Filing your Nebraska tax return for 2016 may seem overwhelming, especially if it’s your first time or several years have passed since you last filed. Whether you're a full-time resident, part-year resident, or small business owner, this guide is designed to walk you through the entire process in a way that’s easy to understand—even if you're unfamiliar with tax laws or legal terms.

We’ll cover everything you need to know about preparing and submitting your income tax return, from determining your filing status to choosing the proper forms and avoiding last-minute errors. If you missed the original filing date or still need to pay, this article will help you navigate what to do next and how to access audit support or refund tracking if required.

Following this step-by-step guidance, you’ll learn how to file efficiently, avoid stress, and potentially maximize your refund. With clear instructions and helpful resources, even first-time taxpayers can confidently complete their Nebraska return. This guide will teach you to make wise choices this tax season, whether you're filing alone or comparing tax software options.

Who Must File a 2016 Nebraska State Tax Return

To determine whether you must file a 2016 Nebraska income tax return, begin by reviewing your residency status and income level. Nebraska requires specific individuals to file even if they are not full-year residents. If you lived or worked in Nebraska at any point in 2016, it’s essential to assess your obligations before deciding whether to submit a return.

Nebraska residents must file a tax return if they meet either of the following criteria:

  • They were required to file a federal return for 2016 and reported a federal tax liability.

  • They had $5,000 or more in Nebraska-specific adjustments to federal adjusted gross income, such as income from non-Nebraska municipal bonds that are exempt federally but taxable in Nebraska.

Nonresidents and Part-Year Residents Must File if They:

  • Earned income from Nebraska sources during any part of 2016.

  • Nebraska sources its income from employment, business activity, or property sales within the state.

Nebraska defines a resident as someone whose permanent home (domicile) was in Nebraska during 2016 or who maintained a permanent place of residence in Nebraska and spent more than six months there that year. Understanding your residency status is essential because it determines your filing requirements, available deductions, and how your income is taxed at the state level. This step ensures taxpayers stay compliant, avoid penalties, and accurately report their income tax return to the Nebraska Department of Revenue.

2016 Tax Year Deadlines and Extension Rules

The original deadline to file your 2016 Nebraska tax return was Tuesday, April 18, 2017. This date was extended from April 15 due to the federal Emancipation Day holiday. While this deadline has passed, many taxpayers may still need to file for compliance, refund claims, or recordkeeping purposes.

Extension Options

Nebraska honors the federal extension of time for filing. If you submitted a federal extension using IRS Form 4868, you did not need to file a separate Nebraska extension unless you made a tentative payment. If no federal extension was submitted, Nebraska taxpayers could file Form 4868N to request additional time.

Fiscal Year Filers and Late Submissions

For fiscal year filers, the due date is the 15th day of the fourth month following the end of your taxable year. If you missed the filing deadline, please submit your return at your earliest convenience to minimize penalties. Remember that an extension of time to file does not extend the time to pay. Interest and late payment penalties apply to unpaid tax after the original due date.

Nebraska Tax Forms You’ll Need

Before you begin, gather the correct forms for your 2016 Nebraska tax filing. Using the wrong year’s forms may cause delays, errors, or processing issues. Each taxpayer's situation will determine which schedules and forms are required.

Primary Form

  • Form 1040N is the main income tax return form for Nebraska, nonresidents, and part-year residents.

Common Attachments

  • Schedule I – Used to report Nebraska-specific adjustments to federal adjusted gross income.

  • Schedule II – For full-year residents claiming credit for tax paid to another state.

  • Schedule III – For nonresidents and part-year residents to calculate tax on Nebraska-source income.

  • Form 4868N – Nebraska’s extension application—is only required if no federal extension has been filed or a payment is made.

  • Form 1040N-ES – Vouchers used to make estimated income tax payments.

  • Form 1040N-V – Payment voucher used when submitting a check or money order.

Forms for Credits and Business Activities

  • Form 3800N – For computing Nebraska business incentive credits.

