In January 2021, the Delaware General Assembly presented House Bill (HB) 65. This bill provided COVID-19-related relief to claimants who received unemployment benefits. Normally under Delaware law, unemployment benefits are taxable. HB 65 went into effect on Feb. 8, 2021. This bill had bipartisan support.
Before the close of session in June 2021, Senate Bill 196 was introduced, on June 23. This legislation would have given all people who worked during the pandemic a $500 tax rebate. Did it become a law? No!
However, full-time state workers got a $1,000 bonus and part-time/seasonal state workers got a $700 bonus on Nov. 19, 2021. People on state pension received a $500 bonus on Nov. 30, 2021. The state budget also gave a $500 pay raise for all state workers that took effect in July 2021.
So, to recap: In 2021, if a person was unemployed, they received tax relief on their unemployment payments, and state workers received a bonus with a pay raise, but those that worked during the pandemic did not receive the same consideration.
Cheryl Precourt
Dover