Any Nebraska preparers out there?

[elfling]

Hi Everyone!

We have a client who moved in 2010 from PA to NE. The PY res returns year were easy enough. I was somewhat surprised to recieve a package from this lovely semi-retired couple this week. We anticipated they would find a preparer somewhere near their new house in Lincoln. Instead they are trusting us to continue preparing their returns long-distance.

The federal return set up just fine. But I am looking for input on the first time doing a full-year NE resident return. It also set up easy enough in the ATX MAX. A rather large chunk of SS income ($11K+) is taxed on 1040 line 20b. Since I see no place within the NE return to exclude this amount, it is being taxed by the state along with DFAS retirement, a modest IRS distribution, and a some part-time NE wages. Researching the NE return instructions and the state website I am unable to locate a listing of what income is and is not taxable. Not wishing to make any incorrect assumptions, I'm hoping for input here on the board. All forms of income taxable in NE?

Thanks to anyone who can lend some insight!

[NECPA in NEBRASKA]

Welcome to Nebraska returns. We give no income tax breaks for social security or retirement pay. Almost everything here is taxable except US Govt interest and NE munis. There is a deduction for Railroad Retirement. I have many clients that moved out of state to more afforadable tax states and mail me their tax returns from wherever they landed.

[elfling]

Thanks NECPA!

I was actually afraid that was the case as these nice folks will owe $1100+ to NE on top of $730 to good old USA. They are a really nice couple who moved close to their daughter to be with their two grandchildren. And not totally unaware of taxing situation as they did find out in advance that the 1099Rs would be taxed. They would not have known to ask about any negative SSA impact - the cause of owing fed as well as state.

I'll have to break the news as gently as possible. :unsure: