According to the Delaware filing instructions, your active duty military income is taxable if you are a Delaware Resident whether you are stationed in Delaware or not. Include the military income on the resident return.
If you are a resident of Delaware, your active duty military income is taxable. Include the military income on the resident return.
If you are a nonresident of Delaware stationed in Delaware, your active duty military pay, is not taxable on the Delaware nonresident return.
To file the nonresident Delaware return and exclude the military income, follow these steps in the program:
- State Section
- Delaware Nonresident return
- Federal income Subject to State Tax
- Adjustment to Federal Wages (enter military wages with a negative sign to exclude from DE taxes)
- Save until Exit Delaware Return
If one spouse is a resident of Delaware and the other is not, you can file either a resident or nonresident return. You also have the choice of filing as married filing joint or married filing separate. The State of Delaware allows you to complete your return using the method that gives you the largest refund.