In 2018, Nebraska taxpayers who filed their state income tax returns electronically often received refunds in as little as 30 days, while those who filed on paper sometimes waited more than three months. That gap in processing time is not just an inconvenience; it can mean delayed access to funds you are entitled to use for bills, savings, or business expenses. Understanding how to file your Nebraska tax return correctly can help you avoid these delays and secure your refund quickly.

This guide is designed for individuals, families, and small businesses who want accurate, step-by-step guidance for completing their 2018 Nebraska state tax returns. It will walk you through the filing requirements, important deadlines, required forms, and the rules Nebraska applies to deductions and credits. You will also find instructions on payment methods, refund tracking, and how to avoid the most common mistakes that can cause a return to be rejected.

Filing is about meeting a legal requirement and protecting your finances. Missing a deadline can lead to penalties, underpayment fees, and interest charges, while filing without the correct documentation may reduce the refund you deserve. By following this article's clear, actionable guidance, you can confidently file, avoid costly errors, and take full advantage of Nebraska’s taxpayer benefits.

Who Needs to File a Nebraska Tax Return

Before you begin preparing your Nebraska tax return, it is crucial to determine whether you are required to file. Filing requirements depend on residency status, income sources, and certain Nebraska-specific thresholds. The Nebraska Department of Revenue outlines clear rules for individuals and businesses.

Residents

Residents must file a state return if they are required to file a federal income tax return showing a federal tax liability before credits, or if they have $5,000 or more in net Nebraska adjustments to their federal adjusted gross income. This includes income such as interest from non-Nebraska state and local bonds that is exempt from federal tax.

Partial-year Residents

Partial-year residents must file if they earned income while living in Nebraska or received Nebraska-source income after moving to another state. Nonresidents must file if they earned income from Nebraska sources, such as wages for work performed in Nebraska or business profits from operations within the state.

Your domicile and your time in the state determine Nebraska residency. You are considered a resident if Nebraska is your permanent home, if you maintain a permanent residence in Nebraska for more than six months during the tax year, or if you are physically present in the state for at least 183 days in the year. Even if you maintain a home in another state, meeting the 183-day threshold generally makes you a Nebraska resident for tax purposes.

SMEs

The exact requirements about residency and income sources apply to small firms. If your business is in Nebraska or makes money from clients in Nebraska, you may need to file a state return. The first step in ensuring you follow the rules, avoid penalties, and report your income correctly is to determine your correct filing status.

Key Deadlines and Updates for the 2018 Tax Year

The filing deadline for 2018 Nebraska tax returns was April 15, 2019, aligning with the federal tax filing date. If April 15 fell on a weekend or state holiday, the deadline shifted to the next business day. Missing this date could result in penalties, interest charges, and delays in receiving your refund. Taxpayers who could not meet the filing deadline were encouraged to apply for a federal extension, which Nebraska automatically accepted. However, any taxes owed still had to be paid by April 15 to avoid additional fees.

Refund Timelines

For those expecting a refund, filing early provided clear benefits. Error-free e-filed returns were typically processed within 30 days, while paper returns could take up to three months. Most taxpayers who submitted their returns by the April deadline received their refunds by mid-July. Electronic filing also reduced the risk of rejected returns caused by incomplete or outdated forms.

Significant Changes for the 2018 Tax Year

The 2018 tax year brought several significant changes for Nebraska taxpayers. The state restored the personal exemption credit of $134 per eligible exemption, increased the standard deduction amounts (to $6,750 for single or married filing separately, $13,500 for married filing jointly, and $9,900 for head of household), and switched its inflation adjustment method to the Consumer Price Index for All Urban Consumers (CPI-U). These changes impacted how income, credits, and deductions were calculated, making it essential to use the updated forms and follow Nebraska’s computation guidelines when completing your return.

Forms and Documentation You Will Need

Before completing your Nebraska tax return, gather all necessary forms and supporting documents. Having everything ready will make the process faster, reduce errors, and help ensure your return is accepted without delays.

Primary Nebraska Tax Form

The main form for individuals is Form 1040N – Nebraska Individual Income Tax Return. This form is used by residents, partial-year residents, and nonresidents with Nebraska income. You will use it to report income, apply credits, compute your tax, and determine your refund or balance due.

Essential Schedules

Several schedules may be required depending on your situation:

  • Schedule I: Nebraska Adjustments to Income

  • Schedule II: Credit for Tax Paid to Another State

  • Schedule III: Required for nonresidents and partial-year residents to allocate Nebraska-source income

Additional Forms You May Need

Certain taxpayers and businesses may also need:

  • Form 3800N: Nebraska Incentives Credit Computation

  • Form 2441N: Nebraska Child and Dependent Care Expenses

  • Form CDN: Community Development Assistance Act Credit

Supporting Documentation

To accurately complete your return, you should have:

  • Completed federal return (Form 1040)

  • All Forms W-2, W-2G, 1099-R, 1099-MISC

  • Federal Schedule K-1 forms (if applicable)

  • Records of estimated tax payments

  • Documentation for deductions and credits claimed

Having these forms and documents on hand ensures you meet Nebraska’s requirements, avoid missing credits, and can respond quickly if the Nebraska Department of Revenue requests additional information.

