Delaware allows for some of your pension income to be excluded from your total taxable income. If you were under the age of 60 by the end of the tax year, you can exclude up to $2,000 or the amount of pension received, whichever is less.
If you were age 60 or older at the end of the tax year, you must use the following to determine your exclusion amount:
- Amount of Pension:
- Amount of eligible retirement income:
- Add lines 1 and 2:
- Enter amount from line 3 or $12,500, whichever is less:
Each taxpayer can only receive one exclusion even if they receive more than one pension or retirement distribution.
To make this manual entry, go to:
- State Section
- Subtractions from Income
- Pension Income Exclusion