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Form 200-02 NR
NON-RESIDENT INDIVIDUAL INCOME TAX RETURN                                                                 GENERAL INSTRUCTIONS
Who Must File                                                              What Form to File
1. Non-Residents – File a tax return if you have any gross income 
   during the tax year from sources in Delaware. NOTE: A Non-                     Full-year residents
   resident of Delaware who works in Delaware and who has 
   entered into a Civil Union or Same Sex Marriage in another                     Part-year residents
   state that is recognized as a civil union in Delaware under                    Non-residents
   13 Del C. §213, would be taxed as if the taxpayer were a 
   nonresident married spouse who worked in Delaware.                                                                                                        
                                                                           Who is a Resident 
   Conversely, a Resident of Delaware who has entered into                 A resident is an individual who either:
   a Civil Union in Delaware and becomes a Non-Resident but                 • Is domiciled in this State for any part of the taxable year; or
   works in Delaware, would be taxed as if the taxpayer were                • Maintains a place of abode in this State and spends more than 
   a non-resident married spouse who worked in Delaware,                      183 days of the taxable year in this State.
   irrespective of whether the State where they are no                     A domicile is the place an individual intends to be his permanent home; 
   domiciled recognizes Civil Unions or Same Sex Marriages.                a place to which he intends to return whenever he may be absent. An 
                                                                           individual can have only one domicile. A domicile, once established, 
2. Part-Year Residents – must file a Delaware tax return if:               continues until the individual moves to a new location and exhibits a 
   •   While a resident of Delaware, you had income from any               bona fide intention of making it his or her permanent home.
       sources, or                                                         Full-Time Students with a legal residence in another state remain 
   •   As a non-resident of Delaware, you had income from a  legal residents of that state unless they exhibit intentions to make 
       Delaware source.                                                    Delaware their permanent residence.
                                                                           NOTE*: Foreign Travelers – If you were out of the United States for 
Part-Year Residents may elect to file either a resident or non-            at least 495 days in the last 18 consecutive months and (at the same 
resident return. You may wish to prepare both a resident and               time) you did not maintain a permanent place of abode in this State at 
non-resident return. File only the return which is more                    which you, your spouse, your children or your parents were present for 
advantageous for you.                                                      more than 45 days, you are not considered a resident of this State.
                                                                           *The above NOTE does not apply to members of the Armed Forces, 
Part-Year Residents electing to file a resident return – This option may   employees of the United States, its agencies, or instrumentalities.
be advantageous if, during the period of non-residency, you had no 
income from sources in other states and/or your only income was from       Minors - Disabled - Deceased
Delaware. Report all income from Delaware and from all other sources       If an individual is unable to file a return because he is a minor or is 
on Form 200-01.                                                            disabled, the return shall be filed by his authorized agent, guardian, 
                                                                           fiduciary or the person charged with the care of the person or property 
Part-Year Residents electing to file a non-resident return – This option   of such individual. See the federal instructions for authorized signature. 
may be advantageous if, during the period of non-residency, you had        If an individual is deceased, his final return shall be filed by his executor, 
any income from other states or sources outside of Delaware. Report all    administrator or other person responsible for the property of the 
income from your Federal return in Column 1 and all Delaware Source        decedent. Please see Deceased on Page 9 for further instructions on 
income in Column 2 of Form 200-02. To determine your Delaware tax,         deceased taxpayers.
your modified Delaware source income will be divided by your Federal 
                                                                           Steps for Preparing Your Return
modified  income  to  compute  a  proration  decimal. Your  tax  liability 
and personal credits will then be prorated accordingly, based on the       Step 1
                                                                           Have your federal income tax return and any other state return(s) 
proration decimal.                                                         (partyear residents) completed. They will be used in preparing your 
                                                                           Delaware return. NOTE: If you entered into a Civil Union, you should 
NOTE: Volunteer Firefighter, Child Care and Earned Income Tax              have two federal returns completed. 1) A federal income tax return that 
Credits cannot be taken on the non-resident return (Form 200-02).          you will fill out and submit to the IRS using a single or head of household 
                                                                           filing status. We call this your actual federal return. 2) Complete the 
NOTE: Individuals who have been residents of Delaware for the              second federal return as if you are filing jointly or married/civil union and 
entire year may not use the non-resident Form 200-02 NR. You               filing separate forms. Use the information you calculate on the Proforma 
must file on Form 200-01.                                                  or as if federal return to complete your Delaware Income Tax return. 
                                                                           Don’t submit the Proforma return to the IRS, but include it with your DE 
3. Erroneous Delaware Withholding – Non-Resident employees                 return.
   file a non-resident return to receive a refund of erroneously           Step 2
   withheld Delaware income taxes if you did not live or work in the       Fill in the top boxes on the front of the form (name, address, filing 
   State at any time during the taxable year. You must attach to your      status). Refer to the instructions starting on Page 9 of this booklet for 
   Delaware return certification from your employer that:                  more details.
   a.  You did not work in Delaware during any part of the taxable         Step 3
       year,                                                               After completing the top part of the front, turn the form over and begin
   b.  Your employer erroneously withheld Delaware income taxes,           filling out the back of the form; then complete the front. Use the Line-
       and                                                                 by-Line instructions provided, beginning on Page 5.
   c.  Your employer has not and will not file a Claim for Refund of       Step 4
       such erroneous withholdings.                                        When you are finished, attach the appropriate documents to your
                                                                           Delaware return. See “What Documents to Attach” on Page 3.
Severance Pay Note: Non-residents receiving severance pay                  Step 5
should see Schedule W–Apportionment worksheet for instructions.            Sign, date, enter your phone number, and send Form 200-02, 
                                                                           along with all required attachments to the applicable address 
                                                                           listed on page 3. If the return is prepared by a paid preparer, the paid 
Page 2                                                                     preparer must also sign the return.

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  Enclosing Payment w/Balance State of Delaware, Division of Revenue     When to File
If 
Due (from Line 58):           P.O. Box 508,  
                              Wilmington, DE 19899-508                   Individual income tax returns are due on or before May 1 , 2017, 
If Refund Due on Line 59:     State of Delaware, Division of Revenue     for all taxpayers filing on a calendar year basis. All others must 
                              P.O. Box 8710                              file by the thirtieth day of the fourth month following the close of their 
                              Wilmington, DE 19899-8710                  taxable year.
All Other Returns:            State of Delaware, Division of Revenue     Extension of Time to File a Return
                              P.O. Box 8711 
                              Wilmington, DE 19899-8711                                         CAUTION:  
                                                                          THERE IS NO EXTENSION OF TIME FOR PAYMENT OF TAX
If necessary, please call our Wilmington office to discuss payment       An extension of time to file your tax return is granted when the 
difficulties. Our representatives are available 8:00AM to 4:30PM,        Application for Automatic Extension (Form 1027) includes a 
Monday through Friday to explain the payment options available.          payment for the amount of any tax reasonably estimated to be due. 
New Castle County:           1-302-577-8208                              Interest accrues on any unpaid tax at a rate of ½% per month, or 
Kent and Sussex County:      1-800-292-7826                              fraction of a month, from the return’s original due date until paid.
Outside Delaware:            1-302-577-8208                              If an extension is not filed and if there is a balance due when the 
NOTES:                                                                   return is filed, a penalty will be charged for filing the return late. If 
•  The return is not complete unless it is signed and dated.             you have doubt as to whether the final return will show a balance 
•  If filing a joint return, both spouses must sign the return.          due, file Form 1027 for an extension.
