Under age 60, the $2,000 Delaware pension exclusion refers to distributions from pension plans.
In the Delaware state income tax return, at the screen Pensions and Annuities, the hyperlink eligible states:
Distributions received from pension and retirement plans may qualify for an exclusion from Delaware taxable income.
If you were under 60 on December 31, 2023, you can exclude up to $2,000 of a distribution you receive from an employer paid pension plan (this does not include distributions from other plans, such as a deferred compensation or 401k plan). Your federal Form 1099-R should display code 7 (or for code 4, see below) to be eligible for the pension exclusion. Early distributions are not eligible for the exclusion (unless a Form 1099-R was issued with a code 4 (death) in box 7).
If you were under 60 on December 31, 2023, and you receive a military pension, you can exclude $12,500 or the amount of that pension, whichever is less.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
