Nebraska tax calculation in TT Premier 2024 is not correct with respect to treatment of social security income.

[Bobz999]

Nebraska tax calculation in TT Premier 2024 is not correct with respect to treatment of social security income. For 2024 NE allows 100% of Soc Sec that is included in federal taxable income, to be used to reduce NE taxable income.The Schedule 1 in the Nebraska forms is using some other percentage (40%). The note regarding data source for that item on schedule I cites 40%, however, that was changed during 2024 to 100% allowable to reduce taxable income. TurboTax (Intuit)

needs to fix this.

[BillM223]

Please look at your 1040, line 6b for the amount of taxable SS income. Then look at Nebraska Schedule I, line 28 - are the numbers here the same? They should be, according to the state instructions.

That is, Nebraska provides for an exclusion of the taxable Social Security income on the federal return (line 6b on the 1040), not the total amount received (line 6a).

The box for Data Source for line 28 on Nebraska Schedule 1 does make reference to 40% (it shouldn't), but it appears to me that the number on line 28 is the same as the number on line 6b on the 1040.

Please confirm your numbers to see what the relationship is between line 6b on the 1040 and line 28 on Nebraska Schedule I.

Also, are you using TurboTax Online or the CD/download product?

[Bobz999]

I checked both lines as you suggested. They are not identical. The Nebraska Schedule 1 line 28 is showing a number that is 60% of the Fed 1040 line 6b. That is the reason I posted my inquiry. At one time the NE deduction would have been 60% of the federal liability, however, that was changed last year and as you pointed out, it should reflect 100% of the federal liability. My Turbotax calculation is not correct. I have the download version and it just updated today (1/23) but it did not appear that there were any Nebraska changes in the update.

[SteamTrain · Accepted solution]

@Bobz999 

According to the NE forms availability, neither the e-file forms, nor the printed NE forms will be available until on/after 30 January.  Try an update after that date and see what the tax amount is.

I know that for my NC forms, when they made such a change, the proper values were not updated in the state software until the final forms update date........and used the prior year's limits until that update happened.

SO, another week waiting for you.

[Bobz999]

Thank you Steam Train! I suspected that was the case but could not find the info on when NE update would be finalized. I'll check back here after 1 Feb.