•  In order to aid in timely processing of your return, please include   To extend your due date for submitting your completed income tax
   a telephone number where you can be reached during normal  return (from May 1, 2017 to October 16, 2017), submit the following
   working hours.                                                        to the Division of Revenue no later than May 1, 2017:
•  Each preparer is responsible for including in the return all relevant 
   items about which he has information.                                 1.  Your payment of any balance of tax liability estimated to be due for 
•  Separate  filers  MUST  submit  their  returns  in  separate           the year 2016 AND
   envelopes. When doing this, DO NOT include duplicate copies           2.  The completed copy of Form 1027.
   of a spouse’s return.                                                 The application for an automatic extension, Form 1027, may be 
What Documents to Attach                                                 filed on-line at our website at  www.revenue.delaware.gov. If you 
Attach the following documents to your Delaware return:                  owe tax with your extension for 2016 and file on-line, you may use 
                                                                         a direct debit from your checking or savings account or pay by 
1.  DE Schedule I and III, if completed.
2.  W-2 Form(s) issued by your employer and all 1099R Forms to           credit card. If you are paying by direct debit you may specify a later 
   take credit for Delaware tax withheld.                                payment date, up to the due date. Payments by direct debit must not 
3.  A copy of Federal 1040 or 1040A, Page 1 and 2 or Federal 1040EZ,     come from an account outside the U.S. and may be made in any amount 
   Page 1, if you claim any federal adjustments to Delaware Source       without dollar limitation. Payments up to $2,500 can be made by credit 
   Income.                                                               card. If you choose not to file online, a blank copy of Form 1027 is 
4.  A copy of all federal schedules you are required to file with your   available from the Division of Revenue or from our website above.
   federal return (for example, Schedule A, B, C, D, etc.).  
5.  If you claim a deduction on Schedule A, Line 21 for unreimbursed     Blanket requests for extensions will not be granted. You must 
   employee expenses, you must attach a copy of Federal Form             submit a separate application for each return.
   2106.                                                                 To extend your due date beyond October 16, 2017, file with the Delaware 
6.  A signed copy of other state’s income tax return(s), if you claim    Division of Revenue a copy of your approved Federal Extension on 
   credit for taxes paid to another state. Do not use the amount from 
   your W-2 form(s).                                                     or before the expiration of the extension granted on Form 1027. The 
7.  A copy of Form 1100S, Schedule A-1, if you take a credit for taxes   approved federal extension will extend the due date of your Delaware 
   paid by an S corporation.                                             return to the same date as your federal extension due date. It must be 
8.  A copy of Form DE2210, pages 1 and 2, if you completed Part 3        attached to your Delaware return.
   of the DE2210 or if the calculated Estimated Tax Penalty is greater 
   than zero.
9.  A copy of Form 700, Delaware Income Tax Credit Schedule and          Amended Returns
   Form 1801AC and/or Form 2001AC, if applicable. See Pages 11           If any changes made to your federal return affect your state  
   and 12 for a description of the Form 700 credits.                     income tax liability, you are required to report the change to the 
10.  A Copy of Delaware Schedule W Apportionment Worksheet, if           Delaware Division of Revenue within ninety (90) days after the final 
   applicable. You must include pages 1 and 2.                           determination of such a change and indicate your agreement with 
11.  A copy of Form 5403, Real Estate Tax Return, if you declared and    the determination or the grounds of your disagreement. Use Form 
   paid estimated taxes on any real estate owned in Delaware.            200-02-X to change an income tax return you have already filed, and 
12.  A copy of your Proforma federal tax return, if you entered into a   attach a copy of any federal adjustments.
   civil union in 2016.
NOTE: Failure to attach the above required documentation may
unnecessarily delay the processing of your return.
Persons 60 or Over Checklist 
If you were 60 years of age or older on 12/31, please review the following items before filing your return:
   You may be eligible for the pension exclusion.                                                                         Line 23, Page 7
   Social security and Railroad retirement benefits are excluded from Delaware taxable income.                            Line 26, Page 8
   You may be eligible for an exclusion if your earned income was less than $2,500.                                       Line 29, Page 8
   You are entitled to an additional personal credit of $110.                                                             Line 43b, Page 11
   If you were 65 years of age or older on 12/31, you are eligible for an additional standard deduction of $2,500, if you Line 39, Page 10
   did not itemize.
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1. Airman Dan Brown and his spouse are legal residents of Delaware
Members of Armed Forces (domiciled in Delaware). Airman Brown was ordered to duty in,
While you are stationed in Delaware: and moved with his spouse to, New Jersey. Besides Airman
• Your military pay is subject to Delaware state income tax only if Brown’s military pay, his spouse has New Jersey source wages.
Delaware is your state of legal residence. Airman Brown and his spouse will file both a federal and Delaware
• Other income earned in Delaware, (that is, income other than Resident tax return reporting both military and nonmilitary income.
A New Jersey state tax return is not required.
military salary), is subject to income tax in Delaware AND in your 2. Sergeant Michael Jones, whose domicile is Ohio and to which he
state of legal residence, if it is other than Delaware. is liable for income taxes, has been on active duty in Delaware
NOTE TO NON-RESIDENT U.S. MILITARY PERSONNEL for 12 months. Sergeant Jones is married and his spouse has
STATIONED IN DELAWARE: non-military income from Delaware. If Sergeant Jones’ spouse
If you have other income from Delaware sources and file a maintains a legal residence in a state other than Delaware, a
Delaware state tax return will not be required. Sergeant Jones and
Delaware Form 200-02NR, you can exclude on Line 16, Column 1 of his spouse should contact their state of legal residence for their
the Delaware Non-Resident Income Tax Return the amount of your filing requirements.
military compensation in accordance with the Service Members A military spouse claiming an exemption from Delaware’s income Tax
Civil Relief Act. withholding requirements must complete an Annual Withholding Tax
All non-resident military members MUST include all income (even Exemption Certification Form, Form W-4DE, with their employer. This
military) in Column 1, Line 1 to Line 14, and subtract their military form is also available on our website at www.revenue.delaware.gov.
income in Column 1, Line 16. Column 2 is reserved for Delaware A military spouse claiming an exemption must meet the conditions set
Source Income only. Please see the example below and on Page 6 forth under the Service Members Civil Relief Act, as amended by the
for further instructions. Military Spouses Residency Relief Act.

• You do NOT need to file a Delaware return if: Requirement to File Estimated Taxes
a. You are receiving only military active duty income, AND Every person who is either a resident of Delaware or has income from
b. You are a legal resident of another state. Delaware sources may be required to file quarterly Declarations of
Members of the Armed Forces Estimated Tax to the Delaware Division of Revenue, if the Delaware
tax liability less payments and credits can reasonably be
Are you a Delaware Filing Required expected to exceed $400. (See worksheet below).
Legal Resident Military Active Other Income Other Income You may be required to make Estimated payments, if you receive a
of Delaware? Duty Income Earned in DE Earned in lump sum distribution or a large bonus at the end of the year.
Other States Also, you may be required to make Estimated payments if while you
YES YES* YES* YES* are a Delaware resident:
NO NO YES* NO • Your employer does not withhold Delaware tax, or
• You work in another state whose tax withholding rate is lower than
*Wether you are stationed in Delaware or not. that of Delaware’s.
Your state of legal residence is the same as it was when you entered The estimated tax booklet, containing the worksheet for computing
the Armed Forces unless you voluntarily changed it while in the your estimated tax liability and the payment vouchers (Form 200-
Armed Forces. For example, if you were a legal resident of Delaware ES), will be sent after January 16, 2017. If you did not file estimated
when you entered the Armed Forces, you remain a legal resident taxes for 2015 and need estimated tax coupons, call the Estimated
of Delaware for Delaware state income tax purposes unless you Tax Forms voice mailbox at (302) 577-8588 to order them. Or call toll
voluntarily abandoned your Delaware residency and established a new free 1-800-292-7826 (Delaware only).
legal domicile in another state. Estimated tax payments may be filed online at www.revenue.
