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Category: Delaware

Delaware Credits

Volunteer Firefighter's 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 also enter the Fire Company number where you volunteer. Only one $400 credit may be claimed by each spouse. Note: You cannot take the Volunteer Firefighter Credit on a Nonresident Delaware return (Form 200-02).


Credit For Taxes Paid To Another State

If you are a resident of Delaware (or elect to be taxed as one) and pay income taxes to another State on income earned in the other State which is also included in your Delaware taxable income, the law allows you a tax against your Delaware income tax. DO NOT include city wage taxes or county taxes payable with your other State return (please see Other State Tax Credit).


If you claim the tax credit, you must attach to your Delaware return a signed copy of the income tax return filed with the other State(s). In addition, your Delaware return information will be shared with the other State(s) that you claimed the credit for. This credit will be automatically calculated within your TaxSlayer account when you add a Nonresident or Part Year Resident state return to your account.


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. Example: You claim a credit for taxes paid to Pennsylvania AND New Jersey on your Delaware return. On DE Schedule I, enter the names of the other States and amount of credit claimed in HIGHEST to LOWEST credit amount order. If claiming the credit from only one state, then enter the state and amount on the front of the return.


With regard to any credit claimed for taxes paid to another state, the credit is limited to the smallest of the following:

* The Delaware tax liability;

* The tax liability due and paid, after the application of all credits (example: tax forgiveness credit, earned income credit, poverty level credit), to the other state (not including amounts paid on your state return to local jurisdictions). The amount due and paid is not the amount on your W-2; or

* The amount computed by multiplying the Delaware tax by a fraction, the numerator of which is your adjusted gross income from sources in the other state and the denominator of which is your Delaware Adjusted Gross Income (line 1).


If the other state income is not included in Delaware Source Income, then the other State tax credit cannot be taken in Delaware for that income.


Note: If you are using filing status 4-Married filing combined separate-enter the credit in the column for the person who actually worked or was taxed by the other state.


Note: Taxes paid to a political subdivision of a state cannot be claimed as a credit. The District of Columbia, however, is classified as a "State" for the purpose of this credit and, therefore, can be claimed as a credit.


For additional information, please click here.