Nebraska/Arizona Partial Residency Same Employer

Forum|Forum|2 years ago
January 25, 2024
2 replies
0 views

Hello! I was living in Arizona and moved to Nebraska middle of 2023. I worked for the same employer the entire year. I had my AZ tax allocated as it had always been for the first half of the year with my employer, and when I moved, I filled out and filed/allocated my taxes to now be for NE for the second half of the year. I received both state tax information on my W-2 from my employer. I am filing tax returns for each state for partial year resident; AZ went just fine, NE is being tricky. It asks only to know income earned when it gets to asking about describing Nebraska Source Income and amount. When I enter “wages” and the amount, at the end, it shows I owe a ton of money to NE. No where does it ask or reflect I paid taxes for NE in the second half of the year. No where does it ask for this amount from my W-2. What am I missing? Where is this to be entered? How can/will NE know I paid NE taxes and how much? Thank you!!

TomD8

Employee

Does your Nebraska information appear separately in lines 15-17 of your W-2? If so, go back and check that you entered your W-2 correctly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

CatinaT1

Did you enter both states in your Federal Section for your W2? This information will pull over to the state returns.

As a part year resident, Nebraska will tax your entire annual income and then determine the percentage of total income attributed to Nebraska and you will pay that percentage of tax in Nebraska.

For instance if 50% of your entire income was earned in Nebraska, you will pay 50% of the tax calculated on your entire income.

This is all calculated on Schedule III. Also, Nebraska's income tax rate is much higher than Arizona's.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

tunnelsAuthor

Thank you! I didn’t realize I could put in separate lines foe a state in the federal wages section. First time doing so. I got it resolved, thank you!!