Taxes (renting, credit, income) - Delaware (DE) - City-Data Forum

Sandee1213 · 03-10-2010, 11:13 AM

Can someone please help me? We just moved to De. about 6 months ago and are doing our taxes now. My husband works in Md, so they take out money there for state income taxes obviously, but now it seems that De. is also going to charge him state income tax. Why is that? He does not work in De? I am just confused, because it seems like we are getting double taxed.

raven302 · 03-10-2010, 11:42 AM

I work in Philly and get money back but then turn around and pay it to Delaware at the end of the year.

jwkde · 03-10-2010, 11:42 AM

You need to file a delaware return, but DE will give you credit for you tax liablity in MD. I file both every year and most years my MD taxes exceed my DE tax liablity so I do not have to send them any money.

Just be careful if you do wind up owing DE, they like to invoke a penalty.

Remember not to include all of your Federal Income as MD income for the time you did not work there.

Good Luck

Boompa · 03-10-2010, 11:44 AM

Quote:

Originally Posted by Sandee1213

Can someone please help me? We just moved to De. about 6 months ago and are doing our taxes now. My husband works in Md, so they take out money there for state income taxes obviously, but now it seems that De. is also going to charge him state income tax. Why is that? He does not work in De? I am just confused, because it seems like we are getting double taxed.

I don't know about Maryland but on your Delaware Form there should be a place to take credit for the money you paid Maryland

jdoll · 03-10-2010, 02:54 PM

You need to file BOTH Delaware and Maryland Income Tax Forms, but you are not being double taxed. Fill out the MD return 1st, then the DE. Everything will even itself out once you reach Delaware Form 200 line 10 for reporting MD withholdings/taxes.

armx · 03-11-2010, 10:32 AM

Sandee:

As somebody else posted, you will have to file MD (and possibly NJ) first and then DE tax returns but generally you will not have to PAY more tax in DE. Remember to include only that part of income (by proportioning or taking the income that your DH earned after becoming the resident of DE.

If I remember correctly, because you were renting for a while you may not get the full advantage of deductions on the schedule A this time around but next year your schedule A deductions will be advantageous when filing income tax return DE.

Feel free to DM me.

Sandee1213 · 03-11-2010, 05:29 PM

Thank you for all of you feedback. I really appreciate it. I spoke with my accountant and she is looking at it. She explained it to us fully. Thanks again