What Is the Delaware Standard Deduction?

When filing state income taxes in Delaware, taxpayers can reduce their taxable income by a predetermined amount known as the standard deduction. This fixed dollar figure simplifies tax preparation by eliminating the need to track and document a variety of specific expenses throughout the year. By taking the standard deduction, filers can lower the amount of their income that is subject to state tax without the record-keeping required for itemizing.

Delaware Standard Deduction Amounts

For the 2024 tax year, Delaware has set specific standard deduction amounts based on a taxpayer’s filing status. An individual filing as single, head of household, or married filing separately can claim a standard deduction of $5,700. For those who are married and file a joint return, the standard deduction is doubled to $11,400. These amounts were increased effective for tax years beginning after December 31, 2023.

In addition to the base amounts, Delaware law provides for an additional standard deduction for certain taxpayers. An extra $2,500 can be added to the standard deduction for a taxpayer who is age 65 or older. A taxpayer who is legally blind is also entitled to this same $2,500 additional deduction. It is possible for a taxpayer to claim these additional amounts for both themselves and their spouse if both qualify. For example, a single individual who is 67 years old would be able to claim a total standard deduction of $8,200, which combines the $5,700 base amount with the $2,500 additional amount for age.

Eligibility for the Standard Deduction

Most resident taxpayers in Delaware are permitted to claim the standard deduction on their state income tax return. If a taxpayer’s circumstances are straightforward and they do not have significant deductible expenses, the standard deduction is generally the default choice. This option is available across all filing statuses, including single, married filing jointly, head of household, and married filing separately.

There are specific circumstances that make a taxpayer ineligible to claim the Delaware standard deduction. A restriction applies to married couples who choose to file separate returns. If one spouse decides to itemize their deductions, the other spouse is not permitted to claim the standard deduction and must also itemize. Additionally, non-resident aliens are generally not eligible to claim the standard deduction and must itemize any allowable deductions.

Choosing Between Standard and Itemized Deductions

The decision to take the standard deduction or to itemize depends entirely on which method results in a larger total deduction. Itemized deductions are specific, eligible expenses that a taxpayer can subtract from their adjusted gross income. Delaware generally allows for the same categories of itemized deductions as federal law, which include expenses like home mortgage interest, charitable contributions, and medical expenses exceeding a certain percentage of income. However, a significant difference is that state income taxes, which can be deducted on a federal return, are not deductible on the Delaware state return.

To make the correct choice, a taxpayer must first calculate the total of all their potential itemized deductions. This involves summing up all qualifying expenses, such as property taxes paid (up to the federal limit), gifts to charity, and unreimbursed medical costs. Some deductions, like those for active labor organization dues or certain foreign taxes paid, may also be available at the state level. Once this total is calculated, it should be compared directly to the standard deduction amount available for the taxpayer’s filing status.

If the total of the calculated itemized deductions is greater than the applicable standard deduction, the taxpayer should choose to itemize. This will result in a lower taxable income and a lower tax liability. If the standard deduction amount is higher, taking the standard deduction is the more advantageous option.