Step-by-Step Instructions for Completing Your Nebraska Tax Return

Completing your Nebraska tax return accurately is essential for avoiding penalties, underpayment notices, and refund delays. Follow these steps carefully to prepare and submit your return.

Step 1: Complete Your Federal Return First

Nebraska requires information from your federal return to calculate your state tax. Make sure your Form 1040 is finalized before starting your Form 1040N.

Step 2: Fill Out Personal Information

Enter your name, Social Security number, and address as they appear on your federal return. Include your high school district code if you are a Nebraska or partial-year resident. Mark the correct boxes for age (65 or older), blindness, and dependency status.

Step 3: Report Your Income

  • On Line 5, enter your federal adjusted gross income from your completed federal return.

  • Use Schedule I to list Nebraska-specific adjustments, such as exempt interest income or other additions and subtractions.

  • Ensure all Nebraska-source income is reported accurately, especially if you are a nonresident or partial-year resident.

Step 4: Calculate Deductions and Taxable Income

Choose between the Nebraska standard deduction and your itemized deductions (adjusted for state rules). For 2018, standard deductions were:

  • Single or married filing separately: $6,750
  • Married filing jointly: $13,500
  • Head of household: $9,900
  • Apply additional deductions if age 65 or older or blind.

Step 5: Compute Your Tax

Use the Nebraska tax tables for 2018 to find your tax based on your taxable income. Enter the result on Line 15 of Form 1040N.

Step 6: Apply Credits

Include the personal exemption credit ($134 per exemption) and other applicable credits, such as the child and dependent care credit or incentive credits. Attach required forms or schedules for each credit claimed.

Step 7: Determine Your Balance or Refund

  • You are due a refund if total payments and credits exceed your tax.

  • If your tax exceeds payments and credits, you have a balance due.

Step 8: Review and Avoid Common Errors

Before filing, check for:

  • Missing high school district code

  • Incorrect residency status

  • Forgetting to attach W-2s, 1099s, and schedules

  • Using federal deduction amounts instead of Nebraska’s

  • Skipping Nebraska-specific adjustments

Reviewing your return thoroughly before submission helps prevent rejected returns and refund delays.

Filing Options in Nebraska

Choosing the correct filing method can affect how quickly your return is processed, when you receive your refund, and how much you may need to pay in fees. Nebraska offers both electronic and paper filing options.

E-file with NebFile

NebFile is Nebraska’s free electronic filing system for individual taxpayers. Benefits include:

  • Faster processing, with refunds typically issued within 30 days for error-free returns

  • Automatic error checking to reduce the chance of rejection

  • Direct deposit option for faster refunds

  • Secure online access to submit your forms and make payments

Fed/State E-filing Through Software

Many commercial tax preparation programs allow you to file your federal and Nebraska returns simultaneously. This method streamlines the process by sharing information between your federal and state forms, reducing the chance of calculation errors.

Paper Filing by Mail

If you prefer to mail your return, Nebraska provides two different addresses:

  • For refunds:
    Nebraska Department of Revenue
    PO Box 98912
    Lincoln, NE 68509-8912

  • For returns without a refund:
    Nebraska Department of Revenue
    PO Box 98934
    Lincoln, NE 68509-8934

When mailing, ensure you include all required attachments and use the correct address to prevent delays in processing.

Choosing the Best Option

E-filing is generally recommended for faster refunds, fewer errors, and secure submission. Paper filing may be necessary if you cannot access electronic filing or need to include certain forms that NebFile or your chosen software does not support.

How to Make a Payment or Set Up a Payment Plan

If your Nebraska tax return shows a balance due, you have several payment methods available. Choosing the right option and paying on time is critical to avoid penalties, interest charges, and potential collection actions.

Electronic Payment Options

Nebraska offers e-pay, a free and secure online payment system available 24/7 through the Nebraska Department of Revenue website. With e-pay, you can:

  • Make one-time payments directly from your bank account, allowing you to control the payment date and amount.

  • Schedule future payments in advance to plan for upcoming deadlines and avoid late fees.

  • Use direct bank account transfer (ACH) for a safe, paperless transaction that does not require mailing checks.

  • You can review and access your payment history anytime, which is helpful for recordkeeping, audits, or personal financial tracking.

If you e-file your return using compatible tax preparation software, you may also choose Electronic Funds Withdrawal (EFW). This option allows your payment to be automatically deducted from your bank account on a select date. The payment is processed alongside your return submission, eliminating the need for separate transactions.

Paying by Check or Money Order

If you prefer to pay by mail:

  • Make the check or money order payable to “Nebraska Department of Revenue.”

  • Write your Social Security number, tax year, and phone number on the check or money order to ensure proper credit to your account.

  • Include your return or payment voucher (if paying separately from filing) to help the Department apply your payment correctly.

