Delaware State Tax Exemption Of 2020 Unemployment Compensation
DELAWARE DIVISION OF REVENUE TECHNICAL INFORMATION MEMORANDUM 2021-1 January 28, 2021 SUBJECT: EXEMPTION OF 2020 UNEMPLOYMENT COMPENSATION FROM STATE INCOME TAXATION FOR INFORMATION, CONTACT: Phone (302) 577-8654 DOR_PublicService@delaware.gov Under federal law, unemployment compensation received by individuals is taxable. Because Delaware follows federal law, unemployment compensation is generally included in taxable income in Delaware and is generally subject to income tax on the amounts received. Delaware’s General Assembly has recently passed a law that will exempt unemployment benefits received in 2020 from income taxation in Delaware. The Division of Revenue is issuing this TIM to provide guidance to taxpayers about how to exclude unemployment benefits from income on their 2020 income tax return. For Delaware resident taxpayers, the amount of unemployment compensation included in your federal adjusted gross income (AGI) should be included on line 36 of form 200-01. This