Official Delaware 700 Form in PDF

• Form 1040 - This is the standard individual income tax return form used by taxpayers in the U.S. to report their annual income. Similar to the Delaware 700, it allows individuals to claim various tax credits and deductions.

• Form 1065 - This form is used by partnerships to report income, deductions, and credits. Like the Delaware 700, it requires the reporting of credits that are passed through to partners based on ownership percentages.

• Form 1120 - Corporations use this form to report their income and calculate their tax liability. It is similar to the Delaware 700 in that both forms facilitate the claiming of tax credits for qualifying entities.

• Form 1120S - This is the tax return for S corporations. It allows for the reporting of income and credits, similar to how the Delaware 700 handles credits for S corporations based on ownership.

• Form 990 - Nonprofit organizations use this form to report their income and expenses. It shares similarities with the Delaware 700 in terms of providing a structure for reporting financial activities and claiming applicable credits.

• Commercial Lease Agreement - To outline rental terms for commercial properties, consider our informative commercial lease agreement resources for all necessary details.

• Form 8862 - This form is used to claim the Earned Income Credit after a disallowance. Like the Delaware 700, it is focused on claiming specific tax credits based on eligibility criteria.

• Form 8863 - This form is for claiming education credits. It functions similarly to the Delaware 700 by allowing taxpayers to report and claim specific credits that reduce their tax liability.

• Form 8880 - This form allows taxpayers to claim a credit for contributions to retirement savings accounts. Like the Delaware 700, it is designed to help individuals maximize their tax benefits through credit claims.

• Form 8839 - This form is used to claim the adoption credit. It parallels the Delaware 700 in that it is specifically for claiming credits that can significantly impact tax liability.

• Form 5695 - This form is used for claiming residential energy credits. It shares the same purpose as the Delaware 700 by providing a method for taxpayers to report and claim specific credits related to energy efficiency improvements.

Delaware 700 - Usage Steps

Filling out the Delaware Form 700 requires careful attention to detail. This form is essential for claiming various income tax credits in Delaware. Here are the steps to complete the form accurately.

1. Obtain the Delaware Form 700. You can find it on the Delaware Division of Revenue's website or request a physical copy.
2. In Part A, provide your Federal Employer Identification Number (FEIN) or Social Security Number (SSN) and the tax period ending date.
3. Enter your name in the designated field in Part A.
4. Move to Part B for the Delaware Income Tax Credit Computation.
5. For each credit type (Economic Development, Green Industries, Research & Development, etc.), fill in the carryover from the previous year, if applicable.
6. For current year credits, enter the approved amounts for each entity type: C corporation, S corporation, Partnership, and Sole Proprietor. Use the appropriate calculations for S corporations and Partnerships based on ownership percentages.
7. Calculate the total current year credits for each category by adding the individual amounts together.
8. Sum the totals from the different credit categories as instructed to find the total Delaware income tax credits.
9. Complete the lines for Land & Historic Resource Conservation, Historic Preservation, Travelink Traffic Mitigation, and Neighborhood Assistance credits, following the same process as before.
10. After calculating all totals, compare them to your current year Delaware income tax liability. Make sure to enter the smaller of the calculated total or the liability where indicated.
11. Finally, add the appropriate lines to determine your total Delaware income tax credits and enter this amount on the designated line of your Delaware income tax return.

After completing the form, ensure that all entries are accurate and legible. It is advisable to keep a copy for your records. If you have any questions or need assistance, consider consulting a tax professional.

The Delaware Form 700 is a crucial document for taxpayers seeking to claim various income tax credits in the state. However, it is often accompanied by several other forms and documents that help facilitate the process of claiming these credits. Below is a list of related forms that are commonly used alongside the Delaware Form 700, along with brief descriptions of each.

