Delaware Pension and Retirement Exclusion

[leonine]

I’m stuck on the Delaware "Pension and Retirement Exclusion” screen in TurboTax desktop.

I’m 65+, single, moved to DE in 2020 so will file either a non-resident or part-year resident return, and qualify for the full $12,500 exclusion due to >$12,500 in taxable non-Roth IRA income after moving to DE, plus interest income.  I also have IRA & interest income from the other state.

There are 2 blank fields to complete, “All Sources” and “Delaware Source”.  To the left of those fields is the description “Pension/Retirement Exclusion”.

Am I supposed to enter the $12,500 exclusion in one or both boxes?  Or, enter my total income that's eligible for exclusion for both states in "All Sources", and my DE qualifying income only, in "Delaware Source"?  Or something else?

I read BMcCalpin’s response to a user question about this topic, “Was $12,500 already there?”  My two fields are blank, but the question makes me wonder if I’m supposed to enter $12,500 in at least one of the boxes.

[ErnieS0]

Yes. Enter $12,500 in All Sources and Delaware Sources if the amount of pension income while a Delaware resident was more than $12,500.

You said you had >$12,500 in taxable non-Roth IRA income after moving to DE, so I’m assuming your DE qualifying income for the pension deduction is more than $12,500.

Eligible retirement income includes dividends, interest, capital gains, net rental income from real property and qualified retirement plans (IRS Sec. 4974), such as IRA, 401 (K), and Keough plans, and government deferred compensation plans (IRS Sec. 457). The combined total of pension and eligible retirement income may not exceed $12,500 per person age 60 or over.

See Retirement Information, IRA Topics, Pension Exclusions, Social Security Benefits.

[leonine]

EarnieS0 - Thanks for your help, much appreciated.  You assume correctly, so I will enter the $12,500 in both boxes.