<trifona[at]giganews.com> wrote:

- quote -

Divide income and adjustments the same way. You are married
filing separately for DE purposes. (You should calculate
your tax both ways, though, and file either joint or
separate depending on which gets you the better answer.)

- quote -

Col. 1 should include ALL of your (not your spouse's) wages,
from all sources.

- quote -

Col. 1 - 1/2 if joint accounts; 100% if the account is your
property; 0% if the account is your spouse's property.

Col. 2 - zero

- quote -

Presumably all of your DE refund related to your (separate)
DE income. If you had filed separately in PA, would you have
had a refund coming? If so, claim that amount in Col. 1.

Col. 1 - $310 DE refund plus whatever portion of the PA
refund is attributable to you and not your spouse Col. 2 -
$310 DE refund only

- quote -

Col. 1 - all of your separate net capital gain/loss, plus
1/2 of g/l on jointly owned property (or prorate by
ownership percentage if not 1/2)

Col. 2 - only g/l on sales of real or tangible personal
property located in DE. Note that if you sold such property
that was jointly owned, your spouse would be required to
report her portion of the gain or loss. NO g/l on sales of
intangibles (stocks, bonds, etc.)

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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Basics:
Filing Jointly for the 1040.
Married filing Separate on Delaware NR.
I have state refunds, some of which is from DE,
some local PA municipality.
I have capital gains/losses, but not from DE

Basically, I am confused as to how to sort out the buckets
between column 1 (Federal) & column 2 (Delaware Sourced).
The instructions are vague and I have run into a a paradox
in the reporting of the Federal column (column1). b DE's
instructions states that filers filing status 3 - married
and filing seperate forms should split their deductions as
if they were filing separate returns. No such guidance is
given for income and adjustments.

Line 1, Wages

Both columns I have the same, My DE sourced wages.

Line 2, Interest:

Should I list our total interest shown on the 1040? or only
1/2 as if we were filing separate returns?

Line 4, State refunds, etc

Confused here. Ex. We have $600 in 2003 refunds. $310 in
DE, $290 in PA. Should I post in C1, $600, or $300? The
problem is, If I post $300 for 1/2 than that is less that
the DE sourced refunds of $310, that would be posted in C2.

Line 7A, capital gains/losses

Ex: $3000 in capital gains/losses or $1500? In 2001, a
national tax prep organizatioin filed $1500 in C1, using the
1/2 principle, but with no basis in the instructions for
doing so.

Any help appreciated.

Thank You.

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