Nebraska Frequently Asked Questions

Nebraska E-File

Nebraska Frequently Asked e-file Questions
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 Nebraska Frequently Asked Questions


Nebraska FAQ
1.Who is required to file the Nebraska Individual Income Tax Return?
2.Can I e-file my individual income tax return?
3. Can I file my Nebraska individual income tax return by TeleFile?
4.How do I get my Nebraska PIN?
5.How long should I expect to wait for my Nebraska income tax refund?
6.What interest rate is assessed on state taxes?
7. Does the Nebraska Department of Revenue have a payment plan?
8.What is the penalty for filing my tax return late or without payment?
9.Individual Estimated Income Tax Payments
10.How do I file an Amended Nebraska Individual Income Tax Return?
11.Part of my income is from Nebraska, and part is from another state.
12.Nebraska Resident with All Income from Another State
13.Does Nebraska have a standard deduction allowance?
14.Does Nebraska have a personal exemption credit?
15.Does Nebraska allow a child and dependent care credit?
16.How can I request an extension of time for filing my income tax return?
17.How do I get a copy of my W-2?
18.State Exempt U.S. Government Obligations
19.What U.S. obligations are not exempt from tax?
20.Military Residency and Spouse Income
21.Individual Underpayment of Estimated Tax, Form 2210N
22.My address is incorrect on my address label. What should I do?
23.Casino Winnings from Another State


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Who is required to file the Nebraska Individual Income Tax Return?Top

You must file a Nebraska Individual Income Tax Return Form 1040N or 1040NS if you are required to file a federal return or use the federal TeleFile program and report a federal liability. You also must file the Nebraska Individual Income Tax Return if you have $5,000 or more of Nebraska adjustments to federal Adjusted Gross Income (AGI), including non-Nebraska state and local bond interest income exempt from federal tax.

Can I e-file my individual income tax return?Top

Nebraska accepts and encourages taxpayers to e-file. Electronic filing enables you to file both the federal and state returns in one step.

Advantages include computer filing accuracy and faster refund processing. You can also have your refund directly deposited into your bank account. OnLine Taxes at olt.com is an approved provider for Nebraska electronic filing.

EXCLUSIONS FROM THE NEBRASKA E-FILE PROGRAM

Nebraska forms not accepted electronically:

  1. Form 1040XN Amended Nebraska Individual Income Tax Return

  2. Form 4797N Special Capital Gains Election and Computation
  3. Form CDN Nebraska Community Development Assistance Act Credit
    Computation

  4. Form NOL Nebraska Net Operating Loss Worksheet

  5. Form 1310N Nebraska Refund for Deceased Taxpayers

  6. Form 3800N Nebraska Employment and Investment Credit Computation

  7. Form 829N Nebraska Quality Jobs Act Credit

  8. Form 14N Statement of Nebraska Income Tax Withheld For Nonresidents

Nebraska 1040N and Schedule Lines not accepted electronically include:

  1. 1040N Line 22 CDAA Credit

  2. 1040N Line 23 Form 3800N Nonrefundable Credit

  3. 1040N Line 24 Form 829N Credit

  4. 1040N Line 30 Form 3800N Refundable Credit

  5. 1040N Line 32 Beginning Farmer Credit

  6. Schedule I, Line 50 Special Capital Gains Election

Types of returns not accepted electronically this year include:

  1. Any returns prior to the current tax year

  2. Non calendar-year returns

  3. Decedent tax returns requiring a Death Certificate or filing of Form 1310N


Can I file my Nebraska individual income tax return by TeleFile? Top

The Nebraska TeleFile system allows Nebraska resident taxpayers to file their state income tax return by telephone. All necessary tax return information is entered on your telephone touch-tone key pad.

In order to use the Nebraska TeleFile system, you must have received the Nebraska Individual Income Tax TeleFile Booklet and still meet eligibility requirements listed below. The TeleFile booklet is automatically mailed to all Nebraska taxpayers who filed in the previous year using the Nebraska short form (Form 1040NS), by TeleFile, or over the Internet using a Form 1040NS. Only short form filers can use TeleFile.

