NE restores personal exemptions, sets standard deductions

Nebraska Governor Pete Ricketts has signed legislation that, among other things, restores the personal exemption credit that was eliminated in the Tax Cuts and Jobs Act (TCJA). It also establishes the Nebraska standard deduction at $6,750 for single taxpayers, $13,500 for married, filing jointly taxpayers, and $9,900 for head of household filers, effective for tax years beginning January 1, 2018. Additionally, under the TCJA the federal method of indexing for inflation was changed from the traditional Consumer Price Index (CPI) measure to Chained CPI. The Nebraska law adjusts the individual income tax brackets, the personal exemption credit, and the standard deduction based upon the traditional CPI method. (L.B. 1090, approved April 18, 2018, effective as noted above.)

Visit our News Library to read more news stories.