On February 8, 2021, House Bill 65 was signed into law. The bill waives state income tax on unemployment benefits for Delawareans for tax year 2020.
How do I report this on my return?
Current tax guidance from the State of Delaware indicates the subtraction should be placed on line 36 of the resident return or line 25 of the nonresident return. Please follow the instructions below to make the entry accordingly.
Residents:
- State Section
- Delaware Resident Return
- Subtractions From Income
- DE State Tax Refund, Fiduciary
Nonresidents:
- State Section
- Delaware Nonresident Return
- Subtractions From income
- Federal- DE NOL Carryforward
- If it is Delaware state unemployment, also make an entry in State-DE NOL carryforward.
This information is subject to change should the state offer additional guidance.