 Enlarge image | 2022 Nebraska S Corporation Income Tax Booklet Included in this Booklet are: Form 1120-SN; Schedules A, I, II, III, K-1N; Form 7004N; and Use Tax information. Electronic filing and payment options are available. Questions? revenue.nebraska.gov Sign up for a FREE subscription service at the Nebraska Department of Revenue’s website to get email updates on your topics of interest. 800-742-7474 (NE or IA) or 402-471-5729 8-301-2022 |
 Enlarge image | 2022 Nebraska S Corporation Income Tax Return Instructions What’s New Credit for Nebraska School District and Community College Property Taxes ( LB 873 – Operative July 21, 2022 .) The Nebraska Property Tax Incentive Act provides refundable credits to any taxpayer who paid school district and community college property taxes. To claim the credits a taxpayer must complete and submit a Nebraska Property Tax Credit, Form PTC. Nebraska Higher Blend Tax Credit Act (LB 1261 – Operative July 21, 2022). This Act allows a refundable credit to retail dealers who stored, dispensed, and sold ethanol blends of gasoline of E-15 or higher at Nebraska retail motor fuel sites during the prior calendar year. For calendar year 2022, the total credits are limited to $2 million dollars. To receive credits, an application must be submitted to the DOR each year. Applications will be considered by the DOR in the order received. New applications will not be accepted after December 31, 2026. Important Information for All Filers Purpose. The instructions in this booklet provide guidance in completing the most common Nebraska S corporation return of income forms and schedules. This booklet is intended to be useful to the greatest number of taxpayers. Nothing in these instructions supersedes, alters, or otherwise changes any provisions of the Nebraska tax code, regulations, rulings, or court decisions. We encourage the preparer of any Nebraska S Corporation Income Tax Return, Form 1120-SN, to review applicable Nebraska law regarding any issue that may have a material effect on this return. Nebraska law and other useful information may be found at revenue.nebraska.gov. Enter All Amounts as Whole Dollars. Do not include cents on the return or schedules. Do not change the pre-printed zeros in the cents column of the Form 1120-SN or schedules. Round any amount from 50 cents to 99 cents to the next higher dollar. Round any amount less than 50 cents to the next lower dollar. Penalties and Interest. Either or both may be imposed under the following conditions: u Failing to file a return and pay the tax due on or before the due date; u Failing to pay the tax due on or before the due date; u Failing to file an amended Nebraska income tax return to report changes made to your federal return; u Preparing or filing a fraudulent income tax return; or u Understating income on an income tax return. Filing a false or fraudulent Nebraska return is subject to penalty, even if the amounts reported are taken from your federal return. Unpaid tax is subject to interest at the statutory rate of 5% from the original due date to the date the tax is paid. See Revenue Ruling 99-22-1 for applicable interest rates. Reporting Changes or Corrections. If information on a Nebraska S corporation return previously filed is incorrect, a Form 1120-SN with the “Amended Return” box checked must be filed. An amended Form 1120-SN cannot be e-filed. When filing an amended return, remember: u Changes made by the IRS or another state must be reported to the DOR within 60 days; u Form 1120-SN is year-specific. Please be sure to use the correct form for the tax year you are amending; u You must attach a copy of the related federal or other state amended return and all related schedules or other documentation to explain the changes shown on the amended Nebraska return; and u Show only the corrected figures on the amended return. 2 revenue.nebraska.gov |
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When an amended return reflects a reduction in tax due because Nebraska source income for its
nonresident individual shareholders is reduced, the S corporation will not receive a refund. Individual
shareholders may file a claim for refund resulting from the reduced Nebraska source income.
Nebraska Extension of Time. An extension to file may only be obtained by:
u Attaching a copy of a timely-filed Application for Automatic Extension of Time to File
Certain Business Income Tax, Information, and Other Returns, Federal Form 7004, to the
Nebraska return when filed;
u Attaching a schedule to the Nebraska return listing the federal confirmation number and
providing an explanation that the electronic request for automatic federal extension was not
denied; or
u Filing a Nebraska Application for Extension of Time to File Corporation, Fiduciary, or
Partnership Return, Form 7004N, on or before the due date of the return, when you need
to make a tentative Nebraska payment or when a federal extension is not being requested.
When a federal extension of time has been granted, and additional time is necessary to file
the Nebraska return, the Nebraska Form 7004N must be filed on or before the date the federal
extension expires. Remember to attach proof of the federal extension to the Form 7004N.
Failure to attach the applicable extension document may result in a late filing penalty. An extension
of time only extends the date to file the return. It does not extend the due date to pay the tax.
Any tax not paid by the original due date is subject to interest. By timely requesting an extension
of time to file your federal return using the Federal Form 7004, you are granted an automatic
Nebraska extension for the same number of months granted by the IRS. When a federal extension
of time has been granted and additional time is necessary to file the Nebraska return, the Nebraska
Form 7004N must be filed on or before the date the federal extension expires. An extension of
time cannot exceed a total of seven months after the original due date of the return.
Accounting Methods. The accounting method used for federal income tax purposes must be used
for Nebraska income tax purposes. A taxpayer may not change the accounting method used to
report income in prior years unless the change is approved by the IRS. A copy of this approval
must accompany the first return that shows the change in the method of accounting.
Federal Return. A copy of the federal return and supporting schedules, as filed with the IRS,
must be attached to this return.
Estimated Income Tax Payments. An S corporation may make voluntary estimated income tax
payments. For additional information see the 2023 Nebraska Corporation Estimated Income Tax
Payment Voucher Booklet.
Nonresident S corporations must remit Nebraska income tax withholding for each nonresident individual
Shareholders shareholder who does not complete a Nebraska Nonresident Income Tax Agreement, Form 12N.
For the purposes of Form 12N and the income tax withholding requirements, an individual includes
a nonresident grantor of a grantor trust.
Nonresident shareholders who sign the Form 12N agree to file a Nebraska income tax return and
pay all taxes due directly to the DOR. This relieves the S corporation from the obligation to remit
income tax withholding on the shareholder’s behalf. All signed and completed Forms 12N must
be attached to the Form 1120-SN.
If a Form 12N is not signed and completed for a nonresident individual shareholder, the amount
to be paid is 6.84% of the nonresident shareholder’s share of S corporation taxable income from
Nebraska sources.
The S corporation reports the amount of income tax remitted on behalf of each nonresident
shareholder on the Nebraska Shareholder’s Share of Nebraska Income, Deductions, Modifications,
and Credits – Schedule K-1N. Attach each Nebraska Schedule K-1N to the S corporation return. Do
not remit income tax for corporations, estates, or trusts (except grantor trusts) that are shareholders.
Nebraska law does not require payment of income tax by an S corporation on behalf of these
entities. Instead, these entities are required to file a Nebraska return.
A nonresident individual shareholder may claim the amount of income tax remitted by the
S corporation as a credit against his or her Nebraska income tax liability by attaching a copy of
the Nebraska Schedule K-1N to the Nebraska Individual Income Tax Return, Form 1040N.
