Income Tax Individual Filing FAQs

What income is non-taxable?

Unearned income. ( Examples: Dividends, Capital Gains, Alimony, Military Pay, State Unemployment Benefits, Social Security, Welfare assistance, Pension or Retirement income.)

What income is taxed by the City?

Earned income. (Examples: Salaries, Wages, Commissions, Bonuses and other compensation paid by employer(s) before any deductions.
Gambling and lottery winnings
Rental Property Income

Do I have to file a return of I work in Wilmington but live elsewhere?

You do not have to a Wilmington tax return if you work in Wilmington but live elsewhere.

Exceptions to this:

If you are a Federal employee working in the City of Wilmington and your city tax is not withheld, you must file a Wilmington tax return.
If you are self-employed in the City of Wilmington and live elsewhere, you must file a Wilmington tax return.

What if I am retired and don’t earn an income?

Retirees with no earned income:

Write Social Security Number
Source of Income (Example, RETIRED, SOCIAL SECURITY)
Signature
Date

What should I include with my tax return?

W-2(s) forms
Federal Return
- 1040, Schedule 1
Applicable Schedules
- C, E, F, 1099 Misc, 1099 NEC, Gambling Winnings

What if I do not file a return?

Not filing a tax return is a criminal offense and can be prosecuted in court.

Do I have to file a return?

All residents of Wilmington are required to file a tax return regardless of where they work.