Instructions For Form 200-02 Nr - Non-Resident Individual Income Tax Return (Page 6 of 11) in pdf

Fiduciary Adjustments,

IF YOU WERE 60 OR OVER on December 31, 2012, your

Oil Percentage Depletion

exclusion is determined as follows:

Fiduciary Adjustments

1. Amount of pension……………….....…

Net additions from fiduciary adjustments arising out of income

2. Amount of “eligible retirement

received from an estate or trust as shown on Federal Form K-1,

income” (See definition)……………....

Beneficiary’s Share of Federal Income and Deductions, should be

3. Total (add Lines 1 and 2)……………..

included on Line 19.

4. Enter Line 3 or $12,500, whichever is

Oil Percentage Depletion

less on Line 23, Column 1….………...

The law provides for the disallowance of any percentage depletion

Eligible retirement income includes dividends, capital gains,

deduction allowable under federal law, to the extent it is in excess

interest, net rental income from real property and qualified retirement

of cost depletion. Add the excess to the amount of fiduciary

plans (IRC Sec. 4974), such as IRA, 401(K), Keogh plans, and

adjustments and enter the total on Line 19.

government deferred compensation plans (IRC Sec. 457).

Disability pension income paid by your employer is reported as

U.S. Obligations

wages on the federal return until you reach the minimum

All interest received on obligations of the United States and

retirement age. Minimum retirement age is generally the age at

included on your federal tax return is exempt from Delaware tax

which you can first receive a pension or annuity if you are not

and should be entered on Line 22. Failure to identify the payor on

disabled. Therefore, Disability pension income does not qualify

Federal Schedule B will result in the disallowance of the deduction.

for the pension exclusion.

All interest received on obligations for which the United States is

Pension Exclusion Example: The primary taxpayer received

NOT the primary obligor or which are NOT guaranteed by the full

$10,000 in pension income. The secondary taxpayer received no

faith and credit of the United States is not exempt from tax and

pension income. The taxpayers had joint bank accounts and mutual

may not be entered on Line 22. (Examples are shown in the Line

fund accounts. They earned $5,000 in interest from the bank, $1,000

22 table below.)

in dividends and $3,000 in capital gains. These accounts

LINE 22 EXAMPLES. INTEREST RECEIVED ON U.S. OBLIGATIONS

would be split equally between the two taxpayers. Both

taxpayers are over 60 years old. The primary taxpayer's

Examples of

exclusion is $12,500 (10,000 + 2,500 + 500 + 1,500 =

INTEREST THAT IS EXEMPT

INTEREST THAT IS NOT EXEMPT

U.S. Treasury Bill, Bonds (Series E, F, G, H),

Federal National Mortgage Association

$14,500). The maximum exclusion for the primary

Certificates, Notes

(Fannie Maes)

taxpayer is $12,500. The secondary taxpayer cannot

Export Import Bank

Federal Home Loan Mortgage Corp.

include in the pension exclusion calculation the amount

Federal Deposit Insurance Corp.

by which the primary taxpayer exceeded the $12,500

Federal Farm Credit Bank

Government National Mortgage Association

maximum exclusion. The pension exclusion for the

(Ginnie Maes)

secondary taxpayer is $4,500 (2,500 + 500 + 1,500). If

Federal Intermediate Credit Banks

International Bank of Reconstruction and

filing Joint, the combined exclusion for the primary and

Development

Federal Land Banks

secondary taxpayer is $17,000.

Tennessee Valley Authority

If you are allowed a pension exclusion for Delaware

Mutual Fund Dividends (Dollar amount or

Student Loan Marketing Association

percentage directly attributed to a U.S.

(Sallie Maes)

purposes, please enter the full amount in the Federal

obligation, provided the Mutual Fund reports

column. Enter in the Delaware column the ratio of

that amount to you.)

pension and eligible retirement income reported in

Column 2, divided by the pension and eligible

retirement income reported in Column 1. Multiply this ratio by

Pension Exclusion

the pension exclusion amount to determine the allowable

Amounts received as pensions from employers (including pension of

exclusion. Enter this amount on Line 23, Column 2.

a deceased taxpayer) may qualify for an exclusion from Delaware

taxable income, subject to the limitations described below.

EXAMPLE: ELIGIBLE RETIREMENT INCOME

DE Sourced

Retirement – Non-Pension Income

Federal

Income

Delaware Tax Law authorizes an exclusion of up to $12,500 from

n I

e t

e r

t s

0 ,

pension and eligible retirement income for each individual age 60

v i

d i

5 ,

or older.

Capital Gain

100,000

Pension

50,000

An early distribution from an IRA or Pension fund due to

Pension &

152,500

100,000

emergency reasons or due to separation from employment

Eligible Retirement Income

does not qualify for the pension exclusion. If the Distribution

DE Pension Exclusion = (100,000/152,500) X 12,500

Code(s) listed on Box 7 of your 1099 R(s) is a 1 (one), then

.6557

X 12,500 =

$8,196

that amount DOES NOT qualify for the pension exclusion.

Column 1 Pension Exclusion = $12,500. Column 2 Pension Exclusion = $8,196.

Also, if you were assessed an early withdrawal penalty on

Please remember to enclose the 1099 R Forms and other

Line 58 of the Federal 1040, then that amount DOES NOT qualify

supporting schedules to support your pension exclusion.

for the pension exclusion.

NOTE: Each taxpayer may receive ONLY ONE exclusion,

Delaware State Tax Refund

even if he or she is receiving more than one pension or other

Delaware state tax refunds should be excluded in Columns 1 and 2,

retirement distribution. A husband and wife who each receive

to the extent they are included on Line 4, Columns 1 and 2.

pensions are entitled to one exclusion each.

IF YOU WERE UNDER 60 on December 31, 2012, your

Fiduciary Adjustment

exclusion equals $2,000 or the amount of your pension,

Net subtractions from fiduciary adjustments derived from income

whichever is less.

received from an estate or trust, as shown on your Federal Form K-1,

Beneficiary’s Share of Income and Deductions, should be included

on Line 25.

Page 7

Instructions For Form 200-02 Nr - Non-Resident Individual Income Tax Return Page 6

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