1040N-EB: Residence in Designated Extremely Blighted Area Credit (2024)
Nebraska · Nebraska DOR · Used for tax years 2024
Nebraska Form 1040N-EB identifies a primary residence purchased in a designated extremely blighted area and calculates the credit claimed for 2024 and any unused credit carried forward. It must be attached to Form 1040N when claiming the credit.
Who files this form
Complete and attach Form 1040N-EB to your Nebraska Form 1040N if you are claiming this credit or using an unused credit carried forward.
To qualify, you must have purchased a Nebraska residence that:
- Is your primary residence.
- Is in a designated extremely blighted area.
- Was not purchased from your family member or your spouse’s family member.
The purchase must have occurred in a taxable year beginning, or deemed to begin, on or after January 1, 2020, and before January 1, 2026. The credit may be claimed only once for a single residence.
For the 2024 form, you may claim a credit for an eligible 2024 purchase or use unused credit carried over from 2023.
What you'll need
Have these records and details ready:
- Your name and Social Security number as shown on Form 1040N.
- The purchase date, seller’s name, property address, and county-assigned property ID or parcel number.
- Documentation showing that the property is in a designated extremely blighted area. Attach it if you answered Yes to all questions in Part A.
- Your 2024 Form 1040N figures for tax liability and the other nonrefundable credits listed in Part B.
- Your 2023 Form 1040N-EB, line 9, if you are carrying unused credit into 2024.
You can obtain designation documentation from the city planning department where the residence is located. The property ID may appear on the County Assessment Notice or Real Estate Tax Statement, or through the County Assessors and Parcel Search.
Keep records of the purchase and the extremely blighted designation for the longer of five years from the end of the purchase tax year or three years from the date the return using the credit is filed.
How to file
Complete Form 1040N-EB and attach it to Form 1040N for the purchase year and each later year in which you use carried-forward credit.
- Complete Part A with the property information and eligibility answers. Attach the required designation documentation.
- On line 4, enter $5,000 for an eligible residence purchased in 2024, or the unused credit from line 9 of your 2023 Form 1040N-EB.
- Complete lines 5 through 7 using the Form 1040N amounts requested. If line 5 minus line 6m is negative, enter zero on line 7.
- Enter the smaller of line 4 or line 7 on line 8 and on Form 1040N, line 26.
- Subtract line 8 from line 4 and enter the result on line 9 as the amount carried forward to 2025.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Continuing after a No answer in Part A. The form says to stop because you do not qualify.
- Claiming for a purchase from family. A purchase from your family member or your spouse’s family member does not qualify.
- Leaving out attachments. Attach Form 1040N-EB to Form 1040N and include the required documentation of the extremely blighted designation.
- Claiming the credit more than once for the same residence. The instructions allow only one credit per residence, although unused credit may carry forward.
- Overlooking recapture. If you sell, transfer, or stop using the property as your primary residence within five years after the end of the purchase tax year for which the credit was claimed, the credit is recaptured. You must amend the initial claim-year return and each later return on which carried-forward credit was used.
Questions people ask
How much is the credit for an eligible 2024 purchase?
Enter $5,000 on line 4. The amount you can claim for 2024 is the smaller of that amount or your tax remaining after the other nonrefundable credits listed on the form.
Can I carry forward credit I cannot use?
Yes. Unused credit may be carried forward to later tax years until used. Complete and attach Form 1040N-EB for each year you use a portion of it.
Who counts as a family member?
The instructions list a spouse, child, parent, brother, sister, grandchild, or grandparent, whether related by blood, marriage, or adoption. Purchases from your family or your spouse’s family do not qualify.
How can I check whether the property is in a designated extremely blighted area?
Contact the city planning department where the residence is located. Departments may provide website maps or lookup tools. The instructions identify lookup tools on the City of Omaha Planning Department and City of Lincoln Urban Development websites.