Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 316 - NEBRASKA DEPARTMENT OF REVENUE › Chapter 20 - ESTIMATED INCOME TAX REGULATIONS › Section 316-20-007 - PENALTY: UNDERPAYMENT OF ESTIMATED TAX-INDIVIDUALS

Current through June 17, 2024
007.01 A penalty is due on any underpayment
				of estimated tax. For individuals, the amount of the underpayment for any
				installment date is the excess of 90% ( 66-2/3% in the case of farmers and
				fishermen) of the tax shown on the return for the taxable year or, if no return
				was filed, 90% ( 66-2/3% in the case of farmers and fishermen) of the tax for
				such year, or 100 % of the tax shown on the return for the preceding taxable
				year, whichever amount is lesser, divided by the number of installment dates
				prescribed for such year, over the amount, if any, of the installment paid on
				or before the last day prescribed for such payment. If federal adjusted gross
				income is more than $150,000, ($75,000 for married filing separately), then the
				applicable federal percentage of the tax for the preceding year must be
				used.
007.02 The term tax as used
				in Reg-20-007.01 of this regulation shall mean the individual income tax
				imposed under the provisions of the Nebraska Revenue Act of 1967, as amended,
				reduced by the allowable credits: elderly and disabled credit, Community
				Development Assistance Act credit, dependent or child care credit, personal
				exemption credit, credit for tax paid to another state, Nebraska Employment and
				Investment Expansion Act credit, Nebraska Employment and Investment Growth Act
				credit, Employment Expansion and Investment Incentive Act credit, Invest
				Nebraska Act credit, Beginning Farmer Tax credit, Nebraska Advantage Rural
				Development Act credit, Nebraska Advantage Microenterprise Tax credit, Nebraska
				Advantage Research and Development Act credit, and Nebraska Advantage Act
				credit.
007.03 The penalty is
				imposed at the same rate specified for interest in section
				45-104.02
				of the Nebraska Revised Statutes upon the underpayment of any installment from
				the date such installment is required to be paid to the due date of the return
				without regard to any extensions of time, or the date such underpayment is
				paid, whichever is earlier. The penalty is imposed in all circumstances except
				in the case of casualty, disaster, or other unusual circumstances, where
				imposition of a penalty would be inequitable or where the taxpayer retired
				after age 62 or became disabled and the underpayment was due to reasonable
				cause.
007.04 In determining the
				amount of the installment paid on or before the last day prescribed for payment
				thereof, the estimated tax shall be computed without any reduction for the
				amount which the taxpayer estimates as his or her credit under section
				77-2753
				of the Nebraska Revised Statutes, (relating to tax withheld at the source on
				wages). The amount of such credit shall be deemed a payment of estimated tax.
				An equal part of the amount of such credit shall be deemed paid on each
				installment date for the taxable year unless the taxpayer establishes the dates
				on which all amounts were actually withheld.
007.05 For nonresident individuals, in
				determining the amount of the installment paid on or before the last day
				prescribed for payment thereof, the estimated tax shall be computed without any
				reduction for the amount which the taxpayer estimates as his or her credit
				under sections
				77-2717,
				77-2727,
				or
				77-2734.01
				of the Nebraska Revised Statutes, (relating to tax withheld by small business
				corporations, partnerships, or fiduciaries). The amount of such credit shall be
				deemed a payment of estimated tax on the last day of the organization's taxable
				year unless the taxpayer establishes the dates on which all amounts were
				actually withheld.
007.06
				Exceptions. The penalty will not be imposed for any underpayment of any
				installment of estimated tax if:
007.06A The
				tax liability for the preceding taxable year was zero, provided that the
				preceding tax return was, or would have been, had the taxpayer been required to
				file, for a full twelve month period, or
007.06B The total tax for the current year
				less any income tax withholding is less than $300.