Delaware 2011: Itemized Deduction does not Subtract State Income Taxes Paid
Updated: 9/13/2012
Article ID: SLN63515
In Delaware, you are able to claim Itemized deduction even if the Standard deduction was claimed on your federal return. Deduction reported on line 2 of Form 200-01 is incorrectly including Delaware state taxes paid, when the amount should be subtracted.
This issue occurs only if you are claiming the standard deduction on your federal return and the federal Schedule A total deduction exceeds the Delaware standard deduction.
Workaround - Desktop
To work around the issue you must manually adjust the deduction amount on the Itemized Deduction Allocation Worksheet:
- Open your tax return in TurboTax and click on the Forms icon located on the top right hand corner of the TurboTax window
- In the Forms in My Return section locate and select Itmzd Ded Alloc form under Delaware Individual
- On line 5a, enter the amont of state taxes paid
- Click on the Step-by-Step icon to go back to Interview to complete and file your tax return
Note: If you are using TurboTax Online and are affected by this issue, please contact us so we can help you complete your tax return.
