Del. Lawmakers Proposes Tax Relief On Unemployment Benefits

Delawareans who are unemployed during the COVID-19 pandemic could get a tax break.

A bill introduced in the House would exempt unemployment benefits paid in 2020 from the Delaware state income tax. More than 100,000 Delawareans -a record number – filed for unemployment in 2020.

“Thousands of hard-working Delawareans have lost their jobs during the past year through no fault of their own. We owe it to those impacted by the pandemic to take whatever action we can to ease their burden,” Representative Ed Osienski, D-Brookside, said. “Exempting the unemployment benefits that have been a lifeline to so many families will mean that they aren’t blindsided when they file their state taxes this year, and we’re also taking steps to protect businesses so they aren’t penalized with higher taxes during the pandemic.”

Osienski is the lead sponsor of House Bill 65, which has been assigned to the House Administration Committee.

“In the past year, we have significantly expanded unemployment benefits to support Delaware workers and families who have been hit hardest by the COVID-19 crisis. We shouldn’t then turn around and tax workers on that income,” Governor John Carney said in a statement. “That’s why I’m pleased to make this bill a priority when we return to legislative session this month. Thank you to members of the General Assembly for their partnership in supporting working Delaware families.”