Filing your Delaware tax return for the 2011 tax year may seem overwhelming, but the process is more manageable when broken into simple steps. Every year, individuals and families must report their income, determine their filing status, and review the state’s tax brackets to see if they owe money or are entitled to a refund. Understanding the requirements early can save taxpayers time and help them prepare the correct forms.

For Delaware residents, non-residents with Delaware income, and part-year residents, the rules for filing are based on income thresholds and current tax rates. Many of the numbers on the state return are taken directly from the federal income tax return, so completing your federal forms first is critical. From wages reported by your employer to deductions you may claim, the Delaware Division of Revenue requires that the information be accurate to avoid penalties and delays.

This guide will walk you through the process, from gathering documents to choosing whether to file taxes electronically or by mail. It will also explain how to pay any balance due, check the refund status, and request an extension if you need more time. By following these step-by-step instructions, taxpayers can confidently submit their returns and stay on top of important deadlines.

Who Must File a Delaware State Tax Return in 2011

Not everyone must file a Delaware tax return, but many individuals must do so based on income and filing status. Delaware law applies different thresholds for residents, non-residents, and part-year residents. Even if your income falls below the required amount, you may still want to file a claim if taxes were withheld from your paychecks to claim a refund.

Filing Categories

  1. Delaware residents: If you lived in Delaware for all or part of 2011 and your taxable income exceeded the threshold for your filing status, you must submit a return.

  2. Non-residents: If you earned income from a Delaware employer or other Delaware-based source, you must file a state tax return regardless of the amount.

  3. Part-year residents: If you moved to or from Delaware during the year, you are considered a part-year resident and must file based on your entire income earned in the state.

2011 Income Thresholds

Delaware State Tax Return Income Thresholds (2011)

If you lived or earned income in Delaware in 2011, you were required to file a state tax return if your income met the following thresholds based on your filing status:

  • Single Filers:
    You were required to file if your income was $9,378 or more.
  • Married Filing Jointly:
    You were required to file if your combined income was $15,449 or more.
  • Non-residents:
    You were required to file if you earned any Delaware-source income, regardless of the amount.

Important Note

If you had Delaware taxes withheld from your wages but earned less than the required threshold, filing a return allows you to claim a refund. Many taxpayers overlook this step, which means they may miss out on money that should be returned to them.

Key Tax Changes for Delaware in 2011

States update their income tax laws yearly, and 2011 was no exception. Taxpayers filing a Delaware tax return for this year needed to be aware of changes that affected how they determine their taxable income and how much they might owe.

  • The highest Delaware tax rate remained 6.95 percent for individuals in the higher tax bracket with over $60,000. While this rate was unchanged for 2011, current tax rates were scheduled to decrease to 6.75 percent in 2012 and 2013, and then to 5.95 percent in 2014.

  • Non-residents who sold real estate in Delaware were required to declare and pay estimated income taxes before their property deed could be recorded. This rule ensured that the state collected its share of taxes directly at the time of the transaction.

  • In 2011, the options for charitable contributions on the tax return were moved to Schedule III, and the state also introduced a new fund, the White Clay Creek Wild and Scenic Preservation Fund, which taxpayers could support.

These updates were important for individuals to review carefully before submitting their returns, especially if their income or deductions placed them in brackets where a percentage change could affect the final result.

Delaware State Tax Forms for 2011

Choosing the correct form is one of the first steps in preparing your return. Delaware provided different forms depending on residency status and the complexity of the taxpayer’s financial situation.

Main Forms Available

  • Form 200-01 R was used by Delaware residents who lived in the state for the entire year and had simple or complex income situations.

  • Form 200-02 NR was required for non-residents who earned income from Delaware sources, even if their primary residence was outside the state.

  • Form 200-03 EZ was a simplified option for residents with straightforward tax situations, such as those with wages from a single employer and limited deductions.

  • Form 1027 was used to request an automatic extension of time to file, allowing individuals until October 15, 2012, to submit their return.

Which Form Should You Use?

  • A full-year Delaware resident with a simple tax situation could generally file Form 200-03 EZ.

  • A full-year Delaware resident with business income, multiple employers, or itemized deductions must file Form 200-01 R.

  • A non-resident with Delaware income, such as wages or rental income, must use Form 200-02 NR.

  • A part-year resident who moved to or from Delaware during 2011 could choose either the resident or non-resident form, depending on which method best reported their entire income.

Where to Find Forms

Taxpayers could visit the Delaware Division of Revenue website at revenue.delaware.gov to download the correct forms. By selecting the prior year section, individuals could access the 2011 tax return forms and instructions that had been last reviewed or updated for accuracy.

Step-by-Step Instructions to Complete Your Delaware Tax Return

Completing a Delaware tax return begins with preparation and continues through each part of the form. Taxpayers should work step by step, using their federal return as the foundation.

Step 1: Gather Documents

Start by collecting your completed federal income tax return and all supporting paperwork. This includes W-2 forms from every employer, any 1099 forms showing additional income such as dividends or retirement distributions, and records of deductions or credits. Having these documents ready helps prevent errors and ensures a smooth filing process.