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 Enlarge image | Nonresident individual shareholders do not have to file a Nebraska individual income tax return if: u Their only connection with the state is conducting business activities of the S corporation; and u The S corporation has remitted income tax from all the Nebraska income attributable to the nonresident’s share of the S corporation’s income. In lieu of filing a Nebraska Individual Income Tax Return, a nonresident shareholder may elect to allow the full amount of income tax withholding to be retained by the state. Any nonresident may still file a Form 1040N, and claim a refund if one is due. A nonresident shareholder is not relieved of its responsibility to file a Form 1040N if the S corporation has not remitted income tax withholding attributable to the nonresident’s share of the S corporation’s income. No Composite Filing. The DORdoes not allow filing “composite” income tax returns. S corporations with nonresident shareholders must either: u Obtain a signed and completed Form 12N from the nonresident individual shareholder; or u Remit Nebraska income tax withholding on the nonresident shareholder’s share of Nebraska income with Form 1120-SN. Nonresident Shareholder – No Income Tax Withholding Requirement. The S corporation is not required to remit income tax for any nonresident individual shareholder who completes and submits a Form 12N to the S corporation, before the original filing of the Form 1120-SN. For purposes of the Form 12N, an individual includes a nonresident grantor of a grantor trust. A completed Form 12N must: u Include all the requested information; and u Be signed and dated by the shareholder or the shareholder’s authorized representative (attach a copy of Power of Attorney, Form 33). Any nonresident shareholder who files Form 12N must file a Form 1040N. Failing to file the required Form 1040N may result in: u An assessment issued to the nonresident individual shareholder based on the information available to the DOR; or u The loss, by the nonresident individual shareholder, of any current year Nebraska net operating or capital loss distributed from the S corporation. A Nebraska net operating or capital loss carryforward will not be allowed to offset Nebraska income until the Nebraska return for the loss year has been filed. Shareholder’s Return. Both resident and nonresident shareholders are subject to the Nebraska income tax on their share of the S corporation income derived from sources within Nebraska. Reporting Nebraska Source Income to Shareholders. An S corporation must provide all shareholders with a Nebraska Schedule K-1N. See the Nebraska Schedule K-1N instructions for additional information. The income, loss, and deduction amounts reported on the Nebraska Schedule K-1N must be calculated in the same manner as income is distributed. When S corporations issue a Nebraska Schedule K-1N to shareholders, they must complete all distribution schedules such as Nebraska Employment and Investment Growth Act Credit Computation, Form 775N Nebraska,Advantage Act Incentive Computation, Form 312N, and ImagiNE Nebraska Act Incentive Computation, Form 1107N, in addition to reporting the distributed credits to the shareholders in Part C of the Schedule K-1N. Income Tax Withholding on Contractors. Construction contractors are required to withhold income tax at 5% on any payment or payments exceeding $600 made to their construction subcontractors that are not registered on the Nebraska Department of Labor's Contractor Registration Database. An S corporation, against whom the contractor income tax withholding was applied, must distribute the amount withheld to its shareholders. The total amount of income tax withheld from the S corporation must be distributed in the same manner as income. No credit will be allowed on the Form 1120-SN for contractor income tax withholding. For additional information see “Construction Contractors” section. 4 revenue.nebraska.gov |
 Enlarge image | Credits Community Development Assistance Act (CDAA) Credit. The Nebraska CDAA credit is Distributable to allowable for contributions to approved projects of community betterment organizations recognized Shareholders by the Nebraska Department of Economic Development (DED). Attach the 2022 Nebraska Community Development Assistance Act Credit Computation, Form CDN to the Form 1120- SN. Each shareholder is allowed a share of the credit calculated by using the same method used to report income received from the S corporation. S corporations do not need to attach a copy of the Form 1099NTC. The DOR will receive the Form 1099NTC information directly from DED. More detailed information on this credit can be obtained by contacting: Nebraska Department of Economic Development 245 Fallbrook Blvd, Suite 002 PO Box 94666 Lincoln, NE 68521-4666 opportunity.nebraska.gov Darin Lubke 402-471-3116 darin.lubke@nebraska.gov Beginning Farmer Credit. This credit is available to owners of agricultural assets, when the agricultural assets are rented to qualifying beginning farmers or livestock producers. Each shareholder eligible for the credit will receive a copy of the Statement of Nebraska Tax Credit, Form 1099 BFC, from the Nebraska Department of Agriculture. Each shareholder is allowed a share of the credit calculated by using the same method used to report income received from the S corporation. The Form 1099 BFC does not need to be filed with the shareholder’s individual income tax return. S corporations do not need to attach a copy of the Form 1099 BFC. The DOR will receive the Form 1099 BFC information directly from the Nebraska Department of Agriculture. For more details regarding this credit, contact: Nebraska Department of Agriculture PO Box 94947 Lincoln, NE 68509-4947 402-471-4876 nextgen.nebraska.gov Form 3800N Credits. Nebraska provides several tax incentive credits that may be earned by entities conducting business in this state. S corporations must file tax incentive credit distribution forms including Forms 775N, 312N, Form 1107N, Form 544N, and 3800N Worksheet HBTC before credits can be allowed to individual shareholders. Attach a distribution schedule for Form 775N, Schedule II Form 312N, Schedule,II, Form 1107N, Form 544N, or 3800N Worksheet HBTC (that lists each shareholder, the shareholder’s tax ID number, the income percentage, and each shareholder’s distributed credits). The total amount distributed by the S corporation must be distributed in the same proportion as ordinary income. Use Tax An S corporation may be subject to use tax. An S corporation owes use tax when the proper sales tax has not been paid on purchases delivered into Nebraska. This often occurs when purchases are made from out-of-state, mail order, or Internet sellers. Use tax is also due when items purchased for resale are withdrawn from inventory for business or personal use. Example 1. The S corporation purchased a computer from a seller in South Dakota over the Internet for $1,570 plus $30 shipping and handling charges. Both charges are taxable. The computer is shipped to the S corporation in Scottsbluff, Nebraska and no tax is charged or collected by the seller. The state tax is $88 ($1,600 X 5.5%) and the local tax is $24 ($1,600 X 1.5%). The total use tax owed is $112 ($88 + $24 = $112). revenue.nebraska.gov 5 |
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Example 2.
A repair shop in Scottsbluff, Nebraska provides motor vehicle repair service. The repair shop
also owns a tow truck used for towing customer motor vehicles needing repair. The shop
purchases oil and oil filters, tax exempt, for resale using the Nebraska Resale or Exempt Sale
Certificate, Form 13. When oil and oil filters are removed from sales tax-exempt inventory
and used to change the oil in the business-owned tow truck, state and local use tax is due
on the cost of the oil and oil filters.
For additional information, see the Nebraska Use Tax Information Guide.
Purpose of Form The Nebraska S Corporation Income Tax Return, Form 1120-SN, is not simply an informational return.
The Form 1120-SN and schedules are necessary to:
u Calculate the income, deductions, and credits that will be passed through to the shareholders;
u Calculate and pay income tax on behalf of nonresident individual shareholders; and
u Report and pay any recapture of incentive credits. This includes the economic
development distribution schedules such as Forms 775N, 312N, 1107N, and 544N.
Who Must File?
The Nebraska S Corporation Income Tax Return, Form 1120-SN, must be filed by every
S corporation, as defined by Internal Revenue Code (IRC) § 1361, with income from Nebraska
sources. Form 1120-SN must also be filed by every S corporation that will distribute Nebraska
incentive credits to its shareholders.
Financial institutions maintaining a permanent place of business in this state, actively soliciting
deposits from residents of this state and organized as a S corporation must file a Nebraska Financial
Institution Tax Return, Form 1120NF and a Nebraska S Corporation Income Tax Return, Form
1120-SN.
Qualified Subchapter S Subsidiaries. Any subsidiary of an S corporation that is treated as a
Qualified Subchapter S Subsidiary (QSSS) for federal income tax purposes will be treated in the
same manner for Nebraska income tax purposes. All of the assets, liabilities, and items of income,
deductions, and credits of the QSSS will be considered to be those of its parent.
When and Where to File?
This return must be filed on or before the 15th day of the third month following the close of the
taxable year. For information on e-filing the return, see the Nebraska Handbook for e-file Providers
of Income Tax Returns, Publication 1345N-MeF.
Electronically file or mail the Form 1120-SN to:
Nebraska Department of Revenue
PO Box 94818
Lincoln, NE 68509-4818
How to Complete Form 1120-SN
Tax Period. A 2022 Form 1120-SN must be used to file for the calendar year 2022, or a fiscal year
beginning in 2022. Space is provided at the top of the return to enter the beginning and ending
dates for short-period or fiscal-year filers. The taxable year for Nebraska must be the same as the
taxable year used for the federal income tax return.
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If the S corporation changes its federal taxable year, it must also change its Nebraska taxable
year. A copy of the approval from the IRS to change accounting periods must accompany the
first return that shows the change.
Business Classification Code. Enter the six-digit code that best describes the S corporation’s
principal business activity in Nebraska. Carefully review the business classification codes before
you select one.
Principal Business Activity in Nebraska. Enter the principal business activity of the S corporation
from the Business Classification Code listing.
Federal ID Number. Enter the Federal ID number assigned to the S corporation by the IRS.
Nebraska ID Number. Enter the Nebraska ID number assigned to the S corporation by the DOR.
