Live in FL, WFH 50%, Work in DE 50%, getting DE taxed at 100%

[Mmoore86]

During 2021 I moved to Florida working remotely 50% of the time.  My company is based in Wilmington, DE. I still have both Wilmington city wage and DE state income tax being taken out of my check for 100% of the time. (work in FL 50%, work in DE 50%). My company will not change my withholding from 100% allocation DE, stating it is a payroll system limitation.  It should only be 50% of the time I am there.  Florida has 0% state income tax.

Can I, and how, do i get this money back when my W2 is going to say 100% of my income was based in Delaware? (Wilmington city wage as well)

Thank you.

[TomD8]

Delaware is one of a handful of states that tax non-resident remote workers according to the "convenience of the employer" doctrine.  This generally means that if you are working from FL because it's convenient for you, rather than because you were directed to do so by your employer, the income from your remote work is still taxable by Delaware.

This Delaware memorandum details their current policy, which has been in effect since June 1, 2020:

https://revenuefiles.delaware.gov/2021/TIM%202021-2%20-%20treatment%20of%20remote%20work%20in%202020...

[Mmoore86]

Thank you for the great information.  Unfortunately that does not sound good for my cause.