I have income tax withheld on retirement income for NJ but I am a Delaware Resident. ( Moved but never changed withholding). I prepared a NJ Non Resident and a Delaware resident return. The NJ return shows a total refund of the withheld tax and Delaware shows a credit for the NJ Taxes. When I file, will NJ send the refund directly to Delaware as a credit?
Unfortunately, no, New Jersey will not send your refund directly to Delaware.
The IRS and each state tax agency are completely separately. You will receive a refund from New Jersey.
Your Delaware tax return is showing a credit for the taxes paid, and it subtracts from your total state tax due, but New Jersey will not send payment to Delaware to cover this credit.