What a Delaware state refund is and how to get one

A Delaware state refund is money the state returns to you when you have paid more in state income tax than you owe. This happens most often when your employer withholds too much from your paycheck, or when you have life changes — a job loss, a second job that ended, or dependents you claimed — that shift how much tax you actually owe. Delaware processes refunds through its Division of Revenue, and the amount and timing depend on whether you file on paper or electronically.

You receive a refund by filing a Delaware state tax return. Most people file between January and April, though you can file later if you need more time. The state does not automatically calculate what you owe or send you a refund; you have to file the return yourself, through a tax preparer, or through free filing if you meet income limits. Once the Division of Revenue receives and processes your return, they mail a check or deposit the money into a bank account you specify.

The speed of your refund depends on how you file. Electronic returns are processed faster — typically four to six weeks if there are no problems. Paper returns take longer, often eight to twelve weeks. If the Division of Revenue finds an issue with your return — a missing document, a math error, or a mismatch with your W-2 — they will contact you and the timeline extends.

Key Takeaways

  • You get a Delaware state refund only if you file a state tax return and have paid more in tax than you owe for that year.
  • Electronic filing produces a refund in four to six weeks; paper filing takes eight to twelve weeks or longer.
  • You can choose to receive your refund by check in the mail or by direct deposit to a bank account.
  • The Division of Revenue may contact you if they need more information or find an error, which delays the refund.
  • Delaware offers free tax filing through the IRS Free File program if your income is below a certain threshold, which varies by year.

Who has to file a Delaware state return

You must file a Delaware state return if you lived in Delaware for any part of the tax year and your income exceeds a threshold set by the state. The threshold changes each year and depends on your age and filing status — single filers have a lower threshold than married filers, and people over 65 have a higher threshold. For the 2023 tax year, a single person under 65 had to file if their income was above roughly $12,500, but check the Division of Revenue website or your tax forms for the current year's threshold, because it shifts annually.

You also have to file if you want to claim a refund of Delaware taxes withheld from your paycheck, even if your income is below the threshold. If your employer took out Delaware tax and you are owed money back, filing is the only way to get it. Part-time workers, seasonal workers, and people who changed jobs mid-year often fall into this group.

If you moved out of Delaware during the tax year, you may still owe Delaware tax on income you earned while you lived there. The rules depend on when you left and where you moved. Contact the Division of Revenue or a tax preparer familiar with Delaware law if you are unsure.

What documents you need to file

To file a Delaware state return, you will need your Social Security number, your federal tax return (Form 1040 or equivalent), and documentation of any Delaware income tax withheld. Your W-2 forms from employers show how much Delaware tax was taken out. If you are self-employed or had other income, you may need records of estimated tax payments you made to Delaware.

If you are claiming deductions or credits beyond the standard deduction, gather receipts or statements that support them. Delaware allows you to claim the federal standard deduction or itemize, just as you do on your federal return. If you paid property tax, mortgage interest, or charitable donations, keep those records. If you have dependents, you will need their Social Security numbers.

You do not need to send documents with your return when you file electronically; the Division of Revenue may ask for them later if they have questions. If you file on paper, include copies of your W-2s and any other supporting documents the form instructions list.

How to file your Delaware return

You have three main routes: file electronically yourself using tax software, file on paper by mail, or use a tax preparer. Electronic filing is the fastest and most reliable. The IRS Free File program offers free federal and state filing through partner companies if your income is below a threshold — usually around $73,000, though this changes yearly. You can also buy tax software from companies like TurboTax, H&R Block, or TaxAct, which typically charge $60 to $150 for state filing.

To file on paper, download Form 1 (the Delaware Individual Income Tax Return) from the Division of Revenue website or request it by mail. Fill it out, sign it, and mail it to the address on the form. Include a copy of your federal return and your W-2s. Paper filing takes longer to process and is more prone to delays if there are errors or missing information.

A tax preparer — a CPA, enrolled agent, or tax professional — can file for you. They charge a fee, usually $150 to $400 depending on how complex your return is, but they handle the work and often catch errors you might miss. Many nonprofits and community centers offer free tax preparation for low-income filers; search "free tax help Delaware" or call 211 to find a site near you.

When to expect your refund

The timing of your refund depends on how you file and whether the Division of Revenue needs to verify anything. If you file electronically with no issues, expect four to six weeks. If you file on paper, allow eight to twelve weeks. These timelines start from the date the Division of Revenue receives your return, not the date you mail it or submit it online.

You can check the status of your refund on the Division of Revenue website using your Social Security number and the amount of your refund. This tool updates periodically but not in real time. If your refund is delayed beyond the expected timeframe, contact the Division of Revenue directly — they can tell you whether they are waiting for information from you or if there is a processing backlog.

If you chose direct deposit, the money lands in your bank account within one or two business days after the Division of Revenue processes it. If you chose a check by mail, allow an additional week or two for postal delivery. Some people do not receive their check; if yours does not arrive within the expected timeframe, contact the Division of Revenue to request a replacement or switch to direct deposit.

What to do if your refund is wrong or missing

If you believe your refund amount is incorrect, review your return for math errors or missing information. Common mistakes include entering the wrong withholding amount from your W-2, forgetting to include income from a second job, or claiming a dependent twice. If you find an error, you can file an amended return using Form 1-X. The Division of Revenue will recalculate and send you a corrected refund or bill you for additional tax owed.

If your refund never arrives, first check the Division of Revenue website to confirm it was processed. If the website shows it was issued but you did not receive it, contact the Division of Revenue with your Social Security number and the expected refund amount. They can trace the check or reissue it. If you filed electronically and chose direct deposit, ask the Division of Revenue to verify the bank account number you provided — a typo can send the money to the wrong account.

If you filed more than a year ago and never received your refund, the money may have been sent to Delaware's unclaimed property program. Search the National Association of Unclaimed Property Administrators database at missingmoney.com or contact the Delaware Division of Revenue directly to claim it.

Frequently Asked Questions

Can I file a Delaware return if I moved out of state?

Yes, if you earned income in Delaware during the tax year, you can file a Delaware return even if you now live elsewhere. You may owe tax to both Delaware and your new state, depending on when you moved and the tax laws of both states. A tax preparer can help you file in both states and claim credits to avoid double taxation.

What if I owe Delaware tax instead of getting a refund?

If your return shows you owe money, you must pay it by the tax deadline — usually April 15. You can pay online through the Division of Revenue website, by check, or by electronic transfer. If you cannot pay in full, contact the Division of Revenue about a payment plan; they may allow you to pay in installments with interest.

Do I have to file if I had no income but taxes were withheld?

Yes. If your employer withheld Delaware tax from your paycheck but you had no tax liability, filing is the only way to get that money back. This often happens to students, part-time workers, or people who worked only part of the year.

How long can I wait to file a Delaware return?

You can file a return up to three years after the original deadline and still claim a refund. If you file after three years, the state keeps any refund owed. There is no penalty for filing late if you are owed a refund, but if you owe tax, penalties and interest accrue from the original deadline.

What is the difference between a refund and a credit?

A refund is money the state sends you because you overpaid. A credit is a reduction in the tax you owe — for example, a child care credit or an education credit. Credits can result in a refund if they exceed your tax liability, but they are not the same thing.