The state of Nebraska has made the following tax law changes for tax year 2020:
- This Act provides a refundable income tax
credit to any taxpayer that paid Nebraska school district property taxes. To claim the credit taxpayers must complete and submit a Nebraska Property Tax Incentive Act Credit Computation, Form PTC.
- amends the School Readiness
Tax Credit Act for both the nonrefundable and refundable income tax credits effective for tax years
beginning on or after January 1, 2020.
u The nonrefundable income tax credit for providers is now available to pass-through entities
that own or operate an eligible child care and education program. These business entities will
distribute the credit in the same manner and proportion as income. Previously, the nonrefundable
credits could not be distributed by the pass-through entity.
u For the refundable income tax credit, the definition of an “eligible staff member” was expanded
to include a self-employed individual providing child care and early childhood education for an
eligible program for at least six months of the taxable year, who is listed in the Nebraska Early
Childhood Professional Record System, and classified as provided in Neb.
- For tax years beginning January 1, 2020, the threshold AGI for determining the decreasing adjustment for social security benefits has been adjusted. The same adjustment percentage is also used to adjust the individual income tax brackets and personal exemption credit. The taxable social security thresholds adjusted for inflation does not apply to the 2019 return.
- For taxable years beginning on or after January 1st, 2020, and before January 1st, 2026, a nonrefundable credit of $5,000 can be claimed for purchase of a residence in an extremely blighted area. The credit would be available for individuals purchasing the residence who meet certain requirements.
You can read more information about the changes to Nebraska tax law here.