How to File Delaware State Tax Return for Tax Year 2014: Step-by-Step Guide

Filing your Delaware state tax return for 2014 may seem overwhelming initially, especially if you are unfamiliar with the tax code or have never prepared a return. The process is important because it ensures you meet your tax obligations, avoid unnecessary penalties, and claim any refund you may be eligible for. This guide explains how to file the Delaware state tax return for 2014 in a way that is straightforward and accessible, even if you are new to filing taxes.

The state requires residents, part-year residents, and some nonresidents to submit a tax return depending on income, deductions, and filing status. The first step is understanding whether you qualify to file, gathering the right forms, and determining your taxable income. Knowing the difference between the standard deduction, itemized deductions, and credits is also essential, since these can reduce the amount you owe or increase the refund you receive.

By following a step-by-step process, taxpayers can complete their Delaware return accurately and on time. Whether you are filing jointly, married filing separately, or considered a head of household, this guide will walk you through the rules and provide examples. The goal is to simplify the filing process to meet deadlines and avoid confusion about forms, deductions, and payment options.

Who Must File a Delaware State Tax Return

Not every Delaware resident or worker must file, but the state has clear rules based on income, filing status, and residency. Understanding these rules is the first step in preparing your tax return for 2014.

Full-Year Residents

You must file if your adjusted Delaware gross income exceeds your filing status and age threshold. The limits for 2014 were:

Single or head of household: $9,400 under 60, $12,200 if 60–64, $14,700 if 65 or older, and $17,200 if 65 or older and blind.
Married filing jointly: $15,450 if under 60, $17,950 if 60–64, $20,450 if 65 or older, and $22,950 if 65 or older and blind.
Married filing separately: $9,400 under 60, $12,200 if 60–64, $14,700 if 65 or older, and $17,200 if 65 or older and blind.
Dependents: $5,250 regardless of age.

Part-Year Residents

You are required to file a Delaware state tax return if either of the following applies:

You earned income from any source while living in Delaware.
You earned income from Delaware sources while living outside the state.

Nonresidents

You must file if you received any gross income from Delaware sources during 2014. This includes wages, business income, or other taxable income connected to Delaware.

Important Notes on Filing Status

Your Delaware filing status must match your federal filing status. This includes single taxpayer, married filing jointly, married filing separately, head of household, and surviving spouse. Married taxpayers should pay special attention, since if a spouse itemizes deductions on the federal return, the other spouse must also itemize on the state return.

Key Considerations

Filing is based on your annual accounting period, usually the calendar year.
Even if your income falls below the required thresholds, you may still want to file if state income tax was withheld and you expect a refund.
A refund can only be claimed by submitting a completed return.

Delaware Tax Forms for 2014

Filing the correct form is essential for your Delaware state tax return. In tax year 2014, the Delaware Division of Revenue provided specific forms for residents, part-year residents, and nonresidents.

Main Forms

Form 200-01 is the Delaware Individual Resident Income Tax Return. You should use this form if you were a full-year or part-year resident who chooses to file as a resident.
Form 200-02 is the Delaware Non-Resident Individual Income Tax Return. This form is required if you were a nonresident with Delaware-source income or a part-year resident filing as a nonresident.

Instructions and Supporting Documents

The Division of Revenue publishes instructions for Forms 200-01 and 200-02. These instructions explain how to report income, apply deductions, and calculate taxable income.
The 2014 income tax table is also available and must be used to determine your tax bill.

Discontinued EZ Form

In 2014, the Delaware EZ form (200-03) was no longer offered. Depending on residency status, taxpayers were required to file using either Form 200-01 or Form 200-02.

Step-by-Step Guide to Completing the Delaware Tax Return

Completing your return requires a careful approach. Following each step helps avoid mistakes and ensures your filing is accepted.

Step 1: Gather Required Documents

You should collect your federal tax return (Form 1040, 1040A, or 1040EZ), since Delaware begins with the federal adjusted gross income.
Gather all W-2 forms from your employers to report wages earned in 2014.
Include 1099 forms to report interest, dividends, or retirement income.
Keep records of Delaware estimated tax payments if you made quarterly payments during the year.
Assemble any other relevant statements, such as a Schedule K-1, mortgage interest statement, or receipts for charitable donations, if you plan to itemize deductions.