If you change your legal residence, in the year you change, you delaware.gov by direct debit from your checking or savings
are a part-year resident of both states. A change in legal residence is account or by credit card. If you are paying by direct debit you may
documented by filing DD Form 2058 and DD Form 2058-1 with your specify a later payment date, up to the due date. Payments by direct
military personnel office. debit must not come from an account outside the U.S. and may be
made in any amount without dollar limitation. Payments up to $2,500
The following examples illustrate this: can be made by credit card. If you want to pay by check, you must
1. Airman John Green, who is a legal resident of Delaware (domiciled use the paper Form 200-ES available on our website at www.revenue.
in Delaware), was ordered to duty in, and moved his family to, New delaware.gov. To estimate your 2017 tax liability prior to receiving the
Jersey. The family has no income other than Green’s military pay. booklet, complete a 2016 return using estimated income and deduction
Airman Green will file a federal and Delaware Resident tax return amounts for 2017.
only. A New Jersey state tax return is not required.
2. Sergeant Paul Smith, whose domicile is Ohio and
to which he is liable for income taxes, has been on Who Must File Estimated Taxes for 2017
To determine if you must pay estimated income tax payments complete the following:
active duty in Delaware for 12 months. Sergeant
Smith is single and has non-military income from 1. Enter the amount of your total estimated tax liability ____________ 1
Delaware. Sergeant Smith will file as a non-resident for 2017 (See the tax table or tax rate schedule.)
of Delaware (using Form 200-02 NR), reporting all 2. Enter the amount of estimated Delaware withholding – ____________ 2
his income in Column A. He will also deduct his tax and other credits for 2017.
military compensation from his Delaware Non-
3. Enter the balance due (Line 1 minus Line 2). = ____________ 3
Resident Return as a federal adjustment to gross
income (Column A, Line 16). Sergeant Smith will 4. You DO NOT have to file estimated taxes if:
report his non-military income from Delaware in • Line 3 is less than $400, or
Column 2. He should contact Ohio for his filing • Line 2 is at least 90% of Line 1, or
requirements for Ohio. • Line 2 is at least equal to 100% of your total tax liability for 2016. Use
Military Spouses 110% of your 2016 tax liability if your 2016 Delaware adjusted gross
income exceeded $150,000, or if you are filing status 3 and your 2016
All income of a non-military spouse is taxed in
Delaware adjusted gross income exceeded $75,000.
the state of their legal residence.

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When to Make Your Estimated Tax Payment                                    Rounding Off Dollars
For estimated tax purposes, the year is divided into four payment          Dollar amounts on your return must be rounded off to the nearest whole 
periods. Each period has a specific payment due date:                      dollar. This means that amounts from 50 to 99 cents are increased to 
                                                                           the next dollar. For example, $1.50 becomes $2.00 and $1.49 becomes 
   For the period:             The payment due date is:                    $1.00.
   1/1/17 through 3/31/17      May 1, 2017
                                                                                               BACK OF FORM 200-02
   4/1/17 through 5/31/17      June 17, 2017
   6/1/17 through 8/31/17      September 15, 2017                          Column 1 – Federal
   9/1/17 through 12/31/17     January 15, 2018                            This column should reflect the entries you have made on the 
For more information concerning estimated taxes or payment                 appropriate lines of your federal return as if you were a full-year 
voucher and worksheet call (302) 577-8200.                                 resident of Delaware. List all items of income, adjustment, and 
                                                                           modification irrespective of the state from which the items were 
                                                                           derived. If Filing Status 3, use only your income.
Estimated Tax Penalty                                                      Column 1, Line 1 through Line 17, must match each line of  Federal 
You may owe this penalty if the amount you owe (Line 53) is more than      Form 1040, 1040A or 1040EZ, for all filing statuses except Filing 
10% of the tax shown on your return (Line 47, Balance).                    Status 3. Exception: Non-resident U.S. military personnel who 
Exceptions to the Penalty                                                  exclude military compensation in Column 1, Line 16.
You will not owe the penalty if your 2015 tax return was for a period of   NOTE: If you entered into a civil union in 2015, please refer to your 
12 full months AND EITHER of the following applies:                        Proforma federal tax return as explained on Page 2, “Steps for 
1.  You had no tax liability for 2015, or                                  Preparing Your Return.”
2.  The total of Line 46 (Total Non-Refundable Credits) and Line 52 
   (Total Refundable Credits) on your 2016 return equals at least          Column 2 – Delaware Source Income and/or Loss
   100% of the tax liability shown on your 2015 return and estimated       List all amounts of income, gain, loss, or adjustment from Delaware 
   tax payments for 2016 were made on time. Use 110% of your               sources. Part-year residents must also include all income from any 
   2015 tax liability if your 2015 Delaware adjusted gross income                                                        Part-year residents 
                                                                           source during the time of Delaware residency.
   exceeded $150,000, or if you are filing status 3 and your 2015          must first allocate their income by date. Ex: a taxpayer lived in Delaware 
   Delaware adjusted gross income exceeded $75,000.                        from 8/1/16 through 12/31/16. If he sold stock on 4/1/16, when he 
3.  For Special Rules regarding Farmers and Fishermen and for              did not live in Delaware, then the gain/loss would not be reported in 
   waivers of the penalty please see the separate Instructions for         Column 2. If he sold stock on 9/1/16, while he lived in Delaware, then 
   Form 200-ES and/or Form DE2210.                                         he must report that gain/loss in Column 2. If income was earned evenly 
                                                                           throughout the year, then allocate the income based on the percentage 
                                                                           of time of residency in Delaware. Example: Interest income for the year 
Penalties and Interest
                                                                           was $120. If the taxpayer lived in Delaware from 8/1/16 to 12/31/16 then 
1. Interest – Underpayment or late payment                                 5/12 ($120 x 5/12 = $50) of the income would be allocated to Column 2.
   The Delaware Code provides that interest on any underpayment 
   or late payment of income taxes due shall accrue at the rate of         Determining Delaware Income
   ½% per month, from the date prescribed for payments to the date         Line-By-Line Instructions
   paid.
2. Penalty – Late-filing of balance due return                               1   Wages, Salaries, Tips, etc.
   The law imposes substantial penalties for failure to file a timely      Enter in Column 2 wages, salaries, tips or other compensation you 
   return. Late-filed returns resulting in a balance due are subject to    received as an employee reported as Delaware income on your 
   a penalty of 5% per month of the balance due.                           W-2. Part-year residents should include the total of (a) the amount 
3. Penalty - Negligence/fraud/substantial understatement                   earned while working in Delaware and (b) the amount earned while a 
   The law also provides severe penalties for a false or fraudulent        Delaware resident. If, in connection with your Delaware employment, 
   return, or for making a false certification. The mere fact that the     you are required to render services outside Delaware, such income 
   figures you report on your Delaware return are taken from your          may be excluded, but you must complete Schedule W and attach it 
   federal return will not relieve you from the imposition of penalties    to your return. Copies of this form are available from the Division of 
   for negligence or for filing a false or fraudulent return.              Revenue and on our website. Do not submit computer worksheets or 
4. Penalty - Failure to pay                                                handwritten calendars in lieu of Schedule W.
   The law provides a penalty of 1% per month (not to exceed 25%)          NOTE: Working from home does not qualify for Schedule W 
   of the net tax liabilities for failure to pay the tax liability due on  exclusion. See the Schedule W instructions for further detail.
   a timely filed or late filed return. This penalty is in addition to the 
   interest charged for late payment.                                      2 - 3 Interest and Dividend Income
5. Penalty - Failure to File/Pay Estimated Taxes                           Generally, interest, dividend income and interest from other States’ 
   The law provides a penalty of 1½ % per month of the computed            obligations are taxable by Delaware only for that period in which 
   tax payment for failure to file/pay estimated taxes due. This           you were a resident of Delaware. Interest connected with a trade 
   penalty is in addition to those penalties and interest listed above.    or business located in Delaware should be included in Column 2 
   The penalty is also assessed if the estimated payment is filed late.    regardless of State of residency.
                                                                             
Complete the back of this form, beginning with Line 1. Once the              4   State Refunds, Credits or Offsets Of State And Local
                                                                                 Income Taxes.
back is completed, return to the front and follow the instructions 
for “Front of Form” on page 9.                                             Enter the amount of your Delaware taxable refund in Column 2.  

