I am a PA resident that sold a DE home with capital gains. The DE return is giving me itemized deduction credit. Is that accurate?

Forum|Forum|11 months ago
April 12, 2025
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TurboTax Online

MAK70

Yes. The Delaware taxable income of a nonresident is calculated as if all income were earned in Delaware. The Federal Adjusted Gross Income (AGI) will be adjusted using the Delaware adjustments to arrive at AGI from all sources. The AGI from all sources is used to determine the taxable income. After the taxable income is calculated, it is prorated using a percentage of the AGI from Delaware sources divided by the AGI from all sources. This prorated tax is the Delaware tax.

awolfgang0519Author

Thank you. When we settled, we had to estimate our capital gains tax at a rate of 6.6% and deduct from our sale proceeds. We are getting a substantial refund due to that estimated payment we made, and I want to ensure it's correct.

MAK70

Yes, you can and should take all deductions and credits that you qualify for even though you are not a Delaware resident. The withholding on real estate sales tends to be high so a (nice) refund is usually expected. @awolfgang0519