Itemized Deductions
If you elect to itemize deductions, complete Section C, Lines 43-48, to determine the amount of itemized deductions which you may claim on your Delaware return; otherwise, you may skip this section. NOTE: If you claimed a standard deduction on your federal return, you may still elect to itemize your deductions on the Delaware return. In this case, complete and attached Federal Schedule A, showing the itemized deductions you would have claimed on the federal return.
NOTE: You cannot deduct the cost of taking a bus or driving a car between your home and your regular place of work as an Itemized Deduction on Schedule A. You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Do not enter motor vehicle title, realty transfer tax fees or transfer fees as other taxes. They do not qualify.
Itemized Deductions From Schedule A
Enter on Line 43 the total amount of itemized deductions as shown on Line 29, Federal Schedule A.
If you are filing a joint federal return and separate Delaware returns, the deductions must be determined as if each spouse had filed separate federal returns.
If you are unable to specifically allocate deductions between spouses, prorate the deductions based on the ratio of your separate incomes to total joint income. For example, if one spouse earns 60% of the household income and the other earns 40%, designate 60% of the deductions to the spouse earning 60% of the household income and 40% of the deductions to the spouse earning 40% of the household income.
NOTE: Civil Union taxpayers, please refer to “Filing Status” on Page 5.
Foreign Taxes Paid
If you elected the Foreign Tax Credit on your federal return, your federal itemized deductions, allowed as Delaware itemized deductions, will be increased by the amount of foreign taxes actually paid. Foreign taxes accrued, but not paid, are not allowed as an addition on Line 44. On Line 44, enter the amount of foreign taxes paid included on Line 8 of Federal Form 1116. If you were not required to file Federal Form 1116, enter on Line 44 the amount of fo reign t ax paid.
Charitable Mileage Deduction
If you used your automobile to perform a voluntary service for a charitable organization, you may increase your itemized deductions as follows:
Miles driven 1/1/14–12/31/14 x .17 = $ (enter this amount on Line 45.)
State Income Tax
Enter the amount of (1) Delaware state income taxes claimed in your federal itemized deductions plus (2) any taxes imposed and paid to another State that are included in your federal itemized deductions and claimed as a credit on Line 10 of this form. For example, if you had $1,000 of taxes withheld in nother state, but the tax liability to the other state was $700, you should only include $700 on Line 47a.
Exception: If your level of adjusted gross income caused a reduction (limitation) of your federal itemized deductions, only enter on Line 47a the percentage of state income tax that was included in your federal itemized deductions which represents the same ratio as allowable federal itemized deductions is to total itemized deductions before the reduction. For example, if total state income taxes is $500 and total federal itemized deductions is $10,000 but is limited to $9,000 due to the federal reduction rules (90% of your itemized deductions were allowed), you only enter $450 (90%) of the state taxes on Line 47a.
NOTE: Local taxes included in your federal itemized deductions should not be included on Line 47a. Also, state taxes paid to another state for which you will not claim a credit on Line 10 of your Delaware return should not be included on Line 47a.
NOTE: Real Estate Capital Gains tax payments paid in Delaware and declared on DE Form 5403 should be entered here if included in Federal Itemized deductions. Also, property or school taxes paid to your city/county should not be included here.
Form 700 Tax Credits
Enter the amount of the charitable contribution claimed in your federal itemized deductions for permanent gifts of land, or interest in land, to public agencies and qualified private nonprofit charitable organizations and any investment in Neighborhood Assistance for which you claimed a tax credit for Form 700 on Line 12 of your Delaware return. Form 1801AC and/or Form 2001AC and the Division of Revenue approval letter must be attached to your return.