                                                                                                                              Page 5

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5 Alimony Received 16 Adjustments to Income
Alimony received is taxable to Delaware only for the period in which Enter in Column 1, the total amount of the adjustments from your
you were Delaware resident. Enter this amount in Column 2. Federal Form 1040, Line 36 or Federal 1040A, Line 20. Civil Union
taxpayers, please refer to your Proforma federal tax return.
6 Business Income or (Loss) Enter in Column 2, the amount of federal adjustments allowable
as Delaware source adjustments. It MUST be related to Delaware
Enter in Column 2 the income or loss incurred from businesses source income.
located within Delaware and the business income or loss for the
period you were a resident of Delaware. Business income or loss, Non-Resident U.S. Military Personnel Stationed in Delaware
regardless of source, earned while a resident of Delaware must In accordance with the Service Members Civil Relief Act, the
also be included in Column 2. Indicate business losses in brackets. amount of military compensation earned by non-resident service
members, regardless of filing status, should be included on
NOTE: Line 6 - Business Income (or Loss) Line 16 of their Delaware Non-Resident Income Tax Return as
If you have business income or loss from sources within Delaware a subtraction from federal adjusted gross income. (Column 1
and at least one other State, you must either (1) attribute all positive only.) DO NOT include your military compensation on Line 16,
income to Delaware; or (2) determine Delaware source income or loss Column 2.
on Form 800, available from the Division of Revenue or our website.

EXCEPTION
7a & 7b Capital Gains or (Losses)/Other Gains or (Losses) Alimony Payments – Delaware Source Share of Federal
Adjustments
Gains or losses from the sale of real property (such as land or The portion of Federal adjustment for payment of alimony is limited
buildings) located in Delaware must be reported in Column 2. Gains by the proration of Total Delaware Source Income to Total Federal
or losses from property other than real property (such as stocks or Income. To determine the proration decimal of your Delaware source
bonds) sold while a resident of Delaware must also be included in income to your Federal income, divide the amount from Line 15,
Column 2. Column 2 by the amount from Line 15, Column 1. Carry out the
computation to four decimal places, rounding off to the fourth position.
8 IRA Distributions Then, enter the amount of Total Federal Adjustments for alimony and
multiply by the proration decimal.
Enter in Column 2, Taxable IRA distributions received while a resident
of Delaware. Line 15, Col. 2 =
=
Line 15, Col. 1 = .
9 Taxable Pension and Annuities
Enter in Column 2, taxable pensions and annuities received while The proration decimal may not exceed 1.0000 or be less than zero.
a resident of Delaware.
=
x .
10 Rents, Royalties, Partnerships, S Corps, Estates, Trust, etc.
Total Federal
Enter in Column 2, the income or loss from property located in Adjustment for Proration Decimal Delaware Source
Delaware and/or from doing business in Delaware. Part-year Alimony Adjustment
residents must also include amounts of income or loss incurred
The result is the amount of allowable Delaware source adjustment for
while a resident of Delaware. alimony. Add this amount to the total of any other Delaware sourced
adjustments (other than alimony) taken on your federal return and
11 Farm Income or (loss) enter the total on Line 16, Column 2.
Enter in Column 2 the income or loss incurred from a farm located
within Delaware. Part-year residents must also include amounts 17 Subtract Line 16 from Line 15
of income or loss incurred while a Delaware resident. NOTE: The ratio used in reporting income on Lines 1 through
14 is used in determining the ratio of modifications for Lines 18
12 Unemployment Compensation (Insurance) through 26. For example, a full-year non-resident would enter
interest income on Line 2, Column 1 as shown on the federal
Part-year residents report in Column 2 their portion of unemployment return, but no interest income would be included as Delaware
compensation received while a resident of Delaware. If you are a source income (Column 2). If a portion of this interest income
full-year non-resident, unemployment compensation is only taxed by is from US Obligations, that portion would be entered on Line
your State of Residence, even if the unemployment compensation is 22, Column 1 only. Since no interest income was reported on
received from the State of Delaware. Line 2, Column 2 as Delaware source income, no portion of the
deduction would be considered from Delaware sources and,
13 Taxable Social Security Benefits therefore, cannot be included on Line 22, Column 2.
Enter in Column 2, taxable Social Security benefits received while a 18 Interest on State and Local Obligations other than Delaware
resident of Delaware. Interest you received from any obligations of States other than
Delaware or their political subdivisions, while you were a resident
14 Other Income of Delaware is taxable and must be added on Line 18. Examples of
Enter in Column 2 any other income for which there is no line provided interest that is taxable:
on the return. Other income includes prizes, awards, gambling • Interest received on Pennsylvania Turnpike Bonds.
winnings, etc. earned while a resident of Delaware or from sources • Mutual fund dividends not included in Line 15 that are
within Delaware. attributable to interest on state or local obligations (minus those
attributable to the State of Delaware and its authorities and
political subdivision – provided the mutual fund reports that
amount to you in writing).
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19 Fiduciary Adjustments, Oil Percentage Depletion on December 31, 2016, your
IF YOU WERE 60 OR OVER
Fiduciary Adjustments exlusion is determined as follows:
Net additions from fiduciary adjustments arising out of income received 1. Amount of pension ................................. $
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 19. 2. Amount of “eligible retirement income”
(See definition) ...................................... $
Oil Percentage Depletion
The law provides for the disallowance of any percentage depletion 3 Total (add Lines 1 and 2) ....................... $
deduction allowable under federal law, to the extent it is in excess of 4. Enter Line 3 or $12,500, whichever is
cost depletion. Add the excess to the amount of fiduciary adjustments less on Line 23, Column 1 ..................... $
and enter the total on Line 19. Eligible retirement income includes dividends, capital gains,
interest, net rental income from real property and qualified
22 U.S. Obligations retirement plans (IRC Sec. 4974), such as IRA, 401(K), Keogh
All interest received on obligations of the United States and included plans, and government deferred compensation plans (IRC Sec. 457).
on your federal tax return is exempt from Delaware tax and should be Disability pension income paid by your employer is reported
entered on Line 22. Failure to identify the payor on Federal Schedule as wages on the federal return until you reach the minimum
B will result in the disallowance of the deduction. All interest received retirement age. Minimum retirement age is generally the age at
on obligations for which the United States is NOT the primary obligor which you can first receive a pension or annuity if you are not
or which are NOT guaranteed by the full faith and credit of the United disabled. Therefore, Disability pension income does not qualify
States is not exempt from tax and may not be entered on Line 22. for the pension exclusion.
(Examples are shown in the Line 22 table below.)
Pension Exclusion Example: The primary taxpayer
received $10,000 in pension income. The secondary
LINE 22 EXAMPLES. INTEREST RECEIVED ON U.S. OBLIGATIONS taxpayer received no pension income. The taxpayers
Examples of Examples of had joint bank accounts and mutual fund accounts.
INTEREST THAT IS EXEMPT INTEREST THAT IS NOT EXEMPT They earned $5,000 in interest from the bank, $1,000
in dividends and $3,000 in capital gains. These
U.S. Treasury Bill, Bonds (Series E, F, G, Federal National Mortgage
accounts would be split equally between the two
H), Certificates, Notes Association
taxpayers. Both taxpayers are over 60 years old.
(Fannie Maes)
The primary taxpayer’s exclusion is $12,500 (10,000
Export Import Bank Federal Home Loan Mortgage Corp. + 2,500 + 500 + 1,500 = $14,500). The maximum
Federal Deposit Insurance Corp. exclusion for the primary taxpayer is $12,500. The
secondary taxpayer cannot include in the pension
Federal Farm Credit Bank Government National Mortgage
exclusion calculation the amount by which the primary
Association (Ginnie Maes)
taxpayer exceeded the $12,500 maximum exclusion.
