NebraskaNebraska proposal would let individuals subtract tips from taxable income
The proposal would let individuals subtract tip income included in their federal income when calculating Nebraska income tax for tax years beginning in 2025.
What it does
Individuals could subtract tip income included in their federal income when calculating Nebraska income tax.
Argument forIf adopted, the proposal could reduce the income that individuals with reported tip income use to calculate Nebraska income tax.
Argument againstFilers may have trouble deciding which income counts as tips because this provision does not explain what qualifies.
More detail
The proposal would let individuals subtract tip income from federal adjusted gross income when calculating Nebraska income tax. It covers individuals who receive tip income. Only tip income included in federal adjusted gross income could be subtracted. It would apply to tax years beginning on or after January 1, 2025.
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Where it stands
- Introduced
- Postponed indefinitely
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17Indefinitely postponedPostponed indefinitely
- Feb 18Spivey name added
- Jan 7Title printed. Carryover bill
- 2025
- Mar 5Notice of hearing for March 14, 2025
- Jan 15Fredrickson name added
- Jan 14Raybould name added
- Jan 13Referred to Revenue CommitteeMinor
- Jan 9Date of introductionIntroduced
Taxes & Budget