This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (Department) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of the Department and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.This guidance document may change with updated information or added examples. The Department recommends you do not print this document. Instead, sign up for the subscription service at revenue.nebraska.gov to get updates on your topics of interest.
How should the credit for prior year minimum tax computed for a taxpayer’s 2013 U.S. Individual Income Tax Return, Federal Form 1040, be recalculated to compute the Nebraska tax credit?
The federal credit for prior year minimum tax must be recomputed using the adjustments required by Neb. Rev. Stat. § 77-2715(2). This allows for the computation of items which are reflected differently in the determination of federal taxable income for Nebraska purposes. This applies to any federal schedules or other forms, the results of which are used in calculating the federal alternative minimum tax.
The specific line entries and the required adjustments in recomputing the credit for prior year minimum tax for the 2013 Nebraska Individual Income Tax Return, Form 1040N, are provided below. Recalculate all total or computational lines to reflect adjustments made pursuant to this ruling.
If you have a 2013 tax year alternative minimum tax liability, a credit for prior year alternative minimum tax is not allowed.
Use the amounts from the 2012 Federal Form 6251 (Alternative Minimum Tax - Individuals) recomputed pursuant to Revenue Ruling 22-12-1 on all lines referencing the 2012 Federal Form 6251.
2013 Federal Form 8801 (Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts):
Part I —
Follow federal instructions to recompute the net minimum tax on exclusion items through line 15 of the 2013 Federal Form 8801.
Part II —
Multiply the amount on line 25 of the recomputed 2013 Federal Form 8801 by 29.6% (.2960). Enter this result on the Nebraska Individual Income Tax Return, Form 1040N, as follows:
(a) Full-year residents must enter the result on line 20b.
(b) Partial-year residents and nonresidents must write in the phrase “AMT Credit” on line 82d, Nebraska Schedule III, and include the result on line 82e, Nebraska Schedule III.
The Nebraska Minimum Tax Credit is a nonrefundable credit.
The recomputed Federal Form 8801 must be attached to the 2013 Nebraska Individual Income Tax Return, Form 1040N, when filed.
The Nebraska Minimum Tax Credit is eliminated by enactment of LB 308 (2013) beginning for tax year 2014.
February 6, 2014