Good Morning,
Our Delaware governor just signed saying our Unemployment is waived from the state income tax. So many have already filed before he did this. Will we have to amend our taxes? Some people are owing hundreds to the State for 2020 taxes.
Thank you for any info
You'll need to sign in or create an account to connect with an expert.
Yes, you are correct this new legislation was just passed into law in the state of Delaware, however you will still need to pay taxes on that income for your federal tax return.
Since you have already submitted your 2020 tax return electronically, you will have to wait until your tax return was either accepted or rejected.
For additional information regarding your Unemployment benefits in the state of Delaware: Delaware: State Tax Waiver on UI Benefits
If you determine that you need to amend your tax return: TurboTax: How do I amend my tax return
Thank you so much for your response.
Has the Delaware edition of Turbo Tax been updated to reflect the change in the law concerning the exemption of unemployment benefits or do I need to wait before e-filing?
Yes, the Delaware state tax return has been updated.
Please follow these instructions to exclude unemployment from taxable income:
[Edited 2/27/21 l 3:47PM ]
I didn't ask about Maryland, I asked about Delaware. Has DELAWARE been updated on Turbo Tax yet?
Yes, the Delaware state tax return has been updated.
Please follow these instructions to exclude unemployment from taxable income:
These instructions need to be updated. (Besides the fact that you keep writing Maryland instead of Delaware in point 3.)
TurboTax now appears to automatically exclude unemployment benefits from Delaware taxable income. If you make the manual adjustment as described here, the exclusion will be double-counted and Delaware taxable income (and taxes) will be calculated incorrectly.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
APK01
Level 1
mssweetemotions
New Member
terrys-mail2
New Member
RLG17
Level 1
hook2151
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.