Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
dwaine1980
New Member

Nebraska Tax on Retired Veterans Pay

I do not pay state taxes on my Nebraska Military Retirement Pay. However, I did have them take out $90 each month to ensure I do not owe any state taxes when the time comes to file both Federal and State taxes. When I enter my 1099R for the amount earned the program still has me owing money for State. Where my refund should show the $1080 that I had them taken out of each month pay, it shows that I owe money even though I had a large sum for a refund prior to entering the numbers from my 1099R. Any help in rectifying this situation would be much appreciated. Thanks, Dwaine

6 Replies
DMarkM1
Employee Tax Expert

Nebraska Tax on Retired Veterans Pay

Yes, you are correct.  For tax years beginning with 2022 NE allows an exclusion of 100% of military retirement pay from NE taxable income.   The NE forms are not quite ready for filing yet.  The estimated date is 1/26/2023.  The update should allow the new military retirement exclusion.  

 

Click here for the forms availability tool. 

 

Click here for more information on the NE military retirement exclusion. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Mike305
Level 2

Nebraska Tax on Retired Veterans Pay

Thanks, I am in the same situation. I thought I was doing something wrong.

MichaelG81
Employee Tax Expert

Nebraska Tax on Retired Veterans Pay

Make sure under your 1099-R for Military pension withdrawal that you put State information for boxes 14-16 from your 1099-R as long as the amount is there it should be reported as a payment to the state of NE. If this is a military plan make sure you choose Non Qualified Plan for, Was This Distribution From A Qualified Plan? After entering, select continue, for more interview questions next to add another 1099R. Unless you have other income like investments and other W2s, some other income maybe taxable using what was withheld from your military Retirement Pay, which in essence would be lowering your tax liability on other income possibly made. But when I enter it it gives it all back from NE. Is there anything else we need to know about additional income sources, spouse income if applicable, etc.?

@Mike305 

Mike305
Level 2

Nebraska Tax on Retired Veterans Pay

Good afternoon, I just did the update and there was no change to my amount owed. I am not sure what I am doing wrong. Would I need to start over or would the saved form update with the new rules. Thanks Mike

DaveF1006
Employee Tax Expert

Nebraska Tax on Retired Veterans Pay

You are going to record that information yourself in your state tax return. Go to the state taxes section of your return and go to the page that is titled Adjustments Decreasing Federal Income. There is an entry that is titles Military Retirement Pay Exclusion. List the amount of your military pension that you wish to exclude and then answer the follow up questions that remain in that section of your return. Here is what this looks like.

 

Let me know if this works

 

@Mike305

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Mike305
Level 2

Nebraska Tax on Retired Veterans Pay

I appreciate the advice. It worked after doing what you said. Thanks Mike

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.61m
Discussions

Manage cookies
v