Navigating Nebraska’s Tax Assistance Programs: Filing and Benefits

Navigating the complexities of tax filing can be challenging, but Nebraska offers a variety of resources to assist residents in understanding and fulfilling their tax obligations. This article provides an overview of Nebraska’s tax assistance programs, available benefits, and local resources to help you make the most of your tax experience.

Overview of Nebraska’s Tax System

Nebraska’s tax system comprises several key components:

State Sales Tax: The state imposes a sales tax of 5.5% on most tangible personal property and select services. (stateregstoday.com)
State Income Tax: Nebraska levies an individual income tax with rates ranging from 2.46% to 6.84%, depending on income brackets. (revenue.nebraska.gov)
Property Tax: While the Nebraska Constitution prohibits a property tax, local governments may impose property taxes to fund services.

Tax Assistance Programs in Nebraska

Nebraska offers several programs to assist residents with tax preparation and filing:

1. Volunteer Income Tax Assistance (VITA) Program

The VITA program provides free tax preparation services to individuals and families with low to moderate incomes, people with disabilities, non-English speakers, and older adults. Trained IRS-certified volunteers assist with filing both federal and state tax returns. To locate a VITA site near you, use the VITA Locator Tool. (revenue.nebraska.gov)

2. AARP Foundation Tax-Aide

AARP Foundation Tax-Aide offers free in-person and virtual tax assistance, focusing on taxpayers over 50 with low to moderate incomes. Volunteers are trained and IRS-certified annually to stay updated on tax code changes. To find a Tax-Aide site or request assistance, visit the AARP Foundation Tax-Aide website. (states.aarp.org)

3. Tax Credit Alliance of Nebraska (TCAN)

TCAN offers free tax preparation and support services across Nebraska through the VITA and Tax Counseling for the Elderly (TCE) programs. They serve individuals and families with low to moderate incomes, people with disabilities, non-filing households with children, English language learners, students, and older adults. For more information or to schedule an appointment, visit the TCAN website. (tcan.unl.edu)

4. Facilitated Self Assistance (FSA) Program

For those who prefer to file their taxes independently, the FSA program provides free access to online tax preparation software. If your household income is less than $84,000, you can use this service to file both federal and state returns at no cost. Assistance from an IRS-certified volunteer is available if you have questions along the way. To sign up, visit the TCAN FSA Program page. (tcan.unl.edu)

State Tax Benefits and Credits

Nebraska offers several tax benefits and credits to residents:

Property Tax Credit: Nebraska provides a refundable property tax credit to eligible residents. The credit amount is based on the property taxes paid on the primary residence. For more details, visit the Nebraska Department of Revenue’s Property Tax Credit page.
Child and Dependent Care Tax Credit: This credit assists working parents and guardians with the cost of child and dependent care. The credit amount is based on the taxpayer’s federal adjusted gross income and the amount spent on care.
Earned Income Tax Credit (EITC): Nebraska offers a state EITC, which is a refundable credit aimed at providing financial relief to low-income working individuals and families. The state EITC is a percentage of the federal EITC.

Local Resources and Contacts

For personalized assistance, consider reaching out to local resources:

Nebraska Department of Revenue: The state’s primary agency for tax information and assistance. Visit their official website or contact them at 301 Centennial Mall South, Lincoln, NE 68508. Phone: 402-471-5729.
Local Libraries and Community Centers: Many local libraries and community centers host tax assistance programs or can provide information on local resources. Contact your nearest library or community center for more details.

Conclusion

Navigating tax filing in Nebraska is made more manageable with the state’s array of assistance programs and resources. Whether you prefer in-person help, virtual assistance, or self-filing with guidance, Nebraska’s programs are designed to support you in fulfilling your tax obligations and maximizing available benefits.