Question for NE preparers

[elfling]

We have a couple in our PA clientele who are choosing to move to NE to be closer to family. She works retail, part time. He is age 61, retired collecting military pension. She asked me to find out if the pension will be taxed in NE. It is exempt in PA.

Although I have pulled up the NE Dept of Rev info on the web and the instructions for a NE 1040N I am not finding anywhere that states solidy yes or no. A trial run of a NE return using this year's figures looks as though the pension is fully taxed. If that is the case, this couple is thinking ahead and will opt for state tax to be withheld from the pension when they relocate.

So I'm asking for NE preparer input, please.

Thanks!!

[DougO]

Presently Nebraskas does not provide any exemption for military pensions, it is fully taxable. Wish it was not so but every time it comes up in the legislature it is beat down or tabled.

DougO

[elfling]

Thank you, DougO!

[DougO]

Thank you, DougO!

You are most welcome. Wish I could have provided better news for them on the state taxes. What part of NE are they moving to?

DougO

[elfling]

You are most welcome. Wish I could have provided better news for them on the state taxes. What part of NE are they moving to?

DougO

Hi Doug,

The Merluzzi's found a townhouse in Lincoln and had their daughter check it out for them. They plan to fly out this weekend to see it in person and most likely close the deal. The hope is to be moved by the end of March. He will start having NE tax withheld at that point. These two are definitely planners. Wish more people were. I don't like being the bearer of bad news when someone owes because they failed to look at tax issues in advance.

Elfling