If you are a shareholder in an S corporation, the S corp may have made a Delaware estimated tax payment on your behalf during the tax year. These payments can be claimed as a credit on your Delaware individual income tax return.
What Is an S Corporation Payment?
Delaware allows S corporations to make estimated income tax payments on behalf of their shareholders. If an S corporation made a payment for you, the amount can be applied as a credit against your Delaware income tax liability when you file your Delaware return.
How Do I Know If a Payment Was Made for Me?
If an S corporation made a Delaware estimated tax payment on your behalf, you should receive documentation showing the payment amount.
Delaware requires taxpayers claiming this credit to attach a copy of Form SCT-SSR, which reflects the payment made on their behalf.
Where Do I Enter This Payment?
In our program, navigate to:
- State
- Edit Delaware using the three dots
- Payments
- Estimated tax payment made on your behalf by an S Corporation
Enter the S corporation Name, EIN, and the amount of Delaware estimated tax paid on your behalf by the S corporation. You will also need to select who the payment is for (taxpayer/spouse).
The amount entered will be reported on Line 37 of Form PIT-RES.
What Documents Do I Need?
Keep copies of:
- Form SCT-SSR
- Your Schedule K-1 (if applicable)
- Any records provided by the S corporation showing the payment amount
What If I Am Married?
If you file a Delaware Married Filing Combined Separate return (Filing Status 4), you may allocate the S corporation payment between spouses as appropriate for your return.
For all other filing statuses, the payment must generally be claimed under the recipient's taxpayer identification number.
Additional Information
Important: Do not enter the following as S Corporation payments:
- Delaware state tax withholdings
- Delaware estimated tax payments made directly by you
Delaware specifically instructs taxpayers not to include S-corporation payments with their personal estimated tax payments. Instead, they must be reported as S-Corporation Payments on Line 37 of the return.
Note: Only enter an amount if an S-Corporation actually made a Delaware estimated tax payment on your behalf and you have supporting documentation, such as Form SCT-SSR.