Nebraska source income amount

[saigeypooh]

where do I find the nebraska source income amount to be entered

[DMarkM1]

The NE source income is based on your situation.  Typically, income earned while a resident of NE and income earned from a NE source (worked in NE for example) while being a non-resident is NE source income. 

When allocating income to NE as a part-year resident or non-resident you must find the proportion of each income source that belongs to NE.  

For example, if you had a NE employer all year (12 months) but lived in NE for 6 months and moved to KS for 6 months, then the NE proportion would be 6 months/12 months = .5.  So that W2 income would be multiplied by .5 to arrive at the amount that belongs to NE.  

[saigeypooh]

I am still confused.  Would I go off of total wages, tips, etc.. that were made in Nebraska or do I just go off of the state income tax taken out on the W-2?  She lived there for 8 months.  I would times this amount by 0.8?  is that correct?  Why would whatever amount I enter raise how much she owes to Nebraska?  I just need help.  

Thanks,

Jeramy

[JamesG1]

Are you only trying to allocate W-2 income to Nebraska?  Or are there other kinds of income?

Does the W-2 show only Nebraska sourced income in boxes 15 through 17 of the W-2?  Or are there other states?

It sounds like you are reporting income to Nebraska as a part-year resident.  Was any Nebraska state income tax withheld reported in box 17 of the W-2?

If no Nebraska state income tax withheld was reported in box 17 of the W-2, the amount she owes Nebraska will go up no matter what dollar amount is entered into the TurboTax Nebraska state income tax software.

Nebraska Department of Revenue here states:

002.03 Partial-year resident individuals. 

The Nebraska individual income tax is imposed for each taxable year on all of the income of every partial-year resident which is earned while a resident of Nebraska and is not taxed by another state, and the income derived from sources within Nebraska while a nonresident. The tax is a percentage of the tax owed by a resident individual with the same taxable income. The percentage is determined by dividing the taxpayer's Nebraska adjusted gross income as determined in Reg-22-004 by the taxpayer's federal adjusted gross income after the adjustments provided in Reg-22-002.04.

@saigeypooh 

[saigeypooh]

2101 dollars was withheld as tax in the state income box on 15-17.  Do I times this by 0.8 and use this.

[CatinaT1]

You do not need to do any of the calculation or math. TurboTax will help you with this.

You will file a part-year Nebraska resident return. When you enter the W2, you will enter it just as it shows.

When you moved, did you continue to physically work in Nebraska while living in another state or did the employment in Nebraska end?

Nebraska will tax calculate tax on your entire annual income regardless of where it was earned, but then the total tax amount will be divided by the percentage of income that was attributed to Nebraska.

If you are asked for the Nebraska Source income amount, this will be the total wages earned (plus any other income earned) while in Nebraska, which would generally be box 16 on the W2.

[saigeypooh]

employment ended.  I do not know why turbo tax did not automatically fill this in.  It is really driving me crazy because it increases the amount she has to pay back if I use the amount she earned in NE.  She moved and ended employment.  She was only there for 8 months.  Do I use the total amount she earned while in NE or the state tax they took out?

Thanks,

Jeramy

[CatinaT1]

It asks for the Nebraska source income. This is the wages. The amount they took out is withholdings, not income.