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Nebraska Same Sex Marriage

Using TaxWise for Individuals in a Same-Sex Marriage

A same-sex marriage is not recognized under the Nebraska Constitution . Individuals in a valid same-sex marriage for IRS purposes must file their Nebraska individual income tax returns separately using the single or, if qualified, head of household filing status. Only one individual per household may use the head of household filing status.

 

1.    Deal with all married taxpayers in the same manner.  For example, you do NOT ask any couples for their marriage certificate, but may ask when they were married to determine Filing Status and Exemption Dependency for a specific tax year. 

2.    Federal: remember that for federal purposes, married couples can potentially file for MFJ, MFS, or Head of household filing status.

3.   Make sure same-sex couples understand the following options before starting their tax return:

Option 1

·         Have AARP TaxAide create and efile Federal return in TaxWise

·         Print: TaxWise Form “Married Filing Jointly - Married Filing Separate Comparison” as the “pro forma federal return” for each individual. See TaxWise form tree near the bottom.

·         Taxpayers use:

·   NebFile to efile Nebraska Individual Tax return online (http://www.revenue.nebraska.gov/electron/nebfile.html)

·   or Use some other commercial tax preparation software

·   or take to a Nebraska walk-in site to efile (http://www.revenue.nebraska.gov/contact.html)

·   or file “paper” returns (expect 3 months for processing)  (http://www.revenue.nebraska.gov/tax/current/ind_inc_tax.html)

 

Option 2

·         Take their filing to a professional tax preparer

 

4.   Nebraska: For individuals in a same-sex marriage who are considered married for federal tax purposes, each individual must:

·         Complete a pro forma federal return (a “mocked up” return that is not actually filed with the IRS) using the single, or if qualified, head of household filing status;   =>  TaxWise Form “Married Filing Jointly - Married Filing Separate Comparison” can be printed and used as the “pro forma federal return”.

·         Use the numbers from the pro forma federal return to file a separate Nebraska income tax return on Form 1040N using the single, or if qualified, head of household filing status; and

·         Use the tax rates, credits, deductions, and adjustments corresponding to the single or head of household filing status, whichever applies.

 

 

NebFile offers FREE e-filing of your state return.

 


 

FREE Nebraska Individual Income Tax E-filing

The NebFile system allows Nebraska resident taxpayers to file their state income tax return  FREE over the Internet. Eligibility requirements and capabilities are listed below and on the NebFile system help screens. NebFile is not tax preparation software, but it will do simple calculations and table look-ups for you. The NebFile system allows you to file a Form 1040N and Schedule I, with some limitations.

NebFile FAQs

 


 

Frequently Asked Questions for Individuals
in a Same-Sex Marriage

See also Revenue Ruling 22-13-1 (2013)


Can a validly married same-sex couple who files a married, filing jointly federal return, also file jointly in Nebraska?

No. A same-sex marriage is not recognized under the Nebraska Constitution . Individuals in a valid same-sex marriage for IRS purposes must file their Nebraska individual income tax returns separately using the single or, if qualified, head of household filing status. Only one individual per household may use the head of household filing status.

For federal purposes, an individual in a same-sex marriage can add his or her same-sex spouse to employer-provided health insurance plans without having to impute taxable income (include the value of the employer-provided health insurance plan in taxable income). Does this apply for Nebraska?

No. Because Nebraska does not recognize a same-sex marriage, employers may not exclude the value of an employer-provided health insurance plan for a same-sex spouse from an employee’s income.

If a same-sex spouse is added to an employer-provided health insurance plan, the employer is required to report imputed income for Nebraska on the employee’s Wage and Tax Statement, Form W-2. How is the amount of imputed income determined?

The amount of imputed income is equal to the fair market value of the employer-provided health insurance benefit as determined by the employer and the insurance provider. This is the amount of Nebraska taxable income that the employer must include in box 16, State wages, tips, etc. and box 18, Local wages, tips, etc.  on the Form W-2, and is included in the amount subject to Nebraska income tax withholding.

When filing their Nebraska income tax returns, is a same-sex married couple limited to 10% of the Earned Income Credit (EIC) claimed on their married, filing jointly federal return?

No. Each individual in a same-sex marriage must complete a pro forma federal return using the single, or if qualified, head of household filing status. The Nebraska EIC for each individual is 10% of the EIC computed on the federal pro forma return, even if this amount is more or less than 10% of the amount of EIC computed on the federal married, filing jointly return.

When filing their Nebraska income tax returns, is a same-sex married couple limited to a percentage of the child/dependent care credit claimed on their married, filing jointly federal return?

No. Each individual in a same-sex marriage must complete a pro forma federal return using the single, or if qualified, head of household filing status. The Nebraska child/dependent care credit for each individual is a percentage of the child/dependent care credit computed on the federal pro forma return.  A copy of the pro forma Child and Dependent Care Expenses, Federal Form 2441, completed with the pro forma federal return must be filed with the Nebraska income tax return to document the child/dependent care credit claimed.

Is a copy of the pro forma federal return required to be filed with the Nebraska Form 1040N?

Generally, no. However, in some instances, a copy of the federal return is required. For example, taxpayers claiming the Nebraska EIC, or who enter federal tax liability on line  27 of the 2013 Form 1040N, must file a copy of the pro forma federal return with the Nebraska income tax return. Instances where a copy of the federal return is required are noted in the Form 1040N instructions. Keep a copy of the pro forma federal return and all related documentation for your records.

 

2013 Nebraska Individual Income Tax Booklet

Page 2:

 

Defense of Marriage Act. While IRS Rev. Rul. 2013-17 requires individuals in a valid same-sex marriage to file their federal tax returns using a married, filing jointly or married, filing separately filing status, a same sex marriage is not recognized under Nebraska Constitution article I, section 29. For individuals in a same-sex marriage who are considered married for federal tax purposes, each individual must:

·         Complete a pro forma federal return (a “mocked up” return that is not actually filed with the IRS) using the single, or if qualified, head of household filing status;

·         Use the numbers from the pro forma federal return to file a separate Nebraska income tax return on Form 1040N using the single, or if qualified, head of household filing status; and

·         Use the tax rates, credits, deductions, and adjustments corresponding to the single or head of household filing status, whichever applies.

 

 

 

 

 NebFile offers FREE e-filing of your state return.

 

 

ĉ
Wayne Culp,
Jan 31, 2014, 4:03 PM
Ċ
Wayne Culp,
Jan 31, 2014, 4:03 PM
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