Federal Intermediate Credit Banks International Bank of Reconstruction The pension exclusion for the secondary taxpayer
Federal Land Banks and Development is $4,500 (2,500 + 500 + 1,500). If filing Joint, the
combined exclusion for the primary and secondary
Tennessee Valley Authority taxpayer is $17,000.
Mutual Fund Dividends (Dollar amount or Student Loan Marketing Association
percentage directly attributed to a U.S. (Sallie Maes) If you are allowed a pension exclusion for Delaware
obligation, provided the Mutual Fund purposes, please enter the full amount in the
reports that amount to you.) Federal column. Enter in the Delaware column the
ratio of pension and eligible retirement income
reported in Column 2, divided by the pension and eligible
23 Pension Exclusion retirement income reported in Column 1. Multiply this ratio by the
Amounts received as pensions from employers (including pension of pension exclusion amount to determine the allowable exclusion.
a deceased taxpayer) may qualify for an exclusion from Delaware Enter this amount on Line 23, Column 2.
taxable income, subject to the limitations described below. EXAMPLE: ELIGIBLE RETIREMENT INCOME
Retirement – Non-Pension Income Federal DE Sourced Income
Delaware Tax Law authorizes an exclusion of up to $12,500 from
Interest 1,000 0
pension and eligible retirement income for each individual age 60 or
older. Dividends 1,500 0
An early distribution from an IRA or Pension fund due to Capital Gain 100,000 100,000
emergency reasons or due to separation from employment does Pension 50,000 0
not qualify for the pension exclusion. If the Distribution Code(s)
Pension & Eligible
listed on Box 7 of your 1099 R(s) is a 1 (one), then that amount 152,500 100,000
Retirement Income
DOES NOT qualify for the pension exclusion. Also, if you were
assessed an early withdrawal penalty on Line 59 of the Federal DE Pension Exclusion = (100,000/$152,500) x 12,500
1040, then that amount DOES NOT qualify for the pension .6557 x 12,500 = $8,196
exclusion. Column 1 Pension Exclusion = $12,500. Column 2 Pension Exclusion = $8,196.
NOTE: Each taxpayer may receive ONLY ONE exclusion, even if Please remember to enclose the 1099 R Forms and other
he or she is receiving more than one pension or other retirement supporting schedules to support your pension exclusion.
distribution. A husband and wife who each receive pensions are 24 Delaware State Tax Fund
entitled to one exclusion each.
Delaware state tax refunds should be excluded in Columns 1 and 2, to
IF YOU WERE UNDER 60 on December 31, 2016, your exclusion the extent they are included on Line 4, Columns 1 and 2.
equals $2,000 or the amount of your pension, whichever is less.
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25 Fiduciary Adjustment NOTE: If you claimed a standard deduction on your federal return,
Net subtractions from fiduciary adjustments derived from income you may still elect to itemize your deductions on the Delaware
received from an estate or trust, as shown on your Federal Form K-1, return. In this case, complete and attached Federal Schedule A,
Beneficiary’s Share of Income and Deductions, should be included showing the itemized deductions you would have claimed on the
on Line 25. federal return.
Work Opportunity Credit NOTE: You cannot deduct the cost of taking a bus or driving
a car between your home and your regular place of work as
The law allows a deduction for the portion of wages paid but disallowed an Itemized Deduction on Schedule A. You cannot deduct
as a deduction for federal tax purposes by reason of claiming the work commuting expenses no matter how far your home is from your
opportunity tax credit on the federal return. regular place of work.
That portion of the deduction for wages, which is disallowed for Do not enter motor vehicle title, realty transfer tax fees or transfer
federal purposes, should be entered on Line 25. In order to claim this fees as other taxes. They do not qualify.
modification, you must attach Federal Form 5884.
Delaware Net Operating Loss Carryovers 31 Itemized Deductions from Schedule A
Taxpayers who were prevented in previous years from carrying federal Enter on Line 31 the total amount of itemized deductions as shown on
net operating losses to their Delaware returns (because of Delaware’s Line 29, Federal Form 1040 Schedule A.
$30,000 limit on net operating loss carrybacks) are permitted to carry If you are filing a joint federal return and separate Delaware
these additional losses forward on their Delaware return in years returns, the deductions must be determined as if each spouse
following the loss year. had filed separate federal returns.
26 Social Security/Railroad Retirement Benefits If you are unable to specifically allocate deductions between spouses,
Social Security and Railroad Retirement benefits are not taxable prorate the deductions based on a ratio of your separate incomes
in Delaware and therefore should not be included in Delaware to total joint income. For example, if one spouse earns 60% of the
taxable income. Enter on Line 26 the total amount from Line 13 plus household income and the other earns 40%, designate 60% of the
any Railroad Retirement payments included on Line 9. deductions to the spouse earning 60% of the household income and
Higher Education 40% of the deductions to the spouse earning 40% of the household
income. NOTE: Civil Union taxpayers, please refer to “Filing
Distributions received from qualified retirement plans (IRC Sec. 4974, Status” on Page 10.
including IRAs), cash or deferred arrangements (such as 401(k) plans)
and government deferred compensation plans (IRC Sec. 457) may be Foreign Tax Paid
excluded from Delaware adjusted gross income to the extent they are 32
used within the same tax year to pay for books, tuition or fees at an If you elected the Foreign Tax Credit on your federal return, your federal
institution of higher education attended by the taxpayer or by his or itemized deductions, allowed as Delaware itemized deductions, will
her dependents who have NOT attained the age of 26 by December
31, 2016, and so long as such amounts have been included in federal be increased by the amount of foreign taxes actually paid. Foreign
adjusted gross income. taxes accrued, but not paid, are not allowed as an addition on Line
32. On Line 32, enter the amount of foreign taxes paid included on
29 Persons 60 or Over or Disabled Line 8 of Federal Form 1116. If you were not required to file Federal
The law provides for exclusions from gross income to persons who of foreign tax paid.
meet certain qualifications. Please refer to the Line 29 worksheet 33 Charitable Mileage Deduction
below to determine if you qualify.
If you used your automobile to perform a voluntary
LINE 29 WORKSHEET, PERSONS 60 OR OVER OR DISABLED service for a charitable organization, you may
Single, married or entered into a Y N Married or entered into a civil union fil- Y N increase your itemized deductions as follows:
civil union filing separate returns. ing joint returns. Miles driven 1/1/16 - 12/31/16: x .17 = $
Were you at least 60 years old or Were both spouses at least 60 years 35a State Income Tax
totally and permanently disabled old or totally and permanently disabled Enter the amount of (1) Delaware state income taxes
on 12/31/2016? on 12/31/2016? claimed in your federal itemized deductions plus (2)
Was your earned income (i.e., Is combined earned income (i.e., any taxes imposed and paid to another State that are
wages, tips, farm or business wages, tips, farm or business income) included in your federal itemized deductions and
income) total less than $2,500? less than $5,000? claimed as a credit on Line 44 of this form. For
Is Line 28 $10,000 or less? Is Line 28 $20,000 or less? example, if you had $1,000 of taxes withheld in
another state, but the tax liability to the other state
If you answered YES to all, If you answered YES to all, was $700, you should only include $700 on Line 35a,
enter $2,000 on Line 29 Enter $4,000 on Line 29 except as noted below.