S corporations that do not have a Nebraska state ID for S corporation income tax should e-file
using their Nebraska income tax withholding or sales and use tax number. The prefix is the tax
category and should not be included as part of the Nebraska ID number when entered. For example,
do not include the 21 or 01 prefix as part of the Nebraska ID number. S corporations that do not
have an existing Nebraska state ID number should use the online Register a Business application
to obtain a Nebraska ID number.
Final Return. Check the “Final Return” box at the top of the return if the S corporation ceased
to exist during the 2022 tax year.
Distributed Form 3800N Credit. Check the “Distributed Form 3800N Credit” box if the
S corporation is distributing Form 3800N tax credits in this tax year. Include a distribution schedule
in addition to recording the amount of the distributed credit on the Schedule K-1N.
Line 1 Ordinary Business Income. Enter the ordinary business income or loss as shown on line 21 of
Federal Form 1120S.
Line 2 Nebraska Adjustments Increasing Ordinary Business Income. Enter the amount from line 11
of Nebraska Schedule A. See the Schedule A instructions for additional information.
Line 3 Nebraska Adjustments Decreasing Ordinary Business Income. Enter the amount from line 22
of Nebraska Schedule A. The following examples are items that are not allowable adjustments
decreasing federal ordinary business income:
u The wage expense disallowed by the work opportunity tax credit;
u Federal income taxes or other federal taxes paid;
u The depreciation disallowed by the investment credit or other federally-required basis reduction;
u Income earned in another state. Instead, Nebraska Schedule I, Apportionment for Multistate
Business, must be completed; and
u Income from a partnership. For additional information, see Business Entity Regulation
24-315, Sales Factor; Business Entities As Owners in a Partnership or Joint Venture.
See the Nebraska Schedule A instructions for additional information.
Line 4 Nebraska Adjusted Income. If the S corporation does not have adjustments to ordinary business
income, enter the line 1 amount on line 4. If the S corporation has adjustments to ordinary business
income, line 4 equals line 1 plus line 2 minus line 3.
Line 5 Income Reported to Nebraska. If all of the income earned by the S corporation is derived from
Nebraska sources, enter the line 4 amount on line 5. If the S corporation earned income from
both within and without Nebraska, enter the amount from line 3 of Nebraska Schedule I. See the
Nebraska Schedule I instructions for additional information.
Line 6 Income Reported to Nebraska Subject to Withholding. Enter the amount from the column (F),
Nebraska Schedule II total.
Line 7 Nebraska Income Tax Withholding for Nonresident Individual Shareholders. Enter the
amount from the column (G), Nebraska Schedule II total.
Line 8 Form 3800N Credit and Recapture. Enter the net amount of any refundable credits and any
recapture of credits reported on the Nebraska Incentives Credit Computation, Form 3800N. If the
credits are larger than the recapture, enter as a negative number.
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 Enlarge image | Line 9 Tax Deposited with Form 7004N and 2022 Estimated Income Tax Payments. Add the total amount paid as estimated payments and any amount paid with the Nebraska extension request, Form 7004N. Enter the total on line 9. Line 10 Credit for School District Property Taxes. This refundable tax credit is allowed to S corporations that paid Nebraska school district property taxes for tax years beginning or deemed to begin on or after January 1, 2020. To claim the credit, taxpayers must complete and submit a Nebraska Property Tax Act Credit, Form PTC. Enter the amount from line 1 of Form PTC and attach Form PTC. S corporations that claimed the amount from line 1 of Form PTC on line 18 of Form 1120NF, enter zero. Financial institutions that elected to be treated as S corporations may claim the credit on either Form 1120-SN or Form 1120NF, but not both. Line 11 Credit for Community College Property Taxes. This refundable credit is allowed to S corporations that paid Nebraska community college property taxes for tax years beginning or deemed to begin on or after January 1, 2022. To claim the credit, taxpayers must complete and submit a Nebraska Property Tax Credit, Form PTC. Enter the amount from line 2 of Form PTC and attach Form PTC. S Corporations that claimed the amount from line 2 of Form PTC on line 19 of Form 1120NF, enter zero. Financial institutions that elected to be treated as S corporations may claim the credit on either Form 1120-SN or Form 1120NF, but not both. Line 12 Tax Due. If line 7 plus line 8 minus lines 9, 10, and 11 is greater than zero, enter the result on line 12. Mandates of Electronic Payment. Some entities are required to make their payments (tax, penalty, and interest) electronically. All electronic payment and credit card options satisfy the mandate requirement. All entities are encouraged to make their payments electronically. Electronic Payment Options Electronic Funds Withdrawal (EFW). With this payment option, you provide your payment information within your electronically-filed return. Your payment will automatically be withdrawn from your bank account on the date you specify. Nebraska e-pay. Nebraska e-pay is the DOR’s web-based electronic payment system. You enter your payment and bank account information, and choose a date (up to a year in advance) to have your account debited. You will receive an email confirmation for each payment scheduled. ACH Credit. You (or your bank) create an electronic file in the appropriate ACH file format. It is submitted to the Federal Reserve and instructs your bank to “credit” the state’s bank account. Nebraska Tele-pay. Nebraska Tele-pay is the DOR’s phone-based electronic payment system. Call 800-232-0057, enter your payment and bank account information, and choose a date (up to a year in advance) to have your account debited. You will receive a confirmation number at the end of your call. Credit Card. Secure credit card payments can be initiated through ACI Payments, Inc. at acipayonline.com or via phone at 800-272-9829. Eligible credit cards include American Express, Discover, MasterCard, and VISA. A convenience fee is charged to the card you use. This fee is paid to the credit card vendor, not the state, and will appear on your credit card statement separately from the tax payment. At the end of your transaction, you will be given a confirmation number. Keep this number for your records. [If you are making your credit card payment by phone, you will need to provide the Nebraska Jurisdiction Code, which is 3700.] Cancel a payment. To cancel a scheduled EFW payment, contact our Taxpayer Assistance office at 800-742-7474 or 402-471-5729 before 4:00 pm Central Time two business days prior to your scheduled payment date. You may cancel a payment scheduled through Nebraska e-pay by logging into the e-pay program from our website and selecting “cancel payment.” To cancel a credit card payment, contact ACI Payments, Inc. 8 revenue.nebraska.gov |
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Check or Money Order. If you are not using one of the electronic payment options described
above, include a check or money order payable to the “Nebraska Department of Revenue.” Checks
written to the DOR may be presented for payment electronically.
Line 13 Overpayment. If line 7 plus line 8 minus lines 9, 10, and 11 is less than zero, enter the result on
line 13.
Note: An S corporation filing an amended return will not receive a refund of any income tax due
with its original return when the Nebraska source income for its nonresident individual shareholders
is reduced. Instead, the shareholders may file a claim for an income tax refund resulting from the
reduced Nebraska source income.
Line 14 Amount Credited to 2023 Estimated Income Tax. Enter the amount of overpayment shown on
line 13 that you want credited as a tax year 2023 estimated payment for the S corporation.
Line 15 Overpayment to be Refunded. Enter the amount of overpayment shown on line 13 that you want
refunded. The overpayment to be refunded is calculated by subtracting line 14 from line 13. The
DOR recommends having any refund on line 15 directly deposited into the S corporation’s bank
account. See line 16 instructions below.
Line 16 Direct Deposit. To deposit the refund directly into the S corporation’s checking or savings account,
enter the routing number and account number found on the bottom of the checks used with the
account. The routing number is listed first and must be nine digits. The account number is listed
to the right of the routing number and can be up to 17 digits. Enter these numbers in the boxes
found on lines 16a and 16c, and complete line 16b, Type of Account.
The box on line 16d must be checked if the refund will go to a bank outside the United States.
This is necessary to comply with banking rules regarding International ACH Transactions (IATs).
These refunds cannot be processed as direct deposits and instead will be mailed.
Signature Sign and Date the Tax Return. This return must be signed by a corporate officer. Include a
daytime phone number and an email address in case the DOR needs to contact you.
Email. By entering an email address, the taxpayer acknowledges that the DOR may contact the
taxpayer by email. The taxpayer accepts any risk to confidentiality associated with this method
of communication. The DOR will send all confidential information by secure email or the State
of Nebraska’s file share system. If you do not wish to be contacted by email, write “Opt Out” on
the line labeled “email address.”
