Individual Income Tax
Form 200-01-X Resident Amended Delaware Personal Income Tax Return
Form 200-02-X Non-Resident Amended Delaware Personal Income Tax Return
Corporate Income Tax
Form 1100 Corporation Income Tax Return
Form 1100EZ Corporation Income Tax Return
Form 1100X Amended Delaware Corporation Income Tax Return
Introduction
The state of Delaware is widely known for its business-friendly environment. The state’s economic climate offers significant tax incentives, making it an attractive location for entrepreneurs and businesses alike. However, like any other state, residents are required to file income tax returns each year. This article will provide insights into Delaware income tax forms, the filing process, and important updates for 2021.
State Income Tax in Delaware
Delaware imposes a progressive income tax, which means that the tax rate increases with higher income levels. The state has six tax brackets that range from 0% to 6.6%. The state’s tax schedule mandates that all individuals earning more than $2,000 annually from Delaware sources must file a tax return. Those earning less than $2,000 are exempt from filing returns but may need to file if federal income tax is withheld from their earnings.
Delaware Non-Resident Income Tax Returns
Individuals who live outside Delaware but earn income within the state’s borders must file a non-resident income tax return. Nonresidents earning income from Delaware sources have to file their tax returns using Form 200-02. This form is available online and can be downloaded and printed.
Delaware Tax Forms for Residents
Delaware residents who earned income in the state must file a Resident Individual Income Tax Return. The form used for this purpose is known as the Form 200. The form is available on the Delaware Department of Revenue website and can be filed electronically.
Delaware Tax Forms for Businesses
Businesses operating in Delaware, whether incorporated in the state or out-of-state, are required to remit state income taxes. The form used for this purpose is known as the Delaware Corporate Income Tax Return or Form 1100. Like other tax forms, this too can be downloaded from the state’s online revenue portal.
Delaware Tax Forms for Federal Employees
Federal employees based in Delaware are required to file a tax return. The form used for this purpose is known as Form 200-01. It is specifically designed to accommodate federal employees who earn income in Delaware.
Filing Methods and Deadlines
Delaware’s tax forms must be filed by April 30th of each year. It is important to note that the state has extended the filing deadline temporarily due to the ongoing COVID-19 pandemic. Delaware residents can file their returns electronically or on paper. There are several options for e-filing, which include free online tax preparation software and paid tax preparation services.
For those who prefer paper returns, all necessary forms are available on the Delaware Tax Center website. Ensure that the correct form is filled out and all required information is provided in a timely manner. Filing erroneous or incomplete returns may lead to penalties.
Credits and Deductions
Delaware offers numerous tax credits and deductions for taxpayers. These credits and deductions lower the taxable income, resulting in a lower tax liability. Some available credits and deductions include:
1. Personal Exemption
Delaware taxpayers are entitled to a personal exemption of $110 for the tax year 2021, which reduces the amount of taxable income.
2. Standard Deduction
Single filers can claim a standard deduction of $1,250 while married couples can claim $2,500.
3. Itemized Deductions
Taxpayers who opt not to utilize the standard deduction can itemize deductions to reduce their taxable income. Common itemized deductions include medical expenses, charitable contributions, and state and local taxes paid.
4. Child Care Credit
Delaware provides a child care credit to taxpayers who have paid expenses related to child care. The credit is capped at $150 per child, with a limit of $300.
5. Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is available to eligible taxpayers with low to moderate incomes. Delaware’s EITC is 20% of the federal credit, or 3.9% of the value of earned income, whichever is higher.
Conclusion
In summary, Delaware income tax forms mandate that all residents earning income in the state must file a tax return. Non-residents who earn income within the state’s borders must file a non-resident income tax return. The state’s tax rates are progressive, with six tax brackets ranging from 0% to 6.6%. Taxpayers are entitled to credits and deductions to reduce their tax liability. Delaware provides e-filing options as well as traditional paper-filed tax returns. It is essential to ensure that all forms are filed accurately by the due date to avoid unnecessary penalties.
