Nebraska

Nebraska State Income Tax

Like usual, your federal return should be completed before going on to file your Nebraska state income tax return. Also keep in mind that most people are filing electronically these days and Nebraska state taxes can also be filed this way and in fact the state strongly encourages tax filers to do exactly that on their website.

The Nebraska state income tax rate brackets look like this:

Single Filers
$0 – $2,400 – 2.56%
$2,400 – $17,500 – 3.57%
$17,500 – $27,000 – 5.12%
$27,000+ – 6.84%

Married Filers
$0 – $4,800 – 2.56%
$4,800 – $35,000 – 3.57%
$35,000 – $54,000 – 5.12%
$54,000+ – 6.84%

The standard deduction for the state of Nebraska is $5,700 for individual tax filers and $11,400 for those who are married filing jointly. You can also take an exemption for yourself and any dependents you can legally claim (each) for $118. It’s important to note that your filing status on your Nebraska state return must be the same as it was reported on your federal return. No cheating!

If you maintained a Nebraska residence while you were living and making money in another country, then you will sadly be taxed on that income. Nebraska is also one of those states which do impose the inheritance tax. If you’re a nonresident of Nebraska and accumulated income from that state then you will be required to report it at the end of the year and pay taxes on it.

Nebraska has a 5.5% sales tax on everything besides food and prescription drugs and like anywhere the local rates can vary. The gasoline excise tax is 26.7 cents per gallon which is the same rate for diesel fuel. The cigarette tax is a lowly 64 cents per package.

Filing an Extension

Like your federal return, if you know that you won’t be able to file by the deadline then you need to file form 1040N for a six month extension to avoid paying penalties. In light of advancements in computer technology you can actually go online and check the status of your refund if you feel like you have a reason to need to know where it’s at.

Remember, try e-filing your state return this year.