Delaware Pension/Retirement Income Exclusion Error - 2024

[InTheRuff]

Delaware excludes from income $2,000 of pension or retirement income for those under 60 and $12,500 for those 60 or over. My spouse is under 60 and received retirement income in excess of $12,500 in 2024. I am over 60 and received no retirement income in 2024.

Even though all retirement income on our return is allocated to my spouse, TurboTax entered a retirement exclusion of $12,500 on our Delaware tax return for me even though I did not qualify for it. (It correctly gave my spouse the $2,000 exclusion.) The Delaware Division of Revenue flagged this error and adjusted our return accordingly. Luckily, we were due a refund so there was no penalty or interest due.

This is the first year that this error has occurred even though our retirement income situation has been the same for a number of year.

[NCperson]

@InTheRuff 

How many pensions are there? 

If more than one, suggest going back and re-confirm that when you entered the pensions into TT, you did not inadvertantly indicate that one of the pension's was your's.   

[InTheRuff]

@NCperson 

As I said, all the pensions were allocated to my spouse.  None were allocated to me.

This was confirmed through TT Easy Step as well as the appropriate worksheet on the Forms View.