Nebraska Beneficiary's Share of Income, Deductions, Modifications, and Credits

Beneficiary's Share of Income, Deductions, Modifications, and Credits
Form 1041N-K-1N
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Form 1041N
Schedule K-1N

Nebraska Schedule K-1N —

Beneficiary’s Share of Income, Deductions, Modifications, and Credits
Estate’s or Trust’s Name and Mailing Address

2025

Beneficiary’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	

Nebraska ID Number	

Federal ID Number	

ZIP Code	

Taxable Year of Organization		

City	

State	

ZIP Code

Nebraska ID Number	

Federal ID Number	

Social Security Number	

Spouse’s Social Security Number

	 Beginning _________________ , 20 _____ and Ending _________________ , 20 _____
	 If applicable, check the appropriate box:						
Final	

Amended

Check One:
Resident Individual	

Nonresident Individual	

Estate or Trust

Other (describe) ___________________________________________________

Is the taxpayer a foreign adversarial company or claiming credits from a business that is, or is owned in whole or part, by a foreign
adversarial company? Do not include credits received from a foreign adversarial company or distribute credits if you are a foreign
adversarial company on lines 14 through 18, except for Code Q on line 16. Credits on lines 19 through 24, and Code Q reported on
line 16 may be received from a foreign adversarial company and a foreign adversarial company may distribute the credits.

Yes

No

(See instructions)

Part A- Beneficiary’s Share of Income and Deductions

1	 Ordinary business income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
	2	Net rental real estate income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	2
	3	Other rental income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	 3
	4	Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	4
	5	Ordinary dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	5
	6	Net short-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	6
	7	Net long-term capital gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	7		
	8	 Other income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	8
	9	Estate tax deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	9
	10	 Other deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	10
	11	 NE state and local income, sales and use taxes deducted under section 164 of the IRC
(from Schedules K-1N). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	11

Part B - Beneficiary’s Share of Modifications
	 12	 Qualified U.S. government interest deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	12
	13	 State and local bond interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	13
Part C - Beneficiary’s Share of Credits
	 14	 Community Development Assistance Act credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	 14
	15	 Creating High Impact Economic Futures (CHIEF) credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	 15	
	16	 Form 3800N credits (see Form 1041N Schedule K-1N instructions)
			
Code for 3800N and Certified Certificate Number
Amount of 3800N credit
Credits
or Certified Credit
$
$
Total of 3800N and certified credits (Enter total here and on line 16)

$

				16
17	 Employer’s credit for expenses incurred for TANF (ADC) recipients (see instructions)		 17
	18	 NE employer tax credit for employing convicted felons.
Enter certificate number from Form ETC-A____________________ . . . . . . . . . . . . . . . . . . . . . .  	18
	19	 Nebraska income tax withholding (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	19
	20	 Total PTET credit (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
		
a 2018 $_________________ b 2019 $_________________ c 2020 $_________________
		
d 2021 $_________________ 	e 2022 $_________________ 	f 2025 $_________________		 20
	 21	 Child Care Tax Credit for contributors. Enter certificate number from CCTC-A________________		 21
	 22	 Opportunity Scholarships Act credit for contributors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		 22
	 23	 School Readiness Tax Credit for Providers. Enter certificate number________________. . . . . . . . 23
	24	 Nebraska Pregnancy Help Act Credit for contributors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
revenue.nebraska.gov, 800-742‑7474 (NE and IA), 402-471-5729
8-693-2025

Instructions
Purpose. The Nebraska Schedule K-1N is used by the estate or trust to report each beneficiary’s share of the entity’s Nebraska
income, deductions, modifications, and credits. The Nebraska Schedule K-1N is also used by each beneficiary to complete their
Nebraska tax return.
The estate or trust must provide a Nebraska Schedule K-1N to each beneficiary to whom the estate or trust is required to issue a
Federal Schedule K-1. A copy of every Nebraska Schedule K-1N must be submitted with the Form 1041N.
Enter the beneficiary’s share of the distributed Form 3800N credits. When estates or trusts issue Nebraska Schedules K-1N to
beneficiaries, they must also: complete distribution schedules such as Forms 775N, 312N, 1107N, 544N, and report the distributed
credit amount to the beneficiaries on line 16 of the Schedule K-1N. Include on the Schedule K-1N, line 16, the distributed credits
that have been certified prior to claiming on a Nebraska income tax return. The certificate number of the approved credit must be
entered for the following: Individuals with Intellectual and Developmental Disabilities Support Act - Employer credit (IIDDSA);
Nebraska Shortline Rail Modernization Act (NSR); Renewable Chemical Production (RCP); Nebraska Higher Blend Tax Credit
(HBTC); Nebraska Biodiesel Tax Credit (BDTC); and Cast and Crew Nebraska Act (CCNA). Use line 23 on the Schedule K-1N to
distribute the School Readiness Tax Credit for Providers.
Foreign Adversarial Company. Indicate whether or not the taxpayer is a foreign adversarial company or claiming credits
from a business that is, or is owned in whole or part, by a foreign adversarial company, as defined by Neb. Rev. Stat. §
77-3,114. A foreign adversarial company is ineligible to receive incentive benefits. Credits distributed from a foreign
adversarial company are ineligible for tax credit benefits.
If the answer is No, continue with the remainder of the form. If the answer is Yes because the taxpayer is a foreign adversarial
company, do not distribute credits on lines 14 through 18, except for Code Q on line 16.
If the answer is Yes because the taxpayer is claiming credits from a business that is, or is owned in whole or in part, by a
foreign adversarial company, you may not claim any credits distributed from the foreign adversarial company on lines 14
though 18, except for Code Q on line 16. Only enter credits distributed from entities that are not a foreign adversarial company
on lines 14 through 18. Failing to answer will result in denial or delay in processing the credits claimed.
Foreign adversarial company means a company that:
•
•
•
•

