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Level 1
posted Nov 21, 2023 4:40:21 AM

Pension exclusion for Delaware

My husband and I are both over 60.  He has a pension over $12,500 and and gets the pension exclusion for Delaware. I do not have a pension. If I do an IRA withdrawal of at least 12,500 from my IRA, do I get the Delaware $12,500 exclusion, too?

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1 Best answer
Level 15
Nov 21, 2023 7:10:55 AM

Yes, IRA distributions do qualify for the DE exclusion, as long as you are age 60 or over.

 

"Eligible retirement income includes dividends, interest, capital gains, net rental income from real property and qualified retirement plans (IRS Sec. 4974), such as IRA, 401 (K), and Keough plans, and government deferred compensation plans (IRS Sec. 457)."

https://revenue.delaware.gov/frequently-asked-questions/personal-income-tax-faqs/

5 Replies
Level 15
Nov 21, 2023 7:00:13 AM

I will page @dmertz, but you might have to contact Support.

 

How do I contact TurboTax? (intuit.com)

Level 15
Nov 21, 2023 7:10:55 AM

Yes, IRA distributions do qualify for the DE exclusion, as long as you are age 60 or over.

 

"Eligible retirement income includes dividends, interest, capital gains, net rental income from real property and qualified retirement plans (IRS Sec. 4974), such as IRA, 401 (K), and Keough plans, and government deferred compensation plans (IRS Sec. 457)."

https://revenue.delaware.gov/frequently-asked-questions/personal-income-tax-faqs/

Level 1
Nov 21, 2023 7:58:47 AM

Thank you for the quick and complete explanation!

Level 1
Jan 27, 2025 2:46:07 PM

Does Turbo Tax account for the 12,500  pension exclusion in Delaware automatically?

Expert Alumni
Jan 27, 2025 3:01:07 PM

Yes, your pension exclusion will automatically be transferred to the Delaware return. You will see a screen where it is listed and you will be given an opportunity to adjust it if necessary.

 

@Gow212