If you received a Nebraska Schedule K-1N (Form 1041N) from an estate or trust, use this section of the program to enter your share of Nebraska income, deductions, modifications, credits, and withholding reported by the entity. The Nebraska Schedule K-1N is issued by an estate or trust to report each beneficiary's share of items that may affect their Nebraska tax return.
Program Pathway
- State
- Edit Nebraska Return (Click the 3 dots)
- Miscellaneous Forms
- Schedule K-1N (1041) received
Estate or Trust Information
Enter the information exactly as it appears on your Nebraska Schedule K-1N, including:
- Estate or trust name
- Nebraska ID number (if provided)
- Federal ID number (EIN)
- Tax year information, if shown on the form
This information identifies the estate or trust that distributed the income, deductions, modifications, credits, or withholding to you.
Beneficiary Information
Enter the beneficiary information from your Schedule K-1N, including:
- Beneficiary name
- Address
- Social Security Number or Federal ID number
- Beneficiary type, if applicable
Be sure the information entered matches the Schedule K-1N provided by the estate or trust.
Part A - Beneficiary's Share of Income and Deductions
Part A reports your share of income and deductions distributed by the estate or trust. Enter the amounts from your Schedule K-1N exactly as received.
Line 1 - Ordinary Business Income (Loss)
Enter your share of ordinary business income or loss from the estate or trust.
Line 2 - Net Rental Real Estate Income (Loss)
Enter your share of net rental real estate income or loss.
Line 3 - Other Rental Income (Loss)
Enter your share of other rental income or loss.
Line 4 - Interest Income
Enter your share of taxable interest income reported by the estate or trust.
Line 5 - Ordinary Dividends
Enter your share of ordinary dividend income.
Line 6 - Net Short-Term Capital Gain (Loss)
Enter your share of net short-term capital gain or loss.
Line 7 - Net Long-Term Capital Gain (Loss)
Enter your share of net long-term capital gain or loss.
Line 8 - Other Income (Loss)
Enter any other income or loss reported on your Schedule K-1N.
Line 9 - Estate Tax Deduction
Enter your share of any estate tax deduction reported by the estate or trust.
Line 10 - Other Deductions
Enter your share of other deductions reported on the Schedule K-1N.
Part B - Beneficiary's Share of Modifications
Part B reports items that adjust federal income when calculating Nebraska taxable income.
Line 12 - Qualified U.S. Government Interest Deduction
Enter your share of interest or dividend income from qualifying U.S. government obligations that is exempt from Nebraska taxation. Do not include gains or losses from the sale of federal securities.
Line 13 - State and Local Bond Interest and Dividend Income
Enter your share of state or local bond interest and dividend income that is exempt from federal income tax and was not issued by Nebraska state or local governmental entities.
Part C - Beneficiary's Share of Credits
Part C reports tax credits distributed to beneficiaries by the estate or trust. Enter the amounts exactly as shown on your Schedule K-1N.
Line 14 - Community Development Assistance Act Credit
Enter the amount of Community Development Assistance Act (CDAA) credit distributed to you.
Line 15 - Creating High Impact Economic Futures (CHIEF) Credit
Enter the amount of CHIEF credit distributed to you by the estate or trust.
Line 16 - Form 3800N Credits
Enter the total Form 3800N credits reported on your Schedule K-1N. The program will attach a supporting statement for the credit details entered. Form 3800N is used to report a variety of Nebraska incentive credits.
The following credit codes may be reported:
- Code A - Employment and Investment Growth Act
- Code B - Nebraska Advantage Act
- Code C - Nebraska Advantage Rural Development Act
- Code D - Nebraska Advantage Research and Development Act
- Code E - New Markets Tax Credit
- Code F - Nebraska Historic Tax Credit
- Code G - Imagine Nebraska Act
- Code H - Urban Redevelopment Act
- Code I - Renewable Chemical Production Tax Credit Act
- Code J - Nebraska Higher Blend Tax Credit Act
- Code K - Affordable Housing Tax Credit
- Code L - Biodiesel Tax Credit
These credits originate from Nebraska incentive programs reported through Form 3800N and distributed by the estate or trust.
Line 17 - Employer's Credit for Expenses Incurred for TANF (ADC) Recipients
Enter your share of the distributed credit for expenses incurred for TANF (ADC) recipients.
Line 19 - Nebraska Income Tax Withheld
Enter the Nebraska income tax withholding amount shown on your Schedule K-1N. This withholding may be claimed on your Nebraska return as a payment toward your tax liability.
Line 20 - PTET Credit
Enter your share of any Pass-Through Entity Tax (PTET) credit distributed to you from the estate or trust. The credit is reported by tax year on the Schedule K-1N.
Line 21 - Distributed Child Care Tax Credit for Contributors
Enter your share of the distributed Child Care Tax Credit for contributors, including any certificate information shown on the Schedule K-1N.
Line 22 - Distributed Opportunity Scholarships Act Credit for Contributors
Enter your share of the Opportunity Scholarships Act credit distributed by the estate or trust.
Line 23 - Distributed School Readiness Tax Credit for Providers
Enter your share of the School Readiness Tax Credit for Providers, along with any associated certificate number reported on the Schedule K-1N.
Line 24 - Nebraska Pregnancy Help Act Credit for Contributors
Enter your share of the Nebraska Pregnancy Help Act Credit distributed by the estate or trust.
Additional Information
Keep a copy of your Nebraska Schedule K-1N with your tax records. If your Schedule K-1N includes Form 3800N credits, retain any supporting schedules or certificates provided by the estate or trust, as Nebraska may require additional documentation to substantiate the credit claimed.
You can review the Nebraska Schedule K-1N Form 1041 instructions for additional information here.