How to File Your Nebraska Tax Return 2017: A Step-by-Step Guide

Filing your Nebraska state income tax return for 2017 is important for residents, partial-year residents, and nonresidents with income from Nebraska sources. This process ensures compliance with state law and helps taxpayers determine whether they owe additional tax or qualify for a refund. Nebraska’s filing requirements and deadlines for this tax year followed federal guidelines, with specific state-specific adjustments and credits. Understanding these rules before you begin can help you prepare an accurate return and avoid delays.

This guide is designed for individuals, sole proprietors, and small business owners who must complete their 2017 Nebraska tax return. It provides step-by-step instructions based on official information from the Nebraska Department of Revenue, ensuring accuracy and reliability. Whether filing on paper or electronically, you will learn to gather the required documents, choose the correct forms, calculate your taxable income, and submit your return according to state regulations.

The following sections explain who must file, which forms to use, the filing deadlines, and the most common mistakes to avoid. You will also find details on payment options, refund tracking, and available tax credits. By following this structured process, you can complete your tax return efficiently while meeting all legal requirements for the 2017 tax year.

Overview of Nebraska State Income Tax for 2017

Nebraska requires particular residents, partial-year residents, and nonresidents to file a state income tax return if they meet specific income or residency criteria. Filing requirements are closely connected to your federal income tax return, but Nebraska applies its rules, adjustments, and credits that may change your filing status or tax liability.

Who Needs to File a Nebraska Tax Return

Nebraska residents must file a tax return if they meet either of these conditions:

You were required to file a federal income tax return that reported a federal tax liability. This ensures that your Nebraska tax records align with your federal filing obligations.
You had $5,000 or more in net adjustments to your federal adjusted gross income (AGI), including interest from non-Nebraska state and local bonds exempt from federal tax but taxable in Nebraska.

Partial-year residents or nonresidents must file if they meet this condition:

You received income from sources located in Nebraska during the tax year. This encompasses wages, self-employment income, and other taxable earnings associated with Nebraska.

Nebraska residency is determined as follows:

A Nebraska resident is someone whose legal domicile is in the state or who maintains a permanent home in Nebraska and is physically present for more than six months during the tax year.
Individuals who have a permanent residence in Nebraska and spend at least 183 days in the state are considered residents, even if they maintain a domicile elsewhere.

Filing Deadline for 2017 Returns

The filing deadline for 2017 Nebraska state income tax returns was April 17, 2018, instead of the standard April 15 deadline.
This change occurred because April 15 fell on a Sunday, and the federal Emancipation Day holiday was observed on Monday, April 16.
Nebraska follows federal due dates for individual income tax returns, so this extension applied automatically without requiring a special request from taxpayers.

Key Changes for the 2017 Tax Year

The Nebraska Department of Revenue implemented enhanced fraud detection and identity verification procedures. While the changes aimed to safeguard taxpayers from identity theft and refund fraud, they also delayed the processing of certain returns.
New tax credits were introduced in 2017 to support employment, emergency services, and early childhood education:
- TANF Employment Credit: This credit allows eligible employers to claim 20% of qualifying expenses related to employee tuition, high school equivalency programs, and work transportation.
- Volunteer Emergency Responder Credit: This $250 refundable credit is available to qualified volunteer emergency responders after completing two consecutive years of service.
- School Readiness Tax Credits: These credits offer financial benefits to eligible childcare program operators and qualified staff members to support early childhood development programs.

Processing Times

Taxpayers who filed electronically could expect accurate, error-free returns in at least 30 days. Electronic filing was the fastest method, providing quicker confirmation of receipt.
Paper-filed returns generally take at least three months to process, with additional delays possible if documentation is missing or errors are found.
As a general guideline, taxpayers who filed by the deadline and avoided errors typically received their refunds by July 15, 2018.

Nebraska Income Tax Forms You’ll Need

To accurately file your Nebraska state income tax return 2017, you must select the correct forms and schedules based on your filing status, income sources, and deductions. Using the proper forms ensures that the Nebraska Department of Revenue can process your return without delays.

Primary Form: Form 1040N

Purpose: Form 1040N is the primary Nebraska Individual Income Tax Return used by all residents, partial-year residents, and nonresidents with Nebraska income. It is based on your federal income tax return and incorporates state-specific adjustments, deductions, and credits.
Where to find it: The official 2017 Form 1040N and complete instructions can be downloaded from the Nebraska Department of Revenue website. Using the official version ensures compliance with state requirements.

Common Schedules and Supporting Forms

Schedule I – Adjustments to Federal AGI

This schedule is required if you have income adjustments that increase or decrease your federal adjusted gross income for Nebraska purposes. Examples include state or local bond interest exempt from federal tax but taxable in Nebraska, or certain Nebraska-specific subtractions.

