Why Can’t I eFile Nebraska Taxes? Common Issues and Solutions

Filing taxes electronically is the fastest and most convenient option, but some Nebraska taxpayers may encounter issues that prevent them from e-filing. These problems can stem from eligibility restrictions, missing documents, or errors in submission, leading to delays.

Understanding why your Nebraska tax return cannot be e-filed can help resolve the issue and avoid penalties or processing setbacks.

Eligibility Criteria

Not all Nebraska taxpayers qualify for electronic filing due to restrictions based on income sources, filing status, and certain tax credits or deductions. The Nebraska Department of Revenue’s e-file system does not support some tax situations, such as claiming the Nebraska Community Development Assistance Act Credit, which requires additional documentation and may necessitate a paper return.

Certain income types can also prevent e-filing. If you earned income in multiple states and need to file a Nebraska nonresident or part-year resident return, the system may not accommodate the complexity. Farm or business income reported on federal Schedule F or Schedule C may also be restricted, depending on deductions and adjustments claimed.

Married taxpayers filing separately often face e-filing restrictions, particularly if they have shared deductions or credits requiring additional verification. If your return includes a Net Operating Loss (NOL) carryforward or carryback, you may need to file a paper return due to the complexity of calculating and verifying the loss.

Documents and Data Needed

A common reason for e-file rejection is incorrect or incomplete personal identification details. The Nebraska Department of Revenue requires your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) to match IRS records. Mismatches due to a name change, data entry error, or outdated records can lead to rejection. Verifying this information beforehand helps prevent delays.

Accurate income documentation is also essential. While most taxpayers rely on W-2 forms, those with additional income sources—such as interest, dividends, or retirement distributions—must ensure they have all relevant 1099 forms. Nebraska requires state tax returns to match federal filings, so discrepancies may trigger an error. If you received unemployment benefits, you need Form 1099-G from the Nebraska Department of Labor.

Deductions and credits often require supporting documentation. Claiming the Nebraska Property Tax Incentive Credit, for instance, requires records of property taxes paid, typically found on your county treasurer’s statement. Education-related deductions may require Form 1098-T from an educational institution, along with proof of qualified expenses. Missing or incorrect documentation can lead to e-file rejection, requiring a paper submission.

Filing Process

Submitting a Nebraska tax return electronically starts with selecting the right filing method. The Nebraska Department of Revenue offers NebFile for simple individual returns, while more complex filings typically require third-party tax software. NebFile has eligibility restrictions, so taxpayers with detailed returns often use IRS-authorized e-file providers that integrate state and federal submissions.

Once you choose a platform, entering tax information accurately is essential. Most software programs import federal return data automatically, reducing manual entry errors. However, Nebraska-specific adjustments—such as retirement income exclusions or use tax on online purchases—must be reviewed carefully. Errors in these sections can cause discrepancies between federal and state filings, leading to rejection.

Before submission, the system checks for missing fields, incorrect calculations, or inconsistencies between federal and state data. Common issues that prevent successful submission include incorrect bank routing numbers for direct deposit refunds, misreported estimated tax payments, or missing state-specific schedules. If an error is detected, the system provides an explanation and allows corrections before resubmission. Addressing these issues promptly reduces the likelihood of rejection.

Deadlines and Extension Procedures

Nebraska state tax returns are due on April 15, aligning with the federal deadline unless it falls on a weekend or holiday, in which case the deadline shifts to the next business day. Missing this deadline can result in penalties and interest charges. The Nebraska Department of Revenue imposes a late payment penalty of 5% of the unpaid tax if the return is filed on time but the payment is late. If both the return and payment are late, the penalty increases to 10%. Interest accrues at a rate set annually by the state, currently 6% for 2024.

For taxpayers unable to file by the deadline, Nebraska allows an automatic extension to October 15, but this applies only to filing, not payment. Any unpaid tax must still be estimated and paid by April 15 to avoid penalties. Nebraska grants this extension automatically if a federal extension has been filed or if at least 90% of the expected state tax liability is paid by the original due date.

Verification of Submission

After e-filing, confirming that your return has been received and processed is important. Most e-filing platforms, including NebFile and third-party tax software, generate an immediate confirmation notice upon successful transmission. This confirmation includes a submission ID or tracking number, which should be saved for reference.

Taxpayers can check their return status through the Nebraska Department of Revenue’s online tracking tool. This system shows whether the return has been accepted, is under review, or has been processed for a refund. If a return is rejected, the tracking tool often provides a reason, such as mismatched personal information or missing attachments. Addressing these issues quickly can prevent further delays.

For those expecting a refund, processing times typically range from two to four weeks for e-filed returns. If a refund is delayed beyond this window, contacting the Nebraska Department of Revenue may be necessary to resolve outstanding issues.