Nebraska deduction for Social Security benefits for 2021.

[Bobz999]

For TY 2021 Nebraska has provided a deduction from Federal AGI to reduce tax owed.  For TY 2021 it is supposed to be 5%, with increasing amounts in future years.  The latest version of Turbotax 2021 that I have does not address that deduction. When will Turbotax for Nebraska be upddated to fix this?

[Critter-3]

Check the chart here :   https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_ne_windows_individual.html

[SteamTrain]

The primary NE tax forms are not scheduled to be implemented until 20 Jan (or after).   None of us will know until after taht date as to whether it is being implemented properly.  Go thru teh NE questions again, and check your forms on 21 Jan...

Nebraska Individual Forms Availability (intuit.com)

[SteamTrain]

Message about that on the "What's New" pages from the instructions for the 2021 Nebraska form 1040N.

"For taxable years beginning on or after January 1, 2021, federal adjusted gross income (AGI) is reduced by a percentage of the social security benefits that are received and included in federal AGI. For tax year 2021, the percentage reduction is 5%. Taxpayers can claim either the percentage reduction enacted by LB 64 or the previously existing exemption for low-income recipients, whichever is greater. For tax year 2021, married filing jointly taxpayers with federal AGI of $59,960 or less and taxpayers filing any other return with federal AGI of $44,460 or less may continue to reduce federal AGI by 100% of the social security benefits included in federal AGI. The income thresholds are indexed for inflation each year. "

[Bobz999]

Thanks! I've got the info I need in the TT update on 1/20/22

[ameairs01]

I live in Nebraska and was told about LB 46.  I can't find it using Turbo Tax to take advantage of it.  It looks like you had the same issue.  Where and what do I do to get this benefit using turbo tax.  Thanks.

[DaveF1006]

According to this Nebraska legislative website, "LB46 eliminates a method of service when serving a summons to defendants in eviction proceedings. Currently, the person serving the summons may leave a copy of the summons at the defendant's last-known address and mail a copy by first-class mail. This bill requires serving the summons in one of the other methods more commonly used in civil proceedings, unless the court first grants permission for this alternative method."

This is a legal procedure that has no bearing on your Nebraska state taxes. If you were evicted from your place of residence, there is no tax relief written in LB46 if that is your concern.

@ameairs01

[ameairs01]

Thank you for responding but I'm looking for the bill that passed on May 20 to reduce taxation of social security income in Nebraska over several years with the intention of eliminating it entirely. LB 64 sets the exemption on such income to the extent that it is included in federal adjusted gross income, at 5% in the tax year 2021. The exemption will increase to 20% in 2022 and then rise 10% per year until reaching 50% in the tax year 2025.  The bill states legislative intent to continue the incremental reduction of the tax reaching 100% exemption in the tax year 2030. 

My question is where do I find this in Turbo Tax to make sure I get my AGI correctly calculated. 

Thank you.

[SteamTrain]

Perhaps easier said than done.....

1)  First, every scrap of your Federal income, Deductions & Credits must be filled in, and the entire Federal tax file error checked and correct.

2) then run thru your entire NE Q&A until done in there.

3) Only then, you must print out your (OK...save to PDF) your NE tax return.   (Desktop software users can just use Forms Mode, but "Online" users would use the Print Center, under "Tax Tools" in the left-side menu).

4) Open the PDF and look for the NE Schedule I, line 27.    Line 27 of the NE Sched I can either be 5% of the value of line 6b on the Federal 1040, or may be the entire value of line 6b of your Federal 1040....DEPENDING on what your NE income level is.....as described by the NE instructions for line 27 of the NE Sched I.

_____________________________________________

"Line 27:    Social Security Income.

If line 5 of Form 1040N is $59,960 or less for a married, filing jointly return (MFJ), or $44,460 or less for all other filing statuses, enter the amount of Social Security income included in federal AGI.

If line 5 of Form 1040N exceeds $59,960 for MFJ or $44,460 for all other filing statuses, multiply the amount of Social Security income shown on line 6b, Federal Form 1040 or 1040-SR, page 1, by 5% and enter on line 27.

The amount claimed cannot exceed the amount shown on line 6b, Federal Form 1040 or 1040-SR, page 1. Paper filers must attach a copy of pages 1 and 2 of Federal Form 1040 or 1040-SR to your Nebraska return."

___________________________________________

Only then will you know if TTX did it correctly.  But note that it is 5% of the value of line 6b on the Federal 1040, not 5% of ALL your SS.   (or all of line 6b of the Fed 1040 for lower income people)

[JulieS]

This calculation is done automatically by TurboTax based on your income entries. You can see the adjustment on Line 27 of Nebraska Schedule I. 

[ameairs01]

Thank you

[ameairs01]

Thanks