Well Turbo Tax does not know this it appears and has made thousands of people pay taxes they do not owe in Delaware.
Delaware allows you to file separately to your souse regardless of how you file your federal taxes. BUT IS NOT AN OPTION IN TURBO TAX
This is the easiest way not to be taxed in both states and not file any of your spouses income to be co-mingled in the Delaware working spouse. This is advantageous for many reasons.
If you can allocate deductions for other in-state activity (say a rental activity or other Delaware only expense (un-reimbursed employee expenses), you can reduce the income of the Delaware spouse and reduce there income enough to reduce tax liability or move into a lower bracket.
Also, any money earned OUTSIDE of Delaware (outside DE bank interest for instance should not be reported to Delaware ever.
