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Details:
• Form 1040N Line Number Changes.A new 1040N line (Line 34) is being added for a new refundable credit, Angel Investment Tax Credit
• 1040N Line 15 Tax Calculation.Beginning with tax year 2011, all software companies will be required to use the Tax Calculation Schedule (Appendix E) to calculate Nebraska tax. Software companies cannot use the bracket amounts shown on the Nebraska tax table to calculate tax.
• Nebraska Schedule I Line Number Changes.Schedule I lines 56 (Bonus Depreciation Subtraction) and 57 (Enhanced Section 179 Subtraction) are being eliminated
• Form 2441N Usage. Beginning this year, we are no longer allowing the federal 2441 to be e-filed in lieu of our 2441N in e-file. Because of differences on these forms, the Nebraska credit cannot be computed using only the federal form. If there is a federal credit on the federal return that requires a Form 2441, we still expect to see this federal form in our copy of the federal return.
• Nebraska Personal Exemption Credit: The Nebraska Personal Exemption Credit for Residents Only (Form 1040N Line 19) for tax year 2011 will be increased to $120 for each federal exemption reported on Form 1040N Line 4. This was $118 for tax year 2010.
• Nebraska Standard Deduction Changes.
New base values for tax year 2011 are:
o $5,800 for single (File Status 1)
o $11,600 for married filing jointly or qualified widow(er) (File Status 2 and 5)
o $5,800 for married filing separately (File Status 3)
o $8,500 for head of household (File Status 4)
Additional Standard Deduction values for elderly/blind for tax year 2011 are:
o Unmarried Status (Single or HOH) -- $1,450
o Married (Jointly or Separately) - $1,150
• Preparer Mandate Change.Beginning January 1, 2012, any paid preparer that prepares and files more than 10 individual income tax returns annually must file the returns electronically. A $100 penalty per return will apply to tax professionals that do not file returns electronically as required. Information about our preparer mandate is available on our website.
o Preparer Mandate Q&A at http://www.revenue.ne.gov/question/mandate_faq.html
o Mandate Statute at Neb. Rev. Stat. 77-1784.
• Legacy Reject Code and MeF Reject Business Rule Changes for Use Tax
• Other Legacy Reject Code and MeF Reject Business Rule Changes.
• School District Changes.There are no adds, and three deletes:
o 1212032 (Rising City 32)
o 1818070 (Clay Center 70)
o 7212032 (Rising City 32)
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