1065N Sch I-II: Partnership Schedules I and II (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
Nebraska Form 1065N Schedules I and II calculate income apportioned to Nebraska for a multistate business and report partners’ shares of Nebraska income. They include sales or gross receipts used to calculate the Nebraska apportionment factor, partner information, and income tax
Who files this form
- Schedule I is for apportioning income for a multistate business.
- Schedule II must be completed and attached to Form 1065N if box 5 on Form 1065N is not checked.
A publicly traded partnership, or a partnership with out-of-state partners and only portfolio income, need not complete Schedule II columns (E), (F), and (G). Instead, check the exception box on Schedule II.
What you'll need
Have the following information and applicable forms available:
- Form 1065N: the name, Nebraska ID number, Nebraska adjusted income from line 4, and Nebraska income from line 5.
- For Schedule I: total and Nebraska sales or gross receipts, including the listed categories of sales, interest, dividends, royalties, rents, gains, and other income. List other income on the schedule or attach a separate schedule.
- For Schedule II: each partner’s name, address, SSN or FEIN, percentage of income, and Nebraska resident individual status where required.
- Form 12N, if attached: check the applicable box in Schedule II, column (E).
- Nebraska Schedule K-1N: enter the withholding amount from Schedule II, column (G), on this schedule.
How to file
If box 5 on Form 1065N is not checked, complete Schedule II and attach it to Form 1065N.
For Schedule I, enter the apportionment factor from line 15 on line 2. Multiply line 1 by line 2, and enter the result on Schedule I, line 3, and Form 1065N, line 5.
The supplied form text does not provide a mailing address or e-filing directions.
Common mistakes
- Not attaching Schedule II when required: if box 5 on Form 1065N is not checked, complete Schedule II and attach it to Form 1065N.
- Overlooking the negative-income skip instruction: skip the Schedule II section for nonresident individuals and grantor trusts if Form 1065N, line 5, is less than zero.
- Missing the portfolio-income or publicly traded partnership exception: qualifying partnerships need not complete columns (E), (F), and (G), but must check the exception box instead.
- Using the schedules without reading the instructions: Schedule I specifically tells users to read the instructions.
Questions people ask
How do I calculate the Nebraska apportionment factor?
Divide Schedule I, line 14, in the Nebraska column by line 14 in the Total column. Round to six decimal places and enter the result as a percent on line 15 and Schedule I, line 2.
Where do I report other income on Schedule I?
Use line 13. List the income type, total amount, and Nebraska amount, or attach a schedule. Enter the total of the line 13b amounts in the first column and the total of the line 13c amounts in the second column.
How is a partner’s Nebraska income calculated on Schedule II?
Column (F) is Form 1065N, line 5, multiplied by the partner’s percentage of income in column (C).
How is the withholding amount calculated on the 2025 schedule?
Schedule II, column (G), shows column (F) multiplied by .0520. Enter that withholding amount on Nebraska Schedule K-1N.