1120-SN Sch I-III: S Corporation Schedules I-III (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
These schedules accompany Nebraska Form 1120-SN for S corporations. They report multistate income apportionment, shareholders’ shares of Nebraska income and withholding, and information about subsidiary or affiliated corporations.
Who files this form
- Schedule I: This schedule is for an S corporation with income from sources both within and outside Nebraska.
- Schedule II: Complete this schedule and attach it to Form 1120-SN if box 5 on Form 1120-SN is not checked.
- Schedule III: This schedule lists the filing S corporation, its parent corporation if different, and subsidiary or affiliated corporations. Its apportionment information summarizes Nebraska sales or receipts for corporations filing a combined corporation income tax return.
What you'll need
Have the following information available to complete the schedules:
- Form 1120-SN information: The corporation’s name, Nebraska ID number, Nebraska adjusted income from line 4, income from line 5, and whether box 5 is checked.
- For Schedule I: Sales and gross receipts information, including Nebraska sales, interest, dividends, royalties, rents, gains on intangible property, and other income. List other income on the form or attach a schedule.
- For Schedule II: Each shareholder’s name, address, SSN or FEIN, ownership percentage, and Nebraska individual residency status where required. The schedule also asks whether Form 12N is attached.
- For Schedule III: Corporation names and addresses, Nebraska and federal ID numbers, and Nebraska sales or receipts amounts.
How to file
If box 5 on Form 1120-SN is not checked, complete Schedule II and attach it to Form 1120-SN.
For Schedule I, enter the apportionment factor from line 15 on line 2. Multiply line 1 by line 2, then enter the result on Schedule I, line 3, and Form 1120-SN, line 5.
Enter the Schedule II, column (G), Nebraska income tax withholding amount on Nebraska Schedule K-1N.
The supplied form text does not give a mailing address or e-file directions.
Common mistakes
- Missing the Schedule II attachment requirement: If box 5 on Form 1120-SN is not checked, complete Schedule II and attach it to the return.
- Overlooking the portfolio-income exception: An S corporation with out-of-state shareholders and only portfolio income need not complete Schedule II, columns (E), (F), and (G). Check the indicated box instead.
- Ignoring the negative-income skip instruction: Skip the Schedule II section for nonresident individuals and grantor trusts if Form 1120-SN, line 5, is less than zero.
- Missing the FEIN skip instruction: Schedule II directs shareholders identified by FEIN to skip columns (D) through (G).
- Using the wrong apportionment precision: Schedule I directs you to divide line 14 in the Nebraska column by line 14 in the Total column, round to six decimal places, and enter the result as a percentage.
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 percentage on line 15 and Schedule I, line 2.
How is shareholder income calculated on Schedule II?
Column (F) is Form 1120-SN, line 5, multiplied by the shareholder’s ownership percentage in column (C). The section applies to nonresident individuals and grantor trusts and is skipped if line 5 is less than zero.
What withholding calculation is printed on the 2025 Schedule II?
Column (G) directs you to multiply column (F) by .0520, or 5.20%. Enter the withholding amount on Nebraska Schedule K-1N.
What if the corporation has out-of-state shareholders and only portfolio income?
Schedule II says the corporation need not complete columns (E), (F), and (G). Check the portfolio-income box instead.