Schedule II – Credit for Tax Paid to Another State

This form is necessary if you paid income tax to another state based on income taxed by Nebraska. It prevents double taxation by allowing you to claim a credit for the tax already paid elsewhere.

Schedule III – Computation of Nebraska Tax for Nonresidents and Partial-Year Residents

Nonresidents and partial-year residents must use this schedule to calculate Nebraska tax based only on their Nebraska-source income. This ensures that the state taxes only income connected to Nebraska.

Other Important Forms:

Form 4868N – Nebraska Application for Extension of Time: Use this if you need additional time to file your Nebraska return. It can be filed with or without a federal extension request, depending on your situation.
Form 2441N – Nebraska Child and Dependent Care Expenses: Required if you claim the Nebraska credit for child and dependent care expenses.
Form CDN – Community Development Assistance Act Credit Computation: Used to claim this specific Nebraska business and investment tax credit.
Form 3800N – Nebraska Incentives Credit Computation: Used to report and claim various state incentive program credits.

Access to Official Instructions and Forms

The Nebraska Department of Revenue provides an online repository of 2017 income tax forms and instruction booklets. These resources offer detailed guidance for completing each form, filing electronically, or mailing paper returns. Always rely on the official state website to ensure you are using accurate and compliant forms.

Step-by-Step Guide: How to File Your Nebraska Tax Return 2017

Filing your Nebraska state income tax return for 2017 involves actions that ensure accuracy, compliance, and timely processing. Following each step carefully and preparing the correct documents can avoid common errors and reduce delays.

Step 1 – Gather Required Documents for Your Federal Income Tax Return

Nebraska’s Form 1040N relies heavily on your federal income tax return information, so completing your federal filing first is essential. Collect the following documents:

Completed federal return: Have your Form 1040, 1040A, or 1040EZ ready, along with all federal schedules. This serves as the foundation for calculating your Nebraska taxable income.
Wage statements: Gather all Forms W-2 from each employer to accurately report your income and Nebraska state tax withholdings.
Additional income records: To ensure complete income reporting, include Form 1099-R for retirement distributions, Form 1099-MISC for miscellaneous earnings, and Form W-2G for gambling winnings.
Deduction and credit documentation: Keep receipts, statements, or proof for any deductions or credits you plan to claim, such as child and dependent care expenses.
Other state returns: If you are claiming a credit for taxes paid to another state, have complete copies of those state returns and related schedules.

Step 2 – Complete Personal and Filing Information

Providing accurate personal information helps the Nebraska Department of Revenue match your return to their records and process it efficiently:

Legal identification: Enter your full legal name, current mailing address, and Social Security number exactly as they appear on your federal return.
Spouse details: If filing jointly, include your spouse’s information and Social Security number to match both taxpayers to the filing record.
Residency status: Mark whether you are a resident, partial-year resident, or nonresident, as this determines your Nebraska tax obligations.
Special indicators: Check applicable boxes for farmer/rancher status, active military duty, or age/blindness, as these may affect deductions or deadlines.
School district code: Resident and partial-year residents must include their high school district code as of December 31, 2017, to assist with state education funding calculations.

Step 3 – Determine Filing Status and Residency Type

Your filing status affects both your Nebraska taxable income and the credits you may claim:

Match your federal filing status: Nebraska generally uses the same filing status you claimed on your federal return unless one spouse is a Nebraska resident.
Residency options:
- Resident: Taxed on all income regardless of source.
- Partial-Year Resident: Taxed on all income earned while domiciled in Nebraska and any Nebraska-source income earned outside that period.
- Nonresident: Taxed only on income derived from Nebraska sources.
Exceptional cases: Married couples with mixed residency can file jointly as residents or separately to reflect their different domiciles.

Step 4 – Calculate Nebraska Taxable Income

Calculating taxable income correctly ensures you pay only what is required under Nebraska law:

Start with your federal AGI: Use the federal income tax return amount as the baseline.
Apply Nebraska adjustments: Use Schedule I to add or subtract income items that differ under Nebraska tax law, such as state and local bond interest or Nebraska-specific deductions.
Deduction selection: You can choose between the Nebraska standard deduction and your federal itemized deductions minus disallowed items, using the larger amount to reduce your taxable income.
Finalize taxable income: Subtract deductions from adjusted AGI to determine your Nebraska taxable income.

Step 5 – Calculate Income Tax and Apply Credits

This step determines your total tax liability before comparing it to payments and withholdings:

Find your base tax: Use the Nebraska tax tables for most filers or the Nebraska Tax Calculation Schedule for higher incomes. High-income taxpayers may also need to consult the Additional Tax Rate Schedule.
Apply credits:
- Personal exemption credit: Available for each federal exemption you are allowed.
- Credit for taxes paid to another state: Prevents double taxation on the same income.
- Nebraska-specific credits: Include the Child and Dependent Care Credit, School Readiness Tax Credits, and TANF Employment Credit, which reduce the final tax owed.
Recheck calculations: Ensure all credits are applied accurately to avoid underpayment penalties.

