2025 Delaware Tax Benefits and Credits Available to Immigrants

Key Takeaways

• Delaware’s 2025 EITC refundable rate remains 4.5% of the federal EITC for taxpayers with valid Social Security numbers.
• Immigrants with ITINs cannot claim Delaware or federal EITC; child and dependent care credit is 50% of the federal amount.
• Personal credit of $110 per qualifying person and volunteer firefighter credit remain unchanged for Delaware taxpayers in 2025.

Delaware has made several updates to its tax credit programs for the 2025 tax year, directly affecting immigrants and their families. These changes, along with ongoing requirements, impact who can claim the Delaware Earned Income Tax Credit, child and dependent care credits, and other state-level benefits. Here’s a clear summary of what’s changed, who is affected, what actions are required, and what these updates mean for pending and future applications.

Summary of What Changed

As of July 10, 2025, Delaware continues to offer its Earned Income Tax Credit (EITC) to eligible taxpayers, including immigrants who meet federal requirements. The refundable portion of the Delaware EITC remains at 4.5% of the federal EITC, despite efforts to increase it. The state does not offer its own child tax credit, but it does provide a child and dependent care credit at 50% of the federal amount. Other credits, such as the personal credit and the volunteer firefighter credit, remain unchanged. The most important update is that eligibility for the Delaware Earned Income Tax Credit still depends on having a valid Social Security number (SSN) for employment, which excludes immigrants who file taxes using an Individual Taxpayer Identification Number (ITIN).

Who Is Affected

These updates affect all Delaware taxpayers, but especially immigrants who live and work in the state. The main group impacted includes:

• Immigrants with valid Social Security numbers: Eligible for the Delaware Earned Income Tax Credit and other state credits if they meet federal requirements.
• Immigrants with ITINs: Not eligible for the federal or state EITC, which limits access to this important benefit.
• Families with children: Can claim the federal child tax credit, but Delaware does not offer a separate state child tax credit.
• Low- and moderate-income workers: May benefit from the EITC and personal credits, helping to reduce tax liability or increase refunds.

Effective Dates

All the information and requirements described here are effective for the 2025 tax year, with the most recent legislative updates in place as of July 10, 2025. Any changes to the refundable EITC rate or new credits would require new laws, which have not been passed as of this date.

Required Actions for Immigrants and Families

To claim available tax credits in Delaware for 2025, immigrants and their families should follow these steps:

1. Obtain a valid Social Security number (SSN) for employment.
   • Only those with valid SSNs can claim the Delaware Earned Income Tax Credit. ITIN holders are not eligible.
2. File a federal tax return.
   • Determine eligibility for the federal EITC and the federal child and dependent care credits.
3. File a Delaware state tax return.
   • Use the same filing status and income information as on the federal return.
4. Claim the Delaware Earned Income Tax Credit.
   • Choose between the refundable credit (4.5% of the federal EITC) or the nonrefundable credit (20% of the federal EITC), depending on which is more beneficial for your situation.
5. Claim the personal credit.
   • $110 per qualifying individual, including dependents and spouses who report income.
6. Claim the child and dependent care credit if eligible.
   • This is 50% of the federal credit amount.
7. Check for other credits.
   • If you are a volunteer firefighter or paid taxes to another state, you may be able to claim additional credits.

Implications for Pending and Future Applications

If you are an immigrant who has already filed your 2025 tax return or are planning to file soon, it’s important to review your eligibility for each credit. If you do not have a valid SSN, you cannot claim the Delaware Earned Income Tax Credit or the federal EITC. If you have a pending application for a Social Security number, you must wait until you receive it before claiming these credits. For those who qualify, these credits can provide meaningful financial support.

Detailed Overview of Delaware Tax Credits for Immigrants in 2025

Delaware Earned Income Tax Credit (EITC)

The Delaware Earned Income Tax Credit is designed to help low- and moderate-income workers, including immigrants who meet the requirements. Here’s what you need to know:

• Eligibility:
  • You must qualify for the federal EITC, which means you need a valid Social Security number for employment, must be a U.S. citizen or resident alien for the entire year, and meet certain income and filing status rules.
  • ITIN holders are not eligible for the federal or state EITC.
• Credit Amount:
  • Delaware offers two options:
  • Refundable credit: 4.5% of your federal EITC. If your credit is more than your tax owed, you get the extra money as a refund.
  • Nonrefundable credit: 20% of your federal EITC. This can only reduce your tax to zero; you won’t get a refund for any extra amount.
  • You can choose the option that works best for your situation.
• Recent Legislative Developments:
  • In 2023, House Bill 89 tried to increase the refundable EITC to 7.5% of the federal amount, but it did not pass. The refundable rate remains at 4.5% for 2025.
  • Lawmakers and advocates continue to discuss making the credit more generous, especially for low-income workers and immigrants.
• Practical Implications:
  • If you are an immigrant with a valid SSN and you work in Delaware, you can claim the state EITC if you qualify for the federal EITC. This can lower your taxes or give you a refund, helping your family’s finances.

Child Tax Credit (CTC) and Child and Dependent Care Tax Credit (CDCTC)

• State Child Tax Credit:
  • Delaware does not have its own child tax credit in 2025. Immigrants and other taxpayers must rely on the federal child tax credit.
• Child and Dependent Care Tax Credit:
  • Delaware offers a nonrefundable credit equal to 50% of the federal child and dependent care tax credit.
  • Eligibility follows federal rules. If you qualify for the federal credit, you can claim the Delaware credit.
  • For couples who file a joint federal return but separate Delaware returns, the credit goes to the spouse with the lower taxable income.

