Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 316 - NEBRASKA DEPARTMENT OF REVENUE › Chapter 22 - INDIVIDUAL INCOME TAX REGULATIONS › Section 316-22-002 - COMPUTING THE NEBRASKA INDIVIDUAL INCOME TAX

Current through June 17, 2024
002.01
Resident individuals.
The Nebraska individual income tax is
				imposed for each taxable year on the entire income of every resident
				individual. The tax is a percentage of the taxpayer's Nebraska taxable income
				for the taxable year plus a percentage of the federal alternative minimum tax
				and the federal tax on premature or lump-sum distributions from qualified
				retirement plans. Taxpayers whose federal adjusted gross income is larger than
				the threshold amount determined under section 68 of the Internal Revenue Code
				(IRC) will recalculate their tax on taxable income by multiplying the maximum
				tax rate by ten per cent of the excess amount above the section 68 threshold
				and subtracting from the result the amount of tax from the tax table. This
				result will be added to the tax from the tax table.
002.02
Nonresident individuals.
The Nebraska individual income tax is imposed for each taxable year on the
				income of every nonresident individual which is derived from sources within
				Nebraska. The tax is a percentage of the tax owed by a resident individual with
				the same total income. The percentage is determined by dividing the taxpayer's
				Nebraska adjusted gross income as determined in Reg-
				22-003 by the taxpayer's federal
				adjusted gross income after the adjustments provided in Reg-
				22-002.04.
002.03
Partial-year resident
				individuals.
The Nebraska individual income tax is imposed for each
				taxable year on all of the income of every partial-year resident which is
				earned while a resident of Nebraska and is not taxed by another state, and the
				income derived from sources within Nebraska while a nonresident. The tax is a
				percentage of the tax owed by a resident individual with the same taxable
				income. The percentage is determined by dividing the taxpayer's Nebraska
				adjusted gross income as determined in Reg-
				22-004 by the taxpayer's federal
				adjusted gross income after the adjustments provided in Reg-
				22-002.04.
002.04
Determining Nebraska taxable
				income.
Nebraska taxable income is the taxpayer's federal adjusted gross
				income after Nebraska adjustments and after the deduction provided in either
				Reg-
				22-002.08 or Reg-
				22-002.09.
002.05 The Nebraska adjustments which are
				subtracted from federal adjusted gross income are as follows:
002.05A
Income from federal
				obligations.
Any interest and dividends received on United States
				obligations to the extent such interest and dividends are included in federal
				adjusted gross income but exempt from state income taxes under the laws of the
				United States shall be subtracted. The amount subtracted on account of such
				interest and dividends must be reduced by any interest on indebtedness incurred
				to carry such obligations and by any expense incurred in the production of such
				income to the extent such expense or interest was deducted in determining
				federal taxable income.
002.05A(1) United
				States obligations which are exempt include the following:
002.05A(1)(a) Series E, F, G, H, and I
				savings bonds;
002.05A(1)(b) United
				States Treasury bills;
002.05A(1)(c) U.S. Government
				notes;
002.05A(1)(d) U.S.
				Government bonds;
002.05A(1)(e)
				U.S. Government certificates;
002.05A(1)(f) Interest on debentures issued
				to mortgages of mortgagees foreclosed under provisions of the National Housing
				Act if insured after February 3, 1938;
002.05A(1)(g) Retirement bond as provided by
				IRC section 409;
002.05A(1)(h)
				Federal Farm Credit Bank consolidated systemwide bonds;
002.05A(1)(i) Federal Land Banks and
				Associations;
002.05A(1)(j) Federal
				Intermediate Credit Bank;
002.05A(1)(k) Commodity Credit
				Corporation;
002.05A(1)(l) Federal
				Farm Mortgage Corporation;
002.05A(1)(m) Federal Home Loan
				Banks;
002.05A(1)(n) Reconstruction
				Finance Corporation;
002.05A(1)(o)
				General Services Administration Participation Certificates;
002.05A(1)(p) Central Bank for Cooperatives
				(interest only);
002.05A(1)(q)
				Federal Reserve Banks;
002.05A(1)(r) Federal Savings and Loan
				Insurance Corporation;
002.05A(1)(s) Production Credit Association
				(interest only);
002.05A(1)(t)
				Tennessee Valley Authority bonds;
002.05A(1)(u) Postal Service bonds;
002.05A(1)(v) Federal Deposit Insurance
				Corporation (interest only); and
002.05A(1)(w) Student Loan Marketing
				Association (interest only).