Overstating withholding may delay tax refund

With tax season well underway, Division of Revenue officials are noting an uptick in Delaware returns reporting overstated Delaware income tax withholding. 

The appropriate amount to report is limited to the total in Box 17 of the W-2 form provided by the employer (or the sum of those amounts if there are multiple employers), plus any state income tax withholding reported on a Form 1099-R.

Division of Revenue Director Jennifer R. Hudson, Esq. noted “We are reviewing all returns that have overstated withholding, and they may be treated as fraudulent returns.”

Overstated withholding can be a sign of fraud, and returns with higher amounts than usual are being treated as suspicious. That means these returns will be pulled for review, extending the length of time required to process a return - and potentially delaying a refund.  

Those who have questions about the appropriate amounts to report would contact the Division of Revenue Public Service area at 302-577-8200, or 1-800-292-7826.