Division of Revenue Director Jennifer R. Hudson has announced that the Delaware individual income tax season will begin on Monday, January 29, 2018, concurrently with the opening of the federal individual tax season announced by the IRS. While this is slightly later than previous years, the January 29 date was set to ensure the security and readiness of key tax processing systems, and to assess the potential impact of tax legislation on 2017 tax returns. Delaware will begin issuing income tax refunds on Monday, February 19, 2018. The State of Delaware will begin to accept business tax returns on January 16, 2018.

Electronic filing remains the fastest and safest way to file your personal income tax returns. Delaware will continue to offer taxpayers the opportunity to file for free through the Division of Revenue website. Delaware’s user-friendly system is available 24 hours a day, 7 days a week, and allows taxpayers to file their returns and schedule payments to be made closer to the April 30, 2018 deadline. You may pay your State of Delaware taxes using a credit card, or by debiting your bank account.

If you prefer to use tax-preparation software, you can electronically file your federal and state income tax returns for a fee. Many of these products also offer free-filing options for Delaware taxpayers who meet one of the following qualifications:

• Those with adjusted gross income that is less than the software’s established means criteria; or
• Active-duty military with an adjusted gross income of $60,000 or less (including Reservists and National Guard); or
• Those who qualify for the Federal Earned Income Tax Credit (EITC).

Returns filed in hard copy are processed using a modernized system that identifies tax filings based on the return type. Any taxpayer who files a 2017 tax return using a prior-year return, or who modifies the paper return in some way, could experience significant delays. Paper tax returns will be available at local libraries, Revenue’s three public service offices, or via download at de.gov/17taxforms.

Delaware individual income tax returns will be due on or before April 30, 2018. It is important to remember that anyone who has worked in Delaware must file a Delaware tax return, even if they are not a Delaware resident. Similarly, Delaware residents who work in another state are required to file returns with Delaware in addition to the state in which they worked.
By law, Delaware employees should receive their W-2 forms from their employers no later than January 31, 2018 for any job worked during the 2017 calendar year. If you have not received a W-2 by January 31, 2018 please contact your employer.

The Delaware Division of Revenue will extend certain deadlines for filing individual and business tax returns, as well as for making certain tax payments for taxpayers who have been directly impacted by the severe storms and flooding caused by Hurricane Irma.

“The Division of Revenue recognizes the impact that Hurricane Irma has had on taxpayers and will take all steps necessary to assist hurricane victims who need assistance with Delaware’s tax filing obligations,” said Division of Revenue Director, David Gregor.

Delaware will follow the rules outlined by the Internal Revenue Service in news release IR-2017-150. The extended tax return filing due dates apply to taxpayers located in the impacted disaster areas identified in the IRS notice. The tax relief postpones various tax filing deadlines that occurred starting on Aug. 23, 2017 thru January 16, 2018 to January 31, 2018. This includes an additional filing extension for individual taxpayers with valid extensions to Oct. 16, 2017, and businesses with valid extensions to Sept. 15, 2017.

To avoid a penalty assessment for late filing, taxpayers should submit a written request seeking an additional extension via email to jeffry.schott@delaware.gov. If your request is based upon the tax records being located in the disaster area, please include the address where those tax records are located. Business taxpayer requests should be on company letterhead and signed by a company official.

The Delaware Division of Revenue would like to inform local business regarding the following changes to due dates for business partnerships and corporations.

Internal Revenue Code now requires that:

• Partnership returns are due on or before the 15th day of the third month following the expiration of the taxable period (March 15 for calendar year taxpayers).
• S corporation returns are due on or before the 15th day of the third month following the expiration of the taxable period (March 15 for calendar year taxpayers). This has not changed from prior years.
• Returns for C corporations are now due on or before the 15th day of the fourth month following the expiration of the taxable period (April 15 for calendar year taxpayers).

Delaware has issued TIM 2017-1 (http://revenue.delaware.gov/information/tims/tim_2017-01.pdf) granting an automatic extension of time to all C corporations to the due date of the corporation’s federal income tax return, without regard to extensions. The Delaware due dates for partnership and S corporation returns have not changed. As a result, the due dates for Delaware business returns for the 2016 tax year are as follows:

• Partnership returns are due on or before the 30th day of the fourth month following the expiration of the taxable period (April 30 for calendar year taxpayers).
• S corporation returns are due on or before the 30th day of the third month following expiration of the taxable period (March 30 for calendar year taxpayers).
• Returns for C corporations are now due on or before the 15th day of the fourth month following the expiration of the taxable period. Because of federal holidays, this will be April 18, 2017 for calendar year taxpayers.

Delaware will be enacting legislation in 2017 to adopt the same due dates for Delaware’s business tax returns, effective for tax years beginning after December 31, 2016.

If you have questions about the due date of your business return, you can find specific information on our website (http://www.revenue.delaware.gov/services/BusServices.shtml) or by contacting us at (302) 577-8205.

The Division of Revenue has announced that Delaware is adopting the new federal filing deadline for reporting personal income tax being withheld by employers. Employer filing deadlines for paper Form W-3 or online submissions of W-2 information for 2016 will be due January 31, 2017, instead of February 28, 2017. These earlier deadlines are intended to aid government agencies in fighting identity theft and refund fraud. Due dates for 1099 submission are unchanged; February 28 for paper and March 31 for online submission.

The Division has begun outreach efforts to employers, including targeted mailings to those affected by the change. Employers are urged to update their records and adjust annual procedures to accommodate the new deadline.

To find paper reconciliation forms, or for a link to file the forms electronically, please visit www.revenue.delaware.gov.