NEBRASKA TELEFILE ELIGIBILITY

1. You have received a Nebraska Individual Income Tax TeleFile Booklet
2. You have access to a touch-tone telephone
3. Your social security number(s), name(s), and address printed on the fron cover of your Nebraska Individual Income Tax TeleFile Booklet are current and correct
4. You were a Nebraska resident for all of the tax year you are filing for
5. Your federal filing status is either single with no dependents, or married filing jointly with no dependents
6. You are using a Federal Form 1040EZ or the IRS TeleFile program to file your federal income tax return
7. Your Adjusted Gross Income is not greater than $72,000 if single; or $115,900 if married filing joint
8. Neither you nor your spouse was 65 or older or blind during the tax year you are filing for
9. You have received all Forms W-2 from your employers, and you have ten or less W-2s to report

If you received this booklet and you meet the requirements described above, follow the instructions in the booklet to file your return. Your call to the Nebraska TeleFile system is free of charge. If you have a refund, you can choose to have it directly deposited into your bank account within approximately 7 to 10 days after your call. If you have a balance due, you can make your payment by check, money order, or credit card.

Below is a link to Nebraska Telefile.
Nebraska Telefile

How do I get my Nebraska PIN? Top

You Nebraska PIN is needed only if you file your Nebraska return through the NebFile or TeleFile system. This PIN, along with your social security number, is your access to the NebFile and TeleFile filing options. If you received a Nebraska Individual Income Tax Booklet, your Nebraska PIN is located under your name and address label attached in the center of the booklet. If you received a postcard, your Nebraska PIN is printed in the gray box. If you received a TeleFile booklet, your Nebraska PIN is printed on the upper right corner of your TeleFile Worksheet.

If you did not receive a tax booklet or postcard, or have lost it, you can look it up on the Internet by going to https://www.revenue.state.ne.us/nebfile/ (you will need to know your social security number and your drivers' license number). You can also contact our Taxpayer Assistance office at 1-800-742-7474 (toll free in Nebraska and Iowa) or 1-402-471-5729. You will need to provide proof of your identity before your PIN can be given to you over the telephone.


How long should I expect to wait for my Nebraska income tax refund? Top

Individuals filing the original current year return should allow three months from the time they file the return for their Nebraska income tax refund. Electronic or TeleFile filers should allow 14 days for processing a refund warrant, or 7 to 10 business days for a direct deposit.

If you prefer to file using paper forms, your refund will be delayed. Because of budget-related staff reductions, processing of paper-filed returns could be delayed up to three months. If you want your refund faster, you should use one of the electronic filing options, like Federal/State Joint E-filing, Nebraska TeleFile, or Nebraska Internet 1040NS. Another option is to use a paid preparer who supports the Federal/State electronic filing. OnLine Taxes is an approved provider of Nebraska Electronic Filing.

Individuals filing amended returns for a refund should allow from two to six months for their refund checks.


What interest rate is assessed on state taxes? Top

What interest rate is assessed on state taxes?

The rate of interest on delinquent payments of any taxes or special assessments is:


14%through December 31, 1992
7% January 1, 1993 through December 31, 1994
9%January 1, 1995 through December 31, 2002
6%January 1, 2003 to December 2006
8%January 1, 2008 to present



Does the Nebraska Department of Revenue have a payment plan?Top

If you are unable to pay the full amount, you should file your Nebraska income tax return and pay as much as you can by the filing date. Penalties and interest will accrue on any unpaid balance until fully paid.

You may be eligible for an installment agreement if you meet the requirements and submit the appropriate documentation. It is your responsibility to contact the department. Do not wait for the department to contact you. The department will respond to you by either accepting or denying any installment agreement. As long as you honor the terms of an approved installment agreement (make payments and timely file and pay current liabilities), the department will not take other collection action. The department may file a tax lien or intercept subsequent refunds even though you are honoring the terms of your agreement.