Step 2: Enter Personal Information and Filing Status

You must provide your full legal name, Social Security number, and mailing address.
Your Delaware filing status must match your federal filing status. This could be a single taxpayer, jointly filed, married filing separately, head of household, or surviving spouse.

Step 3: Report Delaware Income

Enter your federal adjusted gross income as shown on your federal return.
Apply Delaware-specific adjustments, such as pension exclusion or exemptions for Social Security benefits. These adjustments help you calculate your correct taxable income under Delaware law.

Step 4: Choose Standard Deduction or Itemized Deductions

Delaware’s standard deduction amount for 2014 was $3,250 for single taxpayers and married individuals filing separately, $6,500 for married taxpayers filing jointly, and $3,250 for head of household.
An additional standard deduction of $2,500 is available if you are 65 or older or qualify for corrected vision adjustments due to blindness.
You may choose to itemize deductions if they exceed your standard deduction. Itemized deductions include property taxes, mortgage interest, charitable donations, and other eligible expenses.
Married taxpayers should note that if one spouse itemizes deductions on the federal return, the other spouse must also itemize on the Delaware return.

Step 5: Calculate Tax and Apply Credits

Once taxable income is determined, use the Delaware income tax tables to find your tax liability.
Apply available credits such as the earned income credit, the volunteer firefighter credit, or the credit for taxes paid to other states. These credits directly reduce your tax bill and can increase your refund amount.

Common Mistakes to Avoid

Some taxpayers incorrectly select a filing status that does not match the federal return, which causes processing delays.
Others forget to claim additional deduction amounts available for age or blindness, missing out on a bigger deduction.
Errors can also occur when calculating taxable income or failing to include other itemized deductions, which may result in paying more than required.

How to File Your Delaware Tax Return

After completing your return, you must decide how to file it. Delaware offers both online and paper filing options.

Online Filing

Delaware provides a free online filing system for 2014 returns. This system allows taxpayers to enter their information directly and submit it securely.
Filing online is faster because refunds are processed more quickly, especially when direct deposit is selected.
Online systems automatically check for errors and immediately confirm that the return was received.
The IRS recommends filing electronically whenever possible to reduce mistakes and speed up refund delivery.

Paper Filing

Taxpayers who prefer paper filing must send their completed form to the correct address.
If you owe a balance, mail your return to P.O. Box 508, Wilmington, DE 19899-0508.
If you expect a refund, send your return to P.O. Box 8710, Wilmington, DE 19899-8710.
If you have no tax due and no refund expected, mail your return to P.O. Box 8711, Wilmington, DE 19899-8711.
Always sign the tax return before mailing. Married taxpayers filing jointly must provide both signatures.

Filing Reminders

If you are submitting by mail, attach all W-2s, 1099s, and schedules. This ensures that your income and deductions are fully documented.
Keep a copy of your return and all attachments in your records. This will make it easier to amend your return later if necessary.

Payment Options and Extensions

If you owe money on your Delaware state tax return for the year 2014, you have several ways to pay. The Delaware Division of Revenue also provides options for additional filing time, though extensions do not delay the deadline to pay taxes owed.

Online Payment Methods

You can authorize a direct debit from your bank account. This method has no dollar limit and allows you to schedule the payment on or before the due date.
You may also pay by credit card. The maximum transaction amount is $2,500, and the payment is processed immediately.

Paper Payment Methods

If you prefer mailing your payment, you can write a check or money order payable to the State of Delaware.
You should include your Social Security number and the tax year on the payment to ensure it is credited to the correct account.
When mailing, enclose the payment with your return and use the correct P.O. Box address provided by the Division of Revenue.

Estimated Tax Payments

Taxpayers who expect to owe more than $400 in state income tax for the next tax year must make quarterly estimated payments.
These payments are submitted using Form 200-ES, available through the Delaware Division of Revenue.
Making estimated payments helps avoid penalties and interest for underpayment.

Installment Payment Options

If you cannot pay your full tax bill immediately, contact the Delaware Division of Revenue at (302) 577-8200.
The state may allow you to set up a payment plan, but interest and penalties will continue to accrue until the balance is paid in full.

