NE source income

[mikaylamarie]

How do I know what to put in this column? I worked in Nebraska for 6 months but my residence was in North Dakota. I did not live in NE I stayed in hotels only when I worked and went back to ND when I wasn't working

[AmyC]

NE source income is taxable to NE. See page 23 for the most common items which include:

• Wages, salaries, tips, and commissions;
• Severance pay associated with Nebraska employment;
• Dividends, interest, and other passive income;
• Business income;
• Farming and ranching income;
• Partnership, S corporation, LLC, estate, or trust income
• Gain or loss;
• Rent and royalty income;
• Lottery prizes;
• Net operating loss carryforward; and
• Financial institution tax credit claimed. 

Your resident state will give you a credit for the double taxed income. Prepare NE nonresident first to create the liability and then prepare your ND resident return. You get credit for the lower state tax on the lowest taxable amount.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit.