As the 2022 filing season is quickly approaching, we would like to remind you of Nebraska's important tax changes.
What's new for credits?
Nebraska Property Tax Incentive Act.
Legislative Bill 873 expands the Nebraska Property Tax Incentive Act. The act adjusts the credits for property taxes paid in 2022 and 2023 and provides a new refundable tax credit for taxpayers who pay community college property taxes.
The credit is equal to the credit percentage announced by the Nebraska Department of Revenue (DOR) multiplied by the amount of property taxes paid.
What's new for deductions?
Teach in Nebraska Today Act
The Teach in Nebraska Today Act provides a federal AGI deduction for any amount received by the taxpayer for student loan repayment assistance. "To receive student loan repayment assistance, the individual must be a resident of Nebraska and teaching full-time or have a contract to teach full-time in Nebraska at the time of application. Eligible applicants must submit applications to the Nebraska Department of Education before June 10, 2023, and no later than June 10 of each year thereafter. Loan repayment assistance is limited to $5,000 per year, per application, for no more than 5 years. The total amount of student loan repayment assistance awarded under the Act cannot exceed $5 million in any fiscal year." (NE DOR)
Phase out of the taxation of social security benefits
Starting with tax year 2022, taxpayers can now reduce their federal Adjusted Gross Income by a percentage of their Social Security benefits that are received and included in their federal AGI. For tax year 2022, taxpayers can reduce their federal AGI by 40%.
What's new for sales and use taxes?
Legislative Bill 984 exempts feminine hygiene products from sales and use tax. To learn which products are covered under the exemption, please visit Nebraska DOR.