Delaware Form 200-01 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form 200-1, the Delaware Individual Income Tax Return. If you don't live in Delaware, not to worry, we'll be tackling the other 34 states soon enough.
The Delaware department of revenue has put together a very generic form. While it's not overly complicated, it's not something that can be polished off in 10 minutes either. Still, if you've kept good records, the Form 200-01 should take you a little over an hour. I'll give it a 5 of 10 on the user - friendly meter.
As usual begin the form by recording your name, address, social security number, and filing status. The main form is only 27 lines, (and on a single page), but you'll need to fill out all three pages to move through it properly. Be sure to read through the whole article to get the entire lowdown on this ho-down.
Be aware that as you move through the form, column A is for your spouse information and column B is for you. If you have no spouse, then simply use column B, leaving column A blank. On Line 1 enter your Delaware adjusted gross income, you'll get this later from Line 41 on page 2.
If you don't want or don't need to itemize put a check in box 2a. The standard deduction is a healthy $3,250 (doubled if married filing jointly). If however, you need to itemize, put a check in box 2b. On Line 3, you'll get an additional $2,500 deduction if you or your spouse are 65 or legally blind. When ready add up all your deductions and enter the total on Line 4. Then subtract Line 4 from Line 1 to get your taxable amount of income.
On Line 6 you'll need to look up your tax liability (from the tax rate table) in the instruction booklet. If you took a lump sum distribution from a retirement account, include Form 329 and record the amount on Line 7. Now add Lines 6 and 7 to get your total tax, which goes on Line 8. So far so good, right?
On Line 9a enter the number of exemptions that you claimed on your Federal return and multiply them by $110. If you or your spouse are 60 (or over) check the applicable boxes and multiply the number of boxes you checked by $110. On Line 10 enter tax imposed by any other state that has claim to your income.
If you fight fires for fun, enter the company number and you'll receive a credit on Line 11. If you are due any other credits, (check page 7 of the instruction booklet), and enter those amounts on Line 12. If you've earned a child care credit, you only get 50% of what you were able to claim on your federal form, just be sure to attach Form 2441 and enter the amount on Line 14.
Now add all the credits starting from Line 9a through Line 14 and enter the total on Line 15. Then subtract Line 15 from Line 8 and put the balance on Line 16. On Line 17 enter your Delaware withholdings, you can find it on your W-2.
Line 18 is for any estimated taxes along with all extensions and payments. If you're part of an S-Corporation, include Form 1100/A-1 on Line 19. Finally fill out Line 20 which asks about any real estate estimated tax payments. Then add Line 17, 18, 19, and 20 on Line 21 to get your total refundable credits. Whew!
If Line 16 is greater than Line 21, you still have a tax liability. Simply subtract Line 21 from Line 16 to see how much. But if Line 21 is larger than Line 16, subtract Line 16 from 21 to find out how much you overpaid. If you feel like contributing to an election, complete DE Schedule 3 and enter the amount on Line 24.
If you want to apply some or all of your refund to next year, enter the amount on Line 25. If you've incurred any penalties or interest record that amount on Line 26. If you have a balance due (from Line 22), write a check and enter that amount on Line 27. If you are due a refund, subtract Lines 24 through 26 from Line 23. Then it will be time for the Delaware department of revenue to show you the money.
And there you have it, Delaware is rather quick and certainly painless. If you need to make any changes to your federal adjusted gross income read further. Also be sure to check out the 3 schedules that go along with this Form. You could miss out on some hidden tax break if you fail to do so.
On Line 29 enter your federal AGI, you can find it on Line 37 of your 1040 or Line 21 of your 1040a. On line 30 enter any bond interest from states other than Delaware. Line 31 is for a fiduciary adjustment if it applies to you, you'll know what it is. When ready, add Lines 30 and 31, with the result going on Line 32. Then add Lines 29 and 32 to get total additions to your AGI.
Now you'll have to figure some subtractions. If you received interest from government bonds, enter that amount on Line 34. If you own a pension or retirement exclusion, those amounts go on Line 35. If things like a work opportunity credit or the Travelink program apply to you, check page 10 of the instruction booklet and enter the total on Line 36. If you've paid taxes on Social Security or other retirement benefits enter them on Line 37.
Now add lines 34 through 37 to get total subtractions, which then go on Line 38. On Line 39, subtract Line 38 from Line 33 to get the subtotal of your changes to your AGI. If you are over 60 and/or disabled, you may have another adjustment coming, check page 11 of the booklet to be sure. Now add Lines 38 and 40 on Line 41. All that's left is to subtract Line 41 from Line 33 to get your Delaware adjusted gross income. Just record it on Line 42 and Line 1 of the main form.
On Line 43 enter the total of your itemized deductions from Schedule A of your Federal 1040 Form, (you can find it on Line 29). If you paid any foreign taxes, they go on Line 44. If you've earned a charitable mileage deduction it goes on Line 45. Now add Lines 43 through 45 and enter the total on Line 46.
Next enter any state income tax that was included on Line 43 on Line 47a. If you filled out a Form 700 (a tax credit adjustment) enter that amount on Line 47b. Then add Lines 47a and b. When ready subtract that amount from Line 46 to get you're your total itemized deductions, this number goes on Line 48.
In Section D record your banks checking and routing numbers so you can have your refund directly deposited. You don't want to wait for your refund, do you?
If you've paid taxes to another state, because you are a part time resident, you'll want to fill out DE Schedule 1. If you've earned an income tax credit, Delaware allows for 20% of what you were able to get on your federal return, just fill out DE Schedule 2 to make it official. And if you've contributed a bunch of money to charity, work through DE Schedule 3 to see how much. Remember if any of the above conditions apply, page 3 has to be sent in with your return. If not, then you can skip the page.
All that's left is to sign, date, record your home/business phone, and email address at the bottom of the page 2. If you had a tax guy or gal help you, make sure they do the same.
