How Much Is Unemployment in Nebraska?

Unemployment benefits in Nebraska provide a temporary financial bridge for eligible workers who lose their jobs through no fault of their own. These weekly payments help individuals manage finances while seeking new employment. They are funded through employer contributions, not employee paychecks.

Qualifying for Unemployment Benefits

To qualify for unemployment benefits in Nebraska, individuals must satisfy specific criteria. A requirement involves meeting monetary thresholds based on past earnings. The Nebraska Department of Labor (NDOL) assesses wages earned during a “base period,” which refers to the first four of the last five completed calendar quarters before a claim is filed. For 2025, an applicant must have earned at least $5,297 in total wages during this base period. Additionally, specific earnings within the base period are required, including at least $1,850 in one quarter and $800 in another quarter, all from employers who pay unemployment taxes (insured employment).

The reason for job separation is a significant factor in determining eligibility. Benefits are available to those unemployed due to circumstances beyond their control, such as layoffs or reductions in force. Conversely, individuals who voluntarily quit their jobs without good cause, or are terminated due to misconduct, are disqualified from receiving benefits. Good cause for quitting may include work-related reasons like unsafe conditions or personal reasons such as domestic violence.

Beyond monetary and separation requirements, claimants must meet ongoing eligibility criteria, demonstrating ability and availability to work. This includes being physically and mentally capable of employment and legally authorized to work in the United States. Claimants are also required to actively seek new employment each week, typically by making at least two job contacts and engaging in a total of five reemployment activities, which must be logged online through NEworks.nebraska.gov. Failure to meet these work search requirements can result in disqualification.

Determining Your Weekly Benefit Amount

The weekly benefit amount (WBA) in Nebraska is calculated based on an individual’s earnings during their base period. If wages in the standard base period are insufficient, an alternative base period, usually the last four completed calendar quarters, may be considered.

The Nebraska Department of Labor determines the WBA by identifying the calendar quarter in the base period with the most wages. This highest quarter wage is divided by 13 to find the average weekly wage, then divided by two and rounded down to the next even dollar amount to establish the weekly benefit. For example, if the highest earning quarter was $9,000, the WBA would be $346.

The state sets both minimum and maximum weekly benefit amounts. As of 2025, the maximum weekly benefit amount in Nebraska is $564. Historically, the minimum weekly benefit has been around $70. If an individual’s calculated weekly benefit amount exceeds the state maximum, they will receive the maximum allowable amount.

Understanding Your Total Benefit Amount and Duration

The total amount and duration of unemployment benefits in Nebraska link to the weekly benefit amount and past earnings. Eligible individuals can receive benefits for a maximum of 26 weeks within a 12-month period. The total benefit amount (TBA) for a claim’s benefit year is either 26 times the weekly benefit amount or one-third of the total base period wages, whichever is less.

While receiving benefits, any earnings from part-time work or other income sources can reduce the weekly payment. The Nebraska Department of Labor considers various income types, including wages, workers’ compensation, vacation pay, pensions, and severance pay, which may reduce benefits. For example, if a claimant earns income while on unemployment, Nebraska may disregard an amount equal to one-half of their weekly benefit; earnings beyond that threshold reduce the benefit dollar-for-dollar. Claimants are required to report any wages earned during the week, even if payment is not immediately received.

In periods of high unemployment, federal law may allow for extended benefits beyond the standard 26 weeks. These extensions, ranging from 13 to 20 weeks, provide additional support to individuals who have exhausted regular benefits. However, extended benefits are contingent on specific economic indicators and federal programs, and Nebraska’s participation can vary.

Tax Implications of Unemployment Benefits

Unemployment benefits received are subject to taxation at both the federal and state levels. The Internal Revenue Service (IRS) considers unemployment compensation taxable income, which must be included in an individual’s gross income when filing federal tax returns. Nebraska also considers unemployment benefits taxable income at the state level.

To facilitate tax reporting, the Nebraska Department of Labor issues IRS Form 1099-G to benefit recipients. This form details the total unemployment benefits paid during the prior calendar year and any federal or state income taxes withheld. Recipients can access and print their Form 1099-G online through the NEworks.nebraska.gov system.

Claimants have the option to elect for income tax withholding from their weekly unemployment benefit payments. This can help avoid a large tax liability at the end of the tax year. Individuals can request, stop, or change their tax withholding elections by logging into their account on the NEworks website.