  • Form CDN – For Community Development Assistance Act credit.

  • Form NFC – For Financial Institution Tax Credit.

  • Form 1099 BFC – For Beginning Farmer Credit.

Review all required forms carefully. Failure to include supporting schedules or tax information can delay your refund or cause your return to be rejected.

Step-by-Step Instructions to Complete Form 1040N

Completing your Nebraska tax return starts with your federal return. Since Form 1040N pulls data directly from your federal tax return, it’s essential to finalize that first. The following procedures can be used to get your Nebraska return ready once it's finished.

1. Gather Documentation

Before filing, make sure you have:

  • Completed federal income tax return

  • W-2s and 1099s showing Nebraska withholding

  • Records of Nebraska estimated tax payments.

  • High school district code (for residents)

  • Documents for any deductions or credits you plan to claim

2. Enter Personal Information and Filing Status

Provide your full name, address, and Social Security number. If you are a Nebraska resident, include your high school district code. Select your filing status based on your federal return. This choice affects how your income and deductions are calculated.

3. Report Income and Adjustments

Start with your federal adjusted gross income. Use Schedule I to report Nebraska adjustments, such as non-Nebraska bond interest, federal tax refunds, or military retirement income exclusions. This step helps determine your Nebraska adjusted gross income.

4. Claim Deductions

Decide whether to use the Nebraska standard deduction or your federal itemized deductions, subtracting state or local income taxes. Choose the higher amount to reduce your taxable income and increase your refund.

5. Calculate Tax and Credits

Use the tax tables in the official 2016 booklet to calculate your Nebraska tax based on taxable income. Then apply eligible credits, including:

  • Nebraska personal exemption credit

  • Credit for taxes paid to another state

  • Elderly or disabled credit

  • Nebraska incentives and business credits

6. Enter Payments and Determine Refund or Amount Due

Include any withholding shown on W-2s or 1099s, along with estimated payments. If your payments exceed your tax liability, you may receive a refund. If not, you’ll owe the difference.

7. Review, Sign, and Prepare to Submit

Ensure all forms and schedules are completed. Double-check calculations, confirm your payment or refund method, and sign the return. Keep a copy for your records before submitting.

Special Filing Rules for Small Business Owners

Small business owners must follow Nebraska’s filing rules carefully, especially if they report income on their return. Whether you’re self-employed, operate a sole proprietorship, or own a business entity such as an LLC or S corporation, knowing how to report state income and credits is essential for accuracy and compliance.

Sole Proprietors and Single-Member LLCs

Your federal adjusted gross income includes your business income if you are a sole proprietor or single-member LLC. Nebraska uses that federal amount as the basis for your state tax return. You may need to complete Schedule I to adjust for Nebraska-specific items, such as depreciation differences or deductions that apply at the state level.

Partnerships, Multi-Member LLCs, and S Corporations

Businesses structured as partnerships, multi-member LLCs, or S corporations must file informational returns with the state. Individual partners or shareholders report their share of Nebraska-source income using Form K-1N and include that information on their personal income tax return.

Business Credits

Nebraska offers several tax credits that small businesses may be eligible for:

  • Nebraska Advantage Research and Development Credit

  • Nebraska Advantage Microenterprise Tax Credit

  • Community Development Assistance Act Credit

  • Beginning Farmer Tax Credit

These credits may reduce your overall tax liability and improve your refund outcome. Review each credit’s eligibility requirements and attach the appropriate forms when filing.

Common Mistakes to Avoid When Filing

Filing your Nebraska tax return accurately is essential to avoid processing delays, penalties, or missed refund opportunities. Many taxpayers make minor but costly errors that can easily be avoided with preparation and review.

Frequent Errors Include:

  • Failing to sign and date the return

  • Forgetting to attach W-2s or 1099s showing Nebraska withholding

  • Leaving out the high school district code (if a resident)

  • Using incorrect math or calculations

  • Attaching outdated forms or the wrong tax year’s schedules

  • Not reporting a use tax on out-of-state or online purchases.

