1040N Sch I-III: Schedules I, II, and III (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
These schedules accompany Nebraska Form 1040N. Schedule I reports Nebraska adjustments to 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 partial-year residents an
Who files this form
- Schedule I, Nebraska Adjustments to Income: Reports adjustments that increase or decrease federal adjusted gross income (AGI). The Schedule III directions tell filers with state, local, or federal bond interest or other adjustments to complete Parts A and B of Schedule I.
- 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 Nebraska tax liability.
What you'll need
Enter the name and Social Security number shown on Form 1040N. Depending on the items you report, the schedules call for these documents:
- Tax paid to another state: Attach a complete copy of that state's filed return to Schedule II.
- Railroad Retirement Board benefits: Attach all Forms 1099 and W-2 from the Railroad Retirement Board.
- 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.
- Military retirement benefits, dividends from corporations not subject to the IRC, and Firefighter Cancer Benefits Act benefits: Attach supporting documentation. Documentation is also needed for Civil Service Retirement annuities.
For Nebraska Enable plan contributions, list each account number and annual contribution amount on the form or an attached schedule.
How to file
- Attach the Schedule I page to Form 1040N. Transfer Schedule I's total increases from line 13 to Form 1040N, line 12, and total decreases from line 44 to Form 1040N, line 13.
- For Schedule II, complete a separate schedule for each state and attach that state's complete filed return. Transfer the allowable credit from line 6 to Form 1040N, line 19.
- Before using Schedule III, complete lines 1 through 14 of Form 1040N. Transfer Schedule III, line 9 to Form 1040N, line 15, and line 10 to Form 1040N, line 16. Transfer the Nebraska earned income credit on line 12 to Form 1040N, line 44.
The supplied form does not print a mailing address or e-filing directions.
Common mistakes
- Entering another state's taxable income on Schedule II, line 2. The form asks for adjusted gross income derived from that state and directs you to the Conversion Chart on the DOR's website.
- Entering withholding on Schedule II, line 5. Use tax due and paid to the other state, not the amount withheld. The form directs you to the DOR's Conversion Chart.
- Attaching only part of another state's return. Schedule II warns that the credit will not be allowed unless the entire return is attached.
- Combining states on one Schedule II. Complete a separate Schedule II for each state.
- Skipping Form 1040N, lines 1 through 14, before Schedule III. The form says these lines must be completed.
Questions people ask
Do I need to attach other states' returns when filing Schedule III?
No. Schedule III says you do not have to provide copies of other state returns. Schedule II, however, requires a complete copy of the return filed with the other state.
How much credit can I claim on Schedule II?
Line 6 uses the smallest of line 1, total Nebraska tax; line 4, 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 if there is no Nebraska income or loss.
How should I round the income ratio on Schedule III?
For line 4, calculate Nebraska's share of total income to six decimal places, then round to five decimal places.
Who can use the earned income credit lines on Schedule III?
Line 11 is for partial-year residents only. Multiply the federal earned income credit by 10%, then multiply that result by the line 4 ratio to calculate the Nebraska earned income credit on line 12.