If you received a Nebraska Schedule K-1N (Form 1120-SN) from an S corporation, enter the information from the form into your Nebraska return. The Schedule K-1N reports your share of the S corporation's Nebraska income, deductions, modifications, and credits used to complete your Nebraska tax return.
Program Pathway
- Select State
- Edit Nebraska Return (click the three dots)
- Miscellaneous Forms
- Schedule K-1 (1120S) received
What Is Nebraska Schedule K-1N?
Nebraska Schedule K-1N is provided by an S corporation to each shareholder. It reports the shareholder's share of:
- Income and losses
- Deductions
- Nebraska modifications
- Nebraska tax credits
- Nebraska tax withholding, when applicable
The information on the Schedule K-1N is used to prepare the shareholder's Nebraska income tax return.
Information Reported on Schedule K-1N
Part A - Shareholder's Share of Income and Deductions
Part A reports Nebraska-source income, losses, and deductions allocated to the shareholder. These amounts may include:
- Ordinary business income (loss)
- Rental income (loss)
- Interest income
- Dividend income
- Royalties
- Capital gains and losses
- Contributions
- Section 179 deductions
- Other income and deductions
Line 14 reports the shareholder's share of Nebraska and local income, sales, and use taxes deducted on the federal S corporation return, including Nebraska Pass-Through Entity Tax (PTET) deducted by the corporation.
Part B - Shareholder's Share of Modifications
Part B reports items that may modify federal adjusted gross income or federal taxable income for Nebraska purposes. These may include:
- Qualified U.S. government interest deduction
- State and local government bond interest and dividend income
- Income (loss) from non-Nebraska sources
These amounts may be needed to correctly calculate your Nebraska taxable income.
Part C - Shareholder's Share of Credits
Part C reports Nebraska tax credits and withholding amounts passed through from the S corporation. Examples include:
- Community Development Assistance Act (CDAA) Credit
- Creating High Impact Economic Futures (CHIEF) Credit
- Form 3800N and certain certified credits
- Contractor income tax withholding
- Nebraska income tax withheld
- PTET credits
- Opportunity Scholarships Act Credit
- School Readiness Tax Credit for Providers
- Nebraska Pregnancy Help Act Credit
Enter the information exactly as shown on your Schedule K-1N.
Additional Notes
Multi-State S Corporations
If the S corporation operates in multiple states, some Nebraska amounts reported on the Schedule K-1N may be calculated using the corporation's Nebraska apportionment factor rather than matching the federal Schedule K-1 exactly.
Nebraska Withholding and PTET Credits
Your Schedule K-1N may include Nebraska income tax withheld on your behalf or PTET credits. These amounts can help reduce your Nebraska tax liability when properly entered in your return.
Additional Information
The Form 1120-SN Schedule K-1N instructions can be reviewed for further reference here.