NOTE: If you are filing a joint return and only one spouse qualifies for this exclusion, you should Exception: If your level of adjusted gross income
consider filing separate returns (Filing Status 3). caused a reduction (limitation) of your federal itemized
deductions, only enter on Line 35a the percentage of
30A Column 2 state income tax that was included in your federal
Subtract Line 29, Column 2 from Line 28, Column 2. Enter the total itemized deductions which represents the same ratio as allowable
on Line 30A, Column 2 and on Line 42, Box A on the front of your federal itemized deductions is to total itemized deductions before the
return. This is your Modified Delaware Source Income. reduction. For example, if total state income taxes are $500 and total
30B Column 1 federal itemized deductions are $10,000 but are limited to $9,000 due
to the federal reduction rules (90% of your itemized deductions were
Subtract Line 29, Column 1 from Line 28, Column 1. Enter the total allowed), you need enter only $450 (90%) of the state taxes on Line 35a.
on Line 30B, Column 1. Enter this total on Line 37 and Line 42,
Box B on the front of your return. This is your Delaware Adjusted NOTE: Real estate capital gains taxes paid and declared on DE
Form 5403 should be entered here if included in Federal
Gross Income. Itemized deductions. Also, property or school taxes should not
Itemized Deductions be included here. NOTE: Local taxes included in your federal
If you elect to itemize deductions, complete Section D, Lines 31- 36, to itemized deductions should not be included on Line 35a. Also,
determine the amount of itemized deductions which you may claim on state taxes paid to another state for which you will not claim a
credit on Line 44 of your Delaware return should not be
your Delaware return; otherwise, you may skip this section. included on Line 35a.
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35b Form 700 Tax Credits Line d – Bank
In order to comply with new federal banking rules, you must
Enter the amount of the charitable contribution claimed in your
declare whether your refund will go to a bank account outside the
federal itemized deductions for permanent gifts of land, or interest
United States. If the answer is yes, do not enter your account
in land, to public agencies and qualified private non-profit charitable
information. We will instead mail your refund by check.
organizations and any investment in Neighborhood Assistance for
which you claimed a tax credit from Form 700 on Line 45 of your NOTE: Some financial institutions will not deposit joint refunds into
an individual account. The Delaware Division of Revenue is not
Delaware Return. Form 1801AC and/or Form 2001AC and the responsible if a financial institution refuses a direct deposit.
Division of Revenue approval letter must be attached to your
return. SAMPLE CHECK:

36 Total Itemized Deductions JOHN J. MARTIN 0818
Subtract Line 35a and 35b from JANE A. MARTIN 15-0000350000
428 Spring Street
Line 34. Enter the results here Our Town, DE 19000 Do not include ___________________ 2016
and on Line 38 of your Delaware Account number Check number
return. Make sure you have Routing number (line c)
(line a)
checked the block “b” on Pay to the
Line 38 to indicate that you Order of ______________________________________________________________________________________ $
are electing to itemize your
____________________________________________________________________________________________________________________ Dollars
deductions.
First Bank of Delaware
Always compare the results Our Town, DE 19000
of Line 38 to the standard
deduction; you may benefit from |: 031100000 :| || 1234 0621 || 0818
using the standard deduction ▪ ▪
and from allowable additional
standard deductions. NOTE: If your refund is adjusted by $100.00 or more, a paper
check will be issued and mailed to the address on your return.
Section E Deceased
Direct Deposit of Refund If the primary taxpayer or spouse is deceased, write DECD after their
Complete Section E if you want us to directly deposit the amount last name on page 1 of the Delaware return and insert the date of
shown on Line 59 into your bank account. Refunds may not be direct death in the appropriate column on Page 2. See below.
deposited to a bank account outside the U.S.
Why Use Direct Deposit? FRONT OF FORM 200-02
• You get your refund fast – even faster if you file through the Name, Address and Social Security Number
Internet. Attach the preprinted label provided with your booklet to the front of
• Payment is more secure – there is no check to get lost. the form in the space provided if your name, address and social
• More convenient. No trip to the bank to deposit your check. security number has NOT changed since last year. NOTE: To protect
your privacy, the number on your label is not your social security
Check with your financial institution to make sure your deposit will number.
be accepted and to get the correct routing and account numbers. DO NOT use the mailing label if your name, address, social security
Delaware College Investment Plan (529 Plan) number or marital filing status HAS changed since last year. Print
Individuals can deposit their State income tax refund directly into a your name(s), address, and social security number(s) in the space
529 Plan account. To obtain information on Delaware’s Plan or provided. If you are married, give names and social security numbers
how to contribute go to www.savingforcollege.com and select the for both you and your spouse whether you file joint or separate returns.
State of Delaware in the US map area. For routing and account If you are a Jr., Sr., II, III, etc., please indicate in the Jr, Sr, III block.
number information, please contact the financial institution that
administers your 529 Plan. DO NOT use the label if either the primary taxpayer or spouse is
deceased. The surviving spouse information should be entered
Line a – Routing Number first under “Your Social Security No. and Your Last Name”. The
The routing number must be nine digits. The first two digits deceased person’s data should be entered under “Spouse’s
must be 01 through 12 or 21 through 32. Otherwise, the direct Social Security No. and Spouse’s Last Name”. Also, write DECD
deposit will be rejected and a check sent instead. On the after their first name.
sample check above, the routing number is 031100000. Decedent Examples:
Your check may state that it is payable through a bank different 1. John and Mary have been married for 30 years and file jointly
from the financial institution at which you have your checking (filing status 2) on Form 200-02NR. John passed away on June
account. If so, do not use the routing number on that check. 30, 2016. Mary, as the surviving spouse, will enter her data in
Instead, contact your financial institution for the correct routing “Your Social Security No., Your Last Name, and First Name and
number to enter on this line. Middle Initial.” The decedent’s, John Jones, data will be entered
Line b – Type in “Spouse’s Social Security No., Spouse’s Last Name and
Please check the type of account: checking or savings. Spouse’s First Name.” DECD will also be written after “John,”
under “Spouse’s First Name.”
Line c – Account Number 2. Casey and Lacy Thomas are married non-residents. They file
The account number can be up to 17 characters (both numbers a joint federal return. Casey works in Delaware and files Form
and letters). Include hyphens but omit spaces and special symbols. 200-02NR as a Filing Status 3. Lacy has no Delaware Source
Enter the number from left to right and leave any unused boxes blank. Income and does not file a Delaware return. Casey died on April
On the sample check below, the account number is 12340621. Be 10, 2016. Casey’s data will be entered in “Your Social Security
sure not to include the check number. No., Your Last Name, and First Name and Middle Initial.” Write
DECD after Casey’s “First Name and Middle Initial.” Lacy’s data
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should be entered under “Spouse’s Social Security No. and Spouse’s NOTE: If one spouse takes the standard deduction, the other
Last and First Names.” spouse must also take the standard deduction.
Filing Status 38b Itemized Deductions
Please indicate your filing status by marking the appropriate box.
FILING STATUS 1 – SINGLE TAXPAYER If you elect to itemize deductions:
If you were single on December 31, 2016, consider yourself single for a. Check block “b” on Line 38b.
the whole year and use Filing Status 1. NOTE: If you entered into a b. Complete Section D, Lines 31 through 36 on the back of your
civil union, you can no longer use the single filing status on your Delaware return.
Delaware return. c. Enter the amount from Line 36 on Line 38.
FILING STATUS 2 AND 3 – MARRIED OR ENTERED INTO A CIVIL d. Attach a copy of Federal Form 1040 Schedule A, Line 21 to your
UNION TAXPAYERS Delaware return.
You may file Joint or Separate Delaware returns. NOTE: Generally, e. I f you c laim a deduc t ion on Federal Schedule A for Unreimbursed
separate returns will be advantageous if both spouses have a Employee Expenses, you must attach a copy of Federal 2106 or
Delaware adjusted gross income in excess of $9,400 or if only 2106EZ.
one spouse worked in Delaware. NOTE: If you claimed a standard deduction on your federal return,
If you elect to use Filing Status 3, both you and your spouse must you may still elect to itemize your deductions on the Delaware
compute your taxable income the same way. This means if one return. In this case, complete and attached Federal Schedule A,
itemizes deductions, the other must itemize. If one takes the showing the itemized deductions you would have claimed on the
standard deduction, the other must take the standard deduction. federal return.
You each report your own income, personal credits and
deductions, and one half the income derived from securities,
bank accounts, real estate, etc., which are titled or registered in 39 Additional Standard Deduction
joint names. Civil Union taxpayers must complete a Proforma The additional standard deduction is allowable only for those persons
federal return. For more information, see “Steps for Preparing 65 or over and/or blind electing to use the Delaware standard
Your Return” on Page 2. deduction on Line 38.