Is organized under the laws of a foreign adversary;
Has its principal place of business within a foreign adversary;
Is owned in whole or in part, operated, or controlled by the government of a foreign adversary; or
Is a subsidiary or parent of any company that meets any of the above criteria.

Foreign adversaries as defined under 15 C.F.R. 791.4, as such regulation existed on April 1, 2025 are:
•
•
•
•
•
•

The People’s Republic of China, including the Hong Kong Special Administrative Region and the Macau Special
Administrative Region (China);
Republic of Cuba (Cuba);
Islamic Republic of Iran (Iran);
Democratic People’s Republic of Korea (North Korea);
Russian Federation (Russia); and
Venezuelan politician Nicolás Maduro (Maduro Regime).

Note: The a foreign adversarial company prohibition does not apply to the Nebraska income tax withheld, contractor tax
withholding, or the PTET credit. The withholding and the PTET credits are not impacted by a relationship with a foreign
adversarial company and may be claimed if applicable as they represent payments made by the shareholder named on the
Schedule K-1N. Additional information can be found at Foreign Adversarial Company Notice.

Complete the Estate or Trust and Beneficiary Information
Nebraska ID Number. Enter the Nebraska ID number assigned to the estate or trust by DOR. If the estate or trust has not
been assigned a Nebraska ID number, leave this field blank. A Nebraska ID number will be assigned when the return is received.
DOR will mail notification of the assigned Nebraska ID number to the address shown on the return.
Federal ID Number. Enter the federal ID numbers assigned by the IRS to both the estate or trust and the beneficiary. If the
beneficiary is an individual, enter the individual’s Social Security number.
Taxable Year of Organization. Estates and trusts 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.

Part A – Beneficiary’s Share of Income and Deductions
Complete Part A, lines 1-11, to report the beneficiary’s share of the estate or trust’s income (loss) and deductions from Nebraska
sources.
Resident Individuals. The share of the income and deductions for a beneficiary who is a resident individual of Nebraska
comes directly from the Federal Schedule K-1. A beneficiary who is a Nebraska resident will be taxed by Nebraska on all of
his or her income from the estate or trust.
Nonresident Individuals. The share of income and deductions from Nebraska sources for a beneficiary who is a nonresident
individual is determined under Neb. Rev. Stat. § 77-2733. Income from Nebraska sources for a nonresident individual beneficiary
includes, but is not limited to:
1. Income from the ownership or disposition of real or tangible personal property in Nebraska;
2. Income earned from a business carried on in Nebraska;
3. Income from intangible personal property including annuities, dividends, interest, and gains from the disposition
of intangible personal property to the extent that the income is from a business carried on in Nebraska; and
4. Deductions for capital losses, net long term capital gains, and net operating losses that are based solely on
income and deductions derived from Nebraska sources.

Part B – Beneficiary’s Share of Modifications
Purpose. Complete Part B to report the beneficiary’s share of the income distributed by the estate or trust that modifies the
federal adjusted gross income or federal taxable income of the beneficiary.
Line 11. Enter the beneficiary’s share of the Nebraska and local income, sales, and use taxes deducted under section 164 of the
Internal Revenue Code (IRC) on the K-1Ns received from an electing partnership or S corporation.
Line 12. Qualified U.S. Government Interest Deduction. Enter the beneficiary’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 12, 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 12.
Line 13. State and Local Bond Interest and Dividend Income. Enter the beneficiary’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.

