Delaware Other State Tax Credit

Delaware Other State Tax Credit

The Delaware Other State Tax Credit allows taxpayers who are residents of Delaware but have income taxed by another state to claim a credit for taxes paid to that other state. This credit helps prevent double taxation on the same income.

How to Claim the Credit

• Complete Form PIT-CRS (Credit for Income Taxes Paid to Another State) to claim the credit.
• Enter your adjusted gross income from the other state on Line 1 of the worksheet.
• Enter your Delaware adjusted gross income (Line 38 of your return) on Line 2.
• Enter the income from the other state while you were a Delaware resident (including federal modifications) on Line 3.
• Enter the total income from the other state on Line 4.
• Enter your Delaware tax liability (Line 43) on Line 5.

Eligibility and Requirements

• Taxpayers must be Delaware residents for part or all of the tax year.
• The credit is based on the proportion of income earned in Delaware versus the other state.
• Supporting documentation, such as federal Form 1040 and state tax returns, must be attached.

Software Guidance

When filing through Online Taxes (OLT) software:

• Navigate to the "State" section and select Delaware.
• Under the "Credits" section, start or revisit "Delaware Income Tax Credit Information - Form PIT-CRS."
• Follow on-screen instructions to enter required information.

Important Notes

• The credit is non-refundable and reduces your Delaware tax liability.
• Ensure you attach all required documents, including federal Form 1040 and any relevant schedules.
• Only claim the credit for income taxed by another state while you were a Delaware resident.

Source:

Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.