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April 16, 2025
Question

What do I do for "Itemized deductions-Reduction to State Income Tax"? It says Delaware allows a deduction for state income taxes but what does this mean?

  • April 16, 2025
  • 1 reply
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It says to enter the portion of the out of state tax credit that was paid during 2024 but what does that mean? My husband works in MD and I work in DE and we live in DE. It gives me an "out of state tax credit" amount and then asks me to enter the portion of that amount that was paid during 2024. What does that mean and how do I figure out what goes here? Is it the full out of state tax credit amount that was automatically calculated?

    1 reply

    AmyC
    April 16, 2025

    DE is giving you credit for the amount paid to MD since it is being taxed by both states. If you are getting a refund, the full tax liability for MD can be entered. If you owe MD, enter the amount withheld from paychecks.

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