Most kinds of earned income are taxed by the state of Nebraska, including wages and salaries from employment and net self-employment earnings. You may also have to pay tax on some forms of unearned income, such as bank interest or retirement distributions. Check the complete guidelines regarding taxable income to make certain that you report all of the income you have that is subject to state taxes.http://www.revenue.ne.gov/tax/current/f_1040n_booklet.pdf The Nebraska filing deadline has been extended to April 18, 2011.http://www.revenue.ne.gov/news_rel/jan_11/Opens_Filing_Season.html

Before you begin working on your return, you should check the filing requirements to see if you are legally obligated to submit a return at all. These requirements usually depend on your earned income and your filing status. Details on the state's filing requirements can be found in the tax form instructions.http://www.revenue.ne.gov/tax/current/f_1040n_booklet.pdf

To get started on your Nebraska tax return, you will need to gather all of the information you'll need to complete your forms. This will include the following:

1. Your Social Security number
2. Your complete mailing address
3. The full name and Social Security number of your spouse, if you are filing a joint tax return
4. Your total earned income that is subject to Nebraska state tax - Among other things, this includes wages and salaries as reported on Form W-2 or Form 1099. If you are self-employed, you will need to add up your gross earnings and subtract any qualified business expenses that can be deducted on Schedule C.
5. Your total unearned income that is subject to Nebraska state tax, such as unemployment compensation, life insurance payments, or rental property income.
6. The total of your state income taxes paid during the year - This will appear on your Form W-2 as state taxes withheld. If you are self-employed, this will be the total of any estimated state tax payments you sent in.
7. A copy of your federal income tax return, if you are filing onehttp://www.revenue.ne.gov/tax/current/f_1040n_booklet.pdf 
   

If you will be completing a federal tax return, be sure to do that before you begin your Nebraska forms, you will need some of the federal information for your state return. If you will not be filing a federal Form 1040, you may want to consult a tax professional who can help you to calculate your federal adjusted gross income to use as a starting point for your Nebraska return.http://www.irs.gov/pub/irs-pdf/f1040.pdf 

Your next step is to obtain the right tax forms to complete. In Nebraska, you have the choice of two forms to complete, depending on your income sources and residency status. If you filed a federal Form 1040EZ, you will qualify to complete the Nebraska Form 1040NS, the short tax return form. The directions below will be for completing Form 1040N "Nebraska Individual Income Tax Return."http://www.revenue.ne.gov/tax/current/f_1040n.pdf

If you have Internet access, you can download both of these tax forms and the accompanying instructions from the Nebraska Department of Revenue website. If you do not have access to the Internet, you can also obtain a paper copy of these forms and instructions from your local library.http://www.revenue.ne.gov/tax/current/f_1040n.pdf 

The state of Nebraska strongly encourages electronic filing, or e-filing if possible. If you are a Nebraska resident, this can be done via the NebFile website for no charge. If you will be using tax preparation software, you will generally be given the option to include your state return for an additional fee. Preparing your return electronically is the most convenient way to submit your forms, since it speeds up processing. If you are receiving a refund, you will also receive your money 4 to 6 weeks quicker if you use e-file.http://www.revenue.ne.gov/electron/e-file.html 

Once you get the appropriate tax form, begin by entering your full name and Social Security number as well as your spouse's, if applicable. Complete the address section and then select the proper filing status and number of exemptions. These must be the same as what you claimed on your federal return.http://www.revenue.ne.gov/tax/current/f_1040n.pdf

Now is a good time to stop and read the tax form instructions. The instructions explain any income adjustments you may need to make in order to report all the income that Nebraska considers taxable. They also describe various state tax credits that you may qualify to claim. If you get stuck at any point in the form, you should stop and consult the instructions before proceeding.http://www.revenue.ne.gov/tax/current/f_1040n_booklet.pdf 

Take out your federal Form 1040 and transfer the amount of your federal adjusted gross income to line 5 of your Nebraska return. Then subtract your state's standard deduction for your filing status, your federal itemized deductions from IRS Schedule A, any state or local taxes paid, and your Nebraska itemized deductions.http://www.revenue.ne.gov/tax/current/f_1040n.pdf 

From here, you will begin making income adjustments. This means that you will add in income that is taxable in Nebraska and subtract income that is not. Once you get to line 14, you will have arrived at the total taxable income that is subject to taxation in Nebraska. Now, consult the tax tables located in the form instructions to assess the exact amount of your tax liability for the year. Enter this as your tax on line 15.http://www.revenue.ne.gov/tax/current/f_1040n.pdf 

After making adjustments for alternative minimum tax, if required, you will have calculated your total tax for the year. Then, you will subtract all of your eligible state tax credits and the state income taxes you have already paid this year through withholding or estimated tax payments. If your final result is a positive number, then you will have a balance due. If your final result is a negative amount, you have overpaid and you will be issued the result as a refund.http://www.revenue.ne.gov/tax/current/f_1040n.pdf 

If you are receiving a refund and you would like it direct deposited to your bank account, you will need to enter your bank routing number and account number. Then sign and date the return and have your spouse do the same. Make a copy of the form for your records and submit it to the address listed on the form before April 18, 2011. If you have a balance due, include a check or money order for the tax balance to avoid late penalties and interest.http://www.revenue.ne.gov/tax/current/f_1040n.pdf

To get additional time to complete your Nebraska return, read the Mahalo page how to get a state tax extension in Nebraska.