If a corporate officer authorizes another person to sign the return, there must be a Power of Attorney,
Form 33, on file with the DOR or attached to the return.
The act of e-filing a return is your signature. By e-filing the return, taxpayers and their preparers, if
applicable, are declaring under penalties of perjury, that they have examined the electronic return,
and to the best of their knowledge and belief, it is true, correct, and complete.
Paid Preparer’s Use Only. Any person who is paid for preparing a taxpayer’s return must sign
the return as preparer. Additionally, the preparer must enter their Preparer Tax ID Number (PTIN),
their firm’s name, and Federal Employer ID Number (EIN).
Nebraska Schedule A Instructions
Adjustments to Ordinary Business Income
Purpose. The Nebraska Schedule A is used to adjust the S corporation’s ordinary business income
for items of income and deduction that are required under federal or Nebraska law to be reported to
the shareholders separately. The ordinary business income, plus or minus these adjustments, will
estimate the income that was distributed to the shareholders, and become part of the shareholders’
federal adjusted gross income. These adjustments to ordinary business income are necessary to
calculate any required income tax withholding on Nebraska Schedule II – Shareholder’s Share
of Nebraska Income.
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 Enlarge image | Adjustments Increasing Ordinary Business Income Lines 1-8 The amounts on each of these lines come directly from Federal Form 1120S, Schedule K. Line 9 State and Local Government Interest and Dividend Income. Enter all state and local bond interest or dividends that are exempt from federal income tax and not issued by Nebraska state and local government subdivisions. Line 10 Other Income. Enter any other additions to income for the S corporation that are includible in the shareholders’ federal income, but are not reflected in lines 1 through 9. List the type of adjustment on line 10a, Schedule A, and the associated amount on line 10b. Attach a schedule if needed. Line 11 Total Adjustments Increasing Ordinary Business Income. Enter the total of lines 1 through 10 here and on line 2 of Form 1120-SN. Adjustments Decreasing Ordinary Business Income Line 12 Qualified U.S. Government Interest Deduction. Enter the amount of interest and dividend income from U.S. government obligations exempt from state taxation. The Taxability of Interest and Dividend Income From State, Local, and U.S. Government Obligations Information Guide , lists U.S. interest and dividend income that can be included on line 12, Nebraska Schedule A. Interest income from repurchase agreements involving U.S. government obligations is not deductible as U.S. government interest. Gains or losses from the sale or other disposition of federal securities are taxable for state income tax purposes and should not be included on line 12. Lines 13-20 The amounts on each of these lines come directly from Federal Form 1120S, Schedule K. Line 21 Other Deductions. Enter any other deductions to income for the S corporation that are deductible in the shareholders’ federal income, but are not reflected in lines 12 through 20 above. List the type of adjustment on line 21a, Nebraska Schedule A, and the associated amount on line 21b. Attach a schedule if needed. Line 22 Total Adjustments Decreasing Ordinary Business Income. Enter the total of lines 12 through 21 here and on line 3 of Form 1120-SN. Nebraska Schedule I Instructions Apportionment for Multistate Business Purpose. The Nebraska Schedule I is used to determine the amount of Nebraska source income (Form 1120-SN, line 5, Income Reported to Nebraska) received by an S corporation deriving income from both within and without Nebraska. Nebraska source income is determined by apportioning the S corporation income using a single, sales-only factor. Apportionment refers to the division of income between states by the use of a formula containing one or more apportionment factors. Sales Factor. The sales factor is a fraction. The numerator is the total sales of the S corporation in Nebraska during the taxable year. The denominator is the total sales of the S corporation everywhere during the taxable year. Total sales includes gross sales of real and tangible personal property less returns and allowances, and all other items of gross receipts, except income for the discharge of indebtedness, amounts received from hedging transactions involving intangible assets, and net gains from marketable securities held for investment. The sales factor on this schedule is rounded to six decimal places. It is entered as a percentage. 10 revenue.nebraska.gov |
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For tax years beginning January 1, 2014 or after, a corporation may no longer use the costs of
performance method of apportioning sales other than sales of tangible personal property except
for a corporation operating as a communications company. For additional information, see the
Nebraska Apportionment Factor – Sales or Gross Receipts section.
An S corporation using an alternative method of apportionment must attach a copy of the Tax
Commissioner’s prior written approval of the alternative method. The alternative apportionment
factor computation must be included. Enter the factor on line 2, Nebraska Schedule I.
Note: Approval of an alternative method of apportionment is rare.
If the S corporation is a partner in a partnership or joint venture, see Business Entity Regulation 24-
315, Sales Factor; Business Entities As Owners in a Partnership or Joint Venture.
If an S corporation is a member of a unitary group which includes a C corporation, the apportionment
factor for the S corporation will be the apportionment factor as determined for the unitary group.
This factor will be applied to the income of the S corporation. Separate returns must be filed for
the S corporation and the C corporation.
An S corporation that operates a trucking business and has income from both within and without
this state, must compute its sales factor in accordance with Business Income Tax Regulation
24-343, Special Apportionment Rules; All Tax Years; Trucking Companies.
The method of computing the sales factor must be consistent with prior tax years and with the
S corporation’s filings in other states. If the S corporation modifies the basis for including or
excluding gross receipts in the sales factor used in returns for prior years, the 2022 return must
disclose the nature and extent of the modification.
If the S corporation files returns with other states that are not uniform in the inclusion or exclusion
of gross receipts, the Form 1120-SN filed with the DOR must disclose the nature and extent of
the variance.
Computation of Nebraska Source Income —
You must complete lines 4-15 prior to completing lines 1-3.
Line 1 Nebraska Adjusted Income. Enter the amount from line 4 of Form 1120-SN.
Line 2 Nebraska Apportionment Factor. Enter the amount from line 15, Nebraska Schedule I,
Form 1120-SN.
Line 3 Income Apportioned to Nebraska. Enter the result of line 1 multiplied by line 2. Also enter this
amount on line 5, Form 1120-SN.
Nebraska Apportionment Factor - Sales or Gross Receipts
Nebraska sales include all items of income received by the S corporation from Nebraska sources.
