Nebraska Subtractions from Income
Railroad Retirement Board
Enter any federally taxed Tier I and/or II retirement benefits paid by the Railroad Retirement Board (RRB). These include any dual vested benefits or supplemental annuities. Also report any unemployment or sickness insurance payments made by the RRB.
Special Capital Gains/Extraordinary Dividends Deduction
This deduction is available only to Nebraska residents. Enter the amount of the special capital gain or extraordinary dividend. Please refer to the Special Capital Gains Election and Computation, Form 4797N, for additional information.
Nebraska College Savings Plan
If during 2011 you, as the account owner, made contributions to one or more college savings account established under Nebraska's College Savings Program (i.e. Nebraska Educational Savings Plan Trust), then enter the amount of your contributions, up to a maximum of $5,000 ($2,500 if married, filing separately). The Nebraska College Savings Program includes the following Plans:
- NEST Direct College Savings Plan;
- NEST Advisor College Savings Plan;
- TD Ameritrade 529 College Savings Plan, and
- The State Farm College Savings Plan.
Only the account owner may claim this deduction. You cannot deduct contributions made to other states' 529 college savings plans here. For questions about this plan go to www.treasurer.org, or contact the State Treasurer's Office at (402) 471-2455.
Nebraska Long-Term Care Savings Plan Contribution
Enter the amount contributed in 2011 to the account owner’s Nebraska Long-Term Care Savings Plan account, not to exceed the maximum contribution amount of $1,000 (or $2,000 if married filing jointly). The Nebraska Long-Term Care Savings Plan is administered by the Nebraska State Treasurer. Only the plan participant may claim this deduction. For more information go to www.treasurer.org or call the State Treasurer's Office at (402) 471-2455. Note: Earnings generated from this savings program are also exempt and may be deducted to the extent included in federal AGI for 2011.
Other Nebraska Subtractions from Income
- S Corporation and LLC Non-Nebraska Income - Enter the amount of income from an S corporation or LLC that is not from Nebraska sources. Attach Schedule K-1 received from the S corporation or LLC together with a copy of the Nebraska apportionment factor of the S corporation or LLC, where appropriate. Income from partnerships, limited liability partnerships, and other entities cannot be deducted.
- Nonresident Military Compensation - Enter the amount of nonresident military service compensation included in the servicemember’s federal AGI. Write “Nonresident military service compensation” and the amount being deducted on line 59, Nebraska Schedule I. The 2011 Form W-2 issued by the armed forces to the servicemember must be attached to Form 1040N. The Form W-2 must identify the income as attributable to a state other than Nebraska in Box 15. If "NE" is shown on the W-2, the adjustment will not be allowed. Only active duty military service compensation can be deducted.
- Native American Income - Native American Indians residing on a Nebraska Native American Indian Reservation with income derived from sources within the boundaries of the reservation may deduct this income.
- Claim of Right of Repayment - Enter the amount required to be included on your federal return for a claim of right repayment.
- Net Operating Loss Carry Forward - A Nebraska net operating loss from an earlier year which is available for carryforward to 2011 is deducted.
- AG Revenue Bonds Issued by State - Nebraska Agricultural Revenue and Federally Taxable NIFA Bonds. Income from bonds which are subject to federal income tax, but exempt from Nebraska tax by Nebraska law, is deducted on line 58. List the name of the bonds.
- Taxable Build America Bond Interest - Federally Taxable Build America Bonds Issued by Nebraska Governmental Units. The America Recovery and Revitalization Act of 2009 established a category of federally taxable bonds that are exempt under Nebraska law. Income from these bonds may be deducted.
- NIFA Bonds - Example: NPPD, taxable General Revenue Bonds issued June, 2009, 2010 Series A may be deducted. Recovery Zone Economic Development Bonds and Qualified School Construction Bonds that are federally classified as Build America Bonds may also be deducted if issued by a Nebraska governmental unit.