• Form 1100: This is the Delaware Corporate Income Tax Return. C corporations must complete this form to report their income, deductions, and tax credits, including those claimed on Form 700.
• Durable Power of Attorney: This important legal document allows individuals in Arizona to appoint someone to make decisions on their behalf if incapacitated; templates can be found at Arizona PDFs.
• Form 1100S: This form is the Delaware S Corporation Income Tax Return. S corporations use it to report income and tax credits, which shareholders will subsequently claim on their personal tax returns.
• Form 200-01: This is the Delaware Personal Income Tax Return for residents. Individual taxpayers use this form to report their income and claim any credits, including those passed through from partnerships or S corporations.
• Form 200-02: This form is the Delaware Personal Income Tax Return for non-residents. Similar to Form 200-01, non-resident individuals report their income and claim credits from pass-through entities.
• Form 900: This is the Delaware Estate Tax Return. It is used by estates to report tax liabilities and may include credits that the estate can claim based on income generated.
• Form 400: This is the Delaware Franchise Tax Report for corporations. Corporations must file this form to report their franchise tax obligations, which may be relevant when considering overall tax credits.
• Form 1800: This is the Delaware Tax Credit Application. Taxpayers seeking specific credits must often complete this application to determine eligibility before claiming credits on Form 700.
• Schedule A-1: This is an attachment to Form 1100S that details the distribution of credits to shareholders. It helps ensure that credits are accurately allocated among S corporation shareholders.

Understanding these forms and their purposes is essential for effective tax planning and compliance in Delaware. Taxpayers should ensure they have all necessary documentation to maximize their credits and meet filing requirements accurately and on time.

1. Incorrect Identification Numbers: Many individuals mistakenly enter the wrong Federal Employer Identification Number (FEIN) or Social Security Number (SSN). This can lead to delays or denials of credits.

2. Omitting Names: Some taxpayers forget to include their full names in Part A. This omission can cause confusion and result in processing issues.

3. Miscalculating Credits: Errors often occur in calculating the total current year credits. It’s essential to carefully add the amounts from each category to avoid discrepancies.

4. Improper Credit Carryover: Failing to accurately report credit carryovers from previous years is a common mistake. This can affect the total credits available for the current year.

5. Ignoring Specific Instructions: Some filers overlook the specific instructions related to partnerships and S corporations. Understanding how to allocate credits based on ownership percentages is crucial.

6. Incorrect Line Entries: Taxpayers sometimes enter amounts on the wrong lines. This can lead to confusion and may result in incorrect calculations of tax credits.

7. Failing to Review: Many individuals submit the form without thoroughly reviewing it for errors. A quick review can catch mistakes that may delay processing.

1. What is the Delaware Form 700?

   The Delaware Form 700 is a tax credit schedule used to claim various Delaware income tax credits. It is required for individuals and entities that qualify for these credits, including C corporations, S corporations, partnerships, and sole proprietors.

2. Who needs to complete the Delaware Form 700?

   The form must be completed by the taxpayer who is actually claiming the credits on their Delaware income tax return. This includes qualified C corporations and sole proprietors who claim credits directly. Partnerships and S corporations must have their partners or shareholders file the form with their individual tax returns.

3. What types of credits can be claimed using Form 700?

   Form 700 allows taxpayers to claim several types of credits, including:

   • Economic Development Credits
   • Green Industries Credits
   • Research & Development Credits
   • Land & Historic Resource Conservation Credits
   • Historic Preservation Credits
   • Travelink Traffic Mitigation Credits
   • Neighborhood Assistance Tax Credits
4. How are the credits calculated on Form 700?

   Credits are calculated by entering any carryover from the previous year and the current year credits approved for the specific credit types. The totals for each category are then aggregated to determine the total credits available for the current tax year.

5. What is the significance of Line 15 on Form 700?

   Line 15 represents 50% of the current year Delaware income tax liability for the entity claiming the credits. This line is crucial because it sets a limit on the amount of credits that can be claimed, ensuring that the total credits do not exceed this liability.

6. How do pass-through entities claim their credits?

   Pass-through entities, such as partnerships and S corporations, do not claim the credits directly. Instead, the individual partners or shareholders must file Form 700 with their personal income tax returns and claim a percentage of the total credit based on their ownership in the entity.

7. What should be done with the total credits calculated on Line 34?

   Line 34 indicates the total Delaware income tax credits that can be claimed. Taxpayers should enter this amount on the appropriate line of their Delaware income tax return, depending on their entity type, such as Form 1100 for C corporations or Form 200-01 for individual taxpayers.

8. Are there any limits on the credits claimed?

   Yes, the credits are limited to 50% of the Delaware income tax liability for Economic Development, Green Industries, and Research & Development credits. For other credits, such as Land & Historic Resource Conservation and Historic Preservation, the limit is 100% of the Delaware income tax liability.

9. Where can taxpayers find more information about the Delaware Form 700?

   Taxpayers can refer to the specific instructions provided with the Delaware Form 700, which detail how to complete the form and claim the credits. Additionally, the Division of Revenue's website offers resources and guidance on the tax credit process.