FOR IMMEDIATE RELEASE
Thursday, February 22, 2001
FOR FURTHER INFORMATION
Becky Smalley
(302)577-8667
rsmalley@state.de.us
TAXES REDUCED FOR SENIORS
DELAWARE INCREASES THE PENSION EXCLUSION
Wilmington - Taxpayers, 60 and over, who qualify for the pension exclusion will see a reduction in Delaware tax this year.
Tax law changes, that went into effect January 1, 2000, increase the pension exclusion from $5,000 to $12,500.
Eligible retirement income includes: dividends; interest; net rental income from real property; qualified retirement plans, such as IRAs, 401(K), KEOGH plans, and government deferred compensation plans.
New for this year -- capital gains income qualifies for the pension exclusion.
Tax reductions for all
Delaware taxpayers:
The overall reduction in taxes for tax year 2000 will drop and estimated 13,400 taxpayers from the tax rolls.
* Tax rates were reduced across the board for tax year 2000 by 9.5%.
The top rate is reduced from 6.4% to 5.95% for taxable income greater than $60,000.
* Increase in standard deduction for married persons to equal the standard deduction for two
single persons.
$4,000 to $6,500 for joint filers
$2,000 to $3,250 for married persons filing separate returns.
* Increase in the personal tax credit from $100 to $110.
File online for a fast refund.
www.state.de.us/revenue
Over 9,000 Delaware taxpayers have filed Delaware returns online, double the number filed this time last year.
Taxpayers tell the Division of Revenue that the online filing program is a tremendous service that makes filing easy and "fun."
* No software to download.
* Takes 20 - 30 minutes to file a Delaware return over the Internet.
* Faster refunds. Refunds received in an average of 4 days.
* Direct Deposit is available. Direct Deposit is required for refunds over $500.
* Pay by credit card. Master Card and Discover Card. VISA is not accepted.
* E-mail notification of acceptance of return.
* Accurate. On-line math verification.