Delaware has specific tax filing rules for military members and their spouses, particularly regarding residency, withholding exemptions, and state tax return requirements. Military members stationed in Delaware may be considered part-year residents or nonresidents depending on their domicile and length of stay. If a military member’s domicile is not in Delaware, they may not be required to file a Delaware state tax return, even if they were stationed there for an entire year. However, if their spouse has non-military income from Delaware and maintains a legal residence in another state, the spouse is generally not required to file a Delaware return either. In such cases, both the service member and spouse should consult their state of legal residence for filing requirements.
Military Spouse Withholding Exemption
- A military spouse may claim an exemption from Delaware’s income tax withholding by completing the Annual Withholding Tax Exemption Certification Form (Form WTH-EXM).
- This form must be provided to the employer and is available on the Delaware Division of Revenue website: revenue.delaware.gov.
- To qualify, the spouse must meet conditions under the Service Members Civil Relief Act, as amended by the Military Spouses Residency Relief Act.
Filing Requirements for Military Members
- If a military member is stationed in Delaware but their domicile is elsewhere, they are typically not required to file a Delaware state tax return.
- However, if the service member’s spouse has non-military income from Delaware and maintains a legal residence in another state, no Delaware return is required for the spouse either.
- Both parties should contact their state of legal residence for appropriate filing obligations.
Estimated Tax Payments
- Individuals who are residents of Delaware or have income from Delaware sources may be required to file quarterly estimated tax payments using Form PIT-EST.
- Estimated payments are required if the Delaware tax liability (after payments and credits) is expected to exceed $800.
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Disclaimer: Always verify with the most current Federal or State Department of Revenue Forms and Instructions. For complex situations, consult a CPA or tax attorney.