Nebraska Revised Statute 77-2716 Revised Statutes Chapter 77 77-2716

Chapter 77

77-2716.

Income tax; adjustments.

(20) For taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended, an individual may reduce his or her federal adjusted gross income by the amounts received as annuities under the Civil Service Retirement System which were earned for being employed by the federal government, to the extent such amounts are included in federal adjusted gross income.

Following the instructions in the Nebraska DOR booklet we are to use the figure on line 5b from the Federal form 1040 SR and plug it into line 36 of the Nebraska 1040N. When I do that it pretty much eliminates the entire Nebraska tax and wants to issue me a massive tax refund. I don't believe their intent is to give 100% tax exemption to retired federal workers who retired under CSRS.

Anybody else have the same thinking?

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