Dreading the inevitable moment when you have to sit down and figure you out much you owe in taxes? Make this tax season easier on yourself by using our Nebraska income tax calculator!
Whether you’ve filed your Nebraska taxes many times, or are new to the state, taxes can get complicated fast. And, even the smallest mistakes can get you in hot water with the state government. From income taxes to property taxes, and everything in between, it’s a lot of numbers to try and crunch on your own. Our calculator simplifies the process so that you can feel more confident when completing your Nebraska tax return.
Forget about the looming threat of tax penalties, we’ll help you make sure you get your estimate right the first time!
Paying your state taxes might seem like a drag but it actually benefits you in the long-run. Did you know the taxes you pay go toward important initiatives like public safety, education, and environmental efforts? By paying your Nebraska state taxes, you’re helping to improve the quality of life in your home state.
So, what do state taxes entail? Income, property, and sales taxes will typically make up the bulk of your tax burden. To learn more about all the major taxes in Nebraska, read through our convenient state tax guide.
While the Nevada tax burden is considered fairly high in comparison to many other states, living and working in the state has its many benefits—from picture-perfect small town living to affordable housing, plenty of job opportunities, and some of the top-rated cities to live in
Keeping that in mind, try to take a different perspective when going into this year’s tax season. And, if you truly shudder at the thought of completing your Nebraska state taxes, the experts at Community Tax can do your taxes for you!
The first thing you need to figure out is your Nebraska income tax rate.
Nebraska income tax brackets range from 2.46% to 6.84%. Nebraska uses a progressive tax rate system, meaning that higher levels of income are taxed at higher rates.
Most taxpayers pay fall into the second and third tax brackets because of the average income made by Nebraskans. The average salary for men is approximately $59,385 and for women it’s $44,416.
Your tax bracket is based on your income and your filing status (which is the same as the status used on your federal taxes).
For taxpayers filing as single or married filing separately, the Nevada tax brackets are as follows:
For taxpayers filing as married filing jointly or head of household, the Nevada tax brackets are as follows:
For those who are self-employed, income taxes are determined differently. The self employment tax rate is 15.3% which combines 12.4% for Social Security and 2.9% for Medicare. That might sound high after looking at the brackets above. However, these taxes are usually withheld from other employees by their employer. Plus, you will be eligible for special self-employment deductions that will help lower your tax liability.
If you still have questions about Nebraska income tax brackets, speak with one of our tax experts today!
Trying to determine if you even need to file your Nebraska income taxes this year? You’ll need to file if:
- You’re a resident and you expect your tax liability to exceed $500
- You’re a partial-year resident or non-resident who earned income from Nebraska sources.
All Nebraska taxpayers will need to complete Form 1040N. However, nonresidents and part-year residents will also need to complete a Nebraska Schedule III.
Note:If you’re a Native American living on an Indian reservation in Nebraska, you are not taxed on income from sources within the boundaries of the reservation. If all of your income is from within an Indian reservation, you are not required to file a Nebraska tax return.
Calculating your Nebraska taxes correctly and paying on time is essential. Don’t let the April 15th deadline sneak up on you, contact us for help today!
Our pros make filing income tax a breeze. Give us a call!
Capital gains are profits you make from the sale of property or investments. This could be stocks, bonds, real estate, etc.
In the state of Nebraska, capital gains are taxed as regular income. So, what exactly does that mean to you? It means that both long-term and short-term capital gains will be taxed at the same rate as the rest of your income.
Not sure if the capital gains tax is applicable to something you’ve recently sold? One of our team members can help you figure it out so you don’t end up getting penalized over a simple mistake.
Like most other states (except for Alaska, Delaware, Montana, New Hampshire, and Oregon), Nebraska charges a sales tax on most goods and services. It’s important to note that some items are exempt from sales tax in Nebraska, including prepared food and related ingredients.
As of 2019, the Nebraska state sales tax rate is 5.5%. However, local jurisdictions are also able to impose additional sales taxes of 0.5%, 1%, 1.5%, 1.75%, or 2%. This can make your local sales taxes as high as 7.5%.
Virtually all counties take advantage of this opportunity to generate revenue for their local programs, most of which fall at the higher end of the sales tax spectrum. To find out your local sales tax, check the current rates.