The following types of sales are from Nebraska sources:
u Sales of tangible personal property delivered in Nebraska;
u Sales of tangible personal property shipped from Nebraska to the U.S. government;
u Gross receipts from the interest or service charges arising from the sale of tangible personal
property if the sale of the property is attributed to Nebraska;
u Sales of other than tangible personal property —
P To the extent a service relates to real or tangible personal property located in Nebraska;
P To the extent a service relates to part of the buyer’s trade or business operated in Nebraska;
revenue.nebraska.gov 11
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 Enlarge image | P A service provided to an individual present in Nebraska at the time the service is received; P To the extent an application service is used in Nebraska; P To the extent intangible property is used in Nebraska; P To the extent an intangible asset used in a treasury function is managed in Nebraska; P To the extent a loan is secured by real or tangible personal property located in Nebraska; P To the extent a loan is not secured by real or tangible personal property, if the borrower is in this state. The location is presumed to be the borrower’s billing address; P Fees, charges, and net gains from credit card receivables, if the credit card holder’s billing address is in Nebraska; P Gross receipts from selling, renting, licensing, or leasing of real property if the real property is located in Nebraska; P Gross receipts from renting, leasing, or licensing tangible personal property if the property is in Nebraska. If the property was located within and without Nebraska during the taxable year, then the gross receipts are attributable to Nebraska in proportion to the percentage of time the property was located in Nebraska; P For sales not specifically addressed above, sales to an individual if the individual’s billing address is in Nebraska, and sales to a business if the business places its order from Nebraska or the billing address of the business if the ordering place cannot be readily determined; and P Sales made by a communications company if the income-producing activity is performed in Nebraska based on costs of performance. For additional information, see Neb. Rev. Stat. § 77-2734.14. Line 4 Sales or Gross Receipts Less Returns and Allowances. Enter the gross receipts, less any returns and allowances reported on the Federal Form 1120S. Line 5 Sales Delivered or Shipped to Purchasers in Nebraska: Shipped From Outside Nebraska. Delivery in Nebraska is determined without regard to the F.O.B. point or other conditions of the sale. The amount entered on this line should not include sales to the U.S. government. Line 6 Sales Delivered or Shipped to Purchasers in Nebraska: Shipped From Within Nebraska. Delivery in Nebraska is determined without regard to the F.O.B. point or other conditions of the sale. The amount entered on this line should not include sales to the U.S. government. Line 7 Sales Shipped From Nebraska to the U.S. Government. The U.S. government is the purchaser when it makes direct payment to the seller. The amount on this line includes all sales of tangible personal property to the U.S. government that are shipped from an office, store, warehouse, factory, or other place of business in this state. For other sales made to the U.S. government, use the rules for sales of other than tangible personal property. For additional information, see Neb. Rev. Stat. § 77-2734.14. Line 8 Interest on Sales of Tangible Personal Property. In the Total column, enter all interest or service charges received from the sale of tangible personal property. In the Nebraska column, enter all the interest or service charges related to the sale of tangible personal property delivered in Nebraska and from sales to the U.S. government shipped from Nebraska. Line 9 Interest, Dividends, and Royalties From Intangible Property. In the Total column, enter all of the interest, dividend, and royalty income from intangible property received by the S corporation. In the Nebraska column, enter the amount sourced to Nebraska as determined by Neb. Rev. Stat. § 77-2734.14 (3). Line 10 Gross Rents. In the Total column, enter the gross receipts from renting or leasing all real or tangible personal property. In the Nebraska column, enter gross receipts for renting or leasing real or tangible personal property located in Nebraska. If the tangible personal property rented or leased is located or used both inside and outside this state, the Nebraska receipts are attributable to Nebraska in proportion to the percentage of time the property was located in Nebraska. 12 revenue.nebraska.gov |
 Enlarge image | Line 11 Net Gain on Sales of Intangible Property. In the Total column, enter the net gain on sales of all intangible property made during the tax year. In the Nebraska column, enter the amount of net gain from sales made to a buyer who uses the intangible in Nebraska as determined by Neb. Rev. Stat. § 77-2734.14. Note: A net loss on the sale of intangible property is not included in the calculation of the Nebraska sales factor. Line 12 Gross Receipts From Sales of Tangible Personal Property and Real Property Not Included Above. In the Total column, enter the gross receipts from sales of all tangible personal property and real property not included above. In the Nebraska column, enter the gross receipts from sales of real property located in Nebraska. Also enter the gross receipts from tangible personal property delivered in this state or delivered to the U.S. government from a location in this state. Line 13 Other Income. In the Total column, enter any other income not reported above that was received by the S corporation and is included in the amount reported on line 4, Form 1120-SN. List the type of adjustment on line 13a, the total amount on line 13b, and the Nebraska amount on line 13c. Attach a schedule if needed. In the Nebraska column, enter any other income not reported above that was derived from Nebraska sources. The amounts entered on this line include, but are not limited to, net farm income (loss) and the ordinary business income (loss) from partnerships. If the S corporation would be considered unitary with the partnership if the partnership was a corporation, enter the distributed share of the partnership’s gross receipts. If the S corporation and the partnership would not be considered unitary, enter the distributed share of the income received from the partnership. See Business Entity Regulation 24-315, Sales Factor: Business Entities As Owners in a Partnership or Joint Venture, for additional information regarding the apportionment of income received from a partnership. Line 14 Total Sales or Gross Receipts. In the Total column, add lines 4 and 8 through 13. Enter the result on line 14. In the Nebraska column, add lines 5 through 13 and enter the result on line 14. Line 15 Nebraska Apportionment Factor. Compute the Nebraska apportionment factor by dividing line 14, Nebraska column, by line 14, Total column; round to six decimal places and enter as a percent. Example 3: Line 14 Nebraska column 107,699 = .215401 4642314284 Line 14 Total column 499,992 Enter 21.5401% on line 15. Since the seventh digit (4) is less than five, the sixth digit (1) is not rounded up to 2. Nebraska Schedule IIInstructions Shareholder’s Share of Nebraska Income Purpose. The Schedule II is completed to identify the shareholders and to calculate income tax withholding for the nonresident individual shareholders. No income tax withholding is remitted when the nonresident individual shareholder has completed a 2022 Nebraska Nonresident Tax Agreement, Form 12N. Complete the Schedule II through column (C) for all shareholders. Column (D) is only required for individual shareholders. Columns (E), (F), and (G) are completed for nonresident individual shareholders. revenue.nebraska.gov 13 |
 Enlarge image | Column (A). Enter each shareholder’s name and address information. This should be the address of the actual shareholder, not the S corporation’s address. If the shareholder is a grantor trust, enter the name and address of the grantor. Column (B). Enter the Social Security number for each individual shareholder or grantor of a grantor trust. Enter the Federal ID number for each shareholder that is not an individual or grantor trust. Column (C). Enter the pro rata ownership percentage of each shareholder during the S corporation’s taxable year. Column (D). For each shareholder who is an individual or grantor trust, enter a “Y” if the shareholder is a Nebraska resident, or an “N” if the shareholder is not a Nebraska resident. Do not complete columns (E), (F), and (G) when either of the following applies: 1. A loss is reported on line 5, Form 1120-SN; or 2. The box at the top of the Nebraska Schedule II is checked indicating that the S corporation only received portfolio income. Generally, portfolio income includes all gross income (other than income derived in the ordinary course of a trade or business) that is attributable to interest, dividends, or royalties. For additional items considered to be portfolio income, see the instructions for Federal Form 1120S. Column (E). Place a check mark in this column if a properly completed and signed Form 12N is attached. Do not complete columns (F) and (G) if this box is checked. Column (F). Enter the nonresident individual shareholder’s share of Nebraska income reported by the S corporation. This amount is determined by multiplying the line 5, Form 1120-SN amount, by the column (C), Nebraska Schedule II percentage. Enter the column (F) total on line 6, Form 1120-SN. Column (G). Multiply the amount in column (F) by .0684 and enter the result in column (G). This is the amount of Nebraska income tax withholding for each nonresident individual shareholder who did not complete a Form 12N. Report the amount of income tax withholding remitted for each nonresident individual shareholder on a Shareholder’s Share of Nebraska Income, Deductions, Modifications, and Credits - Nebraska Schedule K-1N. Enter the total of column (G) on line 7, Form 1120-SN. Do not enter a negative amount in column (G). Nebraska Schedule III Instructions Subsidiary or Affiliated Corporations Purpose. The Nebraska Schedule III is used to identify the members of a unitary group and summarize the Nebraska sales or receipts for those members of the unitary group that have nexus in this state. This schedule must be completed if the S corporation is a member of a unitary group and should include any Qualified Subchapter S Subsidiary (QSSS) and all C corporations which are part of the unitary group. The total Amount of Nebraska Sales or Receipts reported on this schedule must agree with the Total Sales or Gross Receipts from line 14 of the Nebraska column of Nebraska Schedule I. NOTE: For Nebraska income tax purposes, including nexus, the parent S corporation and all QSSSs will be treated as one entity. Nebraska Schedule K-1N Instructions Shareholder’s Share of Income, Deductions, Modifications, and Credits Purpose. The Nebraska Schedule K-1N is used by the S corporation to report each shareholder’s share of the entity’s Nebraska income, deductions, modifications, and credits. The Nebraska Schedule K-1N is also used by each shareholder to complete their Nebraska tax return. 14 revenue.nebraska.gov |
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The S corporation must provide a Nebraska Schedule K-1N to each shareholder. A copy of every
Nebraska Schedule K-1N must be submitted with the Form 1120-SN.
Enter the shareholder’s share of the distributed Form 3800N credits. When S corporations issue
Nebraska Schedules K-1N to shareholders, they must also: complete distribution schedules such
as Forms 775N, 312N, 1107N, 544N, the 3800N Worksheet HBTC (listing the HBTC certificate);
and report the distributed credit amount to the shareholders on line 18 of the Schedule K-1N. To
distribute credits earned under the Urban Redevelopment Act, contact the DOR to obtain the
necessary worksheet and other documentation requirements.
S Corporation and Shareholder Information
Nebraska ID Number. Enter the Nebraska ID number assigned to the S corporation by the DOR.
