Delaware specifically allows taxpayers who elected the federal Foreign Tax Credit to add back foreign taxes actually paid when computing Delaware itemized deductions. This is because those foreign taxes were not deducted on federal Schedule A due to the election of the federal Foreign Tax Credit. Foreign taxes that were accrued but not actually paid are not allowed as an addition.
Resident Taxpayers (Form PIT-RES)
Line 14: Foreign Taxes Paid – If you elected the federal Foreign Tax Credit on your federal return, enter the amount of foreign taxes actually paid that was included on federal Form 1116. If you were not required to file federal Form 1116, enter the actual amount of foreign taxes paid.
Foreign taxes must be actually paid. Foreign taxes that have accrued but have not been paid are not allowable.
Nonresident Taxpayers (Form PIT-NON)
Line 32: Foreign Taxes Paid – If you elected the federal Foreign Tax Credit on your federal return, enter the amount of foreign taxes actually paid that is allowable under the Delaware itemized deduction instructions. If you were not required to file federal Form 1116, enter the actual amount of foreign taxes paid.
Foreign taxes must be actually paid. Foreign taxes that have accrued but have not been paid are not allowable.
Spousal Allocation of Deductions
If married taxpayers filing separate or combined separate Delaware returns cannot specifically allocate itemized deductions between spouses, the deductions must be allocated in accordance with the Delaware filing instructions. Specifically identifiable deductions should be claimed by the spouse to whom they apply. Any remaining deductions that cannot be specifically identified must be allocated between the spouses as provided in the Delaware filing instructions.
Source:
Delaware PIT-NON Instructions 2025
Delaware PIT-RES Instructions 2025
Disclaimer: Always verify with the most current Federal and State Department of Revenue forms and instructions. Tax rules may vary by jurisdiction and filing status. For complex situations, consult a CPA or tax attorney.