1120-SN K-1N: Shareholder Share of Income, Deductions, Modifications and Credits (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
Nebraska Schedule K-1N (Form 1120-SN) reports each shareholder’s share of an S corporation’s Nebraska income, deductions, modifications, and credits for 2025. Shareholders use this information to complete their Nebraska tax returns.
Who files this form
The S corporation must provide a Nebraska Schedule K-1N to each shareholder and submit a copy of every Schedule K-1N with Form 1120-SN.
The schedule reports each shareholder’s share of Nebraska income, deductions, modifications, and credits. Shareholders use it to complete their Nebraska tax returns.
What you'll need
Have these forms and details available to complete the schedule:
- The shareholder’s federal Schedule K-1 for income, deductions, and stock ownership percentage.
- The corporation’s and shareholder’s names, mailing addresses, and tax identification numbers.
- Form 1120-SN and its relevant schedules, including Schedule I for the Nebraska apportionment factor, Schedule II for shareholder withholding, and Schedule PTET for PTET credits.
- The 2025 federal Form 1120-S for Nebraska and local taxes deducted, including Nebraska PTET.
- Applicable credit forms, distribution schedules, and certificate numbers for credits being distributed.
- Form 1099-MISC or Form 1099-NEC if reporting contractor income tax withholding.
How to file
The S corporation must give each shareholder a Nebraska Schedule K-1N and submit a copy of every Schedule K-1N with Form 1120-SN.
The supplied text does not provide a filing mailing address or e-file instructions.
Common mistakes
- Leaving the foreign adversarial company question unanswered. This will result in denial or delay in processing distributed credits.
- Reporting restricted credits on lines 18 through 20. Do not include credits received from a foreign adversarial company or distribute credits on these lines if the corporation is a foreign adversarial company.
- Using inconsistent Nebraska ID numbers. The corporation’s Nebraska ID number must match on Schedule K-1N and Form 1120-SN.
- Entering ownership as a decimal. Convert the decimal shown on Schedule II to a percentage before entering it on Schedule K-1N.
- Putting the School Readiness Tax Credit for Providers on line 20. Use line 25 and include the certificate number.
- Assuming a reported Nebraska Historic Tax Credit is enough to claim it. The shareholder must be issued a certificate by DOR before the credit is allowed.
- Including ineligible income on line 15. Interest from repurchase agreements involving U.S. government obligations is not exempt U.S. government interest. Gains or losses from disposing of federal securities should not be included on this line.
Questions people ask
Do calendar-year filers need to fill in the taxable-year dates?
No. Calendar-year filers may leave those fields blank. Fiscal-year and short-period filers must enter the beginning and ending dates of their tax year.
Whose information goes on the schedule for a grantor trust or disregarded single-member LLC?
For a grantor trust, enter the grantor’s name and mailing address. For a disregarded single-member LLC that owns stock, enter the LLC owner’s name, mailing address, and Social Security number or federal ID number.
How are income and deduction amounts on lines 1 through 13 determined?
If the S corporation is subject to income tax only in Nebraska, use the shareholder’s federal Schedule K-1 amounts. If it is also subject to income tax in another state, multiply those amounts by the corporation’s Nebraska apportionment factor.
Does a foreign adversarial company relationship affect every credit line?
No. The restrictions apply to lines 18 through 20. Credits on lines 21 through 26 may be received from a foreign adversarial company, and a foreign adversarial company may distribute those credits.