Some goods and services are subject to excise taxes in addition to sales taxes. An excise tax is an extra tax that is applied to items that are consumed or used at high rates, but are technically non-necessities. For instance, excises taxes are often referred to “sin taxes” because they are applied to tobacco and alcohol. Here are a few excise taxes you’re likely to be affected by as a Nebraska consumer:
The excise taxes on alcohol vary depending on the type. Beer is 31¢ and alcoholic spirits are $3.75 per gallon respectively. As for wine, the excise tax is 6¢, or 95¢ per gallon if the wine is from a non-farm winery.
In the state of Nebraska, there is an excise tax of 64¢ per pack of 20 cigarettes. This is exceptionally low, considering the national average cigarette tax is about $1.81. Not to mention, some states like Connecticut and Rhode Island charge over $4.00 in taxes per pack of cigarettes. However, this tax can still add up for heavy smokers in Nebraska.
Other tobacco products are charged an additional 20% markup.
Regular gasoline is taxed at an additional 30.5¢ per gallon while diesel fuel is taxed at 29.9¢ per gallon. That extra $3.00 or so can add up if you have to fill up your tank frequently.
As the end consumer, you won’t see these taxes on your receipt, but they’ll likely be included in the retail price of whatever you’re purchasing.
Like your federal return, there is no tax penalty for not having health insurance in Nebraska. However, since not having health insurance is high-risk, Nebraska healthcare providers have made efforts to lower rates to make insurance more affordable.
The median property tax Nebraska is 1.76%. Like sales taxes, property tax rates vary depending on where you live. Additionally, the value of your home, which is established by a local assessor, will determine how much your final property tax bill is.
While the median property tax bill for Nebraskans is about $2,164, homeowners in Sarpy County pay much higher. Sarpy County has the highest property tax rate of 2.07%, averaging at about $3,281 in property taxes. In contrast, homeowners in Grant County pay the lowest property taxes in the state with a tax rate of 1.95% and an average property tax bill of approximately $800.
All in all, Nebraska property taxes are on the higher end of the spectrum when compared to other states. In fact, it ranks more closely with expensive east coast states (like New Jersey and New Hampshire), rather than other midwestern states. However, it does beat out Illinois and Wisconsin.
We offer professional help with property taxes.
Nebraska taxpayers are required to pay inheritance taxes on property they receive from a decedent. However, the rate at which you are taxed depends on your relationship with them.
Fortunately, there are fairly generous exemptions that will relieve many individuals of having to pay inheritance taxes.
Credits are one type of tax incentive allowed by the state of Nebraska; any credits you qualify for will be subtracted from your tax bill. When completing your Nebraska tax return, carefully consider if you qualify for these tax credits:
If you’ve served as an angel investor for a Nebraska enterprise, you may be eligible for a tax credit.
If you have a Childhood Development Credential (CDA) and are employed in an early childhood program participating in Step Up to Quality, you may qualify for this tax credit.
Every Nebraska resident is granted the personal exemption credit.
Note: Non-residents and part-year residents do not qualify for this credit.
To qualify, the property must be certified by the Nebraska State Historical Society (NSHS) as historical. You must also have any home improvements approved by the NSHS. If you qualify, the credit is applied at 20% of the eligible expenditures for the improvements.
Not sure if you qualify for these or other tax credits? Our tax experts can help you!
Exemptions and deductions can both reduce your taxable income.
To start, there are a variety of exemptions available to Nebraska taxpayers, including:
- Beginning farmer exemption: Up to $100,000 of taxable agricultural machinery and equipment is exempt for new farmers or livestock producers.
- Homestead Exemption: To qualify, you must be a homeowner and over the age of 65, disabled, a veteran, or their widow(er).
- Mobile homes and motor vehicles: Veterans who were honorably discharged and has a service-connected disability, or their widow(er)s, are eligible for an exemption of either a mobile home or motor vehicle.
Note: The Nebraska standard deduction is different than the federal standard deduction amounts. Your deduction may be higher depending on whether you checked boxes on line 2 of Form 1040. See below for further clarification:
If you’re considering itemizing your deductions, you should be aware of several Nebraska deductions you might qualify for, including:
- Alimony paid: based on a percentage of your income.
