Delaware Additions to Income
Interest on State and Local Obligations other than Delaware
Interest you received from any obligations of States other than Delaware or their political subdivisions, is taxable to Delaware and must be added on Line 30. Examples of interest that is taxable:
* Interest received on Pennsylvania Turnpike Bonds.
* Mutual fund dividends not included on Line 29 that are attributable to interest on state or local obligations (minus those attributable to the State of Delaware and its authorities and political subdivisions - provided the mutual fund reports that amount to you in writing).
Fiduciary Adjustments, Oil Percentage Depletion
* Fiduciary Adjustments - Net additions from fiduciary adjustments derived from income received from an estate or trust as shown on Federal Form K-1, Beneficiary's Share of Federal Income and Deductions, should be included on Line 31.
* Oil Percentage Depletion - The law provides for the disallowance of any percentage depletion deduction allowable under federal law, to the extent it is in excess of cost depletion. Add the excess to the amount of fiduciary adjustments and enter the total on Line 31.
Interest received on obligations of the United States, and included on your federal tax return, is exempt from Delaware tax and should be entered on Line 34. Failure to identify the payor on Federal Schedule B will result in the disallowance of the deduction. Interest received on obligations for which the United States is NOT the primary obligator which are NOT guaranteed by the full faith and credit of the United States is not exempt from tax and may not be entered on Line 34.
Examples of INTEREST THAT IS EXEMPT:
U.S. Treasury Bill, Bonds (Series E, F, G, H), Certificates, Notes; Export Import Bank; Federal Deposit Insurance Corp.; Federal Farm Credit Bank; Federal Intermediate Credit Banks; Federal Land Banks; Tennessee Valley Authority; Mutual Fund Dividends (Dollar amount or percentage directly attributed to a U.S. obligation, provided the Mutual Fund reports that amount to you.)
Examples of INTEREST THAT IS NOT EXEMPT:
Federal National Mortgage Association (Fannie Maes); Federal Home Loan Mortgage Corp.; Government National Mortgage Association (Ginnie Maes); International Bank of Reconstruction and Development; Student Loan Marketing Association (Sallie Mae)
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