The S corporation’s Nebraska ID number on the Schedule K-1N and the Form 1120-SN must be
the same. Refer to the Nebraska ID number instructions for Form 1120-SN.
Federal ID Number. Enter the Federal ID numbers assigned by the IRS to both the corporation and
the shareholder. If the shareholder is an individual, enter the individual’s Social Security number.
Taxable Year of Organization. S corporations filing on a fiscal-year basis or filing a short period
return must enter the date the tax year began and the date the tax year ended. Calendar-year filers
may leave this blank.
S Corporation’s Nebraska Apportionment Factor. Enter the S corporation’s Nebraska
apportionment factor from line 15 of Schedule I, Form 1120-SN.
Shareholder’s Ownership Percentage. Enter the shareholder’s percentage of stock ownership
for the tax year from the Federal Schedule K-1. Convert the decimal shown on the Schedule II to
a percentage before entering on the K-1N.
Part A – Shareholder’s Share of Income and Deductions
Complete Part A to report the shareholder’s share of the S corporation’s income (loss) and
deductions from Nebraska sources.
Lines 1-13 For S corporations that are only subject to income tax in Nebraska, the amounts entered on
lines 1-13 will come directly from the shareholder’s Federal Schedule K-1.
For S corporations that are subject to income tax in another state, the amounts entered on lines 1-13
will be the result of the Federal Schedule K-1 amounts multiplied by the S corporation’s Nebraska
apportionment factor.
Part B – Shareholder’s Share of Modifications
Complete Part B to report the shareholder’s share of the income distributed by the S corporation
that modifies the federal adjusted gross income or federal taxable income of the shareholder. For
S corporations that are only subject to income tax in Nebraska, the amounts entered on lines 14
and 15 will be the same as the amounts reported to the IRS.
For S corporations that are subject to income tax in another state, the amounts entered on lines 14
and 15 will be the result of the federal amounts multiplied by the S corporation’s Nebraska
apportionment factor.
revenue.nebraska.gov 15
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Line 14 Qualified U.S. Government Interest Deduction. Enter the shareholder’s share of all
interest and dividend income from U.S. government obligations exempt from state taxation.
The Taxability of Interest and Dividend Income From State, Local, and U.S. Government
Obligations Information Guide lists U.S. interest and dividend income that can be included on
line 14, Nebraska Schedule K-1N. Interest income from repurchase agreements involving U.S.
government obligations is not exempt U.S. government interest. Gains or losses from the sale or
other disposition of federal securities are taxable for state income tax purposes and should not be
included on line 14.
Line 15 State and Local Government Interest and Dividend Income. Enter the shareholder’s share
of all state and local bond interest or dividends that are exempt from federal income tax and not
issued by Nebraska state and local government subdivisions.
Line 16 Income (Loss) from Non-Nebraska Sources. The shareholder’s share of the non-Nebraska
income or (loss) is equal to the shareholder’s share of line 4, Form 1120-SN minus the shareholder’s
share of line 5, Form 1120-SN.
Part C – Shareholder’s Share of Credits
Complete Part C to report the credits that were earned by the S corporation and distributed to
the shareholders.
Line 17 Community Development Assistance Act (CDAA) Credit. Enter the shareholder’s share of
the distributed CDAA credit reported on the Nebraska Community Development Assistance Act
Credit Computation, Form CDN, Part C.
Line 18 Form 3800N Credits. Enter the shareholder’s share of the distributed Form 3800N credits.
When S corporations issue Nebraska Schedule K-1N to shareholders, they must also: complete
distribution schedules such as Forms 775N 312N 1107N 544N 3800N Worksheet, HBTC , , , (listing
the HBTC certificate number), and report the distributed credit amount to the shareholders on
line 18 of the Schedule K-1N. An amount entered for the Nebraska Historic Tax Credit on line
18f does not entitle the shareholder to claim the credit. Rather, the shareholder must be issued a
NHTC certificate by the DOR before any credit will be allowed. For additional information, see
our website. For claiming the distributed credit under the Urban Redevelopment Act, contact the
DOR to obtain the necessary worksheet and other documentation requirements.
Line 19 Contractor Income Tax Withholding. An S corporation that was subjected to the mandatory
5% contractor income tax withholding must distribute the amount withheld to its shareholders.
The amount entered on line 19 is the total amount of Nebraska withholding reported on the
Form 1099-MISC issued to the S corporation, multiplied by the shareholder’s ownership
percentage. For additional information, see “Income Tax Withholding on Contractors” found on
page 4 of the Form 1120-SN instructions.
Line 20 Nebraska Income Tax Withholding. Enter the amount from column (G), Schedule II,
Form 1120-SN, that reflects the income tax remitted by the entity on behalf of the shareholder.
For an amended Schedule K-1N, enter the larger of the amount calculated on either the original
or the amended column (G), Schedule II, Form 1120-SN.
16 revenue.nebraska.gov
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PRINT FORM RESET FORM
FORM 1120-SN
Nebraska S Corporation Income Tax Return
for the calendar year January 1, 2022 through December 31, 2022 or other taxable year
beginning , and ending , 2022
Name Doing Business As (dba) PLEASE DO NOT WRITE IN THIS SPACE
Legal Name
Street or Other Mailing Address
CityPlease Type or Print State Zip Code Business Classification Code Date Business Began in Nebraska
Principal Business Activity in Nebraska Federal ID Number Nebraska ID Number Does the S corporation have nonresident individual shareholders?
YES (Complete Schedule II.) NO
Check if:
(1) Initial Return (3) Address Change (5) Amended Return (7) Form 3800N, 775N, 312N, or
1107N Attached
(2) Final Return (Example, dissolved. See instr.) (4) Name Change (6) Form 7004 Attached (8) Distributed Form 3800N Credit
1 Ordinary business income (line 21, Federal Form 1120S) ............................... 1 00
2 Nebraska adjustments increasing ordinary business income (line 11, Schedule A) ........... 2 00
3 Nebraska adjustments decreasing ordinary business income (line 22, Schedule A) ........... 3 00
4 Nebraska adjusted income (line 1 plus line 2 minus line 3) .............................. 4 00
5 Income reported to Nebraska (enter line 4 above or line 3, Schedule I, if applicable)
If less than zero, do not complete columns (E), (F), or (G) on Schedule II ................... 5 00
If line 5 shows a loss, skip lines 6 and 7 and go to line 8.
6 Income reported to Nebraska subject to withholding. Enter the Column (F), Schedule IItotal ............ 6 00
7 Nebraska income tax withheld for nonresident individual shareholders. Enter the Column (G),
Schedule IItotal ....................................................................... 7 00
8 Form 3800N credit and recapture (see instructions) ............................................ 8 00
9 Tax deposited with Form 7004N and 2022 estimated income tax payments ......................... 9 00
10 Credit for school district property taxes (attach Form PTC) ....................................... 10 00
11 Credit for community college property taxes (attach Form PTC) ................................... 11 00
12 TAX DUE if line 7 plus line 8 minus lines 9, 10, and 11 is greater than zero. Check this box if your .....
payment is being made electronically ....................................................... 12 00
13 Overpayment if line 7 plus line 8 minus lines 9, 10, and 11 is less than zero ......................... 13 00
14 Amount on line 13 you want credited to 2023 estimated income tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 00
15 Overpayment to be REFUNDED (line 13 minus line 14). Complete lines 16a, 16b, and 16c
to receive your refund electronically. Complete line 16d if appropriate (see instructions) ................ 15 00
16a Routing Number 16b Type of Account 1 = Checking 2 = Savings
16c Account Number
(Can be up to 17 characters. Omit hyphens, spaces, and special symbols. Enter from left to right and leave any unused boxes blank.)
16d Check this box if this refund will go to a bank account outside the United States (see instructions).
Under penalties of perjury, I declare that as taxpayer or preparer I have examined this return, including accompanying schedules
and statements, and to the best of my knowledge and belief, it is correct and complete.
sign
Signature of Officer Date Email Address
here
( )
Title Phone Number
paid
preparer’s Preparer’s Signature Date Preparer’s PTIN
use only ( )
Firm’s Name (or yours if self-employed), Address, and Zip Code EIN Daytime Phone
Paper filers must attach a copy of the federal return and supporting schedules to this return.