Filing Extensions

By submitting Form 1027, you can request an automatic extension to file until October 15, 2015.
To qualify for an extension, you must pay your estimated tax due by the deadline of April 30, 2015.
An extension only gives you more time to file your paperwork. It does not extend the time you have to pay taxes owed.

Final Filing Checklist

Before submitting your Delaware state tax return for the tax year 2014, it is important to review your documents and confirm that everything is complete. A careful review helps prevent delays, ensure accuracy, and reduce the risk of penalties.

Required Elements

You must sign and date your return. If you are married and filing jointly, both spouses must provide signatures.
Attach all income documents, including W-2s and 1099s, when mailing a paper return. This ensures that Delaware can verify your reported income.
If filing by mail, you need to confirm that you are using the correct mailing address since the address varies depending on whether you owe a balance, expect a refund, or have no tax due.
If you expect a refund, you should complete the direct deposit section of the return to receive your money more quickly.
You should always keep a copy of your completed return and all supporting documents for your records.

Additional Verification Steps

You should double-check all math calculations, particularly those that use the tax tables. Errors in calculations are one of the most common reasons for return rejections.
You must confirm that all Social Security numbers on the return are accurate and legible. An incorrect number may delay processing or affect your refund.
You should ensure your Delaware filing status matches the filing status used on your federal return.
You must include a payment or voucher with your paper return if you owe a balance.
You need to attach any additional schedules or forms required for your situation, such as itemized deductions or credits for taxes paid to other states.

Completing this checklist before you file can save you time, reduce mistakes, and help you qualify for any refund you are owed without unnecessary delays.

Frequently Asked Questions

How do you file the Delaware state tax return for 2014?

To file the Delaware state tax return for 2014, start with your federal adjusted gross income, then apply Delaware modifications under the state tax code. Choose between the standard deduction amount and itemized deductions, depending on which provides a bigger deduction. You can file electronically using tax software, which the IRS recommends for accuracy, or submit a paper return. Be sure to sign, pay any taxes owed, and keep a copy for your account.

Can I file separately as married in Delaware?

Yes, married taxpayers can choose married filing separately as their filing status, but the rules are specific. If one spouse itemizes deductions on a federal return, the other spouse must also itemize on the state return. You cannot claim the standard deduction if your spouse itemizes deductions. Although this may result in a higher tax bill, it may qualify you for other itemized deductions such as mortgage interest or property taxes.

How does the standard deduction work in 2014?

The basic standard deduction is a fixed amount that reduces taxable income. For the 2014 tax year, the standard deduction depends on filing status. A single taxpayer or head of household could claim $3,250, while a married filing jointly could claim $6,500. Married filing separately also used $3,250. Additional standard deduction amounts were available if you were 65 or older or had corrected vision qualifying for blindness, allowing eligible taxpayers to claim bigger deductions.

Should I take itemized deductions instead of the standard deduction?

Itemized deductions may be better than the standard deduction if your eligible expenses exceed the standard deduction amount. Examples of itemized deductions include mortgage interest, property taxes, charitable donations, and other items allowed under the tax code. Married taxpayers must remember that if one spouse itemizes, the other must also itemize. Tax software can help compare both options and determine which results in a smaller tax bill.

What happens if I owe taxes after filing?

If your tax return shows a balance due, you must pay it by the April 30 deadline for the annual accounting period. Delaware taxpayers who do not pay on time face penalties and interest on the unpaid money. You can pay by direct debit, check, or credit card. If you cannot pay the full amount, the Division of Revenue may allow a payment account, but additional amounts of interest will continue to accrue.

Can unmarried individuals or a surviving spouse qualify for deductions?

Unmarried individuals, head of household filers, and a surviving spouse qualify for specific standard deduction amounts. A surviving spouse filing jointly may claim the maximum standard deduction available, while single taxpayers or head of household filers may claim the basic standard deduction. If you qualify for additional deduction amounts due to age or corrected vision, you can also claim them. These deductions reduce taxable income and may increase a refund.

How do refunds work for Delaware taxpayers?

Taxpayers who overpay income tax or claim enough deductions may qualify for a refund. Refunds are processed more quickly when you file electronically, and choosing direct deposit ensures the money goes straight to your account. You can check online or contact the Revenue Division to track your refund. You will need your Social Security number, filing status, and refund amount. Filing accurately and on time helps avoid delays in receiving your refund.