This Amendment does the following: (1) Clarifies that the subtraction modification limits under this Act apply individually to each spouse who is receiving a United States military pension on a joint return.

Plain English Breakdown

The candidate explanation included additional requirements about residency that are not supported by the official source material.

Clarifying Military Pension Subtraction Limits

This amendment clarifies how military pension subtraction limits apply to married couples receiving U.S. military pensions on joint tax returns.

What This Bill Does

• Makes sure that each spouse receiving a U.S. military pension can claim their own subtraction limit on joint tax returns, not just one shared limit.

Who It Names or Affects

• Spouses receiving U.S. military pensions who file joint tax returns

Terms To Know

Subtraction modification limits

The maximum amount a person can subtract from their income for tax purposes under certain conditions.

Limits and Unknowns

• It is unclear how this amendment will affect people who are already receiving military pensions and have filed taxes under previous rules.
• There may be additional requirements or conditions for being a 'resident individual' in Delaware.

Official Summary Text

This Amendment does the following:
(1) Clarifies that the subtraction modification limits under this Act apply individually to each spouse who is receiving a United States military pension on a joint return. Each spouse may claim a subtraction up to the lesser of their qualifying income or the per-person limit. The total subtraction on a joint return equals the sum of the individual limits and may not exceed that combined amount.
(2) Requires that to be eligible for this exemption, an individual who is age 60 or older and legally domiciled in this State before January 1, 2027, must be legally domiciled in this State for at least 3 years and an individual who is age 60 or older and legally domiciled in this State on or after January 1, 2027, must be legally domiciled in this State for at least 5 years.

Current Bill Text

Legislation Document

SPONSOR:

Sen. Buckson

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE AMENDMENT NO. 1

TO

SENATE BILL NO. 219

AMEND Senate Bill No. 219 by inserting the following after line 57:

“

3. The dollar limits of the subtraction modifications specified in this paragraph (b)(3) apply individually to each spouse who is receiving a United States military pension on a joint return. The total subtraction modification may not exceed twice the relevant limit.

4.A. A person who is age 60 or older is eligible for the subtraction under this paragraph (b)(3) only if one of the following applies:

I. For a person who is age 60 or older and legally domiciled in this State before January 1, 2027, the person is legally domiciled in this State for at least 3 years.

II. For a person who is age 60 or older and legally domiciled in this State on or after January 1, 2027, the person is legally domiciled in this State for at least 5 years.

B. For purposes of this paragraph (b)(3)f.4. of this section, a person is legally domiciled in this State if the person is a “resident individual” under § 1103 of this title.

”.

SYNOPSIS

This Amendment does the following:

(1) Clarifies that the subtraction modification limits under this Act apply individually to each spouse who is receiving a United States military pension on a joint return. Each spouse may claim a subtraction up to the lesser of their qualifying income or the per-person limit. The total subtraction on a joint return equals the sum of the individual limits and may not exceed that combined amount.

(2) Requires that to be eligible for this exemption, an individual who is age 60 or older and legally domiciled in this State before January 1, 2027, must be legally domiciled in this State for at least 3 years and an individual who is age 60 or older and legally domiciled in this State on or after January 1, 2027, must be legally domiciled in this State for at least 5 years.

Author: Senator Buckson