NOTE: Civil Union taxpayers, when completing your “as if” federal
return, make sure to follow all the rules and regulations that apply NOTE: If you elect to itemize your deductions, you do not
to married filing joint or married filing separately persons per IRS qualify for the additional standard deduction even though you
instructions to correctly determine your Delaware tax liability. may be 65 years of age or older and/or blind. If you itemize
deductions, do not check the “65 or over” box.
FILING STATUS 5 - HEAD OF HOUSEHOLD
If you filed as Head of Household on your federal return or qualify as If you qualify for the additional standard deduction:
certain married/civil union persons living apart, you may file as Head 1. Be sure you checked the block on Line 38a to indicate you are
of Household on your Delaware return. using the standard deduction.
FULL-YEAR NON-RESIDENTS 2. Check the appropriate box(es) relating to age and/or blindness
If you were a full-year non-resident of Delaware for 2016, be sure to on Line 39.
check the box indicating full-year non-residency. If you are filing as a 3. Multiply the number of boxes checked on Line 39 by $2,500 and
part-year resident, on Form 200-02NR, DO NOT check this box. determine the total (a maximum of $5,000 per individual).
DE 2210 Indicator 42 Proration Decimal
Check the “Form DE2210 Attached” box and attach a copy of DE2210
to your return, if you have calculated the Underpayment of Estimated Enter the amount from Line 30A in Box A on Line 42. Enter the
taxes and an Estimated penalty is due OR if you completed amount from Line 30B in Box B on Line 42.
Part 3. Use Form DE2210 to determine if you owe a penalty for the Example:
underpayment of estimated tax and to calculate the amount of the
penalty. To obtain Form DE2210, please contact our offices or A = Line 30A = 5,000 00
visit the Division of Revenue at www.revenue.delaware.gov. Do B = Line 30B = 12,000 00
NOT check this box if a completed DE2210 (pages 1 and 2) is To determine the proration decimal, divide the amount from Line 30A
not being sent with your return. Do NOT submit a Federal Form
2210 instead of a Delaware Form 2210. Do not submit computer by the amount from Line 30B. Carry out the computation to four
worksheets in lieu of Form DE2210. decimal places, rounding off the fourth position.
PART-YEAR RESIDENTS A - 5,000.00
If you were a part-year resident of Delaware in 2016 filing Form 200- = 0.4167
B - 12,000.00
02NR, indicate the dates of your Delaware residency.
Enter the amount from Page 2, Line 30B, Column 1,
37 of your Delaware return. The 0.41666 rounded off equals 0.4167. The proration decimal may
not exceed 1.0000 or be less than zero.
Standard Deduction If Line 41 (taxable income) is less than $60,000, use the tax table to
38a compute your tax. If Line 41 is $60,000 or greater, use the tax rate
The law allows you to take a standard deduction in lieu of itemizing schedule at the end of the tax table to compute your tax. Enter the
your deductions. If you elect to take the Delaware STANDARD amount of tax in the box provided on Line 42 and multiply this amount
DEDUCTION, be sure to check block “a” on Line 38a and enter by your proration decimal. Enter the result on Line 42. This is your
the appropriate amount as listed below: prorated tax liability.
Delaware Filing Status Standard Deduction 43a Personal Credits
1 $3,250
2 $6,500 You are allowed a credit of $110 for each exemption claimed on your
3 $3,250 federal return. Civil Union taxpayers, please refer to your Proforma
5 $3,250 or “as if” federal return. Enter on Line 43a, the total number of
exemptions claimed on your federal return in the space provided. If
NOTE: If you have itemized deductions greater than your allowable you are married or entered into a civil union and filing separate
Delaware standard deduction, you can itemize deductions on your
Delaware return even if you did not itemize deductions on your federal return. returns (Filing Status 3), allocate exemptions appropriately to
each return. Multiply this number of credits by $110.
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If you were not required to file a federal return, enter $110 for each        c.  The tax liability due and paid, after the application of all credits 
spouse reporting income on this form plus $110 for each person                (example: forgiveness tax credit, earned income credit, poverty 
who could have been claimed as a personal exemption had you been              level credit), to the other states (not including amounts paid on 
required to file a federal return. If you are married or entered into a civil your state return to local jurisdictions). The amount computed by 
union and filing separate returns (Filing Status 3), allocate exemptions      multiplying the tax liability due and paid to the other states (not 
appropriately to each return.                                                 including amounts paid on your state return to local jurisdictions) 
NOTE: You are not entitled to a Delaware Personal Credit if you are           by a fraction, the numerator of which is the income from the other 
claimed as a dependent on another individual’s Federal return. Enter          state while a Delaware resident, and the denominator of which is 
“0” in the space provided on Line 43a.                                        the total income from the other state. The amount due and paid 
If you filed the federal return as a married couple filing jointly and have   is not the amount on your W-2.
no dependents and are filing this return jointly (Filing Status 2), enter     If the income reported on your other state return is not included
$220. If you filed the federal return jointly and are filing this return      in Delaware Source Income, then the other State tax credit cannot 
separately (Filing Status 3), enter $110 on each spouse’s return.             be taken in Delaware for that income.
Civil Union taxpayers, please refer to your Proforma federal tax              NOTE: Taxes paid to the political subdivision of a state cannot be 
return.                                                                       claimed as credit. The District of Columbia, however, is classified as 
Please ensure that the number of personal credits claimed on the              a “State” for the purposes of this credit and, therefore, can be claimed 
Delaware return does not exceed the Federal number of  exemptions.            as credit on Line 44.
This data will be verified with the IRS.                                      If you claim the tax credit, you must attach to your return a 
Multiply this amount by your proration decimal from Line 42 and               signed copy of the income tax return filed with the other State(s). 
enter the result on Line 43a.                                                 In addition, your Delaware return information will be shared with 
                                                                              the other State(s) that you claimed the credit for.
43b   Additional Personal Credits
Check the appropriate box(es) on Line 43b if you and/or your spouse           45    Other Non-Refundable Credits
were 60 years of age or over as of December 31, 2016. Multiply the            Enter on Line 45 the total of the following credit(s) to which you
number of checked boxes by $110. Multiply this amount by your                 are entitled:
proration decimal on Line 42. Enter the result on Line 43b.                   Form 700 Credits
44    Other State Tax Credit (Part-year Residents Only)                       Taxpayers claiming any of the following credits must complete 
Part-year residents who paid income tax to another state on income            and attach Form 700 to their return. (Form 700 is available from 
which was earned in the other state while a resident of Delaware, and         the Delaware Division of Revenue or www.revenue.delaware.gov.)
which is also included in the Delaware modified source income,                Economic Development Credits are available to certain businesses 
may be allowed to claim a tax credit against their Delaware tax liability.    engaged in a qualified business activity who meet the minimum 
Do not include city wage taxes or county taxes payable with your              capital investment and new hiring requirements. Only those taxpayers 
other state return. See Worksheet below.                                      approved by the Division of Revenue may claim these credits.
                                                                                                   Green Industry Credits are available 
LINE 44 WORKSHEET - CREDIT FOR TAXES PAID TO ANOTHER STATE                                         for reducing waste release, use of 
1.    Enter adjusted gross income from the other state                                     1.      recycled materials, processing of waste 
2.    Enter Delaware adjusted gross income (Line 37 of the return)                         2.      materials and collection and distribution of 
                                                                                                   recycled materials. Only those taxpayers 
3.    Enter the income from the other state while a Delaware resident                              whose eligibility is certified by the Delaware 
      (include federal modifications)                                                      3.      Department of Natural Resources and 
4.    Enter the total income from the other state                                          4.      Environmental Control and the Delaware 
5.    Enter the Delaware tax liability (Line 42)                                           5.      Economic Development Office may claim 
                                                                                                   these credits.
