Nebraska Tax Highlights - 2011
INDIVIDUALS
- Individual Nebraska income tax booklets will not be mailed to those taxpayers who filed their Nebraska income tax return electronically. Also, the Department of Revenue will not pay interest on income tax refunds if the return was filed on paper. Interest will be paid on refunds of returns filed electronically if it was not processed by the Department within 90 days.
- Bonus depreciation subtraction and Section 179 Expense subtraction has sunset and may not be claimed on the 2011 Form 1040N.
- You may be required to pay all your state income taxes exceeding $5,000 electronically, if you made income tax payments exceeding $5,000 in a prior tax year.
** New line item for State Use Tax....A use tax line is being added to Form 1040N.
Every individual incurring a consumer's use tax liability needs to report this amount on 1040N. Previously, Nebraska Form 3 was used to report the use tax. Out of state purchases made through the internet, catalog, or other sources where Nebraska sales tax was not collected need to be included in figuring the use tax liability owed.
BUSINESSES
- Sales and Use Tax due date has changed from the 25th of the month to the 20th of the month.
- Beginning January 1, 2012, all taxpayers making sales and use tax payments of more than $13,000 each year are required to e-file sales tax returns. Form 10 will not be mailed to any taxpayer required to e-file or to any taxpayer who is currently e-filing Form 10.
- You may be required to use EFT for all payments for a tax or fee program if you made a tax or fee payment above $5,000 for that same program in a prior year. All taxpayers making sales and use tax payments of more than $13,000 each year will be required to e-pay. Mandated thresholds for e-pay will be lowered each January and July.
- All payers issuing more than 50 W-2's, W-2G's, 1099-R's, and/or 1099-MISC must e-file these forms with the Department of Revenue.
**Please note: The Due Date for the following forms is now FEBRUARY 1, 2012
- W-2
- W-2G
- W-3N
- 1099-R
- 1099-MISC
Construction Contractors...Effective January 1, 2010 the Department of Labor and Department of Revenue combined databases for construction contractors. Five percent income tax withholding is required on payments made to nonregistered contractors or subcontractors. You may visit the Department of Labor website for a list of registered contractors or subcontractors.