Delaware allows eligible taxpayers aged 60 and older to subtract up to $12,500 of qualifying pension and eligible retirement income. For taxpayers under 60, the limit is $2,000. This exclusion applies to certain retirement income sources.

For more information, visit Delaware.gov – Personal Income Tax FAQs 

To review or modify Pension Exclusion subtractions for a Delaware return in TaxAct:

TaxAct Online

1. From within the TaxAct return, navigate to the State tab from the side menu.
2. Click Delaware under the State tab to access the Delaware Quick Q&A Topics screen.
3. Click Subtractions to Income.
4. Enter appropriate information under the Pension Exclusion field.

Desktop

1. From within the TaxAct return, navigate to the Q&A tab via the menu bar at the top of the program.
2. Navigate to the State tab and click Continue.
3. Click Yes to start the State Q&A process.
4. Navigate to the Summary portion of the Delaware return and click Review Q&A Topics.
   • You can access this quickly via the Topics Assistant (found under Tools).
5. On the Delaware Quick Q&A Topics screen, click Subtractions to Income.
6. Enter appropriate information under the Pension Exclusion field.