1120-SN: S Corporation return and schedules (2024)
Nebraska · Nebraska DOR · Used for tax years 2024
Form 1120-SN is the 2024 Nebraska S Corporation Income Tax Return. The return and accompanying schedules report S corporation income and calculate applicable Nebraska income tax, including pass-through entity tax or withholding for nonresident shareholders.
Who files this form
Form 1120-SN must be filed by:
- Every S corporation, as defined by Internal Revenue Code § 1361, with income from Nebraska sources.
- Every S corporation that will distribute Nebraska incentive credits to its shareholders.
Financial institutions organized as S corporations that maintain a permanent place of business in Nebraska and actively solicit deposits from Nebraska residents must file both Form 1120NF and Form 1120-SN.
A qualified subchapter S subsidiary receives the same treatment as it does for federal income tax purposes. Its assets, liabilities, income, deductions, and credits are treated as those of its parent.
When it's due
- 2024 return: File on or before the 15th day of the third month following the close of the taxable year. The 2024 form is for calendar year 2024 or a fiscal year beginning in 2024.
- 2024 pass-through entity tax (PTET) election: Make the election on or before the return’s due date, including any approved extension.
What you'll need
Prepare these documents and details:
- Federal return and supporting schedules: Attach copies as filed with the IRS.
- Business information: Have the corporation’s federal ID number, Nebraska ID number, and six-digit business classification code.
- Nebraska Schedule K-1N: Attach each shareholder’s schedule and provide a copy to every shareholder.
- Forms 12N, if applicable: Attach all signed and completed nonresident shareholder agreements. If an authorized representative signs, attach a copy of Power of Attorney, Form 33.
- Extension documentation, if applicable: Attach the applicable extension document, such as a timely filed federal Form 7004 or a schedule with the federal electronic confirmation number and an explanation that the request was not denied.
- Credit forms and supporting documents, if applicable: These may include Form 3800N and supporting schedules, credit distribution schedules, the School Readiness tax credit certificate, and Form PTC for the community college property tax credit.
- IRS approval, if applicable: Attach approval to the first return showing a change in accounting method or accounting period.
How to file
You may electronically file or mail Form 1120-SN. 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
A corporate officer must sign and date the return. Include a daytime phone number and an email address.
Electronic payment options include electronic funds withdrawal with an e-filed return, Nebraska e-pay, ACH credit, Nebraska Tele-pay, and credit card payment. Some entities must pay electronically. If you are not using an electronic payment option, include a check or money order payable to the “Nebraska Department of Revenue.”
Common mistakes
- Entering cents: Use whole dollars. Round 50 through 99 cents up and amounts below 50 cents down. Do not change the preprinted zeros in the cents column.
- Treating an extension as extra time to pay: An extension only extends the filing deadline. Unpaid tax is subject to interest from the original due date.
- Leaving out extension documentation: Failure to attach the applicable document may result in a late-filing penalty.
- Including a tax-category prefix in the Nebraska ID number: Do not include prefixes such as 21 or 01.
- Filing a composite return: Nebraska does not allow composite income tax returns.
- Deducting out-of-state income as a Nebraska adjustment: Income earned in another state is not an allowable decreasing adjustment on line 3. Complete Nebraska Schedule I instead.
- Claiming the same community college property tax credit twice: An eligible financial institution may claim it on Form 1120-SN or Form 1120NF, but not both.
Questions people ask
Is Form 1120-SN only an informational return?
No. It calculates income, deductions, and credits passed through to shareholders; calculates and pays income tax for nonresident individual shareholders; reports applicable PTET; and reports and pays incentive credit recapture.
What is the PTET rate for tax year 2024?
The rate is 5.84%. An S corporation electing to pay PTET for 2024 checks box 5 and calculates line 6 by multiplying line 5 by 5.84%.
What if the corporation does not elect PTET for 2024?
It must remit Nebraska income tax withholding for each nonresident individual shareholder who does not complete Form 12N. The amount is 5.84% of that shareholder’s share of taxable income from Nebraska sources. For this requirement, an individual includes a nonresident grantor of a grantor trust.
How do I correct a previously filed return?
File an Amended Nebraska S Corporation Income Tax Return, Form 1120-XSN. It cannot be e-filed. Use the form for the tax year being amended and attach the related federal or other state amended return, schedules, or other documentation explaining the changes. Changes made by the IRS or another state must be reported to the Nebraska Department of Revenue within 60 days.