  • Send it to the correct address listed in your filing instructions, which varies depending on whether your return includes a refund or balance due.

Consider using certified mail or another trackable method to have proof of mailing and delivery.

Setting Up a Payment Plan

If you cannot pay the full balance immediately:

  • File your return on time, even if you cannot pay in full—this will help reduce failure-to-file penalties.

  • Pay as much as you can upfront to minimize the interest and penalty amounts charged over time.

  • Contact the Nebraska Department of Revenue promptly to request a payment plan. Be prepared to provide your income details, expenses, and a proposed monthly payment amount.

  • Understand that the interest is charged at 5% annually on unpaid balances, and a late payment penalty may apply.

  • Meet all scheduled payments once your plan is approved to avoid default and possible enforcement actions.

By selecting an approved payment method, keeping accurate records, and communicating promptly with the Nebraska Department of Revenue, you can protect your account and avoid unnecessary financial consequences.

Tracking Your Refund or Balance Due

Once your Nebraska tax return has been filed, you can monitor its status and confirm when your refund will be issued or a balance must be paid.

Checking Your Refund Status

Nebraska offers two main ways to track your refund:

  • Online: Visit the Nebraska Department of Revenue’s “Where’s My Refund?” tool to check the status anytime. You will need your Social Security number, filing status, and exact refund amount.

  • By Phone: Call 800-742-7474 if you are in Nebraska or Iowa, or 402-471-5729 for all other callers.

Processing times vary. E-filed returns that are error-free usually take at least 30 days, while paper returns can take three months or more.

Monitoring a Balance Due

If your return shows a balance, you can confirm the amount and due date by:

  • Logging into your online taxpayer account on the Nebraska Department of Revenue website

  • Calling the department directly for verification

Responding to Notices

If the state contacts you regarding a balance, missing information, or a rejected return, respond promptly to avoid additional penalties or interest. Keep copies of all correspondence and payment confirmations for your records.

Final Filing Checklist

Before you submit your Nebraska tax return, review each item carefully to ensure your filing meets state requirements and avoids delays.

Confirm Your Return is Complete

  • Verify that all forms and schedules are filled out correctly.

  • Check your personal information and filing status against your federal and IRS records.

  • Ensure your income, credits, and deductions are entered accurately

Attach Required Documents

  • Include all W-2s, 1099s, and other income statements

  • Attach supporting schedules and documentation for every credit claimed

  • If mailing, use the correct address for your filing type and include your payment if you have a balance due

Payment and Refund Details

  • Confirm that your application for direct deposit or payment withdrawal is correct.

  • If paying by check, write the correct amount and include the tax year.

  • Request a payment plan if you cannot pay in full to avoid additional fees and penalties.

Access and Respond Promptly

  • Keep copies of your full return, payment confirmations, and the Nebraska Department of Revenue correspondence.

  • If you receive a notice or your return is rejected, respond quickly with the requested documents or corrections.

Final Guidance Before You File

Think of your return as more than numbers—it is a legal and financial statement reviewed by human agents at the Department of Revenue. To keep your account in good standing, take the time to prepare it accurately, meet all deadlines, and follow the official guidance. Accuracy will help your return run smoothly through processing, so you receive your refund without unnecessary delays.

Frequently Asked Questions (FAQs)

How do I pay my Nebraska estimated tax for 2019?

You can pay your Nebraska estimated tax online using the state’s e-pay system or by mailing payment vouchers. Payments are generally due quarterly on April 15, June 17, September 16, and January 15 of the following year. Paying on time helps avoid underpayment penalties. You can also set up recurring payments if you prefer to automate the process.

What should I do if my Nebraska tax return is rejected?

If your return is rejected, review the error notice carefully and correct any mistakes before resubmitting. Common issues include missing attachments, incorrect Social Security numbers, or outdated forms. If you cannot resolve the issue electronically, you may need to file by mail. Responding promptly will help prevent delays in refund processing or additional penalties.

Can I visit a Nebraska Department of Revenue office for help with my return?

Yes, the Nebraska Department of Revenue maintains several local offices where taxpayers can receive in-person assistance. Services may include reviewing forms, answering questions about credits, and providing guidance on payment options. It is recommended to call ahead or check the department’s website for office hours, appointment requirements, and the documents you should bring for a faster visit.

How can small businesses file a Nebraska state return?

Small businesses can file a Nebraska state return using the same methods as individuals: NebFile, commercial e-file software, or paper filing. Additional schedules or forms may be required if the company has employees or multiple income sources. Filing electronically is generally faster and helps reduce errors. Always verify you are using the correct forms for your business type before submitting.

What penalties are charged for late payment of Nebraska state taxes?

If you fail to pay your Nebraska state taxes on time, a penalty of up to 10% of the unpaid balance may apply. Interest is charged at 5% annually on amounts owed. Additional fees can accrue if the balance remains unpaid for an extended period. Filing on time will reduce your penalties even if you cannot pay in full.