You’re correct—TurboTax doesn’t support Schedule W (Apportionment Worksheet), which Delaware uses to verify why you’re only paying tax on part of your W-2 wages. Without this form, the state may view...
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You’re correct—TurboTax doesn’t support Schedule W (Apportionment Worksheet), which Delaware uses to verify why you’re only paying tax on part of your W-2 wages. Without this form, the state may view the lower wages as an error and could send a bill for the difference. Since TurboTax can’t create or e-file Schedule W (PIT-SCW), you’ll need to use other methods to stay compliant.
The Problem: The "Documentation Gap"
When you manually change the "Delaware Source Income" in the software, TurboTax correctly changes the tax math, but it fails to generate the supporting Schedule W. If you e-file, the state of Delaware receives a return where your wages on Line 1, Column B (Delaware Source) are lower than Column A (Federal), with no Schedule W attached to explain the "Out-of-State Days."
The Solution: The "Print and Mail" Method
Since the form is required but not in the software, you must file a Paper Return. E-filing is not a viable option for you this year if you want to be fully compliant with the documentation requirements.
Step 1: Download the Standalone Form Download the official Delaware Form PIT-SCW (Schedule W) directly from the Delaware Division of Revenue website.
Complete the "Days Worked Outside" section manually.
Since you are working from home due to employer space constraints, this meets the "necessity of the employer" requirement (as opposed to personal convenience).
Step 2: Prepare the TurboTax Return
Continue using TurboTax to calculate the correct wages (the 40% as you described).
In the Delaware interview, when it asks for your Delaware source wages, enter the amount calculated on your manual Schedule W.
Do NOT E-file. When you reach the "How do you want to file?" screen, select "File by Mail."
Step 3: Assemble the Mailing Packet Delaware is strict about the order of attachments. Your envelope should contain:
Form PIT-NON (The main return printed from TurboTax).
Schedule W (The form you completed manually).
A Copy of your W-2.
A Copy of your PA Return (Delaware requires this for non-residents to verify income sourcing).
One Final Compliance Tip: The Employer Letter
While Schedule W is the primary form, Delaware auditors often request a letter from your employer for work-from-home claims. Since your reason is "insufficient office space," having a brief signed memo from your HR or manager stating that "remote work is a requirement of the position due to facility capacity" will make your return bulletproof against a future "convenience of the employer" challenge.