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

Partner's Share of Income, Deductions, Modifications, and Credits
Form 1065N-Schedule-K-1N
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FORM 1065N
Schedule K-1N

Nebraska Schedule K-1N —

Partner’s Share of Income, Deductions, Modifications, and Credits

Partner’s Name and Mailing Address

Partnership’s Name and Mailing Address

2025

(If partner is a disregarded entity (DE), use beneficial owner information not DE’s).

Name Doing Business As (dba)		

Name

Legal Name		
Street or Other Mailing Address		

Street or Other Mailing Address

City	

State	

Check One:		
Partnership

ZIP Code	

LLC

Nebraska ID Number	

Federal ID Number	

	 Taxable Year of Organization
									

State	

Nebraska ID Number	

Federal ID Number	

Social Security Number	

Spouse’s Social Security Number

Check One:
Resident Individual	

	 Beginning _________________ , 20 _____ and Ending _________________ , 20 _____
Partnership’s Nebraska
Apportionment Factor

City	

Nebraska Receipts

Total Receipts	

	Partnership	

Nonresident Individual	
LLC	

Partner’s Share of Income Percentage

%							

ZIP Code

Estate or Trust

Corporation	

Other

If applicable, check the appropriate box:

%

Is the taxpayer a foreign adversarial company or distributing 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 19
through 21. Credits on lines 22 through 27 may be received from a foreign adversarial company and a foreign adversarial company may distribute the credits.

Final

Amended

Yes

No (See instructions)

Part A – Partner’s Share of Income and Deductions
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2
3
4
5
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8
9
10
11

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14

15
16
17
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20
21

Ordinary business income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net rental real estate income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Other net rental income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Guaranteed payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Ordinary dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net short-term capital gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net long-term capital gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net Section 1231 gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Other income (loss) (list below or attach schedule) __________________________________
			a		 List type:___________________________________________________________ 	 b Amount: $	
					 Total other income (loss). Enter total of lines 11b
Contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Section 179 deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Other deductions (list below or attach schedule)
			a		 List type:___________________________________________________________ 	 b Amount:$	
Total other deductions. Enter total of lines 14b
Nebraska and local income, sales, and use taxes deducted on Federal Form 1065 under section 164 of the IRC . . . . . . . . . . . . . . . . . . . .
Part B – Partner’s Share of Modifications
Qualified U.S. government interest deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
State and local bond interest and dividend income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Income (loss) from non-Nebraska sources (use only if you checked the LLC box above) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Part C – Partner’s Share of Credits
Community Development Assistance Act credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Creating High Impact Economic Futures (CHIEF) credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form 3800N and certified credits (see Form 1065N Schedule K-1N instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Code for 3800N and Certified Credits

Certificate Number (if applicable)

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2
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5
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7
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9
10

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13

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16
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19
20

Amount of 3800N or Certified Credit
$
$
$

Total of 3800N and certified credits (Enter here and on line 21)
22
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24

25
26
27

$

21

Contractor income tax withholding (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Nebraska income tax withheld (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Total PTET credit (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
		
a 2018 $ ________________ b 2019 $________________ c 2020 $________________

22
23

			d	2021 $ ________________ e 2022 $________________ f 2025 $________________
Opportunity Scholarships Act credit for contributors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
School Readiness Tax Credit for Providers. Enter certificate number ___________. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nebraska Pregnancy Help Act Credit for contributors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

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revenue.nebraska.gov, 800-742‑7474 (NE and IA), 402-471-5729

8-691-2025

Instructions
Purpose. The Nebraska Schedule K-1N is used by the partnership to report each partner’s share of the entity’s Nebraska income, deductions,
modifications, and credits. The Nebraska Schedule K-1N is also used by each partner to complete their Nebraska tax return.
The partnership must provide a Nebraska Schedule K-1N to each partner. A copy of every Nebraska Schedule K-1N must be submitted with
the Form 1065N.
Enter the partner’s share of the distributed Form 3800N credits. When partnerships and LLCs taxed as partnerships issue Nebraska Schedules
K-1N to partners, they must also: complete distribution schedules such as Forms 775N, 312N, 1107N, 544N and report the distributed credit
amount to the partners on line 21 of the Schedule K-1N. Include on the Schedule K-1N, line 21, 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 credits (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 26 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 19 through 21. 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 from the foreign adversarial company
on lines 19 through 21. Only enter credits from entities that are not a foreign adversarial company on lines 19 through 21. Failing to answer
will result in denial or delay in processing the distributed credits.
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: A foreign adversarial company related credits do not include 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 partner named on the Schedule K-1N. Additional information can be found at
Foreign Adversarial Company Notice.

