Delaware provides several personal credits and exclusions to individual taxpayers, particularly benefiting older residents, dependents, and those with retirement income. These provisions are designed to reduce taxable income or directly lower tax liability.
Dependent Personal Credit
- Taxpayers are entitled to a $110 credit for each dependent listed on their federal return.
- Enter the number of dependents on Line 27a (Residents) or Line 44a (Nonresidents).
- For Filing Status 4 (combined separate return), split the total between Columns A and B in increments of $110.
- Taxpayers listed as a dependent on another individual’s federal return are not eligible for this credit. In such cases, enter “0” on Line 27a and check the dependent box on the front of the return.
Additional Personal Credit for Age 60 and Older
- Taxpayers and/or spouses who were age 60 or older on December 31, 2025 qualify for an additional $110 credit.
- Enter the total number of qualifying individuals on Line 27b (Residents) or Line 44a (Nonresidents).
- For Filing Status 4, enter $110 in the column(s) corresponding to the checked box(es).
Exclusion for Age 60+ or Disabled
- Taxpayers who are age 60 or older or who are disabled may exclude certain qualifying retirement income from Delaware adjusted gross income.
- Eligibility requirements and limitations are outlined in the Delaware instructions.
- Claimed on Line 11 (Form PIT-RES) for residents, or Line 29 (Form PIT-NON) for nonresidents and part-year residents.
Pension and Retirement Benefit Exclusions
- Social Security benefits and Railroad Retirement benefits are fully excluded from Delaware taxable income.
- Taxpayers may also claim an exclusion for qualifying pension and other eligible retirement income.
- The exclusion amount depends on the taxpayer’s age and the type of retirement income.
- Claimed on Line 11 (Form PIT-RES) for residents, or Line 29 (Form PIT-NON) for nonresidents and part-year residents.
Key Distinction: Credits vs Exclusions
- Credits (dependent and age 60+) directly reduce the tax owed.
- Exclusions (retirement and disability-related) reduce Delaware adjusted gross income, lowering taxable income before tax is calculated.
Source:
Delaware Nonresident Income Tax Return Instructions (2025)
Delaware Resident Income Tax Return Instructions (2025)
Disclaimer: Always verify eligibility and filing requirements with the official forms and instructions from the Delaware Division of Revenue. For complex tax situations, consult a CPA or tax professional.