Listed below is income that can be subtracted from your Nebraska return:
Subtraction For State Exempt US Government Obligations
List 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 sick pay, unemployment benefits, or railroad retirement disability, you may subtract them.
Regulated Investment Company Dividends From US Obligations
Enter the amount of mutual fund dividend that was issued by regulated investment companies that is exempt from tax.
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 return will be adjusted for the amount of the subtraction.
You may subtract your military income in the amount allowed as shown on your previously filed Form 101N-MIL. Only individuals who filed a Form 1040N-MIL within two years after their retirement from the uniformed services may claim this exclusion.
College Savings Plan - Contributions
As a parent or account owner of an UGMA/UTMA account and you made contributions during the tax year, you made enter a subtraction for up to $10,000 or $5,000 for MFS individuals for the contributions you made.
Federally Taxable Build America Bond Interest issued in 2019 by a Nebraska governmental jurisdiction.
The America Recovery and Revitalization Act of 2009 established a category of federally taxable bonds that are exempt from state income tax under Nebraska law. Income from these bonds may be deducted on line 28, Nebraska Schedule I.
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
- AG Revenue Bonds Issued by State
- NIFA Bonds
Where do I enter?
- State Section
- Subtractions from Income
For more information regarding these subtractions, please click here.