Partnership and Partner Information
Nebraska ID Number. Enter the Nebraska ID number assigned to the partnership by DOR. The partnership's Nebraska ID number on the
Schedule K-1N and the Form 1065N must be the same. Refer to the Nebraska ID number instructions for Form 1065N.
Federal ID Number. Enter the Federal ID numbers assigned by the IRS to both the partnership and the partner.
Social Security Number. Enter the Social Security number of the partner who is an individual. If the partner is a DE whose beneficial
owner is an individual, enter the beneficial owner's Social Security number.
Taxable Year of Organization. Partnerships 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.
Partnership’s Nebraska Apportionment Factor. Enter the partnership’s Nebraska apportionment factor from line 15 of Schedule I,
Form 1065N.
Nebraska Receipts. Enter the partnership’s Nebraska receipts from line 14, Schedule I, Form 1065N in the Nebraska column.
Total Receipts. Enter the partnership's total receipts from line 14, Schedule I, Form 1065N in the Total column.
Partner’s Share of Income Percentage. Enter the partner’s share of income percentage from column (C), Schedule II, Form 1065N.
Convert the decimal shown on the Schedule II to a percentage before entering on the K-1N.

Part A – Partner’s Share of Income and Deductions
Complete Part A to report the partner’s share of the partnership’s income (loss) and deductions from Nebraska sources.
Lines 1-14. For partnerships that are only subject to income tax in Nebraska, the amounts entered on lines 1-14 will come directly from the
partner’s Federal Schedule K-1.
For partnerships that are subject to income tax in another state, the amounts entered on lines 1-14 will be the result of the Federal Schedule
K-1 amounts multiplied by the partnership’s Nebraska apportionment factor.
Line 15. Enter the partner's share of the Nebraska and local income, sales, and use taxes deducted on the 2025 Federal Form 1065 under section
164 of the IRC. This includes the Nebraska PTET deducted by the partnership.

Part B – Partner’s Share of Modifications
Complete Part B to report the partner’s share of the income distributed by the partnership that modifies the federal adjusted gross income or
federal taxable income of the partner. For partnerships that are only subject to income tax in Nebraska, the amounts entered on lines 16 and 17
will be the same as the amounts reported to the IRS.
For partnerships that are subject to income tax in another state, the amounts entered on lines 16 and 17 will be the result of the federal amounts
multiplied by the partnership’s Nebraska apportionment factor.
Line 16. Qualified U.S. Government Interest Deduction. Enter the partner’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 16, 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 16.
Line 17. State and Local Bond Interest and Dividend Income. Enter the partner’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 18. Income (Loss) from Non-Nebraska Sources. This line must be left blank by all partnerships that are not LLCs. The partner’s
share of the non-Nebraska income or (loss) is equal to the partner’s share of line 4, Form 1065N, minus the partner’s share of line 5, Form 1065N.

Part C – Partner’s Share of Credits
Complete Part C to report the credits that were earned by the partnership and distributed to the partners. Do not include credits received
from a foreign adversarial company or distribute credits if you are a foreign adversarial company on lines 19 through 21. Credits on lines 22
through 27 may be received from a foreign adversarial company and a foreign adversarial company may distribute the credits. See the
foreign adversarial company instruction section.
Line 19. Community Development Assistance Act (CDAA) Credit. Enter the partner’s share of the distributed CDAA credit reported
on the Nebraska Community Development Assistance Act Credit Computation, Form CDN, Part C.
Line 20. Creating High Impact Economic Futures (CHIEF) credit. Enter the partner's or member'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 21. Form 3800N and Certified Credits. From the following codes (Codes A through P), enter the code and amount of the partner's or
member's share of the distributed Form 3800N and certified credits. When partnerships and LLCs issue Nebraska Schedules K-1N to partners or
members, they must also: complete distribution schedules for Forms 775N, 312N, 1107N, 544N and report the distributed credit amount to the
partners or members on line 21 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 21, see line 26 instructions. An amount entered for the Nebraska Historic Tax Credit does not entitle the partner to claim the credit.
Rather, the partner 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 Act
*Code P. .  .  .  .  .  .  .  .  .  .  .  .  . Cast and Crew Nebraska Act
.