How to File a Delaware Amended Tax Return Correctly

Correcting a previously filed tax return is sometimes necessary due to errors or new information affecting tax liability. In Delaware, filing an amended return ensures compliance with state tax laws and helps avoid penalties or interest charges. Whether correcting income, deductions, or credits, following the proper process is essential.

To amend a Delaware tax return, you’ll need specific forms, supporting documents, and an understanding of submission deadlines. Accuracy in each step prevents delays and issues with the Delaware Division of Revenue.

Qualifying Reasons

Amending a Delaware tax return is necessary when changes affect the amount owed or the refund due. Unreported income, such as a forgotten W-2 or freelance earnings, is a common reason. Failing to report all taxable income can lead to underpayment, penalties, and interest. Conversely, overstated income can be corrected to secure a refund.

Errors in deductions and credits also require amendments. Taxpayers sometimes miss deductions like student loan interest or fail to claim credits such as the Earned Income Tax Credit (EITC) or Child and Dependent Care Credit. Incorrectly claiming these can trigger an audit or require repayment with interest. Adjusting these figures ensures compliance with Delaware tax laws and prevents financial consequences.

If the IRS modifies a federal return due to an audit, correction, or amendment, Delaware law requires corresponding state-level changes. Failing to report these adjustments can create discrepancies between federal and state filings, increasing scrutiny from tax authorities.

Filing Forms and Instructions

To amend a Delaware personal income tax return, residents must use Form PIT-RES, while nonresidents and part-year residents must use Form PIT-NON. These forms allow taxpayers to report corrections and updated calculations. The amended return must clearly indicate it is a revision by checking the appropriate box. The updated figures should be entered in the “Corrected Amount” column, with originally reported numbers in the “As Originally Reported” column.

Delaware does not have a separate amendment form, so taxpayers must complete the same form used for the original filing. While only the affected sections need updates, the entire form must be completed and signed. If changes result in additional tax liability, interest accrues from the original due date until payment is made. Delaware’s interest rate on unpaid taxes is the federal underpayment rate plus 3%, as outlined in 30 Del. C. 5316.

If an amended federal return is filed using IRS Form 1040-X, Delaware requires a copy to be included with the state amendment. This ensures consistency between federal and state tax records and reduces the risk of discrepancies that could trigger further review. Taxpayers who receive a notice of federal adjustments must notify Delaware within 90 days of the final determination, as required by 30 Del. C. 514.

Documentation Requirements

Supporting documentation is essential for verifying an amended Delaware tax return. If modifying income, taxpayers must provide copies of relevant documents, such as corrected W-2s, 1099s, or K-1 schedules. For example, if a taxpayer receives a revised 1099-NEC reflecting additional self-employment earnings, submitting this document with the amended return substantiates the change and prevents unnecessary inquiries from the Delaware Division of Revenue.

Adjustments related to deductions or credits require proof. If claiming a previously omitted deduction for medical expenses, taxpayers should include receipts, insurance statements, or an itemized breakdown of qualifying costs. Business-related deductions, such as mileage or home office expenses, should be supported by mileage logs, utility bills, or lease agreements. Changes to education-related deductions or credits, such as the Delaware College Investment Plan tax deduction, should be accompanied by account statements or tuition payment records.

For taxpayers amending their return due to a change in filing status—such as switching from married filing separately to jointly—proof of marital status for the relevant tax year may be required. A marriage certificate or a signed statement from both spouses acknowledging the revised filing election can help prevent processing delays. If dependents are newly claimed or removed, birth certificates, Social Security cards, or custody agreements may be required to confirm eligibility.

Timing and Methods of Submission

Delaware taxpayers must be aware of the statute of limitations for making corrections. Under 30 Del. C. 5303, an amended return claiming a refund must be filed within three years from the original filing deadline or within two years from the date the tax was paid, whichever is later. If the adjustment results in additional tax owed, Delaware generally allows the state to assess the liability within three years from the original due date or the date the return was filed. If an amended return is prompted by federal changes, Delaware law mandates submission within 90 days of the IRS’s final determination to avoid penalties.

Amended returns can be submitted by mail or electronically, depending on the taxpayer’s preference and eligibility. Paper filings should be sent to the Delaware Division of Revenue at the address specified in the form’s instructions. While Delaware does not currently offer a dedicated online amendment portal, taxpayers using third-party tax software may have e-filing options, particularly if the amendment is linked to a federal correction.

Calculating Adjusted Liability

Once corrections are made, recalculating the adjusted tax liability ensures accuracy. If the amendment increases taxable income, the revised amount must be applied to Delaware’s progressive tax brackets, which range from 0% to 6.6% depending on income level. Adjustments to deductions or credits also require recalculating the total taxable income before applying the tax rate.

For taxpayers who previously overpaid, the difference between the original and corrected tax liability represents the refund amount. If the amendment results in a higher tax obligation, the additional amount owed must be calculated, including any applicable interest. Delaware law imposes interest on underpayments based on the federal short-term rate plus 3%, as specified in 30 Del. C. 5316. To avoid further penalties, taxpayers should ensure prompt payment when submitting the amended return, as late payments may incur additional charges under 30 Del. C. 5330.

Resolving Refunds or Additional Payments

If the amendment leads to a refund, the Delaware Division of Revenue processes the claim after verifying the corrections. Refunds are typically issued via direct deposit or check, depending on the taxpayer’s original selection. Processing times vary, but amended returns often take longer than original filings due to manual review. Taxpayers can track refund status using Delaware’s online refund inquiry tool.

When an amendment results in additional tax owed, payment should be made promptly to minimize interest accrual. Delaware allows payments via check, money order, or electronic transfer through the state’s online tax payment portal. If the liability is substantial, taxpayers may request a payment plan by contacting the Division of Revenue, though approval is subject to financial review. Failure to pay the additional amount in a timely manner can lead to collection actions, including liens or wage garnishments under 30 Del. C. 554.

Maintaining Amended Return Records

Keeping thorough records of an amended tax return is important for future reference and potential audits. Taxpayers should retain copies of the revised return, supporting documentation, and any correspondence with the Delaware Division of Revenue for at least three years, aligning with the state’s general statute of limitations for tax assessments under 30 Del. C. 5303. If the amendment was triggered by an IRS adjustment, records should be kept for at least six years, as federal audits can extend beyond three years in cases of substantial underreporting.

Organizing records in both physical and digital formats ensures accessibility if additional verification is required. Taxpayers who use professional tax preparers should notify them of the amendment and provide copies of all relevant documents to maintain consistency in future filings. If an amended return leads to further inquiries from tax authorities, having detailed records readily available can help resolve issues efficiently and prevent unnecessary penalties.