Nebraska State Tax Help

How will contributions to the Wildlife Conservation Fund be used?

Your contributions are used by the Nebraska Game and Parks Commission to protect and manage Nebraska's nongame and at-risk birds, mammals, amphibians, fish, reptiles, plants, and invertebrates. This fund will help prevent species from becoming endangered by managing, restoring, and protecting their habitat.

If you aren't entitled to a refund, you may still send your tax-deductible contribution directly to the Wildlife Conservation Fund at www.nebraskawildlifefund.org. For more information, contact:

Nebraska Game and Parks Commission, Wildlife Division
2200 North 33rd Street
Lincoln, NE 68503-0370
or call 1-402-471-0641
or visit www.outdoornebraska.org

How will contributions to the Nebraska Campaign Finance Limitation Cash Fund be used?

Your contributions are used under the Campaign Finance Limitation Act to lessen the reliance of candidates on contributions from special interest organizations by providing contributed funds to assist in financing election campaigns of candidates seeking statewide offices.

For more information, contact:

Nebraska Accountability and Disclosure Commission
11th Floor, State Capitol, PO Box 95086
Lincoln, NE 68509-5086
call 1-402-471-2522
or visit www.nadc.state.ne.us

What if I don't know my school district number?

If your school district appears on the page, simply choose it and we'll provide the appropriate school district number based on your choice. If it doesn't show up, view the 2014 High School District Codes form to find your code. All school districts are listed in the individual income tax booklet.

You may choose Other on this screen and manually type in the school district number.

Which U.S. obligations do and don't qualify for this subtraction?

Interest or dividend income included in federal adjusted gross income from the following sources qualifies for subtraction from Nebraska income:
  1. U.S. government bonds, such as series EE and HH savings bonds
  2. U.S. Treasury bills
  3. U.S. government notes
  4. U.S. government certificates
  5. Commodity Credit Corporation
  6. Federal Home Loan Banks
  7. Federal Reserve Banks
  8. Federal Savings and Loan Insurance Corporation
  9. Tennessee Valley Authority bonds
  10. Interest on debentures issued to mortgagees of mortgages foreclosed under the National Housing Act if insured after February 3, 1938
  11. Postal Service bonds
  12. Retirement bonds as provided by IRC Section 409
  13. Farm Credit Bank Consolidated System-wide bonds
  14. Farm Credit System including the following members unless noted elsewhere:
    1. Federal Land Banks and Federal Land Bank Associations
    2. Federal Intermediate Credit Banks
    3. Federal Farm Mortgage Corporation
    4. Any other institution chartered by and subject to the supervision of the Farm Credit Administration unless noted elsewhere
  15. General Service Administration Participation Certificates
  16. Federal Housing Finance Board
  17. Resolution Trust Corporation
  18. Reconstruction Finance Corporation

Interest, but NOT dividend income, included in federal adjusted gross income from the following sources qualifies for subtraction from Nebraska income:
  1. Federal Deposit Insurance Corporation (FDIC)
  2. Student Loan Marketing Association
  3. Production Credit Association
  4. Central Bank for Cooperatives

Interest or dividend income from the following sources DOES NOT qualify for subtraction from Nebraska income (Do NOT enter your information if your interest or dividend income came from one of these sources):
  1. Federal or State Banks
  2. Federal or State Savings and Loan Associations
  3. Building and Loan Associations
  4. Postal Savings Accounts (discontinued in 1966)
  5. Export Import Bank bonds
  6. Federal or State Credit Unions
  7. Interest on debentures issued to mortgagees of mortgages foreclosed under the National Housing Act if insured before February 3, 1938
  8. Interest on federal income tax refunds
  9. Farmers Home Administration
  10. New Community debentures
  11. Merchant Marine bonds
  12. Ship Financing bonds
  13. U.S. Merchant Marine Ship notes
  14. U.S. Merchant Marine Offshore Ship Services notes
  15. Federal Home Loan Mortgage Corporation
  16. World Bank
  17. International Bank for Reconstruction and Development bonds
  18. Asian Development Bank notes and bonds
  19. Inter-American Development Bank bonds
  20. Interest from U.S. Government Life Insurance (unless exempted by IRC Section 101[d][1][B])
  21. Bankers' Acceptance
  22. Certificates of Deposit
  23. Penn Central Transportation certificates
  24. Federal Financing Bank
  25. Federal National Mortgage Association (FNMAs)
  26. Federal Mortgage Corporation (FMCs)
  27. Government National Mortgage Association (GNMAs)
  28. Crysler Corporation secured notes
  29. Lockheed convertible bonds
  30. Washington Metropolitan Area Transit Authority bonds
  31. Interest income from repurchase agreements involving U.S. government obligations
  32. Capital gains from the sale of U.S. government obligations

What capital gains and extraordinary dividends can I deduct?

Nebraska residents can elect to deduct the extraordinary dividends paid on and the gain received from the sale or exchange of capital stock of a "qualified" corporation acquired either because of employment by the corporation or while employed by the qualified corporation.

"Extraordinary dividend" means any dividend greater than 20 percent of the fair market value of the stock on which it is paid as of the date the dividend is declared. Individuals are entitled to one election during their lifetime for the capital stock of one qualified corporation.

Special Capital Gains Election Computation, Form 4797N, must be sent to the Nebraska Department of Revenue to report your election.

When claiming the Extraordinary Dividend Deduction, a copy of federal Schedule B is required.

What is included with other subtractions from income?

S Corporation and Limited Liability Company non-Nebraska Income. Income from an S corporation or limited liability company that is not from Nebraska sources is deductible. Income from partnerships, LLP's, and other entities can't be deducted.

Native American Indian Reservation Income. Native Americans residing on a Nebraska Native American Indian Reservation may deduct income earned within the boundaries of the reservation.

Claim of right repayment. A taxpayer who is required on a federal return to take a credit for a claim of right repayment may deduct the amount of the repayment.

Nebraska net operating loss carryforward. A Nebraska net operating loss from an earlier year that is available for carryforward to 2014 may be deducted.

Nebraska Agricultural Revenue and federally taxable NIFA bonds. Income from bonds which are subject to federal income tax but exempt from Nebraska tax by Nebraska law may be deducted.

Federally taxable Build America bonds issued by Nebraska governmental units. The America Recovery and Revitalization Act of 2009 established a category of federally taxable bonds that are exempt under Nebraska law. Income from these bonds may be deducted. Recovery Zone Economic Development Bonds and Qualified School Construction Bonds that are classified as Build America Bonds may also be deducted if issued by a Nebraska governmental unit.

Why does my AMT amount need to be adjusted?

Nebraska Revenue Ruling 22-13-2 states that certain line items from the federal Form 6251 will be adjusted for Nebraska purposes. We will make these calculation changes using the information you provide on this screen.

What is the purpose of the Nebraska Credit for Tax Paid to Another State?

The credit for taxes paid to another state is to alleviate any double taxation of income. If you were required to pay tax in another state on income that is included in your Nebraska adjusted gross income, this income would be taxed again by Nebraska if not for the credit.

If you paid tax to another state on income included in your Nebraska AGI, enter the amount of tax paid as well as the amount of income. If you earned income in another state that was NOT taxed by that state, do NOT enter the information associated with that income.

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