Distributions received from qualified retirement plans (IRC Sec. 4974, including IRAs), cash, or deferred arrangements (such as 401(k) plans) and government deferred compensation plans (IRC Sec. 457) may be excluded from Delaware adjusted gross income to the extent they are used in the same tax year to pay for books, tuition, or fees at an institution of higher education attended by the taxpayer or by his or her dependents who have NOT attained the age of 26 by December 31, 2019, and as long as such amounts have been included in federal adjusted gross income.
Note: Any retirement distributions used to claim the Delaware Higher Education Exclusion can't be used to claim the Delaware Pension Exclusion. You will need to send a copy of any 1098-T forms to the Delaware Division of Revenue to support your deduction.