Other Delaware State Tax Credits Relevant to Immigrants

• Personal Credit:
  • Delaware gives a personal credit of $110 for each qualifying person on your return, including dependents and spouses who report income.
  • If you are 60 or older, you get an extra personal credit automatically.
• Volunteer Firefighters Credit:
  • Active volunteer firefighters or rescue squad members can claim a $1,000 credit to lower their tax bill.
• Credit for Taxes Paid to Another State:
  • If you live in Delaware but pay income taxes to another state, you can claim a credit to avoid being taxed twice on the same income.
• Historic Tax Credit:
  • Delaware has extended its historic tax credit through 2031, but this mostly helps property owners and developers, not individual taxpayers.

Federal EITC and Immigrant Eligibility

• To get the federal EITC, you must have a valid Social Security number for employment. This is also required for the Delaware Earned Income Tax Credit.
• ITIN holders are not eligible for the federal or state EITC, which means some immigrants cannot access this benefit.

Background and Historical Context

• Delaware started its state EITC in 2005, first as a nonrefundable credit at 20% of the federal EITC.
• In 2020, a refundable EITC at 4.5% of the federal amount was added, giving taxpayers a choice.
• Efforts to increase the refundable portion or make the credit fully refundable have not succeeded as of 2025.

Expert and Stakeholder Perspectives

• Many advocates say that raising the refundable EITC would help low-income workers, including immigrants, by reducing poverty and supporting work.
• Some lawmakers, like Rep. Lyndon Yearick, have pushed for expanding the EITC as a way to help working families.
• Opponents of increasing the credit worry about the cost to the state budget, but there is growing interest in helping working families through tax credits.

Practical Steps for Immigrants to Claim Delaware Tax Credits in 2025

Here’s a step-by-step guide for immigrants who want to claim Delaware tax credits:

1. Get a valid Social Security number (SSN) for employment.
   • If you do not have an SSN, you cannot claim the Delaware Earned Income Tax Credit or the federal EITC.
2. File your federal tax return.
   • Check if you qualify for the federal EITC and the federal child and dependent care credits.
   • You can find more information about the federal EITC and eligibility on the IRS EITC page.
3. File your Delaware state tax return.
   • Use the same information as your federal return.
   • Delaware tax forms and instructions are available from the Delaware Division of Revenue.
4. Claim the Delaware Earned Income Tax Credit.
   • Calculate 4.5% of your federal EITC for the refundable credit, or 20% for the nonrefundable credit.
   • Choose the option that gives you the best result.
5. Claim the personal credit.
   • $110 for each qualifying person on your return.
6. Claim the child and dependent care credit if you qualify.
   • This is 50% of your federal credit.
7. Check for other credits.
   • If you are a volunteer firefighter or paid taxes to another state, you may be able to claim more credits.

Official Resources and Contacts

• Delaware Division of Revenue: For forms, instructions, and details about credits, visit Delaware Division of Revenue.
• IRS: For federal EITC and other credits, visit the IRS website.
• Delaware General Assembly: For updates on tax credit laws.
• Local tax assistance programs and immigrant advocacy groups: These organizations can help you file your taxes and understand which credits you can claim.

Summary Table of Key Delaware Tax Credits for Immigrants (2025)

Key Takeaways and Next Steps

• Immigrants with valid Social Security numbers can claim the Delaware Earned Income Tax Credit if they qualify for the federal EITC.
• Delaware does not offer a state child tax credit, but does provide a child and dependent care credit at 50% of the federal amount.
• Other credits, such as the personal credit and volunteer firefighter credit, are available to qualifying individuals.
• ITIN holders are not eligible for the Delaware Earned Income Tax Credit or the federal EITC.
• No changes to the refundable EITC rate have been made for 2025, but discussions about increasing it continue.

If you are an immigrant in Delaware, make sure you have a valid Social Security number, check your eligibility for each credit, and file both your federal and state tax returns. Local tax assistance programs and immigrant advocacy groups can help you understand your options and make sure you get all the credits you deserve.

For more detailed information about the Delaware Earned Income Tax Credit and other state tax credits, visit the Delaware Division of Revenue. As reported by VisaVerge.com, staying informed about these credits and any future changes can help you and your family get the most out of your tax return each year.

Learn Today

Earned Income Tax Credit (EITC) → A refundable tax credit for low- to moderate-income workers meeting federal eligibility with valid SSNs.
Individual Taxpayer Identification Number (ITIN) → A tax processing number for non-eligible SSN filers, disqualifying holders from federal and Delaware EITC.
Refundable Credit → A tax credit that can reduce tax liability below zero, resulting in a refund to the taxpayer.
Nonrefundable Credit → A tax credit that can only reduce tax liability to zero, with no refund given.
Social Security Number (SSN) → A government-issued number required for employment and eligibility for Delaware and federal EITCs.

This Article in a Nutshell

Delaware’s 2025 tax credit updates impact immigrants, requiring valid Social Security numbers for EITC eligibility. The refundable EITC remains 4.5%, while child care credits equal half the federal amount, aiding eligible low- and moderate-income workers navigating federal and state tax claims effectively.
— By VisaVerge.com