Listed below is income that can be subtracted from your Nebraska return:
Subtraction For State Exempt US Government Obligations
Enter the amounts and description of the interest or dividend income that is included in your federal AGI that came from U.S. government obligations that is exempt from Nebraska tax.
Subtraction For Benefits Paid By RRB
If you had any federally taxed retirement benefits paid by the Railroad Retirement Board such as Tier I and Tier II benefits, sick pay, unemployment benefits, or railroad retirement disability, enter the amount and description to be deducted.
Regulated Investment Company Dividends From US Obligations
Enter the amount and description of government money market or mutual fund dividends that were issued by regulated investment companies that are obligations of the U.S. Government.
Special Capital Gains Extraordinary Dividend Election And Computation
This deduction requires Nebraska Form 4797N which is not currently allowed electronically. You must print and mail the form with Form 8453N (included in your state printout) to the state after E-filing. If the form is not received, your will be adjusted for the amount of the subtraction.
Military Retirement
All military retirees are allowed to exclude 100% of the military retirement benefits from the income subject to Nebraska income tax to the extent included in the federal adjusted gross income.
College Savings Plan - Contributions
As a parent or account owner of an UGMA/UTMA account and you made contributions to one or more college savings accounts established under the Nebraska Educational Savings Plan Trust during the tax year, you may enter a subtraction for up to $10,000 or $5,000 for Married Filing Separately individuals.
Federally Taxable Build America Bond Interest issued in 2024 by a Nebraska governmental jurisdiction
Enter the amount of interest from these bonds that are included in the federal adjusted gross income. This includes interest from NPPD taxable General Revenue Bonds issued June, 2009, 2010 Series A.
Other Nebraska Subtractions from Income:
- S Corporation and LLC Non-Nebraska Income
- Nonresident Military Compensation
- Native American Income
- Claim of Right of Repayment
- Net Operating Loss Carry Forward
- Agricultural Revenue Bonds Issued by State
- NIFA Bonds
Where do I enter?
- State Section
- Edit State return
- Begin on Subtractions from Income or Other Subtractions from Income
For more information regarding these subtractions, please click here.