Nebraska Form 1040N Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form 1040N, the Nebraska Individual Income Tax Return. If you don't live in Nebraska, not to worry, we'll be tackling the other 34 states soon enough.
I dig the Nebraska form and here's why. Not only is it short, but it's done in blue ink which is easy on the eyes. Then on Line 43 you're hit with, "Allow at least 4 months to receive your refund if you file a paper return". If that doesn't motivate you to file electronically I don't know what will. Filing electronically is great for taxpayers because it saves time and reduces stress. You won't have to bust out your calculator to double check your figures because the computerized form will do it for you. And in case you didn't know, filing electronically is ultra safe.
So the convenience and transparency of the Form 1040N is making me give it an enthusiastic 8 of 10 on my user friendly meter which is about the highest in the country. Big props go out to the Nebraska Department of Revenue, those guys and gals have it figured out.
As usual, enter your name, address, and social security number at the top of the form and record your high school district code before proceeding. If you are a farmer/rancher or active in the military be sure to check off the appropriate box.
Declare your filing status on Line 1, your senior status or if someone else can claim you on Line 2, and the type of return your going to file on Line 3. The number of exemptions you claimed on your federal form goes on Line 4 and your federal adjusted gross income goes on Line 5. Then you get to enter your Nebraska standard deduction, which is $5,700 as a single, $11,400 married, and $8,400 as a head of household, on Line 6.
If you itemize, record the amount from your Federal Schedule A (line 29), on Line 7. Then record any state and local income taxes from your Federal Form 1040 on Line 8. Then subtract Line 7 from Line 8 to get your Nebraska itemized deductions which then goes on Line 9.
On line 10 enter the greater of Line 6 or 9. Then subtract Line 5 from Line 10 to get your Nebraska income. If you need to make any adjustments to either increase or decrease your income, enter those amounts (along with Schedule I) on Lines 12 and 13. Then add Lines 11 and 12 before subtracting Line 13 to get your tax table income. This is ultra easy.
Look up the tax table in the instruction booklet to get your Nebraska income tax, which goes on Line 15. If either the alternative minimum tax, a tax on lump sum distributions, or a tax on early distributions applies to you, work through Line 16. Before you can move onto page 2, you'll need to figure your total Nebraska tax. To do this add Lines 15 and 16 and put that sum on Line 17 here and Line 18 on page 2.
Residents get $118 per exemption, just fill in the amount on Line 19. If you paid tax to another state, you'll get a credit for that, just enter the amount on Line 20. You also get a credit for being elderly or disabled, just attach a Federal Schedule R and the amount on Line 21. If other nonrefundable credits apply, they go on Lines 19 through 25. When you've gathered that data add Lines 19 through 25 and put the total on Line 26.
On Line 27, subtract Line 26 from Line 18 to determine your Nebraska tax liability. On Line 28 record your Nebraska withholdings, just be sure to include your W-2 or other similar documentation for support. Your estimated tax payments go on Line 29 and (if it applies) a refundable credit from Form 3800N goes on Line 30. On Line 31 you get credit for child or other dependent care, just be sure to include a copy of Federal Form 2441 if your Federal adjusted gross income is less than $29,000.
If you're a farmer, you've just harvested a credit, attach form 1099 BFC and record the amount on Line 32. Next enter multiply your federal earned income credit by 10% and put that total on Line 33. Lastly on Line 34 make sure to claim the Angel Investment Tax Credit. Now you can add Lines 28 through 34 on Line 35.
If you've incurred a penalty for the underpayment of estimated payments, record that amount on Line 36. Then add Lines 27 and 36 to get your tax with penalties. If you bought stuff on the internet, and didn't pay tax, make sure you work through the use tax on Line 38. If Line 36 is larger than Line 35, subtract Line 35 from Line 38 to figure the amount you still owe. Just record your liability on Line 39.
But if Line 35 is more than Line 37, subtract Line 36 from Line 35 to figure your overpayment, the balance of which goes on Line 40. On Line 41, record the amount of Line 40 you want applied to next year, and if you want to donate to wildlife conservation fund, feel free to do so next the bird graphic on Line 42. Feel like donating to the campaign fund? Go ahead and do so on Line 43.
Declare the amount you want refunded to you on Line 44 and your banking account and routing numbers on Line 45. All that's left is to sign, date, and jot down your phone number. If you paid a tax preparer to work through this form for you, they'll do the same. Hopefully though, you saved yourself some money and filled out this cream puff of a form yourself.
It really doesn't get much easier than this, not anywhere in the country.
