Nebraska allows a credit for tax paid to another state on income taxable to Nebraska and the other state. The program will automatically calculate this credit for your resident Nebraska return if you have a non-resident return created in your account for the other state.
A separate Schedule II must be completed for each state where income tax was paid. The total credits cannot exceed the Nebraska tax liability. If some income is subject to an income tax of both another state and a political subdivision in that state, complete only one Nebraska Schedule II and combine the state and political subdivision income taxes paid.
Note: Nebraska law does not allow credit for taxes paid to a foreign country or its political subdivisions.
If you have a part-year resident return for the other state, complete Nebraska Schedule III. The allowable credit will need to be manually calculated.
For manual entries for Credit for Taxes Paid to Another State in the program:
- State return
- Edit State return
- Begin on Credits
- Begin on Credit for Taxes Paid to Another State
For additional information, please refer to Nebraska Instructions.