1065N: Partnership return and schedules (2024)
Nebraska · Nebraska DOR · Used for tax years 2024
Form 1065N is the 2024 Nebraska Return of Partnership Income. The booklet includes the return, related schedules, and instructions for reporting partnership income, pass-through entity tax, and Nebraska income tax withholding for nonresident partners.
Who files this form
Form 1065N must be filed by:
- Every partnership with income from Nebraska sources.
- An LLC treated as a partnership for federal income tax purposes that has income from Nebraska sources.
- Every partnership or LLC treated as a partnership that will distribute Nebraska incentive credits to its partners or members.
For this purpose, partnerships include limited partnerships, syndicates, groups, pools, joint ventures, and other unincorporated organizations not filing federally as corporations, trusts, estates, or sole proprietorships.
A limited partnership doing business entirely outside Nebraska does not have to file if its Nebraska resident partners are not general partners responsible for managing the partnership.
Only one return is required for each partnership.
When it's due
- 2024 return: File on or before the 15th day of the third month following the close of the taxable year. Use the 2024 form for calendar year 2024 or a fiscal year beginning in 2024.
- 2024 PTET election: Make the election on or before the return's due date, including any approved extension.
- 2024 Nebraska extension request: If using Form 7004N, file it on or before the return's due date.
An extension gives you more time to file, not more time to pay. Tax unpaid by the original due date is subject to interest. A timely federal Form 7004 extension provides a Nebraska extension for the same number of months granted by the IRS, with the required extension documentation attached to the Nebraska return.
What you'll need
Prepare these documents and attachments:
- Federal return and supporting schedules: Attach copies as filed with the IRS.
- Nebraska Schedules K-1N: Attach each partner's Schedule K-1N and provide a copy to every partner.
- Forms 12N, if applicable: Attach all signed and completed Nebraska Nonresident Income Tax Agreements. If an authorized representative signs, attach a copy of Form 33, Power of Attorney.
- Extension documentation, if applicable: Attach a copy of the timely filed federal Form 7004, or a schedule showing the federal electronic confirmation number and explaining that the extension request was not denied.
- IRS approval, if applicable: Attach approval for a change in accounting method or accounting period to the first return showing the change.
- Credit forms and supporting documents, if applicable: These may include Form 3800N and supporting schedules, credit distribution schedules, a School Readiness tax credit certificate, Form PTC, and Schedules K-1N supporting PTET credits received from other partnerships.
You will also need the partnership's federal and Nebraska ID numbers and its six-digit Nebraska business classification code.
How to file
You may electronically file or mail Form 1065N. For e-filing information, see the Nebraska Handbook for e-file Providers of Income Tax Returns, Publication 1345N-MeF.
Mail the return to:
Nebraska Department of Revenue
PO Box 94818
Lincoln, NE 68509-4818
Use the same taxable year and accounting method used for federal income tax purposes. Complete the applicable schedules and attach the federal return and required supporting documents.
Payment options include electronic funds withdrawal with an e-filed return, Nebraska e-pay, ACH Credit, and Nebraska Tele-pay at 800-232-0057. Some entities must pay electronically. If paying by check or money order, make it payable to the Nebraska Department of Revenue and include it with the return. Credit card payments are not available for partnership returns.
To correct a previously filed return, use Form 1065XN. Amended partnership returns cannot be e-filed.
Common mistakes
- Including cents: Enter whole dollars only. Round 50 through 99 cents up and amounts below 50 cents down. Do not change the preprinted zeros in the cents column.
- Leaving out extension documentation: Failure to attach the applicable document may result in a late-filing penalty.
- Treating an extension as extra time to pay: Unpaid tax is subject to interest from the original due date.
- Including a tax-category prefix in the Nebraska ID number: Do not include prefixes such as 21 or 01.
- Subtracting out-of-state income as a Nebraska adjustment: The text says this is not an allowable decreasing adjustment. Complete Nebraska Schedule I instead.
- Using the wrong year's form for an amendment: Use the form for the tax year being amended and attach the related federal or other state amended return, schedules, or documentation explaining the changes.
Questions people ask
Is Form 1065N only an informational return?
No. It also calculates income, deductions, and credits passed through to partners; calculates and pays income tax on behalf of nonresident individual partners; reports applicable PTET; and reports and pays recapture of tax incentive credits.
What is the PTET rate for tax year 2024?
The rate is 5.84%. A partnership electing to be subject to Nebraska income tax for 2024 calculates line 6 by multiplying line 5 by 5.84%. Check box 5 if the partnership is electing or previously elected for 2024.
How does Form 12N affect withholding for a nonresident partner?
A completed Form 12N submitted before the original Form 1065N is filed relieves the partnership of withholding for that partner. The partner agrees to file a Nebraska income tax return and pay taxes directly to DOR. Attach the signed and completed Form 12N to Form 1065N.
Does every partner need a Nebraska Schedule K-1N?
Yes. The partnership must provide a Nebraska Schedule K-1N to every partner and attach each Schedule K-1N to the partnership return.
Where can I get help?
Visit revenue.nebraska.gov or call 800-742-7474 from Nebraska or Iowa, or 402-471-5729.