If you need to request a payment plan, contact the Nebraska Department of Revenue office nearest you or call Taxpayer Assistance at 1-800-742-7474 (toll free in Nebraska and Iowa) or 1- 402- 471-5729, and speak with a representative who will explain the payment agreement procedure. The department reserves the right to deny any payment agreement.


What is the penalty for filing my tax return late or without payment? Top

Late filed return -- Penalty 5% per month (25% maximum) of the unpaid tax at due date or extended filing date (extension of time).

Late payment -- Penalty 5% of unpaid tax at due date or extended filing date (extension of time).

Partial payment -- Penalty 5% of unpaid tax at due date or extended filing date.


Individual Estimated Income Tax Payments Top

How do I know if I have to make individual estimated income tax payments?

Estimated tax payments must be filed if your Nebraska income tax can reasonably be expected to exceed allowable credits by $300 or more.

Payment of estimated tax ordinarily must be made in four equal installments on or before April 15, June 15, September 15, and January 15. The Nebraska Individual Income Tax Payment Voucher, Form 1040N-ES is to be used to report this tax.

Click here to go to the Nebraska forms page

How do I file an Amended Nebraska Individual Income Tax Return? Top

File an Amended Nebraska Individual Income Tax Return Form 1040XN; or access prior year amended forms by clicking the link below.

Click here to go to the Nebraska forms page


Part of my income is from Nebraska, and part is from another state. How do I file? Top

Residents must report all income to Nebraska, and will receive a credit for taxes paid to other states by completing Form 1040N and Nebraska Schedule II. Nonresidents and partial-year residents must file a Form 1040N and a Nebraska Schedule III to compute the Nebraska tax due.

Nebraska Resident with All Income from Another State Top


You must file a Form 1040N and you will receive credit for taxes paid to the other state by completing a Nebraska Schedule II and attaching a copy of the other state's income tax return. Nebraska income tax is imposed on all income which is earned while a resident of this state and which is not taxed by another state (non-taxing state's income).


Does Nebraska have a standard deduction allowance? Top

Yes. Federal adjusted gross income is reduced by either the allowable state standard deduction or the allowable itemized deduction amount, whichever is greater. For tax years prior to 2007, special instructions must be followed by higher income taxpayers, as the deductions are phased out for state purposes similar to the federal phase-out.

The state standard deductions are as follows: 2007-Not Yet Updated
Married, filing joint - $8,580
Single - $5,130
Head of household - $7,550
Married, filing separate - $4,290

The state standard deductions are as follows: 2006
Married, filing joint - $8,580
Single - $5,130
Head of household - $7,550
Married, filing separate - $4,290
2005
If your federal adjusted gross income is greater than $145,950 ($72,475 if married filing separate), a worksheet must be completed.
Married, filing joint - $8,320
Single - $4,980
Head of household - $7,330
Married, filing separate - $4,160
2004
If your federal adjusted gross income is greater than $142,700 ($71,350 if married filing separate), a worksheet must be completed.
Married, filing joint - $8,140
Single - $4,850
Head of household - $7,150
Married, filing separate - $4,070
2003
If your federal adjusted gross income is greater than $139,500 ($69,750 if married filing separate), a worksheet must be completed.
Married, filing joint - $7,950
Single - $4,750
Head of household - $7,000
Married, filing separate - $3,975
2002
If your federal adjusted gross income is greater than $137,300 ($68,650 if married filing separate), a worksheet must be completed.
Married, filing joint - $7,850
Single - $4,700
Head of household - $6,900
Married, filing separate - $3,925
2001
If your federal adjusted gross income is greater than $132,950 ($66,475 if married filing separate), a worksheet must be completed.
Married, filing joint - $7,600
Single - $4,550
Head of household - $6,650
Married, filing separate - $3,800

OnLine taxes will compute this worksheet for you if applicable.

