Delaware’s Tax Season Starts February 12, 2021

Delaware’s Division of Revenue will begin processing 2020 individual income tax returns on Friday, February 12, 2021. Delaware opens its filing season in tandem with the IRS, who have been delayed this year due to programming required in administering economic impact payments. Taxpayers may still file in advance of this date, and returns will be held until processing begins on February 12.

In an effort to combat refund fraud, the Division of Revenue will be holding all personal income tax refunds until February 25, 2021. For faster turnaround times, citizens are encouraged to file their taxes online at de.gov/filetax or through other electronic filing programs and request direct deposit. This year’s filing deadline for personal income tax will be Friday, April 30, 2021.

Taxpayers should be aware that Delaware does not maintain reciprocity agreements with other states, therefore is important that anyone who is not a Delaware resident, but who has worked in Delaware, understands that they must file a Delaware tax return. Delaware Residents who work out-of-state are required to file returns with Delaware in addition to the state where they worked. By law, Delaware employees should receive their W-2 employment forms by January 31, 2021 for any job worked during the 2020 calendar year. Those who haven’t received a W-2 by January 31st should contact their employer.

For filing information and more, please visit revenue.delaware.gov.


State Continues to Process Taxes And Fees

 

Income Tax Deadlines Extended
State Tax Due Dates Remain Unchanged

Last week, the Delaware Division of Revenue (DOR) announced that the deadlines for taxpayers to file certain personal and corporate income tax returns and payments had been extended to July 15, 2020 due to “rolling conformity” with federal income tax rules adopted by the IRS in response to the COVID-19 emergency.

The new deadline of July 15, 2020 applies to corporate income tax tentative returns due April 15 as well as final personal income tax returns, estimated personal income tax payments, and fiduciary income tax returns each due April 30.

All State of Delaware agencies continue to process State tax filings, accept tax payments, and issue refunds, where applicable. The State is not extending the deadlines for filing returns and payments for other State taxes and fees, including but not limited to the following categories:

  • Personal Income Tax Withholding
  • Personal Income Tax Estimated Payment due 6/15/2020
  • Corporate Income Tax Tentative Payment due 6/15/2020
  • Unemployment Insurance Tax (Non-profits and other reimbursable organizations will receive a 90-day deferment on UI payments)
  • Corporate Franchise Tax
  • LLC, LP, and GP Annual Tax
  • Gross Receipts Tax and Business License Renewals
  • Realty Transfer Tax
  • Tobacco and Cigarette Tax
  • Bank Franchise Tax and Fees
  • Insurance Taxes and Fees
  • Public Utility Tax
  • Alcoholic Beverage Tax
  • Public Accommodations Tax
  • Motor Fuel Tax

State staff are available to respond to taxpayer questions throughout the COVID-19 emergency. Taxpayers are urged to visit the websites of applicable agencies for additional COVID-19 information or call or email the following offices:

Division of Revenue
Leslie A. Poland, Community Relations Coordinator
leslie.poland@delaware.gov
Picture of the Delaware Division of Revenue logo
Division of Unemployment Insurance
DOL_UI_Employer_Tax_Questions@delaware.gov
Kenneth Briscoe, Communications Coordinator & Public Information Officer
kenneth.briscoe@delaware.gov
Division of Corporations
Doug Denison, Director of Community Relations
douglas.denison@delaware.gov
Delaware Bank Commissioner
Dawn Hollinger, Public Information Officer
dawn.hollinger@delaware.gov
Picture of the Great Seal of the State of Delaware
Delaware Department of Transportation (302-744-2724)
Charles McLeod, Director of Community Relations
charles.mcleod@delaware.gov

 


Hurricane Irma – Additional Extension of Time to File

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.


Hurricane Harvey – Additional Extension of Time to File

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 Harvey.

“The Division of Revenue recognizes the impact that Hurricane Harvey 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-2017-135. 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.


Delaware Personal Income Tax Season Begins January 23

Division of Revenue Director Patrick T. Carter has announced that Delaware tax season will begin Monday, January 23, 2017. Citizens are encouraged to file their 2016 State of Delaware Personal Income Taxes online at www.delaware.gov. This year’s filing deadline is Monday, May 1, 2017.

During the last filing season, the State dealt with a surge of fraudulently filed personal income tax returns, and stopped over $9 million in fraudulent refunds from being issued. In order to better identify fraudulent returns, the Delaware Division of Revenue has created new methods of detecting and preventing fraudulent refunds. However, as a result, the first refunds will not be issued until after February 15, 2017.

This year, Delaware is also urging taxpayers to electronically file their returns. Online filing offers many advantages. Refunds from electronically filed returns are issued on average within 2 weeks, while refunds from paper-filed returns average over seven weeks. Last year, the average time to issue a refund for all tax filing methods combined was just over 20 days.

Delaware offers the following electronic filing options:

  1. Those who don’t need tax preparation software can file for free on the Delaware Division of Revenue website. This online system is extremely user-friendly and available 24/7. The system also allows taxpayers to file their returns and then schedule any payment due closer to the May 1st deadline. Taxpayers may pay their State of Delaware taxes on this system using a credit card or by debiting their bank account.
  2. Those who prefer tax-preparation software can electronically file their federal and state income tax returns for a fee, although these products also offer free-filing options for Delaware taxpayers who meet the following qualifications:
    • Adjusted gross income 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
    • Qualify for the Federal Earned Income Tax Credit (EITC)

For paper-filed returns, the State uses a modernized processing system that identifies tax filings based on the return type. Any taxpayer who files a 2016 tax return using a previous-year return, or who modifies the paper return in some way, will experience significant delays. Paper tax returns will be available at local libraries or for download at www.revenue.delaware.gov.

Because Delaware does not maintain reciprocity agreements with other states, it is important for anyone who is not a Delaware resident – but who has worked in Delaware – to understand that they must file a Delaware tax return. Delaware Residents who work out-of-state are required to file returns with Delaware in addition to the state where they worked.

By law, Delaware employees should receive their W-2 employment forms by January 31, 2017 for any job worked during the 2016 calendar year. Those who haven’t received a W-2 by January 31st should contact their employer.