  • Skipping the Nebraska personal exemption credit, which could increase your refund

  • Omitting your Social Security number or entering it incorrectly

By carefully reviewing your return before submission, you reduce the risk of audit, rejection, or refund delays. The Nebraska Department of Revenue provides resources to help taxpayers complete their forms correctly and access guidance when needed.

Filing Options: Electronic vs. Paper

Nebraska provides various methods for filing your 2016 tax return. While e-filing is often the most efficient option, some taxpayers prefer to file by mail. With tax software, choose the best method for your situation, budget, and comfort level.

E-Filing Through NebFile

NebFile is Nebraska’s free e-file system for simple state returns. You can complete and submit Form 1040N and related schedules online. This option is ideal for those who want to file quickly and track their refund securely.

Commercial Tax Software and Paid Services

Popular software like TurboTax, H&R Block, and other providers offer integrated federal and state tax filing options. These tools often guide you through the process, helping ensure accuracy and offering features like refund calculators, audit support, and filing status guidance. Some services may charge a fee.

Tax Professionals

Working with a tax expert can be especially helpful for small business owners or anyone with a complex return. Professionals ensure accurate tax information, provide support, and help you file on time—minimizing stress and the chance of errors.

Paper Filing

If you choose to file by mail:

  • Use black ink and print clearly or type

  • Do not staple or fold your return.

  • Include all required forms, W-2s, and schedules.

  • Sign and date your return.

  • Mail to the correct address based on whether you owe money or expect a refund

Paper filing can take longer to process—up to three months—so it’s best used only when electronic filing is not an option. 

How to Make a Payment to the Nebraska Department of Revenue

You have several options to pay if you owe taxes on your 2016 Nebraska income tax return. Electronic payments are strongly encouraged because they are faster, more secure, and easier to track. Regardless of the method, submit payment on time to avoid penalties and interest.

Electronic Payment Options

You can schedule a payment using an electronic fund withdrawal when e-filing your return. This option is available through most tax software and allows you to choose a future date for payment. Another option is Nebraska’s e-pay system, which lets you make a one-time payment or schedule future payments directly from your bank account.

If you prefer to pay by credit card, you can use a service like Official Payments. These services charge a small convenience fee but allow quick transactions using major credit cards. Always confirm that the payment has been processed, and keep the confirmation number for your records.

Paying by Check or Money Order

If you pay by mail, make your check payable to the Nebraska Department of Revenue. Include your Social Security number and note “2016 Form 1040N” on the memo line. You should also include Form 1040N-V, the payment voucher. Never send cash through the mail.

What to Do If You Can’t Pay in Full

If you can’t pay the full amount, file your return by the deadline and pay as much as possible. You may qualify for a payment plan by contacting the Department of Revenue. Interest will continue to accrue until the balance is paid, but timely filing can help reduce additional penalties.

How to Track Your Refund or Tax Payment Status

After filing your Nebraska tax return, you can track the status of your refund or confirm that your payment was received. This simple process gives taxpayers peace of mind, especially during a busy tax season.

Refund Tracking Options

If you requested a refund, you can track it using the “Where’s My Refund?” tool on the Nebraska Department of Revenue website. You’ll need your Social Security number and the exact refund amount from your return. Most electronic filers receive their refund in fewer than 21 days. Paper filers may wait up to three months.

You can choose to receive your refund via direct deposit or paper check. For the fastest refund experience, e-file your return and opt for direct deposit into your bank account.

Tracking Tax Payments

If you made a payment online, you’ll receive a confirmation immediately. Payments made by check or money order should be allowed two to three weeks for processing. If you’re unsure whether your payment has been received, contact the Department of Revenue for assistance. Always retain a copy of your payment confirmation and bank transaction record.

