Do my active-duty military wages from Nebraska qualify for the Military Wages Subtraction?
Your Nebraska active military wages don't usually qualify unless you elect to be taxed as a Nebraska nonresident under the federal Veterans Auto and Education Improvement Act of 2022 to use for tax purposes the residence (of the servicemember or spouse) or the permanent duty station of the servicemember that is a state other than Nebraska.
Example: John and Jane are married, and Jane lives in Texas while John (who is in the military) is stationed on active duty in Nebraska. John has Nebraska tax withheld from his military Form W-2 because he's physically present in Nebraska, and his Form W-2 says shows "NE" in Box 15, meaning he had Nebraska tax withheld. BUT since Jane is in a resident of Texas, John can elect to be taxed as a resident of Texas. Then he'll he can file a nonresident return for Nebraska where he can claim the Military Wages Subtraction for his active duty military pay from the W2 even though the Form W-2 shows "NE" in Box 15.
Example: John and Jane are married, and Jane lives in Texas while John (who is in the military) is stationed on active duty in Nebraska. John has Nebraska tax withheld from his military Form W-2 because he's physically present in Nebraska, and his Form W-2 says shows "NE" in Box 15, meaning he had Nebraska tax withheld. BUT since Jane is in a resident of Texas, John can elect to be taxed as a resident of Texas. Then he'll he can file a nonresident return for Nebraska where he can claim the Military Wages Subtraction for his active duty military pay from the W2 even though the Form W-2 shows "NE" in Box 15.
