Nebraska source income amount

Forum|Forum|2 years ago
March 7, 2024
1 reply
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where do I find the nebraska source income amount to be entered

TurboTax Deluxe Online

DMarkM1

The NE source income is based on your situation. Typically, income earned while a resident of NE and income earned from a NE source (worked in NE for example) while being a non-resident is NE source income.

When allocating income to NE as a part-year resident or non-resident you must find the proportion of each income source that belongs to NE.

For example, if you had a NE employer all year (12 months) but lived in NE for 6 months and moved to KS for 6 months, then the NE proportion would be 6 months/12 months = .5. So that W2 income would be multiplied by .5 to arrive at the amount that belongs to NE.

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saigeypoohAuthor

I am still confused. Would I go off of total wages, tips, etc.. that were made in Nebraska or do I just go off of the state income tax taken out on the W-2? She lived there for 8 months. I would times this amount by 0.8? is that correct? Why would whatever amount I enter raise how much she owes to Nebraska? I just need help.

Thanks,

Jeramy

JamesG1

Are you only trying to allocate W-2 income to Nebraska? Or are there other kinds of income?

Does the W-2 show only Nebraska sourced income in boxes 15 through 17 of the W-2? Or are there other states?

It sounds like you are reporting income to Nebraska as a part-year resident. Was any Nebraska state income tax withheld reported in box 17 of the W-2?

If no Nebraska state income tax withheld was reported in box 17 of the W-2, the amount she owes Nebraska will go up no matter what dollar amount is entered into the TurboTax Nebraska state income tax software.

Nebraska Department of Revenue here states:

002.03 Partial-year resident individuals.

The Nebraska individual income tax is imposed for each taxable year on all of the income of every partial-year resident which is earned while a resident of Nebraska and is not taxed by another state, and the income derived from sources within Nebraska while a nonresident. The tax is a percentage of the tax owed by a resident individual with the same taxable income. The percentage is determined by dividing the taxpayer's Nebraska adjusted gross income as determined in Reg-22-004 by the taxpayer's federal adjusted gross income after the adjustments provided in Reg-22-002.04.

@saigeypooh

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