Final Checklist Before You Submit

Before submitting your 2016 Nebraska tax return, take a moment to review the following key items. This helps ensure your return is complete, accurate, and less likely to be delayed or flagged for corrections.

Form Completion

  • Confirm that you’ve completed your federal return first, as it provides the starting point for your Nebraska tax filing.

  • Double-check that your personal information, including your Social Security number, is entered accurately.

  • If you're a Nebraska resident, include your high school district code from the tax booklet.

  • Make sure your filing status matches your federal return to avoid inconsistencies.

  • Review all income entries and verify that adjustments and deductions have been applied correctly.

  • Choose the higher of the Nebraska standard deduction or your adjusted itemized deductions.

  • Ensure all required forms and schedules are filled out completely and accurately.

  • Don’t forget to sign and date your return, as unsigned returns may be rejected.

Documentation

  • Attach all W-2 and 1099 forms that show Nebraska state tax withholding.

  • Include Schedule I if you reported any Nebraska-specific income adjustments.

  • Add Schedule II or Schedule III if you are claiming a credit for taxes paid to another state or are a nonresident.

  • Submit supporting documents for any credits you are claiming to verify eligibility.

  • If you’re claiming a credit for tax paid to another state, attach a copy of that state’s return.

Payment and Submission

  • If you owe taxes, select your payment method and ensure the correct amount.

  • Include Form 1040N-V if you mail a check or money order with your paper return.

  • Confirm that your direct deposit details or mailing address are accurate if you expect a refund.

  • Use the appropriate mailing address based on whether you owe money or expect a refund.

  • Keep a complete copy of your return, forms, and receipts for your records and future reference.

Frequently Asked Questions

Can I still file a Nebraska tax return for 2016?

Yes, you can still file a Nebraska tax return for 2016, even if the original date has passed. Filing taxes late may limit your ability to claim a refund, but submitting a complete and reviewed return can help you stay compliant. Prepare all forms correctly, sign your return, and mail it to the appropriate state site if e-file options are no longer available.

What if I haven’t filed my income tax return in several years?

If you haven’t filed your income tax return for several years, catching up as soon as possible is essential. The IRS and Nebraska Department of Revenue may assess penalties or interest. You can prepare your past returns using approved software or contact a tax expert for support. Filing status, deductions, and past data will all affect how much you may owe or be refunded.

How can I maximize my refund when filing a past Nebraska tax return?

Review your deductions, credits, and tax information carefully to get the maximum refund. Determine your filing status and complete all forms accurately. You may qualify for state credits that increase your refund. Use tax software or expert help to minimize errors, especially if you're filing for the first time or handling a business return. Submit the return early to avoid last-minute stress.

Can software like TurboTax be used to file a 2016 Nebraska return?

You can still use tax software like TurboTax to prepare your 2016 Nebraska return, but e-file options may be unavailable. Most software will help you complete and print the forms to mail in. These tools often offer audit support, refund tracking, and data entry checks. While there may be a cost, they provide efficient service and reduce the hassle of the entire process.

Do I have to pay Nebraska use tax for online property purchases?

If you bought property or goods online or out of state during 2016 without paying sales tax, you must report use tax. Enter it on the proper line of your Nebraska tax return. This helps the state acknowledge all taxable purchases. Accurate calculations are required, whether for personal or business use. Paying this ensures full compliance and avoids future tax issues.

How should I determine my correct filing status for Nebraska?

Use the same one reported on your federal income tax return to determine your correct filing status. Your filing status affects deductions, credits, and whether you qualify for the maximum refund. Nebraska follows federal definitions, so joint, single, and head of household statuses apply. If unsure, tax experts or free online guidance can help you decide which option fits your situation.

What should I do if I made an error on my Nebraska tax return?

If you made a mistake on your Nebraska tax return, you should submit an amended return using the proper state forms. Include corrected data, updated calculations, and any missing tax information. Sign and date the revised return. Consider consulting a tax professional for expert help. Prompt corrections help taxpayers avoid delays, penalties, or issues with their refund.