There are filing requirements you must meet before you are required to file a Delaware tax return. These factors are based on your filing status, age, and total income. Even if you are not required to file a return, you may wish to if you are due a refund or if you have certain state tax credits to claim.http://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf    

The state of Delaware considers all earned income to be taxable. This includes wages and salaries as well as net self-employment earnings. If you have received certain forms of unearned income, such as unemployment compensation, bank interest, or lottery winnings, these will also have to be reported to the state as income. A complete list of Delaware taxable income sources can be found in the tax form instructions.http://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf   

To get your Delaware return started, you first need to gather all of the essential paperwork needed to complete your tax forms. This includes the following:

1. Your Social Security number
2. Your complete mailing address
3. The full name and Social Security number of your spouse, if you are filing a joint tax return
4. Your total earned income received during the year - If you are employed, your income will be reported to you on Form W-2 or Form 1099 as total taxable wages. If you are self-employed, add up your gross earnings and deduct any eligible business expenses you can claim.
5. Your unearned income that is subject to state taxes - Examples of this include pension payments, rental property income, and capital gains.
6. The state income tax payments you have already made - Employees will see this on Form W-2 as state taxes withheld. Self-employed individuals will use the total of any estimated state tax payments made.
7. A copy of your completed federal tax return, if you are filing onehttp://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf  
   

Since you will be using your federal adjusted gross income on your Delaware return, complete your IRS forms before beginning the state forms. If you will not be completing a federal income tax return at this time, you might want to talk with a tax professional who can help you calculate this figure.http://www.irs.gov/pub/irs-pdf/f1040.pdf 

If at all possible, consider filing your Delaware tax return electronically. This method will save time, money, and greatly speed up the processing of your tax forms. If you are due a refund, you may be able to receive your payment up to six weeks earlier by e-filing. Delaware residents are able to e-file for free using the online filing portal available on the Delaware Department of Revenue website.http://revenue.delaware.gov/services/Developer/efile.shtml 

Should you decide to use tax software to prepare your federal income tax return, you will generally be given the option to include your state return for an additional charge. To file your return electronically using either of these methods, simply use the information you collected in step 1 and follow the program directions.http://revenue.delaware.gov/services/EFVend.shtml 

To file the forms by mail, you need to get paper copies of the tax forms. In Delaware, the tax return is entitled Form 200-01 "Delaware Individual Resident Income Tax Return." If you have access to the Internet, you can download the form as well as the tax instruction booklet from the Delaware Department of Revenue website. If you do not have Internet access, you can usually obtain copies of the forms at your local library during tax season.http://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf 

If you choose to prepare the tax return by hand, be sure that you write clearly and use black ink. This will avoid any processing delays. Begin the form by entering your full name and Social Security details and, if applicable, your spouse's. Write in your current mailing address select the filing status you used on your federal tax return.http://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf 

Stop to read the tax instruction booklet and pay particular attention to the information about adjustments to income and tax credits. Income adjustments will be necessary to account for any income you received that is taxable to Delaware but not the federal government and vice versa. Eligible state tax credits directly reduce your state tax liability.http://revenue.delaware.gov/services/current_pit/TY10_booklet_res.pdf 

Go to page 2 of the Delaware return to figure your state adjusted gross income. Enter your federal adjusted gross income from IRS Form 1040 on line 28. Make any necessary additions and subtractions on lines 29 through 40 to arrive at your Delaware adjusted gross income on line 41. Carry this total forward to line 1 on page 1 of the form.http://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf 

Write in the total of your standard or itemized deductions on line 2. If you are using itemized deductions, complete section C on page 2 of the state return to separate them by type. Subtract these deductions to figure your state taxable income on line 5 of the return. Consult the tax table located in the tax instructions to assess the tax due on your income. Enter this as your tax on line 6.http://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf 

Deduct any qualified state tax credits you can claim as well as the total of your state income taxes paid through withholding or estimated payments. What remains after this will either be an overpayment resulting in a refund or an underpayment requiring you to pay an additional balance.http://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf 

If you are due a refund and would like to receive your payment via direct deposit, enter the routing number of your bank and your personal account number in the boxes provided. Sign and date the return and have your spouse do so as well, if applicable. Make a copy of the form for your records. Enclose the return, along with a check or money order for any balance due, in an envelope. Send both to the address listed on the form by May 2.http://revenue.delaware.gov/services/current_pit/TY10_200-01.pdf 

Taxpayers who will not be able to file their Delaware return by the deadline will want to learn how to get a state tax extension in Delaware.