It’s time to start thinking about taxes. And it’s important that you know the Nebraska Department of Revenue’s (DOR) tax laws and regulations. You'll be able to prepare your taxes efficiently if you have all the facts. It may also save you money if you know your tax filing deadlines and adhere to them.
Who Must File Nebraska Income Taxes?
Nebraska residents who are required to file a federal individual income tax return to the IRS because of a tax liability before credits must file a state tax return. This also includes a resident who has $5,000 or more net Nebraska adjustments to federal adjusted gross income (AGI).
A resident is someone domiciled in Nebraska. They are also someone who is physically in the state for an aggregate of more than six months and maintains a permanent abode.
Residents who work in another state will need to file a Nebraska state income tax return to receive credits paid to the other state.
Partial-year residents who have derived income from Nebraska sources must file a Nebraska individual income tax return. A partial-year resident is an individual taxpayer who changed domiciles either by moving in or out of Nebraska during the tax year.
A nonresident who has derived income from Nebraska sources must file a state income tax return.
What Are the Forms to Use?
Residents file with Form 1040N. A resident deriving income from another state must also file Nebraska Schedule I and attach it to Form 1040N. Nonresidents and partial-year residents also file the same tax forms, Form 1040N and Nebraska Schedule I.
What is the Tax Rate in Nebraska?
Nebraska is a progressive tax state. That means that your tax rate depends on your income. Single status rates are:
- $0 to $3,230: 2.46 percent
- $3,231 to $19,330: 3.51 percent
- $19,331 to $31,160: 5.01 percent
- $31,161 and over: 6.84 percent
There are different incomes for married or joint filers. They are:
- $0 to $6,440: 2.46 percent
- $6,441 to $38,680: 3.51 percent
- $38,681 to $62,320: 5.01 percent
- $62,321 and over: 6.84 percent
You’ll find your income on your W-2 form or 1099 form.
What Are the Filing Deadlines and Extension Process?
The deadline for filing Nebraska state income tax returns and paying taxes is April 18, 2022. If you file an extension, you will have until October 17, 2022. But you still need to pay your taxes by the April 18 deadline despite a filing extension. Failure to pay by the deadline results in penalties.
If you expect a refund and don’t owe taxes, you don’t need to file an extension. However, you will not receive your refund until you file.
If you owe taxes, you must apply for an extension before or on April 18. If you pay all your taxes on time by mail, send in Form 4868N and receive an automatic extension on filing. When you pay your NE taxes online, the filing extension will be automatic and you won’t need Form 4868N.
What Are the Penalties for Late Filing and Underpayment of Taxes?
Filing a return late results in a penalty of five percent per month up to 25 percent of the unpaid tax. If you fail to pay owed taxes, you are penalized five percent per month of the unpaid tax. The maximum is 25 percent. A partial payment is also penalized five percent of the unpaid tax.
Even if you can’t pay your owed taxes, it’s better to file. This will save you penalties.
Where Do I Mail/E-file My Nebraska Return?
If you are mailing a return that has a refund or doesn't have payment enclosed, send it to the Nebraska Department of Revenue, P.O. Box 98912, Lincoln, NE 68509-8912. A mailed-in return with a payment should be sent to the Nebraska Department of Revenue, P.O. Box 98934, Lincoln, NE 68509-8934.
There are two different ways to e-file your Nebraska tax return. One is federal/state electronic filing, and you can also use NebFile.
The federal/state e-filing is done at the same time. This can be done with a tax preparer or using software that you purchase.
NebFile is a Nebraska program for full-year residents who meet eligibility requirements.
The advantage to e-filing is you’ll receive your refund more quickly and you can direct deposit it into your bank account.
How Do I Pay Taxes Due?
You can make a tax payment by mailing a check or money order in with your income tax return.
You can also pay online with a credit card or a debit card. You can pay online even if you have filed by paper. Nebraska accepts MasterCard, American Express, Visa and Discover.
A credit card payment can also be made over the phone. The number is 800-2PAY-TAX or 800-272-9829. You will need your Nebraska jurisdiction code, which is 3700.
There is a 2.35 percent convenience fee for using credit cards.
If you are unable to pay your taxes, a payment plan can be requested. Make a request by registering with the DOR. You will need your DOR-issued Nebraska ID. This can be found on your balance due notice. You will also need a Social Security number, contact phone and a valid email address. A savings or checking account is required.
Nebraska DOR will allow payment agreements as long as the balance is paid within 24 months. A $1.75 convenience fee is added to each check payment.
Even though you are making payments, you will still be charged penalties and interest on owed taxes.
Where Can I Check My Nebraska Refund Status?
Allow 30 days minimum to receive an electronically filed error-free return. A paper return will take three months.
To check on a refund, you will need to go to NebFile. You’ll need your Social Security number filing status and refund amount. Nebraska DOR has a video explaining the process.
What About Nebraska Taxes if You’re Self-employed?
Self-employed individuals don’t need to pay corporate tax rates. Anyone self-employed files and pays their income taxes through their personal income tax return.
What About Nebraska Taxes if You’re a Business?
Corporations, whether they be foreign, domestic or domesticated, are subject to Nebraska income tax if they have taxable income derived from sources within Nebraska.
Corporate tax rates in Nebraska are progressive. The tax rate is 5.58 percent for corporations' taxable income up to $100,000. If taxable income is over $100,000, the rate is 7.81 percent, plus an additional $5,580.
Pass-through entities such as S-corporations, LLCs and partnerships are required to file a Nebraska DOR return. But these entities are not subject to corporate tax rates. Instead, income generated from these entities is declared on the owners' and members' personal income tax returns.
Rates and dates in this article are correct as of publication. But check for any changes with the Nebraska Department of Revenue before you file.
- Nebraska: 2020 Nebraska Individual Income Tax Booklet
- Nebraska: Individual Income Tax FAQs
- eFile: Nebraska Income and NE State Tax Forms
- Nebraska: Refund Information
- eFile: Tax Brackets, Rates and Standard Deductions in Nebraska
- eFile: Nebraska Income Taxes and NE State Tax Forms
- Nebraska: Contact Us
- Nebraska: Individual Income Tax E-filing
- Nebraska: e-pay
- Nebraska: Credit Card Payment
- Nebraska: Request an Individual Payment Tax Plan FAQs
- Nebraska: NebFile for Individuals
- Nebraska: Business Income Tax FAQs
- Nebraska: Form 4868N
Anne attended University of Akron and went on to have a career in television sales. Working as a commercial property and casualty insurance agent for nine years allowed her to learn about different businesses' needs. She has also owned an advertising agency where she created marketing capaigns for various clients. Anne has written for several publications. She currently resides in Charleston, SC.