1099-INT being double taxed

Actually everything may reported correctly in your return. If you look at your beginning Delaware AGI, it is the same number as the Federal AGI. After deductions are made, then there is a taxable income amount showing but that is not the income that is determined your tax liability. Your tax liability amount is determined by your taxable income, which is interest income.

I tested this in my test return and reported $10,000 worth of interest  My federal AGI was 40,100. My W2 income from Delaware was $25,000 and I excluded all other income from Delaware by zeroing out all other income. As a result, the tax was computed on $25,000 rather than the larger valued federal AGI even though the summary doesn't represent it. In your return, go to:

1. Tax tools>tools>view tax summary and tell me the numbers that appear. I will send you a screenshot what my test return looked like. Reply back in this thread and tell me the numbers you see. i am especially interested in three things. 1) taxable income 2) total tax 3) How much income should be taxable in Delaware or Delaware sourced income.