Step 2: Complete Your Federal Return First

Delaware calculates state income tax using figures directly from the federal tax return. For this reason, you must prepare your federal return first, confirm that it is accurate, and then transfer the necessary information to the Delaware forms.

Step 3: Fill in Personal Information

Enter your name, address, Social Security number, and filing status on the Delaware form. If you are married filing jointly, you must also include your spouse’s information. This section also asks about age or disability, since these factors may affect deductions.

Step 4: Report Income

Transfer the income information from your federal return to the Delaware form. This includes wages and salaries, interest and dividend income, business income, capital gains, and retirement distributions. Be sure to check that each figure matches the federal form exactly.

Step 5: Apply Delaware-Specific Deductions and Exclusions

Reduce your taxable income by applying deductions that are unique to Delaware. Social Security and Railroad Retirement benefits are not taxable in Delaware, so they can be excluded. Interest earned from U.S. Treasury obligations is also exempt. In addition, individuals age 60 or older may exclude up to $12,500 of pension and eligible retirement income, while those under 60 may exclude up to $2,000.

Step 6: Calculate Deductions

Choose whether to use the standard deduction or itemized deductions. The standard deduction is based on filing status and is simpler for most individuals. However, you may benefit from itemizing if your deductions exceed the standard amount. Taxpayers age 65 or older who do not itemize may claim an additional standard deduction of $2,500.

Step 7: Apply Credits

Next, subtract any credits from your tax liability. These include personal credits of $110 each for the taxpayer, spouse, and dependents, an additional personal credit for individuals age 60 or older, the Delaware Earned Income Tax Credit, and tax credits paid to other states.

Step 8: Determine Final Tax and Balance Due

Using the Delaware tax tables, determine the tax rate that applies to your income bracket. Subtract all credits and amounts already paid, then calculate whether you owe money or are entitled to a refund. This step is crucial, ensuring that your return is accurate before you file.

Filing Options: Online vs. Paper

Delaware taxpayers can choose to file their returns either electronically or by paper. Each method has advantages, but most individuals find that filing taxes electronically is the fastest and most convenient option.

Electronic Filing

  • Delaware offers its e-file system that allows most taxpayers to submit their returns online through the Division of Revenue’s website.

  • Many people also use federal/state combined tax preparation software, allowing them to file the IRS and the Delaware tax return in one process.

  • Filing electronically reduces errors because the software checks calculations automatically, and taxpayers receive a confirmation notice once the return has been accepted.

  • Refunds for electronically filed returns are often processed in as little as five business days, especially when direct deposit is used.

Paper Filing

  • Some taxpayers prefer to mail their tax return, or may be required to do so if their situation cannot be processed electronically.

  • Delaware provides different mailing addresses depending on whether a taxpayer expects a refund, owes money, or has a zero balance.

  • While paper filing works reliably, refunds usually take four to six weeks to issue, and the process requires careful attention to ensure that all forms and pages are included.

Filing Deadlines, Extensions, and Penalties

Meeting deadlines is one of the most important parts of filing a Delaware tax return. Taxpayers who file late or fail to pay what they owe can face penalties and interest charges.

  • The filing deadline for the 2011 Delaware state return was April 30, 2012, which was later than the federal deadline of April 15.

  • Taxpayers who needed additional time to prepare their returns could file Form 1027 to request an extension until October 15, 2012. However, this extension applied only to the paperwork, not to the payment of taxes. Any balance owed still had to be paid by the April deadline.

  • Delaware imposed a late filing penalty of five percent per month on unpaid balances, up to a maximum of 50 percent. An interest rate of 0.5 percent per month also applied to unpaid taxes.

  • Even if a taxpayer could not pay the full amount due by April, filing the return on time was better to avoid the larger late filing penalty.

These rules meant that individuals needed to plan, review their income early, and determine whether they needed extra time before the deadline.

How to Pay Delaware State Taxes

Taxpayers who owed money on their Delaware return could choose from several payment options. Delaware encouraged individuals to pay electronically for faster processing, but traditional payment methods were also available.

Online Payment Methods

  • Taxpayers could pay directly from a checking or savings account through the Division of Revenue’s secure payment system. This option, often called direct debit, allowed individuals to schedule payments for any date up to the deadline.

  • Credit card payments, including Visa, MasterCard, or Discover, could also be made, although additional service fees sometimes apply.

  • An electronic check option was available, where the payment was deducted directly from a financial institution account using routing and account numbers.

Traditional Payment Methods

  • Taxpayers who preferred to mail payments could send a check or money order made payable to the Delaware Division of Revenue.

  • When mailing a payment, individuals must write the tax year (2011) and their Social Security number on the memo line to ensure proper credit.

  • Payments had to be included with the return when filing by paper.

Payment Plans

  • Taxpayers who cannot pay the full balance at once can contact the Delaware Division of Revenue to set up an installment plan.

  • These payment plans helped individuals spread their tax liability over time, although interest and penalties would continue to accrue on any unpaid portion.

