Delaware passed this law very recently Unemployment Benefits- Taxpayers are permitted to exclude unemployment compensation from adjusted gross income in Delaware for the 2020 tax year.
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Include the amount of unemployment compensation that was included on your Federal adjusted gross income on line 36, Delaware State tax refund, of Form 200-01 to reduce your Delaware AGI.
Delaware residents and part-year residents electing to file as residents begin with federal AGI. For the 2020 tax year, taxpayers are allowed to exclude unemployment compensation from adjusted gross income.
Please see 2020 Instructions for Form 200-01, Resident Individual Income Tax Return for more information.
So on the Federal side should the 1099-G not reported on the Wages and Income section?
Then on the DE State side should the Unemployment Comp be listed own the Other Exclusion List?
Thanks for the help!
Yes, you will need to amend your tax return after it is received by the IRS.
In the State section you will enter a correction under "Enter your Total Other Exclusions."
Here is an example of what that entry would look like:
Yes. Unemployment is taxable income and needs to be reported on your federal tax return.
To enter your 1099-G info, please follow the below instructions:
- Sign in and open or continue your return.
- Select Federal and then Wages & Income.
- Scroll down and choose Unemployment and then Unemployment and paid family leave.
- Follow the instructions to enter your info.
Regarding the adjustment to deduct your unemployment on your state return, please just enter the number as a positive, without the negative ("-") sign in front of the number.