1065N K-1N: Partner Share of Income, Deductions, Modifications and Credits (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
The 2025 Nebraska Schedule K-1N (Form 1065N) reports each partner’s share of a partnership’s Nebraska income, deductions, modifications, and credits. Partners use this information to complete their Nebraska tax returns.
Who files this form
The partnership must prepare a Nebraska Schedule K-1N to report each partner’s share of Nebraska income, deductions, modifications, and credits. It must give a Schedule K-1N to each partner and submit a copy of every Schedule K-1N with Form 1065N.
Each partner uses the schedule to complete their Nebraska tax return. The text also addresses LLCs taxed as partnerships that issue these schedules.
What you'll need
Have these source forms and details available, as applicable:
- Partner’s federal Schedule K-1: Source amounts for income and deductions on lines 1 through 14.
- Form 1065N, Schedule I: Nebraska receipts, total receipts, and the Nebraska apportionment factor.
- Form 1065N, Schedule II: The partner’s income percentage and Nebraska income tax withheld.
- 2025 federal Form 1065: Nebraska and local income, sales, and use taxes deducted under section 164, including Nebraska PTET.
- Form 1065N, Schedule PTET: PTET credit amounts for line 24.
- Forms 1099-MISC or 1099-NEC issued to the partnership: Contractor withholding amounts for line 22, if applicable.
- Credit records: Applicable credit forms, distribution schedules, and certificate numbers. These may include Form CDN, the CHIEF credit form, and distribution schedules for Forms 775N, 312N, 1107N, and 544N.
- Identification details: Partnership and partner names, mailing addresses, applicable tax ID numbers, and the individual partner’s Social Security number.
How to file
Give each partner a Nebraska Schedule K-1N and submit a copy of every Schedule K-1N with Form 1065N.
When distributing applicable credits on line 21, also complete the required credit distribution schedules and enter the required credit codes, amounts, and certificate numbers.
The supplied text does not give a mailing address or e-file instructions for submitting this schedule.
Common mistakes
- Leaving the foreign adversarial company question unanswered. The text warns that this will result in denial or delayed processing of distributed credits. Do not include credits received from a foreign adversarial company, or distribute credits as one, on lines 19 through 21.
- Using inconsistent Nebraska ID numbers. The partnership’s Nebraska ID number must match on Schedule K-1N and Form 1065N.
- Entering a decimal instead of a percentage. Convert the partner’s income share from Schedule II, column (C), to a percentage.
- Completing line 18 for a partnership that is not an LLC. These partnerships must leave line 18 blank.
- Putting the School Readiness Tax Credit for Providers on line 21. Use line 26 and enter the certificate number.
- Treating a Nebraska Historic Tax Credit entry as approval to claim it. The partner must receive an NHTC certificate from DOR before the credit is allowed.
- Including ineligible amounts on line 16. Interest from repurchase agreements involving U.S. government obligations is not exempt U.S. government interest. Gains or losses from disposing of federal securities also do not belong on line 16.
Questions people ask
How are lines 1 through 14 calculated?
If the partnership is subject to income tax only in Nebraska, use the amounts directly from the partner’s federal Schedule K-1. If it is subject to income tax in another state, multiply those federal amounts by the partnership’s Nebraska apportionment factor.
Whose information goes on the schedule if the partner is a disregarded entity?
Use the beneficial owner’s information, not the disregarded entity’s. If the beneficial owner is an individual, enter that person’s Social Security number.
Do calendar-year filers need to fill in the tax-year beginning and ending dates?
Calendar-year filers may leave those fields blank. Fiscal-year and short-period filers must enter the dates their tax year began and ended.
Which PTET credits are included on line 24 of the 2025 schedule?
Enter the credits for 2018 through 2022 and 2025 separately on lines 24a through 24f using Schedule PTET, Form 1065N. Enter their total on line 24.