- College Savings Program contributions: accounts must be established under the Nebraska Educational Savings Trust.
- Health Savings Account deduction: deduct HSA contributions you’ve made in the last year.
- Military retirement: up to 40% of your military retirement benefits.
- Moving expenses: part-year residents who moved to Nebraska for a job are eligible.
- Student loan interest: a portion of interest paid may be deducted.
Keep in mind that you only want to itemize your deductions if it will amount to more than the standard deduction you qualify for.
Don’t miss out on any reduction on your taxes in Nebraska; our tax professionals can help you save on your tax bill!
Now that you’re aware of all the factors that go into your Nebraska state taxes, you can calculate your tax liability. Your tax liability is how much you’ll owe the state revenue service. In some cases, though, you might actually get money back from the state if you’ve overpaid. But how do you calculate your Nebraska tax refund?
Whether it’s your first time filing your taxes, or your 10th, it can be an overwhelming task to try to calculate how much you owe. Here are our expert tips to simplify figuring out your Nebraska tax liability:
- Organize your documentation to make sure you have all the information you’ll need to fill out your tax form.
- Determine your gross taxable income. It’s easiest to start by eliminating any income sources that aren’t taxable. (Make sure you use the right Nebraska income tax rate.)
- Decide whether you will be using the standard deduction or itemizing your deductions. Then, subtract them from your gross taxable income to determine your adjusted gross income (AGI).
- Figure out which deductions you qualify for so you can subtract them from your income.
- Once you calculate your tax liability, subtract any credits.
- Verify that you’ve used all the correct amounts according to your filing status.
- Double-check all of your calculations. Even the smallest addition or subtraction errors can lead to costly mistakes if you end up underpaying.
We highly recommend that you use our Nebraska income tax calculator, which can help you easily determine whether you owe taxes to the state, and how much.
If you’re struggling to calculate your Nebraska state tax liability, you should reach out to Community Tax for help as soon as possible.The last thing you want to do is neglect your taxes until the last minute.
Note: Once you’ve filed your taxes, you should hold onto them for about seven years for your own records.
So, now you’ve calculated how much you owe, but how do you pay your taxes in Nebraska? Taxes in Nebraska can be paid online or by mail.
Typically, the biggest incentive for e-filing is getting your refund back faster if you’re expecting one. If you pay by mail, you need to send in payment vouchers with a check or money order to:
Depending on your preferences, you can make one payment in-full, or you can make four equal payments throughout the year. If you’re going to make estimated payments, you will need to submit each quarterly payment as follows:
- April 15th
- June 15h
- September 15th
- January 15th (of the following year)
However, if you’re a fiscal year taxpayer, you’ll need to make your estimated tax payments on the 15th of the fourth, sixth, and ninth months of the fiscal year as well as the first month of the following fiscal year.
If you’re struggling financially and do not think you will be able to pay your taxes on time, you should get ahead of the issue before you are subject to serious consequences. You can request a payment plan which will help you remain in good standing with the government and make lower payments that you can more easily afford.
We highly recommend getting help if you are concerned about your ability to make your tax payments or haven’t paid your taxes from last year.
You’re all caught up on the basic state taxes in Nebraska, but there are also some unique tax laws you might find interesting:
But where does the revenue collected from these and all other state taxes go? The taxes collected through Nebraska state taxes are consolidated into the State General Fund. According to the Nebraska Department of Revenue, the State General Fund is allocated to different sectors.
The majority of the money is put back into health and human services, followed by state aid to schools K-12, higher education, and public safety. The remainder of the State General Fund is divided between public finance and other programs and services.
While it might be inconvenient and even downright irritating to pay your Nebraska income taxes, they play an important role in preserving the quality of life for residents of all ages.
If you’re still not clear on the basics of state taxes in Nebraska, we’re here to help with any questions you might have!
Don’t forget, you need to complete your federal tax return too! Luckily, both are due on the same day (April 15th), which should be easy to remember. When you do your federal taxes (which should be done first so you can reference certain information for your state taxes), just make sure you use the correct rates, deductions, and calculations which are usually different from Nebraska’s own.
But don’t worry, you’re not on your own when it comes to your federal taxes, our tax professionals can help you with both!
This information is accurate as of 2019. Special circumstances that can affect your tax return may apply.