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 will reduce your Delaware adjusted gross income by that amount. 

For Delaware non-resident taxpayers, the amount of unemployment compensation included in your federal adjusted gross income (AGI) should be included on line 25, column 1, of form 200-02. This will reduce your Delaware adjusted gross income by that amount. If it is Delaware source income (i.e., paid by the Delaware Department of Labor), it should be included on line 25, column 2, of form 200-02. This will reduce your Delaware source income by that amount. If you have received unemployment benefits from Delaware and other states, the total unemployment compensation received may be included on line 25, column 1, but only the Delaware unemployment compensation may be included on line 25, column 2. 

If you have any questions about this change, please contact the Delaware Division of Revenue at the number or email set forth above. 


Comments

Post a Comment

Popular posts from this blog

California Employers: Do You Know Your Wage Order?

Image
 The California Department of Industrial Relations has just released an updated version of its IWC Wage Order Poster for 2021. The California Industrial Welfare Commission Wage Orders regulate wages, hours, and working conditions of each of every industry and occupation group in California.  Employers must comply with the IWC Wage Order, in addition to other California and Federal labor laws applicable to their business or industry. For example, IWC Wage Order number 1 applies to the manufacturing industry; Wage Order number 4 applies to professional, technical, clerical, mechanical and similar occupations; Wage Order 7 applies to the mercantile industry; Wage Order 9 applies to the transportation industry; Wage Order 12 applies to the motion picture industry; Wage Order 14 applies to agricultural occupations; Wage Order 15 applies to household occupations; and Wage Order 16 applies to occupations in the construction, drilling, logging and mining industries. Here are several thing
Read more

The Importance of Compliance Posters in Your Business

Image
Compliance or Labor law posters are something beyond a standard in the business. Regardless of whether individuals in the work environment allow it a subsequent look or not, this is as yet imperative to have. Truth be told, as a rule, this is mandated of labor laws. Even though it just unimportant poster that numerous simply overlooked it, these fill a significant need. The California and Federal Labor Law poster or compliance poster advises laborers regarding their privileges under the law. Aside from only being an instructive bit of paper for the workers, it likewise enables the businesses owner to remain in consistence with the laws by complying it.   For what reason are compliance posters essential in the law? Peruse the reasons beneath. ·          Ensures Compliance with The Law This first explanation is one of the most significant ones with regards to why labor law posters or compliance posters are important. Having these in your workplace premises guarantees that you
Read more

Why is it important to put up a California Outdoor Hear Illness Prevention Poster?

Image
In the latest data released by the Centers for Disease Control and Prevention (CDC) early this year, the report on heat-related deaths show that an average of 702 heat-related deaths annually occurred in the United States from years 2004-2018. This led to the coordinated approach across health care sectors to put regulations in place in order to prevent heat-related mortality. The guidelines include mandatory implementation of putting up a California Outdoor Heat Illness Prevention Poster in every workplace that require outdoor work, development of facilities which will serve as cooling centers and the regular conduct of surveillance to ensure that each response plans are being implemented correctly.  The goal of the mandatory posting of California Outdoor Heat Illness Prevention Posters is to serve as active reminders for employers to take the four steps to prevent heat-related illness among employees: 1. Training – educate and train all staff on how to prevent heat-related illnes
Read more