As a senior over 65 in Nebraska, you’re probably well-aware of the importance of tax deductions in managing your finances. However, did you know that the state offers an extra standard deduction for seniors that can significantly reduce your taxable income? This extra deduction can provide a substantial amount of tax savings, which can be used to fund essential expenses, travel, or even put towards a dream vacation home in the Cornhusker State or elsewhere. But before you can take advantage of this, it’s essential to understand the details of the extra standard deduction. [1]
Here’s a step-by-step guide on understanding the Nebraska Extra Standard Deduction for Seniors Over 65, including its benefits, eligibility criteria, and filing requirements. Whether you’re an experienced tax payer or new to Nebraska’s tax laws, we’ve got you covered.
What is the Nebraska Extra Standard Deduction?
The Nebraska Extra Standard Deduction is a tax benefit exclusively designed for seniors over 65 who are residents of the state. This deduction can be claimed in addition to the standard deduction allowed by the Internal Revenue Service (IRS). The extra standard deduction in Nebraska is a fixed amount that is subtracted from your gross income to reduce your taxable income.
According to the Nebraska Department of Revenue, the extra standard deduction in Nebraska is $1,290 for singles and $1,540 for joint filers who are 65 years or older, or blind.
This deduction can have a significant impact on your tax liability, especially if you have a high income and are subject to a higher tax rate. For example, if you have a gross income of $50,000 and are eligible for the extra standard deduction, your taxable income may be reduced to $48,710, resulting in lower taxes owed to the state. [2]
Who is Eligible for the Nebraska Extra Standard Deduction?
To be eligible for the Nebraska Extra Standard Deduction, you must be a resident of the state and meet certain age or income requirements. Here are the eligibility criteria:
You must be 65 years old or older (or blind) to be eligible for the Nebraska Extra Standard Deduction.
You must not be a nonresident or part-year resident of Nebraska.
Additionally, you must have resided in Nebraska for at least six months of the tax year.
Filing Requirements for the Nebraska Extra Standard Deduction
When filing your tax return for Nebraska, you’ll need to report the extra standard deduction on Form 259. This form is used to claim various state-specific deductions and credits, including the Nebraska Extra Standard Deduction. Here’s what you need to do:
When filing your individual tax return, complete Form 259 and claim the Nebraska Extra Standard Deduction by entering the amount of $1,290 (for singles) or $1,540 (for joint filers) on the line specified for the extra standard deduction.
Make sure to attach a copy of your tax return to the Form 259 to ensure that you receive the correct amount of tax refund or reduced tax liability.
Frequently Asked Questions (FAQs)
How do I claim the Nebraska Extra Standard Deduction?
To claim the Nebraska Extra Standard Deduction, you’ll need to complete Form 259 and attach a copy of your tax return to the form. The extra standard deduction amount will be subtracted from your gross income to reduce your taxable income.
Can I claim the Nebraska Extra Standard Deduction if I’m 60 years old?
No, you must be 65 years old or older (or blind) to be eligible for the Nebraska Extra Standard Deduction. If you’re 60 years old, you may be eligible for other deductions and credits, but you won’t qualify for this specific tax benefit.