All filers are encouraged to e-file their return including schedules K-1N.
Mail this return and payment to: Nebraska Department of Revenue, PO Box 94818, Lincoln, NE 68509-4818.
8-287-2022
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S Corporation With Other Income And Deductions FORM 1120-SN
Nebraska Schedule A — Adjustments to Ordinary Business Income Schedule A
• Enter amounts for lines 1 through 8 and 10 from Schedule K, Federal Form 1120S.
2022
Name on Form 1120-SN Nebraska ID Number
Adjustments Increasing Ordinary Business Income Totals
1 Net rental real estate income ............................................................................................................... 1 00
2 Other net rental income ........................................................................................................................ 2 00
3 Interest income ..................................................................................................................................... 3 00
4 Ordinary dividends ............................................................................................................................... 4 00
5 Royalties............................................................................................................................................... 5 00
6 Net short-term capital gain ................................................................................................................... 6 00
7 Net long-term capital gain .................................................................................................................... 7 00
8 Net gain under IRC Section 1231 (other than casualty or theft) .......................................................... 8 00
9 State and local government bond interest and dividend income (see instructions) ............................. 9 00
10Other income (list below or attach schedule)
Lista type: ______________________________________________ b Amount: $ __________
Total other income. Enter total of lines 10b ...................................................................................... 10 00
11 Total adjustments increasing ordinary business income (total of lines 1 through 10). Enter here
and on line 2, Form 1120-SN ............................................................................................................... 11
Adjustments Decreasing Ordinary Business Income
• Enter amounts for lines 13 through 21 from Schedule K, Federal Form 1120S. Totals
12 Qualified U.S. government interest deduction (see instructions) ......................................................... 12 00
13 Net rental real estate loss ..................................................................................................................... 13 00
14 Other net rental loss ............................................................................................................................. 14 00
15 Net short-term capital loss ................................................................................................................... 15 00
16 Net long-term capital loss..................................................................................................................... 16 00
17 Net loss under IRC Section 1231 ......................................................................................................... 17 00
18 Other loss ............................................................................................................................................. 18 00
19 Charitable contributions ....................................................................................................................... 19 00
20 Section 179 deduction ......................................................................................................................... 20 00
21 Other deductions (list below or attach schedule)
Lista type: ______________________________________________ b Amount: $ __________
Total other deductions. Enter total of lines 21b ................................................................................ 21 00
22 Total adjustments decreasing ordinary business income (total of lines 12 through 21). Enter here
and on line 3, Form 1120-SN ............................................................................................................... 22 00
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PRINT FORM RESET FORM
S Corporation With Income Derived From Sources Both FORM 1120-SN
Within and Without Nebraska Schedule I
Nebraska Schedule I — Apportionment for Multistate Business
• If you use this schedule, read instructions. 2022
Name on Form 1120-SN Nebraska ID Number
1 Nebraska adjusted income (line 4, Form 1120-SN) ................................................................................................ 1 00
2 Nebraska apportionment factor (line 15 below) ............................................. 2 . %
3 Income apportioned to Nebraska (line 1 multiplied by line 2). Enter here and on line 5, Form 1120-SN ................ 3 00
Nebraska Apportionment Factor – Sales or Gross Receipts
Total Nebraska
4 Sales or gross receipts less returns and allowances ...................................................... 4 00
5 Sales delivered or shipped to purchasers in Nebraska:
Shipped from outside Nebraska ............................................................................................................................. 5 00
6 Sales delivered or shipped to purchasers in Nebraska:
Shipped from within Nebraska ................................................................................................................................ 6 00
7 Sales shipped from Nebraska to the U.S. government ........................................................................................... 7 00
8 Interest on sales of tangible personal property ............................................................... 8 00 8 00
9 Interest, dividends, and royalties from intangible property ............................................. 9 00 9 00
10 Gross rents ..................................................................................................................... 10 00 10 00
11 Net gain on sales of intangible property ......................................................................... 11 00 11 00
12 Gross receipts from sales of tangible personal property and
real property not included above .................................................................................... 12 00 12 00
13 Other income (list below or attach schedule)
a List type: ___________________________ b Total Amount: $ _________
c Nebraska Amount: $ __________________
Enter total of lines 13b in first column. Enter total of lines 13c in second column. ..... 13 00 13 00
14 Total sales or gross receipts ....................................................................................... 14 00 14 00
15 Nebraska apportionment factor (divide line 14, Nebraska column, by line 14, Total column,
and round to six decimal places). Enter as a percent here and on Schedule I, line 2 above .................. 15 . %
8-289-2022
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Name on Form 1120-SN
Totals
Shareholder Name
Note: An S Corporation with out-of-state shareholders and with ONLY portfolio income need not complete Columns (E), (F), and (G). Instead, check this box
(A)
Shareholder Address
•
If you use this schedule, read the instructions and attach this page to Form 1120-SN.
Shareholder’s Share of Nebraska Income
Nebraska Schedule
SSN
Shareholder
(B)
(Skip Columns D
through G) II
FEIN —
Ownership Percent of
(C)
(Y or N) Individual Resident Nebraska
(D)
Attached Check if (Skip if line 5, Form 1120-SN is less than zero) Nonresident Individuals and Grantor Trusts Nebraska ID Number
12N Form (E)
x Column C Form 1120-SN Income (Line 5 Shareholder
Percent)
(F)
FORM 1120-SN
(Enter on Nebr. [Col (F) x .0684] Tax Withholding Schedule
Nebr. Income 2022
Sch. K-1N)
Amount
(G)
II
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FORM 1120-SN
Nebraska Schedule III — Subsidiary or Affiliated Corporations Schedule III
2022
ID Numbers Apportionment
Factor Information*
Name and Address of All Corporations Amount of Nebraska
Nebraska Federal Sales or Receipts
S Corporation Filing this Return
Parent Corporation, If Different from Above
Subsidiary/Affiliated Corporations
Totals
* Complete the apportionment factor information summarizing the numerator of the corporations filing a combined corporation income tax return.
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PRINT FORM RESET FORM
FORM 1120-SN
Nebraska Schedule K-1N — Schedule K-1N
Shareholder’s Share of Income, Deductions, Modifications, and Credits
2022
Corporation’s Name and Mailing Address Shareholder’s Name and Mailing Address
Name Doing Business As (dba) Name
Legal Name
Street or Other Mailing Address Street or Other Mailing Address
City State Zip Code City State Zip Code
Nebraska ID Number Federal ID Number Social Security Number/Federal ID Number Spouse’s Social Security Number
Taxable Year of Organization Check One:
Resident Individual Nonresident Individual Estate or Trust
Beginning _________________ , 20 _____ and Ending _________________ , 20 _____ Exempt Organization
S Corporation’s Nebraska Apportionment Factor Shareholder’s Ownership Percentage If applicable, check the appropriate box:
% % Final Amended
Part A
Shareholder’s Share of Income and Deductions
1 Ordinary business income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Net rental real estate income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Other net rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Net short-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Net long-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 Net Section 1231 gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Other income (loss) (list below or attach schedule)
aList type: __________________________________________________ b Amount: $ __________
Total other income (loss) . Enter total of lines 10b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12 Section 179 deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
13 Other deductions (list below or attach schedule)
aList type: __________________________________________________ b Amount: $ __________
Total other deductions . Enter total of lines 13b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Part B
Shareholder’s Share of Modifications
14 Qualified U .S . government interest deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15 State and local government interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
16 Income (loss) from non-Nebraska sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Part C
Shareholder’s Share of Credits
17 Community Development Assistance Act credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Form 3800N credits (see instructions)
a Employment and Investment Growth Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a $ _____________
b Nebraska Advantage Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b $ _____________
c Nebraska Advantage Rural Development Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18c $ _____________
d Nebraska Advantage Research and Development Act . . . . . . . . . . . . . . . . . . . . . 18d $ _____________
e New Markets Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18e $ _____________
f Nebraska Historic Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18f $ _____________
g ImagiNE Nebraska Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18g $ _____________
h Key Employer and Jobs Retention Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18h $ _____________
i Urban Redevelopment Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18i $ _____________
j Renewable Chemical Production Tax Credit Act . . . . . . . . . . . . . . . . . . . . . . . . . . 18j $ _____________
k Nebraska Higher Blend Tax Credit Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18k $ _____________
Total of 18a through 18k . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Contractor withholding (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
20 Nebraska income tax withheld (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
revenue.nebraska.gov, 800-742-7474 (NE and IA), 402-471-5729 8-687-2022
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RESET PRINT
Application for Automatic Extension of Time FORM
to File Nebraska Corporation, Fiduciary, or Partnership Return
Taxable year beginning , and ending , 7004N
Name Doing Business As (dba)
Legal Name
Street or Other Mailing Address
City State Zip Code Federal ID Number Nebraska ID Number
Automatic 6-Month Extension
• Check one of the boxes below if filing Federal Forms 1041, 1041-QFT, 1041-N, or 1065.
