1040N Sch I-III: Schedules I, II, and III (2024)
Nebraska · Nebraska DOR · Used for tax years 2024
These schedules accompany Nebraska Form 1040N for 2024. Schedule I reports adjustments increasing or decreasing federal adjusted gross income, Schedule II calculates the credit for tax paid to another state for full-year residents, and Schedule III calculates Nebraska tax for par
Who files this form
- Schedule I, Nebraska Adjustments to Income: Lists adjustments that increase or decrease federal adjusted gross income (AGI). The Schedule III directions say to complete Parts A and B of Schedule I if you have state, local, or federal bond interest or other adjustments.
- Schedule II, Credit for Tax Paid to Another State: For full-year Nebraska residents only. Complete a separate Schedule II for each state.
- Schedule III, Computation of Nebraska Tax: For partial-year residents and nonresidents only. Use it to calculate your Nebraska tax liability after completing lines 1 through 14 of Form 1040N.
What you'll need
The documents needed depend on which schedules and adjustments apply to you.
Schedule I attachments and details
- Railroad Retirement Board benefits: Attach all Forms 1099 and W-2 from the RRB.
- Special capital gains or extraordinary dividend deduction: Attach Form 4797N, a copy of Federal Schedule D, and Form 8949, or Federal Schedule B when claiming the extraordinary dividend deduction.
- S corporation and LLC non-Nebraska income: Attach federal Schedules K-1 and Nebraska Schedules K-1N.
- Nonresident military active duty pay: Attach the active duty Form W-2 identifying the income as attributable to another state.
- Nebraska net operating loss carryforward: Attach a Nebraska NOL Worksheet for each loss year claimed.
- Segal AmeriCorps Education Award: Attach Form 1099-MISC.
- Attach supporting documentation for military retirement benefits, dividends from corporations not subject to the IRC, Firefighter Cancer Benefits Act benefits, Teach in Nebraska Today Act assistance, and health insurance premiums paid by retired law enforcement officers and professional firefighters. The form also calls for documentation for federal Civil Service Retirement annuities.
- List exempt U.S. government obligations and Nebraska Enable plan account numbers and annual contributions on the form or an attached schedule. For regulated investment company dividends, provide the fund name, total dividend, and percentage from U.S. obligations.
Schedule II attachment
Attach a complete copy of the return filed with each other state. The form says the credit will not be allowed without the entire return.
Schedule III records
Use the applicable amounts from Form 1040N and your federal return. Its other-tax calculation references federal Forms 4972 and 5329 and Schedule 2. You do not have to provide copies of other state returns when filing Schedule III.
How to file
- Schedule I: Attach the page to Form 1040N. Enter Schedule I line 10 on Form 1040N line 12, and Schedule I line 39 on Form 1040N line 13.
- Schedule II: Complete a separate schedule for each state and attach the complete return filed with that state. Enter the allowable credit from line 6 on Form 1040N line 19.
- Schedule III: Complete Form 1040N lines 1 through 14 first. Transfer Schedule III line 9 to Form 1040N line 15, line 10 to Form 1040N line 16, and the Nebraska earned income credit from line 12 to Form 1040N line 42.
Common mistakes
- Using the other state's taxable income on Schedule II line 2. The form asks for adjusted gross income derived from the other state and directs you to the Conversion Chart on the Nebraska Department of Revenue's website.
- Using withholding on Schedule II line 5. Enter tax due and paid to the other state, not the amount withheld. The form again directs you to the Conversion Chart.
- Attaching only part of the other state's return to Schedule II. The entire return is required, or the credit will not be allowed.
- Combining states on one Schedule II. Complete a separate schedule for each state.
- Skipping Form 1040N lines 1 through 14 before Schedule III. The form says these lines must be completed. Complete Schedule I Parts A and B if you have bond interest or other adjustments.
Questions people ask
Do I need to attach other state returns?
For Schedule II, attach a complete copy of the return filed with each other state. Schedule III says you do not have to provide copies of other state returns.
How much credit can I claim on Schedule II?
Line 6 uses the smallest of line 1, total Nebraska tax; line 4, the calculated tax credit; or line 5, tax due and paid to another state.
What if I have no Nebraska income or loss on Schedule III?
Enter zero on line 1.
How should I round the income ratio on Schedule III?
For line 4, calculate the ratio to six decimal places and round to five.
Can nonresidents use Schedule III's earned income credit calculation?
The form labels the earned income credit calculation on line 11 for partial-year residents only. Line 12 multiplies that amount by the line 4 ratio to calculate the Nebraska earned income credit.