Section 4 of HB 65 amends § 1106(b), Title 30 of the Delaware Code:
§ 1106 Modifications.
(b) Subtractions. – There shall be subtracted from federal adjusted gross income:
(10) The amount of any unemployment benefits received in calendar year 2020, to the extent included in federal adjusted gross income.
The Delaware Division of Revenue issued Technical Information Memorandum (TIM) 2021-01 on January 28, 2021 – the subject of this TIM is the exemption of 2020 unemployment compensation from state income taxation. This applies to any Delaware unemployment compensation a taxpayer received, as well as any out-of-state unemployment compensation received. Click the above link to read the full TIM for guidance on how to exclude unemployment compensation from your income on your 2020 Delaware income tax return.
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