Often when we talk of tax law changes the focus is on Federal law. Periodically, there are changes on a state level that are important as well but may go un-noticed except to people like your tax professionals.
We’d like to alert you to some 2013 Nebraska Legislative Changes that may benefit you. Some highlights of these changes include:
- Nebraska College Savings Plan – the maximum contribution amount that can be excluded from Nebraska income tax has increased from $5,000 to $10,000
- Nebraska College Savings Plan – a qualified rollover from another state’s plan can qualify for the contribution deduction
- Elimination of Alternative Minimum Tax – Nebraska AMT was repealed for Nebraska individuals and estates and trusts
- Net Operating Loss Carryforward – A net operating loss may be carried forward for 20 years, up from the 5 year carryforward that existed for Nebraska for many years. This extension puts the Nebraska carryforward on the same schedule as the Federal carryforward.
It is important to note that these changes are effective January 1, 2014 and will not affect the 2013 tax returns being filed over the next few months.