NEBRASKA
separate property state

 

Military Income:  Fully taxable.

Military Spouse Residency Relief Act:  Service member in state in compliance with military orders. Spouse in state solely to be with service member. Spouse must be a resident of same state as service member. Must provide Form 9N, Nebraska Nonresident Employee Certificate to employer.

Forms Used:            

Filing Status:  Same as federal unless residency status of two spouses is different, then they may file joint or separate.  NOTE:  If a couple decides to file joint and one of them is not a resident, they have agreed to be treated as a resident and their nonresident income will then be subject to Nebraska tax. 

Attach Copy of Federal Return:  No

Not Taxed:  Not applicable

Other State Tax Credit:  Available.  Attach Nebraska Schedule III and copy of other state return. 

Where to Mail:
Refunds: Tax Due:
Nebraska Department of Revenue
PO Box 98912
Lincoln, NE  68509-8912
Nebraska Department of Revenue
PO Box 98934
Lincoln, NE 68509-8934
Refund Inquiry:  (402) 471-5729  wait until 6 weeks from filing Forms:  1-800-626-7899
General Information:  1-800-742-7474 E-File Help Desk:  (402) 471-5619
Other Info: Website:  www.revenue.state.ne.us
Nebraska Department of Revenue
301 Centennial Mall South
Lincoln, NE  68509-4818
 
E-filing Info:  The following CANNOT be filed electronically:
  • A Married Filing Separate State Return if the federal is filed jointly.
Tax Form Instructions:
Resident Instructions Non-Resident Instructions
Military Instructions

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Nebraska residents, lived at their present location all year, and one or both had income.

Main Info Screen.

Nebraska 1040N Form.  A joint resident Nebraska income tax return is prepared.  You must complete the High School District Code as shown in the example.  Check the box for Active Military if applicable. 

 

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Nebraska, while the other member is a resident of a different state.  A Nebraska income tax return must be prepared due to the taxpayer or spouse having Nebraska earned income.

Main Info Screen.  The filing status is the same as federal unless the residency status of the spouses is different, then they may file joint or separate.  NOTE:  If a couple decides to file joint and one of them is not a resident, they have agreed to be treated as a resident and nonresident income will then be subject to Nebraska tax. Nebraska, however, is not allowed to tax the income of a nonresident sevicemember and allows that income to be removed from taxation using Line 22 of Schedule 1. For this example, the taxpayer is a miiltary resident of Nebraska while the spouse is a non-military resident of North Dakota.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Nebraska 1040N Form.   A married filing separate resident Nebraska income tax return should be prepared for the taxpayer.  You must complete the High School District Code as shown in the example.  Check the box for Active Military if applicable.  

 

Review the remainder of the Nebraska Form 1040N to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Nebraska tax return due to one or both having Nebraska earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Nebraska income tax return because the spouse worked in Nebraska.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Nebraska Form 1040N.   A married filing joint non-resident Nebraska income tax return should be prepared.  You must complete the High School District Code. Nonresidents should use "9999999".  Check the box for Active Military if applicable.

 

Nebraska Schedules I and II.   To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident income must be taken off of the Nebraska Schedule I, Part B - Adjustments Decreasing Federal AGI.  You must enter Active Duty military pay on line 56 in the Nonresident military compensation field. 

Nebraska Schedule III - Computation of Nebraska tax for Nonresidents and Partial Year Residents will be generated.  This form is used to subtract out the other-states (Wisconsin) income. Enter the amount of nonresident military spouse wages and salary in the appropriate block on Line 66 to exempt the income.

Review the remainder of the Nebraska Form 1040N and Schedule 3 to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Nebraska during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Nebraska.  The Spouse and taxpayer must file a Nebraska tax return due to one or both of them having Nebraska earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from Nebraska to North Dakota during the year.  The spouse was a resident of Nebraska but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Nebraska and North Dakota and must file a Nebraska income tax return because the spouse worked in Nebraska.

 

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Nebraska Form 1040N.   A married filing separately part-year resident Nebraska income tax return should be prepared.  You must complete the High School District Code - Nonresidents should use "9999999".  Enter the dates of residency. 

 

Nebraska Schedules I and II.   To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident income must be taken off of the Nebraska Schedule I, Part B - Adjustments Decreasing Federal AGI.  You must enter Active Duty military pay on line 56 in the Nonresident military compensation field. 

Review the remainder of the Nebraska Form 1040N and Schedule 3 to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Nebraska with Income from Another State  - Taxpayer is single.  The taxpayer must file a Nebraska tax return due to him or her having Nebraska earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of Nebraska.  The taxpayer had a job in North Dakota therefore having North Dakota earned income. 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Nebraska 1040N Form.  A resident Nebraska income tax return is prepared.  Nebraska taxes residents on income from all sources, even income earned while living in another state (North Dakota as in this example).  You must complete the High School District Code as shown in the example.  Check the box for Active Military.

Nebraska Schedule II - Credit for Tax Paid to Another State (Full-Year Residents Only).  Nebraska Schedule II must be added to the tax return and prepared to give a credit for taxes paid to another state (North Dakota). You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the taxpayer had withheld from his or her pay but the amount of tax imposed on them.  Line 60 is the amount of income earned in the other state (North Dakota).  Line 62 is the amount of income tax liability on the (North Dakota) tax return.  A copy of the other state's return must be attached to the Nebraska return if not e-filed.

 

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Nebraska return must be filed because the taxpayer received new tax information after their Nebraska return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Nebraska 1040XN - Amended Individual Income Tax Return.  Add the Nebraska 1040XN Form to the return.  Answer the questions as in the example.  You must check the box to lock in the entries in Column A - As reported or adjusted, before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Nebraska 1040XN Pg 2- Amended Individual Income Tax Return.  Enter an Explanation of Changes for the amended return.  Enter the current date in the Date field.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.