Does Nebraska have a personal exemption credit? Top

Yes. Residents can claim the year-specific credit for each federal exemption reported on line 4 of Form 1040N or line 5 of Form 1040NS. Nonresidents and partial-year residents claim the credit on the Nebraska Schedule III. In tax years prior to 2007, higher income individuals may have this credit phased out or reduced, so you should refer to the Personal Exemption Table in your tax booklet. The personal exemption credits by year are: 2007 -
2006 - $106
2005 - $103
2004 - $101
2003 - $99
2002 - $97
2001 - $94

Does Nebraska allow a child and dependent care credit? Top

Yes. This credit may be claimed only by Nebraska full-year residents or partial-year residents. It cannot be claimed if you filed as a nonresident or if you filed a federal joint return, but a married- separate return for Nebraska.

For individuals reporting federal adjusted gross income not greater than $22,000, the credit is refundable and is 100% of the federal credit. For individuals reporting federal adjusted gross income over $22,000 but not more than $29,000, the credit is refundable and the amount of the credit ranges from 90% to 30% of the federal credit. The percentage of the federal credit is reduced by 10% for each $1,000 of adjusted gross income over $22,000.

For individuals with adjusted gross income in excess of $29,000, the credit is nonrefundable and is limited to 25% of the federal credit allowed.

How can I request an extension of time for filing my income tax return? Top

An extension of time to file Form 1040N or Form 1040NS may only be obtained by:

  • Attaching an approved copy of Application for Additional Extension of Time to File U.S. Individual Tax Return, Federal Form 2688, to the Nebraska return when filed;
  • Attaching a copy of the timely filed Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, Federal Form 4668, to the Nebraska return when filed;
  • Attaching a schedule to your Nebraska return listing your federal confirmation number and providing an explanation that you received an automatic federal extension by making a payment of your federal estimate of tax due using a credit card;
  • Filing a Nebraska Application for Extension of Time, Form 2688N, on or before the due date of the return, when you need to make a tentative Nebraska payment or when a federal extension is not being requested;
  • Attaching a copy of the statement or letter submitted with your federal return requesting the automatic extension of time for a U.S. citizen residing or traveling outside the U.S. or Puerto Rico, to the Nebraska return when filed; or
  • Attaching information to document a combat zone-related extension.

Click here to go to the Nebraska forms page

When an extension of time is given, INTEREST is still due on any unpaid tax. An extension of time cannot exceed a total of seven months after the due date of the return. You can make a tentative payment to stop interest from accruing.

If such payment is made, Nebraska Application for Extension of Time, Form 2688N must also be filed. When filing your Nebraska Individual Income Tax Return, Form 1040N, claim the tentative payment on line 29, Form 1040N, as an estimated tax payment.

Click here to go to the Nebraska forms page

How do I get a copy of my W-2? Top

If you have not received a W-2 from an employer by January 31st, call or write to your employer requesting the form, giving them your current mailing address.

Nebraska will accept a photocopy of your W-2 if the original is lost.

Your next step would be to call the IRS at 800-829-1040 to obtain a substitute Form W-2. Nebraska will accept a copy of the substitute W-2 filed with the IRS. A state amount withheld and NE (Nebraska) should be written on the form prior to mailing it to the Department of Revenue.


State Exempt U.S. Government Obligations Top

What U.S. government obligations are exempt from tax for state purposes, and how do I show these on my tax return?

United States interest and dividend income which is exempt from state taxation includes:

  • Series E, F, G, and H savings bonds
  • U.S. Treasury bills
  • U.S. Government notes and bonds
  • U.S. Government certificates
  • Interest on debentures issued to mortgagees of mortgages foreclosed under provisions of the National Housing Act, if insured after February 3, 1938
  • Retirement bonds as provided by I.R.C. section 409
  • Federal Farm Credit Bank Consolidated System-wide bonds
  • Federal Land Banks and Associations
  • Federal Intermediate Credit Bank
  • Commodity Credit Corporation
  • Federal Farm Mortgage Corporation
  • Federal Home Loan Banks
  • Reconstruction Finance Corporation
  • General Services Administration Participation Certificates
  • Central Bank for Cooperatives (interest only)
  • Federal Reserve Banks
  • Federal Savings and Loan Insurance Corporation
  • Production Credit Association (interest only)
  • Tennessee Valley Authority bonds
  • Postal Service bonds
  • Federal Deposit Insurance Corporation (interest only)
  • Student Loan Marketing Association (interest only)
  • Resolution Trust Corporation

Dividends and other income received from a regulated investment company are exempt to the extent they represent U.S. Government interest and dividend income listed above.