Nebraska Fiduciary Income Tax Return, Form 1041N Nebraska Return of Partnership Income, Form 1065N
Automatic 7-Month Extension
• Check all appropriate boxes if filing Nebraska Forms 1120N or 1120-SN.
Automatic seven-month filing extension from the Extension in addition to the federal extension up to a
original due date. maximum of seven months from the original due date.
Attach a copy of the Federal Form 7004 filed with the
Internal Revenue Service.
Is the corporation organized as an exempt organization? YES NO
Is the corporation a cooperative described in IRC section 6072(d)? YES NO
Is the corporation an S corporation? YES NO
Is the corporation a foreign corporation with no US offices? YES NO
Tentative Tax Payment Calculation
• Entities filing a fiduciary or partnership return need not complete lines 1 through 10 below. A fiduciary or partnership must complete line 11.
1 Tentative income tax liability for taxable period before any applicable credits ................... 1
2 Premium tax credit ................................................................ 2
3 Community Development Assistance Act credit ......................................... 3
4 Form 3800N nonrefundable credits ................................................... 4
5 Total nonrefundable credits (total of lines 2 through 4)..................................... 5
6 Tentative income tax liability after nonrefundable credits. Subtract line 5 from line 1 (if the line 5
amount is more than the line 1 amount, enter -0-)........................................ 6
7 Form 3800N refundable credits ...................................................... 7
8 Estimated income tax payments ..................................................... 8
9 Other payments or credits, including any Beginning Farmer credit, employer’s credit for expenses
incurred for TANF (ADC) recipients, and Property Tax Incentive Act credit ..................... 9
10 Total prior payments and credits (total of lines 7 through 9)................................. 10
11 Tentative tax payment (line 6 minus line 10) ............................................ 11
Check this box if your payment is being made electronically.
If the corporation is a member of a unitary group of corporations filing a combined return, complete the following section.
ID Numbers
Name and Address of Each Member of the Unitary Group
Nebraska Federal
Under penalties of perjury, I declare that I have been authorized to make this application, and that to the best of my knowledge and belief, the
statements made above are correct and complete.
sign
Authorized Signature Date Email Address
here
( )
Title Daytime Phone Number
Mail this application and remit payment (electronically, if required) to:
Nebraska Department of Revenue, PO Box 94818, Lincoln, NE 68509-4818.
8-021-1968 Rev. 9-2022
revenue.nebraska.gov, 800-742-7474 (NE and IA), 402-471-5729 Supersedes 8-021-1968 Rev. 12-2021
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Instructions
Who May File. A corporation (C corporation and S corporation), fiduciary, partnership, or limited liability company
making a tentative tax payment, and/or wanting more time to file a Nebraska tax return, must file a Nebraska
Application for Extension of Time, Form 7004N. The Form 7004N must be filed even if a tentative income tax
payment is made electronically.
If you have filed for a federal extension and are not making a tentative income tax payment to Nebraska, you do
not need to complete this application. When your Nebraska income tax return is filed, you must attach a copy of the
Federal Form 7004 filed with the IRS, or a copy of the approved federal extension. If a federal extension of time has
been granted, the filing date for Forms 1120N, 1120-SN, and 1065N is automatically extended for the same period.
If a federal extension of time has been granted to an estate or trust, the filing date for Form 1041N is automatically
extended for six months.
Corporations. When a federal extension of time has been granted and additional time is necessary to file a Nebraska
corporation income tax return, file Form 7004N on or before the date the federal extension expires. Attach a copy of
the Federal Form 7004 filed with the IRS, or a copy of the approved federal extension. A maximum of a seven-month
extension beyond the original due date of the corporation income tax return is allowed for Nebraska.
Partnerships, Estates, and Trusts. Nebraska will only allow partnerships an extension of time up to the maximum
number of months provided by the IRS. Nebraska will allow estates and trusts an extension of up to six months. No
additional Nebraska extension will be granted.
When to File. Form 7004N must be filed on or before the due date of the original return. Corporations may also file
Form 7004N on or before the date that a federal extension expires.
Where to File. Mail Form 7004N to the Nebraska Department of Revenue, PO Box 94818, Lincoln, Nebraska
68509-4818.
Line 9. Other payments or credits. Enter the total other credits. The property tax incentive act credit includes the
credits for school district property taxes and community college taxes paid.
Amount of Payment. Payment of the amount shown on line 11 must be remitted either with this form or electronically
using one of the electronic payment options identified below.
Mandates of Electronic Payment. Some entities are required to make their payments (tax, penalty, and interest)
electronically. For mandate purposes, all of the electronic payment options listed below satisfy the mandate
requirement. All entities are encouraged to make their payments electronically.
Electronic Payment Options
Nebraska e-pay. Nebraska e-pay is the Nebraska Department of Revenue's (DOR's) web-based electronic
payment system. You enter your payment and bank account information, and choose a date (up to a year in
advance) to have your account debited. You will receive an email confirmation for each payment scheduled.
ACH Credit. You (or your bank) create an electronic file in the appropriate ACH file format. It is submitted to
the Federal Reserve and instructs your bank to “credit” the state’s bank account.
Nebraska Tele-pay. Nebraska Tele-pay is the DOR's phone-based electronic payment system.
Call 800-232-0057, enter your payment and bank account information, and choose a date (up to a year in
advance) to have your account debited. You will receive a confirmation number at the end of your call.
Credit Card (Corporations only). Secure credit card payments can be initiated through ACI Payments, Inc.
at acipayonline.com or via phone at 800-272-9829. Eligible credit cards include American Express, Discover,
MasterCard, and VISA. A convenience fee is charged to the card you use. This fee is paid to the credit card
vendor, not the state, and will appear on your credit card statement separately from the payment made to
the DOR. At the end of your transaction, you will be given a confirmation number. Keep this number for
your records. [If you are making your credit card payment by phone, you will need to provide the Nebraska
Jurisdiction Code, which is 3700.]
Check or Money Order. If you are not using one of the electronic payment options described above, include a check
or money order payable to the “Nebraska Department of Revenue.” Checks written to the DOR may be presented
for payment electronically.
Corporate Unitary Group. Members of a unitary group filing a single return using the combined income approach
should only request one extension for the entire group. The name, address, Federal ID number, and Nebraska ID
number of each corporation included in the combined return must be listed on Form 7004N.
Terminating the Extension. The DOR may, at any time, terminate a C corporation’s extension of time by mailing
the taxpayer a notice of termination and allowing ten days from the date of the termination notice to file the Nebraska
corporate return.
Taxpayer Notification. The DOR will notify the applicant if this request for extension is denied. The notice will be
sent to the address entered on Form 7004N. No notice will be sent with respect to approved applications for an extension
of time to file a return.
Signatures. This application must be signed by a corporate officer, fiduciary, partner, member, a person currently
enrolled to practice before the IRS, or an attorney or certified public accountant qualified to practice before the IRS.
If the taxpayer authorizes any other person to sign this application, there must be a power of attorney on file with the
DOR.
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 Enlarge image | Email. By entering an email address, the taxpayer acknowledges that the DOR may contact the taxpayer by email. The taxpayer accepts any risk to confidentiality associated with this method of communication. The DOR will send all confidential information by secure email or the State of Nebraska’s file share system. If you do not wish to be contacted by email, write “Opt Out” on the line labeled “email address.” |