Nebraska Pass-Through Entity Tax (PTET)
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General Information
An eligible partnership or S corporation may elect to be subject to Nebraska income tax for tax years beginning on and after January 1, 2018. Once the election is made for a tax year the election is irrevocable and binding on the pass-through entity (PTE) and its owners. This irrevocable election cannot be changed by amending a return.
Elections for any one of the tax years 2018-2022 were due on or before December 30, 2025. An entity that failed to make an election for tax years 2018-2022 prior to this deadline may not report or calculate 2018-2022 pass-through entity tax (PTET) on any future income tax returns and as such may not distribute any 2018-2022 PTET credit to its partners or shareholders.
IMPORTANT NOTICE: A PTE that has made the timely election for tax years 2018- 2022 but has not yet reported and calculated 2018-2022 PTET on their income tax returns for tax years 2025 or prior, must report, calculate, and pay their 2018-2022 PTET and pay the applicable tax on their 2026 income tax return. The PTET credit will not be allowed to partners or shareholders until the 2018-2022 PTET has been paid by the entity.
Current tax year elections can be made by either submitting the Pass-Through Entity Tax (PTET) Election for Tax Years After 2022, Form PTET-E, or by checking box 5 on the applicable income tax return. Remember box 5 must be checked on the return even if you submitted the Form PTET-E.
Neb. Rev. Stat. §§ 77-2727, 77-2730, 77-2734.01, and 77-2775
Forms
- Pass-Through Entity Tax (PTET) Election for Tax Years After 2022, Form PTET-E
- Partnerships can visit the Partnership Income Tax Forms webpage to access the following forms:
- Nebraska Partnership Estimated Income Tax Payment Vouchers for all years
- Schedule PTET - Partner's Share of Nebraska Pass-Through Entity Tax for all years
- S Corporations can visit the Corporation and S Corporation Income Tax Forms webpage to access the following forms:
- Nebraska Corporation Estimated Income Tax Payment Voucher for all years
- Schedule PTET - Shareholder's Share of Nebraska Pass-Through Entity Tax for all years