Step 6 – Determine Balance Due or Refund

After applying credits, compare your total tax to total payments and withholdings:

Refund situation: If your payments and credits exceed your total tax, you will be eligible for a refund. You can choose direct deposit for faster processing.
Balance due: You must remit the difference if your tax liability exceeds your payments and credits. You can pay electronically, by check, or through a formal payment plan with the Nebraska Department of Revenue.
Verify totals: Double-check that all amounts match supporting documents before finalizing your return.

Common Mistakes to Avoid

Avoiding errors reduces the likelihood of processing delays or audit notices:

Avoid entering incorrect Social Security numbers or names that do not match federal records.
Reporting the wrong federal AGI figure, leading to inaccurate taxable income.
Omitting required schedules or failing to attach other state returns when claiming a credit.
Forgetting to sign and date your return when you file it on paper.
You are using unofficial or outdated tax forms instead of those provided by the Nebraska Department of Revenue.

Additional Tips for Filing Successfully

Use approved tax preparation software: This helps ensure correct calculations and that your return meets e-filing standards.
Choose e-filing whenever possible. Electronic filing provides faster receipt confirmation, built-in error checking, and quicker refunds. Than paper filing
Maintain records for at least four years: This allows you to respond to any future questions or audits from the IRS or Nebraska Department of Revenue.
Checking refund and payment policies before filing and understanding timelines and accepted payment methods can help you plan and avoid penalties.

Filing Your Nebraska Tax Return 2017: Electronic and Paper Options

Choosing the appropriate filing method can optimize time, minimize errors, and guarantee the efficient processing of your state income tax return. The Nebraska Department of Revenue accepts electronic and paper filings, but electronic filing is generally preferred for its speed, security, and accuracy.

Electronic Filing (Recommended)

Electronic filing is the fastest and most secure method to submit your income tax return for 2017 in Nebraska.

NebFile system: This free online filing system allows eligible taxpayers to prepare and file directly with the Nebraska Department of Revenue without paying a filing fee. It is suitable for most individuals with straightforward returns.
Combined federal and state filing: Many approved commercial tax preparation software programs allow you to file your federal and Nebraska returns simultaneously. This integration reduces data entry errors and ensures your Nebraska return reflects the figures from your federal filing.
Advantages of e-filing: E-filed returns are typically processed within 30 days for error-free submissions, compared to a minimum of three months for paper returns. E-filing also provides immediate confirmation that your return has been received.

Paper Filing

Paper filing may be necessary if your situation is too complex for electronic systems or if you prefer to submit physical forms.

Mailing addresses: Nebraska uses different addresses depending on whether you are requesting a refund or making a payment with your return. Using the correct address helps prevent processing delays.
Filing tips for paper returns:
- Print all forms clearly in blue or black ink.
- Ensure all required schedules and documentation are attached in the order specified in the instructions.
- Sign and date your return before mailing.
While paper filing is an option, it is slower to process and more susceptible to manual errors.

Special Filing Situations

Some taxpayers may need to take additional steps before or after filing:

Extensions: If you need more time to file, you can submit Federal Form 4868 or Nebraska Form 4868N. These forms extend your filing deadline but do not extend the time to pay any taxes owed.
Amended returns: If you discover errors after filing, use Form 1040XN to correct your Nebraska return. This template is also required if you amend your federal return.
State and local taxes: If you live in a city or county that assesses local taxes in addition to Nebraska’s state tax, verify whether separate forms or payments are required. The Nebraska Department of Revenue can guide these situations; taxpayers should contact them directly for instructions.

Paying Your Nebraska Income Tax and Setting Up a Payment Plan

Once you determine your balance due, choosing a payment method that meets state requirements and avoids penalties is essential. Nebraska offers electronic and traditional payment options and arrangements for taxpayers who cannot pay the full amount immediately.

Electronic Payment Options

Electronic payments are secure, traceable, and generally processed faster than paper checks.

Nebraska e-pay system: This free, web-based system allows you to schedule payments, make one-time payments, or set up estimated tax payments directly from your bank account.
Electronic Funds Withdrawal (EFW): If you e-file your return, you can authorize an automatic withdrawal from your bank account for the amount owed. This option is available through most approved tax preparation software.
Credit card payments: Payments can be made online or by phone through authorized processors. Convenience fees apply, and payment confirmation is provided immediately.