6.    Enter the tax liability for the other state (net of credits). (Exclude 
      city wage tax or county taxes.)                                                      6.      Brownfield  Tax  Credits are available for 
                                                                                                   promoting the rehabilitation of contaminated 
7.    Divide Line 1 of the worksheet by Line 2                                             7.      industrial and commercial sites. Only those 
8.    Multiply Line 7 by Line 5                                                            8.      taxpayers whose eligibility is certified by the 
9.    Divide Line 3 by Line 4                                                              9.      Delaware Department of Natural Resources 
                                                                                                   and Environmental Control may claim these 
10. Multiply Line 9 by Line 6                                                              10.     credits.
      Enter the lesser of Lines 5, 8, and 10 here and on Line 44 of the                            Research and Development Tax Credit. A 
11.   return                                                                               11.     business or individual may take an income tax 
                                                                                                   credit on Delaware qualified research and 
                                                                              development expenses. A Division of Revenue approval letter must 
If you are claiming a credit for taxes paid to more than one state,           be attached to your Delaware return.
you must complete DE Schedule I and attach it to your Non-Resident 
return. Example: You claim a credit for taxes paid to Pennsylvania            Land and Historic Resource Tax Credit. A business or individual 
AND New Jersey on your Delaware return. On DE Schedule I,                     may take an income tax credit for permanent gifts of land or interest 
enter the names of the other States and the amount of the credit              in land to public agencies and qualified private non-profit charitable 
claimed in HIGHEST to LOWEST credit amount order.                             organizations. A Division of Revenue approval letter must be attached 
With regard to any credit claimed for taxes paid to another state, the        to your Delaware Return.
credit is limited to the smallest of the following:                           Historic Preservation Tax Credits are available to Resident Curators 
a.  The Delaware tax liability;                                               and to those persons who work to promote community revitalization 
b.  The amount computed by multiplying the Delaware tax by a                  and restoration, and the rehabilitation of historic properties. Only 
fraction, the numerator of which is your adjusted gross income                those taxpayers whose eligibility is certified by the Delaware State 
derived from sources in the other state, and the denominator of 
which is your Delaware Adjusted Gross Income (Line 37).                       Historic Preservation Office may claim these credits. Page 11

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Neighborhood Assistance Tax Credit. Certain taxpayers are 53 Balance Due
eligible for an income tax credit for contributing to a neighborhood
If Line 47 is greater than Line 52, subtract Line 52 from Line 47 and
organization, community development corporation, or community
enter the balance due on Line 53.
based development organization; or for providing neighborhood
assistance, job training, or education to an impoverished area or 54 Overpayment
for low and moderate-income families. An investment claimed as a
Neighborhood Assistance Credit shall not also be eligible for treatment If Line 52 is greater than Line 47, subtract Line 47 from Line 52 and
in the same year as a charitable contribution for income tax purposes. enter the amount of your overpayment on Line 54.
Only those taxpayers whose eligibility is credited by the Delaware 55 Contribution to Special Funds
State Housing Authority and the Delaware Tax Appeal Board may
claim these credits. If you and/or your spouse wish to contribute to any/all of the funds
listed on Page 13, you must complete DE Schedule III. Enter the
46 Total Non-Refundable Credits amount of your donation on the line provided next to the designated
Add Lines 43a, 43b, 44 and 45. The total of all non-refundable credits fund(s) of your choice. Enter the total amount donated on Line 55.
is limited to the amount of your Delaware tax liability on Line 42. The minimum amount for a donation is $1. If you are not due a refund
and you wish to make a contribution, you may do so. Include the total
47 Balance amount of your donation with the balance due.
Subtract Line 46 from Line 42, and enter the result on Line 47. If Line 56 Carryover to 2016 Estimated Tax Account
46 is greater than Line 42, enter “0” (zero).
If you wish to apply a portion of your overpayment to your 2017
48 Delaware Tax Withheld Estimated Tax Account, enter on Line 56 the portion of your
Enter the Delaware income tax withheld as shown on your W-2 and/or overpayment (Line 54) to be applied.
1099R Form(s). DO NOT INCLUDE S CORP PAYMENTS. NOTE: An amount entered on Line 56 will reduce the amount
refunded to you.
Estimated Tax Payments and
49 57 Penalties and Interest Due
Payments with Extensions
Enter on Line 49, the total quarterly estimated tax payments for 2016 You may choose to compute the amount of penalties and interest
including any credit carryover from your 2015 return. In order to due or you may leave Line 57 blank and the Division of Revenue will
receive proper credit for fourth quarter estimated tax payments, they calculate the amount for you and send you a bill. Penalties may be
must be made by January 16, 2017. Also, enter the amount paid with assessed for filing a balance due return late, failure to pay the tax
Form 1027 (Automatic Extension) on this line. DO NOT INCLUDE S liability due, fraud, negligence and failure to pay estimated taxes (see
CORP PAYMENTS. Page 5 for a description of the penalties and interest).
If you file separate returns, you must claim the estimated tax If you used Form DE2210 to calculate the underpayment of
payments under the Social Security Number for which the Estimated taxes and an Estimated penalty is due OR if you
payments were made. completed Part 3, check the “Form DE2210 Attached” box at the
top of your return and submit DE2210 with your return. If you
S Corporation Payments
50 check the box and do not include Form DE2210, you will delay
and Refundable Business Credits processing of your return. An attached DE2210 is not processed
Enter on Line 50, the Delaware estimated tax payment made on your automatically unless this box is checked.
behalf by an S Corporation. Attach a copy of the Delaware Form
1100S Schedule A-1 reflecting such payment. 58 Net Balance Due
Business Finder’s Fee Tax Credit. This credit is available to Enter the net balance due (Line 53 plus Lines 55 and 57) and pay in
encourage Delaware businesses to bring non Delaware businesses full. Make checks payable to: Delaware Division of Revenue.
into the state. Only those taxpayers whose eligibility is certified by
the Delaware Economic Development Office (DEDO) may claim this 59 Net Refund
credit. Enter the amount of the net refund (Lines 54 less amounts on Line
New Economy Jobs Program Credit. A credit available to qualified 55 and/or Line 56 and/or Line 57) to be refunded to you. If you do
employers pursuant to the New Economy Jobs Program whose not have a balance due or a refund due, enter “0” (zero) on Line 59.
purpose is to encourage the creation of high wage, knowledge-based
Address Change
jobs in this state. To apply for certification as a qualified employer, If you move after you file your return, you should notify the Division of
submit Form 208DE (available from the Division of Revenue and at Revenue of your address change. Please be sure to include your and
www.revenue.delaware.gov) with the Secretary of Finance with a your spouse’s Social Security Number in any correspondence with
copy to the Director of Economic Development (DEDO). the Division of Revenue. You may change your address by calling the
Veterans Opportunity Credit. A credit awarded to qualified employers address change voice mailbox at (302) 577-8589. You may also call
for hiring qualified veterans on or after January 1, 2012 and prior to toll free 1-800-292-7826 (Delaware only).
January 1, 2016.
Any taxpayer claiming any of the above refundable credits must Federal Privacy Act Information
complete Form 700 (available from the Division of Revenue and Social Security Numbers (SSNs) must be included on your income tax
at www.revenue.delaware.gov) and submit it with their Delaware return. The mandatory disclosure of SSNs is authorized by Section
return. 306, Title 30 of the Delaware Code. SSNs are used primarily to
administer and enforce all tax laws, both civil and criminal, for which
51 Real Estate Capital Gains Tax Payments Credit the Division of Revenue has statutory responsibility.
Enter on Line 51 the total of all real estate capital gain tax payments Signature
made to Delaware in 2016 from DE real estate sales. If you file separate Review your tax return before you sign it. Complete the return to the
returns, you must claim the real estate capital gains payment under bottom of Page 1 to ensure you receive all credits and exclusions.
the SSN for which the payments were made. NOTE: Please submit Paid Preparer
all copies of Form 5403. Please complete all the fields in the Paid Preparer section. You must
also sign the return.
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