  • Taxpayers could call the Division of Revenue directly during business hours to learn about available payment options.

Tracking Your Delaware Tax Refund or Balance

Once a taxpayer has submitted a Delaware tax return, it is natural to want to know when the refund will arrive or whether a balance is still owed. Delaware provides both online and phone options to make this process simple.

Online Refund Tracking

  • Taxpayers could visit revenue.delaware.gov and select the option to check the status of their refund.

  • The system required the individual’s Social Security number and the expected refund amount.

  • Results were available immediately, and taxpayers could confirm whether the refund was being processed, approved, or delayed.

Phone Inquiry

  • Delaware also offered a toll-free Refund Hotline at (866) 276-2353.

  • Taxpayers needed their Social Security number and refund amount ready when calling.

  • This service was useful for individuals who preferred speaking directly to an automated system or who did not have easy online access.

Processing Times and Common Delays

  • Electronic returns were usually processed within five business days, while paper returns could take four to six weeks.

  • Returns that required extra documentation or corrections generally took longer.

  • Delays often resulted from missing signatures, math errors, or W-2 forms, so taxpayers were encouraged to carefully review their return before submitting it.

Final Filing Checklist

Before submitting a Delaware state tax return, taxpayers should carefully review their forms and ensure that all required documents are included. A checklist helps individuals confirm their return is complete, accurate, and ready to file.

Required Documents

  • Signed and dated state tax return, including all pages.

  • W-2 forms from each employer and any 1099 forms reporting income such as dividends, retirement distributions, or contract work.

  • A copy of the federal income tax return, especially if adjustments were claimed on the Delaware return.

  • Any federal schedules (A, B, C, D, etc.) attached to the federal return were used in calculating taxable income.

Payment and Mailing Details

  • If a balance is due, a check or money order made payable to the Delaware Division of Revenue should be included.

  • The correct mailing address for the return depended on whether the taxpayer owed money, expected a refund, or had no balance due.

  • Taxpayers filing electronically must confirm that their payment method was entered correctly when submitting their return online.

Direct Deposit Information

  • Taxpayers expecting a refund had to check that their bank routing and account numbers were correctly entered on the form.

  • It was also necessary to indicate whether the account was checking or savings to prevent delays in the deposit.

Recordkeeping Best Practices

  • A copy of the complete tax return and all supporting documents should be kept for personal records.

  • Taxpayers mailing a return were encouraged to use certified mail and retain the tracking number as proof of submission.

  • Keeping organized records helped in the event of questions from the Delaware Division of Revenue or the IRS.

Frequently Asked Questions

When is the deadline to file a Delaware tax return for 2011?

The deadline to file a Delaware tax return for the 2011 tax year was April 30, 2012, which was later than the federal deadline of April 15. Taxpayers needing more preparation time could submit Form 1027 for an extension until October 15, 2012. The extension only applied to filing, so any income tax owed still had to be paid by April.

How do I know if my taxable income requires filing a return?

Whether you must file depends on your filing status and taxable income for the year. Delaware uses specific income thresholds to determine who needs to submit a tax return. For example, single individuals were required to file if they earned more than $9,378. Married couples filing jointly had higher limits. Non-residents must file if they earned income from Delaware sources during the year.

Are Social Security benefits or pensions included as taxable income in Delaware?

Delaware does not tax Social Security benefits, which means they are excluded when calculating state income tax. Pensions are partially excluded depending on age. Taxpayers age 60 or older may claim up to $12,500 of pension income as a deduction, while younger individuals may claim up to $2,000. These rules ensure that retirees and seniors are not placed into a higher tax bracket unnecessarily.

What happens if I cannot pay the amount I owe by the filing deadline?

If you cannot pay your entire balance by April 30, you should still file your tax return to avoid late filing penalties. Delaware allows taxpayers to contact the Division of Revenue to request a payment plan. These arrangements can be made directly with a financial institution account or by traditional methods. Interest of 0.5 percent per month will still apply, but installment agreements help taxpayers manage money more effectively.

Can I file my Delaware return and pay taxes electronically?

Most taxpayers can file and pay taxes electronically through the Delaware Division of Revenue website. This process allows individuals to prepare and submit their return directly, often resulting in a faster refund. Payments can be made by electronic check, direct debit from a bank account, or credit card. Electronic filing also reduces errors because the system checks calculations automatically and confirms when the return is accepted.

How do Delaware tax brackets compare with federal income tax rates?

Delaware uses its tax brackets that differ from federal income tax rates. For 2011, the highest Delaware tax rate was 6.95 percent, applying to individuals in a higher tax bracket earning over $60,000. These current tax rates were scheduled to change in later years. Since the state system is separate from the IRS, taxpayers must review federal and state brackets to determine their overall results.

Is filing taxes in Delaware different from filing in Texas?

Yes, filing requirements differ because Delaware imposes a state income tax while Texas does not. Taxpayers in Delaware must prepare a state return in addition to their federal return and review state-specific deductions, credits, and tax brackets. In Texas, individuals file only federal returns. People moving between the two states should pay close attention to their residency status and entire income to determine where they must file.