount your subtracting is included in total income on line 28.
Enter this Travelink income on worksheet, line 6, column B. If filing status 4, enter spouse's Travelink income on the worksheet, line 6, column A.
NOL Carryforward:
Taxpayers who were prevented from carrying prior federal NOL's due to Delaware's $30,000 limit are permitted to carry these additional losses forward on their DE return in years following the loss year. Enter this NOL carryforward on worksheet, line 7, column B. If filing status 4, enter spouse's NOL carryforward on the worksheet, line 7, column A.
Distributions received from qualified retirement plans (IRC Sec. 4974, including IRAs) cash or deferred arrangements (such as 401(k) plans) and government deferred compensation plans (IRC Sec. 457) may be excluded from DE AGI to the extent they are used in the same year to pay for books, tuition or fees at an institution of higher education attended by the taxpayer or by his or her dependents who have NOT attained the age of 26 by the end of the year; and so long as such amounts have been included in federal AGI.
Enter this higher education exclusion on worksheet, line 2, column B. If filing status 4, enter spouse's higher education exclusion on the worksheet, line 2, column A.
If you are claiming a credit for taxes paid to more than one State, you must complete DE Schedule I and attach it to your Resident return.
A Resident individual is allowed a nonrefundable credit against his / her individual tax in the amount of twenty percent (20%) of the federal earned income credit allowed. Complete DE Schedule II to determine the amount of the credit. In the case of a husband and wife who file a joint federal return, but who elect to file separate or combined separate returns for Delaware, the credit may only be applied against the tax imposed on the spouse with the higher taxable income reported on line 5.
Taxpayer may contribute any amount to the special funds; you can contribute more than your tentative refund and cause a balance due or you may increase a balance due.
In accordance with the Service members Civil Relief Act, the amount of military compensation earned by non-resident service members, regardless of filing status, should be included on Line
16 of their Delaware Non-Resident Income Tax Return as a subtraction from federal adjusted gross income (Column 1). Enter the amount in the field to the left of line 16 and it will be added to the line 16 total.
Taxpayer may contribute any amount to the special funds; you can contribute more than your tentative refund and cause a balance due or you may increase a balance due.
Form 700 must be completed by the person actually claiming the credits. A sole proprietor, partner or shareholder will file Form 700 with the individual personal income tax return.