According to Nebraska Instructions for Form 1040N, you must file a Nebraska tax return if:
A Nebraska Resident:
- You must file a Nebraska tax return if you are required to file a federal tax return.
- You have at least $5,000 of net Nebraska adjustments to your federal adjusted gross income.
A Part Year or Nonresident of Nebraska:
- You have income from Nebraska sources.
Your Nebraska filing status must be the same as your federal filing status.
An exception to this rule is if you are married filing jointly and one of you is a Nebraska resident and the other spouse is a part year or nonresident. In this case, you can chose to file jointly, or married filing separate returns with Nebraska.
Standard vs. Itemized
- If you use the Standard Deduction on the federal return, you must use the Standard Deduction on the Nebraska return.
- If you claimed Itemized Deductions on your federal return, you are allowed the larger of the Nebraska Standard Deduction or the Federal Itemized Deductions (minus state and local income taxes claimed on Schedule A).