Delaware Child Care, EITC, Senior Property, and Retirement Tax Relief¶
Delaware tax relief pathways that may apply to caregiver households, including the state child and dependent care credit, Delaware earned income tax credit options, senior school property tax credit, older-adult pension and retirement income exclusion, and volunteer firefighter/rescue credit.
Delaware offers several tax relief paths relevant to caregiver households. The resident child and dependent care credit equals 50% of the federal child and dependent care credit and requires attaching federal Form 2441, with the credit limited by Delaware tax liability. Delaware residents with a federal EITC may choose either a refundable credit equal to 4.5% of the federal EITC or a nonrefundable credit equal to 20% of the federal EITC. Homeowners age 65 or older may qualify for the Senior School Property Tax Credit, equal to 50% of regular school property taxes up to $500 on a primary residence, subject to domicile rules and county application. Delaware also excludes Social Security and Railroad Retirement benefits and provides a pension/eligible retirement income exclusion for people age 60 or older. Active Delaware volunteer firefighters, fire company auxiliary members, and rescue squad members may claim a credit up to $1,000 against Delaware income tax liability.