Part C – Beneficiary’s Share of Credits
Complete Part C to report the credits that were earned by the estate or trust and distributed to the beneficiaries. Do not
include credits received from a foreign adversarial company or distribute credits if you are a foreign adversarial company on
lines 14 through 18, except for Code Q on line 16. Credits on lines 19 through 24, and Code Q (Food Bank, Food Pantry,
Food Rescue Donation Tax Credit) reported on line 16 may be received from a foreign adversarial company and a foreign
adversarial company may distribute the credits. See FAC instruction section.
Line 14. Community Development Assistance Act (CDAA) Credit. Enter the beneficiary’s share of the
distributed CDAA credit reported on the Nebraska Community Development Assistance Act Credit Computation, Form
CDN, Part C.
Line 15. Creating High Impact Economic Futures (CHIEF) credit. Enter the beneficiary's share of the distributed
CHIEF credit reported on the Creating High Impact Economic Futures form received from the Nebraska Department of
Economic Development.

More detailed information on this credit can be obtained by contacting:
Nebraska Department of Economic Development
245 Fallbrook Blvd, Suite 002
Lincoln, NE 68521
opportunity.nebraska.gov

Line 16. Form 3800N and Certified Credit. From the following codes (Codes A through Q), enter the code and amount
of the beneficiary's share of the distributed Form 3800N and certified credits. When estates or trusts issue Nebraska Schedules K-1N to beneficiaries, they must also: complete distribution schedules such as the Forms 775N, 312N, 1107N, 544N,
and report the distributed credit amount to the beneficiary on line 16 of the Schedule K-1N. The certified credits listed below
with an asterisk do not require a distribution schedule to be completed but require the certificate number to be entered. Do not
enter the distributed School Readiness Tax Credit - for Providers on line 16, see line 23 instructions. An amount entered for
the Nebraska Historic Tax Credit does not entitle the beneficiary to claim the credit. Rather, the beneficiary must be issued a
NHTC certificate by DOR before any credit will be allowed. For additional information, see our website.
		
Code A .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 Employment and Investment Growth Act
Code B. . . . . . . . . . . . . . . 	 Nebraska Advantage Act
Code C .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 Nebraska Advantage Rural Development Act
Code D .  .  .  .  .  .  .  .  .  .  .  .  .  . Nebraska Advantage Research and Development Act
Code E. . . . . . . . . . . . . . . 	 New Markets Tax Credit
Code F. . . . . . . . . . . . . . . 	 Nebraska Historic Tax Credit
Code G .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 ImagiNE Nebraska Act
Code H .  .  .  .  .  .  .  .  .  .  .  .  .  . Urban Redevelopment Act
Code I.  .  .  .  .  .  .  .  .  .  .  .  .  .  . Renewable Chemical Production Tax Credit Act
*Code J.  .  .  .  .  .  .  .  .  .  .  .  .  .  . Nebraska Higher Blend Tax Credit Act
Code K .  .  .  .  .  .  .  .  .  .  .  .  .  . Affordable Housing Tax Credit
*Code L .  .  .  .  .  .  .  .  .  .  .  .  .  . Biodiesel Tax Credit
*Code M.  .  .  .  .  .  .  .  .  .  .  .  .  . 	 Individuals with Intellectual and Developmental Disabilities Support Act
*Code N .  .  .  .  .  .  .  .  .  .  .  .  .  . Nebraska Shortline Rail Modernization Act
*Code O .  .  .  .  .  .  .  .  .  .  .  .  .  . Nebraska Relocation Incentive
*Code P .  .  .  .  .  .  .  .  .  .  .  .  .  . Cast and Crew Nebraska Act
*Code Q .  .  .  .  .  .  .  .  .  .  .  .  .  . Food Bank, Food Pantry, Food Rescue Donation Tax Credit
Line 17. Employer’s Credit for Expenses Incurred for TANF (ADC) Recipients. Enter the beneficiary’s share of the
distributed credit.
Line 18. Nebraska employer tax credit for employing convicted felons. Enter the beneficiary's share of the distributed
certified credit amount and certificate number from the Nebraska Employer Tax Credit Application for Employing Convicted Felons,
Form ETC-A. If approved for more than one certificate number, you must attach a schedule listing each certificate number and the
distributed amount.
Line 19. Nebraska Income Tax Withholding. Enter the amount from column (G), Schedule II, Form 1041N, that reflects
the income tax withholding remitted by the entity on behalf of the beneficiary. 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 1041N.
Line 20. PTET credit. Enter the beneficiary's share of the distributed credit for the PTET credit received from an electing
partnership or S corporation and indicate the year.
Line 21. Child Care Tax Credit for contributors. Enter the beneficiary's share of the distributed certified credit amount
and certificate number from the Child Care Tax Credit, Form CCTC-A. If approved for more than one certificate number, you
must attach a schedule listing each certificate number and the distributed amount.
Line 22. Opportunity Scholarships Act credit for contributors. Enter the beneficiary's share of the distributed amount
of the credit.
Line 23. School Readiness Tax Credit for Providers. Enter the beneficiary's share of the distributed amount of the tax
credit and the certificate number.
Line 24. Nebraska Pregnancy Help Act Credit for contributors. Enter the beneficiary's share of distributed amount of
the credit.