Allowable adjustments are reported on the Nebraska Schedule I and are also listed in the individual income tax booklet instructions. Individual Income Tax Regulation 22-002.05A contains the same information.

What U.S. obligations are not exempt from tax? Top

Several quasi-governmental organizations issue bonds which are not considered to be backed by the U.S. Government. Interest or dividend income from the following are not deductible for Nebraska income tax purposes:

  • Federal or State Banks
  • Federal or State Savings and Loan Associations
  • Building and Loan Associations
  • Postal Savings Accounts (discontinued in 1996)
  • Export Import Bank bonds
  • Federal or State Credit Unions
  • Interest on debentures issued to mortgagees or mortgages foreclosed under the National Housing Act if insured before February 3, 1938
  • Interest on federal income tax refunds
  • Farmers Home Administration
  • New Community debentures
  • Merchant Marine bond
  • Ship Financing bond
  • U.S. Merchant Marine Ship notes
  • U.S. Merchant Marine Offshore Ship Services notes
  • Federal Home Loan Mortgage Corporation
  • World Bank
  • International Bank for Reconstruction and Development bonds
  • Asian Development Bank notes and bonds
  • Inter-American Development Bank bonds
  • Interest from U.S. Government Life Insurance (unless exempted by I.R.C. section 101[d][1][B])
  • Bankers' Acceptance
  • Certificates of Deposit
  • Penn Central Transportation certificates
  • Federal Financing Bank
  • Federal National Mortgage Association (FNMA's)
  • Government National Mortgage Association (GNMA's)
  • Chrysler Corporation secured notes
  • Lockheed convertible bonds
  • Washington Metropolitan Area Transit Authority bonds

Military Residency and Spouse Income Top

I am in the military and not a resident of Nebraska, but my spouse lives and works in the state. How do we file our Nebraska return?

If you and your spouse file a joint federal return and your spouse is a resident of Nebraska, you may elect to either file a joint Nebraska return or each spouse may file separately with Nebraska.

If the nonresident military spouse does not earn any income from Nebraska sources, he or she does not need to file a Nebraska return.

For more information on this subject, refer to the information guide, Nebraska Income Tax for Military Service Members.

Individual Underpayment of Estimated Tax, Form 2210N Top

I believe I may need to report a penalty using the Individual Underpayment of Estimated Tax, Form 2210N, but I do not understand the form. What do I do?

Complete the first eight lines of Form 2210N to see if you need to report this penalty.

Click here to go to the Nebraska forms page

If you need assistance with the rest of the form, contact your nearest Nebraska Department of Revenue office, or call 1-800-742-7474 (toll free in Nebraska and Iowa) or 1-402-471-5729, and they will assist you in calculating the penalty.

OnLine Taxes does not have programming support for Form 2210N.

My address is incorrect on my address label. What should I do? Top

Make any corrections that are necessary on the address label, then use the corrected label on your return.

If you are electronically filing, use your current address on the return. You may also report a change of address by using Form 22A Change of Address. Click here to go to the Nebraska forms page

Casino Winnings from Another State Top

I won some money at a casino in another state, and it issued me a Form W-2G. What do I do about these winnings?

Those winnings are part of your federal adjusted gross income and need to be included on your Nebraska return. You may also need to complete an income tax return for the other state to report those winnings to that state.

Upon filing an individual income tax return with the other state, you will receive a credit for any taxes paid to the other state by completing a Nebraska Schedule II and attaching it to your Form 1040N, along with a copy of the other state's return.

OnLine Taxes does not have programming support for credit for taxes paid to another state. This generally requires a copy of the part year return from the other state to be attached.


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