Traditional Payment Methods

Some taxpayers prefer to send payments by mail:

Check or money order: Make payable to “Nebraska Department of Revenue.” On the payment, include your Social Security number, tax year (2017), and form type (1040N).
Payment voucher: Use Form 1040N-V when mailing a payment without an attached tax return to ensure accurate processing.

Deadlines and Penalties

Paying your balance in full by the filing deadline helps you avoid interest and late payment penalties.

Interest accrues daily on unpaid balances, starting at the original due date.
Late payment penalties apply if taxes are not paid on time, even if you have an approved filing extension.

Payment Plan Options

If you cannot pay the entire balance immediately, you may be eligible to set up a payment plan with the Nebraska Department of Revenue.

Payment plans typically require monthly installments until the balance is paid in full.
You must contact the department directly to request a plan and provide financial information to determine eligibility.
Interest will continue to accrue on any unpaid balance during the installment period.

Tracking Your Refund or Balance Due

Once you have filed your Nebraska state income tax return for 2017, it is essential to monitor the status of your refund or confirm any remaining balance due. The Nebraska Department of Revenue provides secure online tools to help taxpayers stay updated and take timely action if issues arise.

Where’s My Refund Tool

The “Where’s My Refund?” feature on the Nebraska Department of Revenue’s website allows taxpayers to conveniently track their refund status in real time.

To receive an accurate update, you must enter your Social Security number, filing status, and refund amount on your return.
Refunds for electronically filed, error-free returns are generally issued within 30 days, while paper returns may take at least three months to process.
If a pending federal return review delays your Nebraska refund, the IRS must complete its process before the state can issue it.

Factors That May Delay a Refund

Several common issues can result in longer processing times for refunds:

Returns that contain errors or mismatched information require additional review by the Department of Revenue.
Missing or incomplete documentation can delay approval until the required information is provided.
Returns selected for identity verification or fraud prevention checks will take longer to process.
Amended returns and claims for business-related tax credits may require manual review, which can significantly increase the processing time.

Checking a Balance Due

If your return shows a balance due, it is essential to verify the amount and make arrangements to pay it promptly.

Taxpayers can view their balance, payment history, and pending transactions through the Nebraska e-pay system.
Contacting the Department of Revenue directly can help clarify discrepancies, confirm payment receipt, or establish a payment plan if necessary.
Monitoring your account ensures that you make payments on time, which helps you avoid additional interest charges and late payment penalties.

Final Filing Checklist

Review this checklist before submitting your 2017 Nebraska state income tax return to ensure accuracy and completeness.

Confirm that your federal return is completed and that all figures match those of your state and federal filings.
Verify that all Social Security numbers, names, and addresses match official records.
Ensure all required forms and schedules are adequately attached as listed in the Nebraska instructions.
Review your income and deductions to confirm that all amounts are accurate and supported by documentation.
Ensure all eligible credits are claimed and that proof is included when required.
Select your filing method—electronic or paper—and confirm that the correct mailing address or e-filing process is used.
Sign and date the return; both spouses must sign if filing jointly.
Keep copies of all forms, schedules, and supporting documents for at least four years.

For official instructions and forms, visit the Nebraska Department of Revenue.

Frequently Asked Questions (FAQ)

What if I missed the filing deadline for April 17, 2018?

If you missed the deadline, you should file your return immediately to reduce penalties and interest charges. Nebraska imposes both late filing and late payment penalties if you owe tax. Interest begins accruing from the original due date until the balance is fully paid. Filing as soon as possible minimizes these costs and helps you avoid additional collection actions.

How do I request a filing extension?

You can request more time to file by submitting Federal Form 4868 or Nebraska Form 4868N by the original due date. An extension gives you until October to submit your return, but does not extend the time to pay any taxes owed. Paying as much as possible by the deadline helps reduce interest and penalties.

Can I file jointly if I moved mid-year?

Married couples with mixed residency can file jointly as Nebraska residents or separately to reflect different domiciles. Partial-year residents must indicate their residency start and end dates on the return. Selecting the correct filing status can influence your taxable income, your eligibility for state credits, and whether certain deductions can be claimed for the year.

What if I have income from other states?

If you paid income tax to another state on income that Nebraska also taxes, you may qualify for a credit to avoid double taxation. You must complete Schedule II and attach a full copy of the other state’s return. This documentation allows the Department of Revenue to verify your claim and apply the credit against your income tax owed to Nebraska.

How long should I keep my Nebraska tax records?

You should keep your Nebraska tax records for at least four years from the due date or the date you filed, whichever is later. If you have ongoing business deductions, carryover items, or unresolved matters with the IRS or Nebraska Department of Revenue, you should keep them longer. Maintaining complete records protects you if questions or audits arise later.

Filing Your Nebraska Tax Return 2017: A Step-by-Step Guide