City Wage & Net Profits Taxes

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NEW: Public Comment for Changes to Earned Income Tax Regulations

The Director of Finance is seeking public comment changes made to regulations for earned income, modified by the City of Wilmington Administrative Board on June 2, 2020 for the 2020 tax year and subsequent years. Changes to the regulations reflect the following:

  • Clarifies the terms “work performed or rendered” for the purposes of determining the application of earned income tax on work performed remotely;
  • Changes apportionment allocations on severance and other post working income to 3-year average vs last year of employment;
  • Clarify the application of taxable income to stock options at retirement taxable in the event where vesting accelerates at retirement but is not a condition of retirement. If it’s a condition of retirement, then it’s still not taxed and treated as retirement income;
  • Clarifies the apportionment calculation for non-resident wage earners.

Visit this link to read the complete document.

Parties interested in making comments may address them to:

J. Brett Taylor
Director of Finance
Department of Finance
City of Wilmington
Wilmington, DE 19810
jbtaylor@WilmingtonDE.gov
(302) 993-6993 

Comments must be received by midnight on July 15, 2020. If requested, a public hearing by an affected stakeholder may be held before the Admin Board and City Solicitor. At midnight on the 10th day after requested hearing, these regulations will become effective. If no hearing is requested, the regulations become effective at midnight on 30th day after notice and filing with Admin Board. In emergencies, the Mayor may make regulations effective before procedure is complete, after which the process must be completed forthwith.

Earned Income Tax

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City Wage Tax: Application for Tax Payment/Tax Refund of City of Wilmington Earned Income Tax

Earned Income Tax Regulations
This flyer explains the requirements of paying the City Wage Tax by city residents and persons conducting business within the City.

Earned Income Taxpayer Account Application
To request the establishment of an earned income taxpayer account

Earned Income Taxpayer Account Application - Self-Reporting Employee
To request the establishment of an earned income taxpayer account for individuals employed outside the City of Wilmington

Annual Reconciliation and W-2 Filings for Tax Year 2014
Informing withholding agents of changes for the annual reconciliation and W-2 filings

Net Profits Tax

Net Profits Tax Return

NOTE: The April 15 filing for net profits taxes is delayed until July 15. Read the Department of Finance Executive Order 2020-1.