Electronic funds transfer (EFT) is the movement of value (or funds) between financial institutions through the Federal Reserve's Automated Clearing House (ACH) system. EFT is NOT a way to file your return electronically - only a change in the way you make your tax payments.
Most EFT payments are voluntary; however, taxpayers with annual payments in excess of statutory thresholds are mandated to make EFT payments. If you are mandated, you will receive written notification.
Nebraska currently accepts EFT payments for the following tax programs: state income tax withholding, state sales and use taxes, state retailer's use tax, state corporate income tax, and state motor fuels excise taxes.
All monthly or quarterly filers are eligible to make EFT payments; however, annual sales and use tax filers are not.
Telefile for Sales and Use tax zero-liability returns for annual filers;
Internet filing for Sales and Use tax monthly or quarterly filers;
Internet filing for Withholding tax quarterly and annual filers; and
EDI filing for Motor Fuels Excise taxes.
If you use one of these alternative filing methods, you no longer need to file the corresponding paper return.
Nebraska offers two automated payment methods:
ACH Debit: You set up a bank account (or use an existing account) from which the state can withdraw ("debit") funds at your direction, in the amount and on the date that you specify through a telephone call or over the Internet.
ACH Credit: You, or your financial institution, must use computer software to create an electronic file in the appropriate ACH file format, and submit this file to the Federal Reserve. This file instructs your bank to "credit" the state's bank.
If you are already making ACH Credit payments to other taxing authorities, and you are able to do so using the ACH CCD+ Addendum format, then it may be easiest for you to also make Nebraska tax payments the same way.
If you do not have access to the needed software to create ACH Credit payments in the required ACH CCD+ Addendum format, the ACH Debit option may be best for you. In most cases, ACH Debit is less expensive and more accurate. Most bank transaction fees and the cost for reporting by telephone or over the Internet under the ACH Debit option are free.
No. The Nebraska Department of Revenue does not accept federal wire transfers (fedwires) for tax payments. If you discover late on the due date that you have not made arrangements for your EFT transfer, mail us a check with a typed or hand-written statement indicating what tax is being paid, your Nebraska ID number, the amount remitted, and the period ending date. Your check needs to be postmarked by midnight of the due date to be timely.
Yes. Tax payments can be made by credit card. No registration is required. Credit card payments are originated through Official Payments Corporation (OPC), by telephone or directly over the Internet. Eligible credit cards include VISA, MasterCard, American Express, and Discover. A 2.49% convenience fee, assessed on the amount of tax paid, is charged by OPC. To initiate these payments, call 1-800-2PAY-TAX, or link to OPC by clicking here.
If you discover late on the due date that you have not made arrangements for your EFT payment, your choices are to make payment by credit card, by check, or by money order. If you are mandated to pay by EFT, and you pay by check or money order, you will be assessed a penalty of $100. If you mail in your payment, provide a typed or handwritten statement indicating what tax is being paid, your Nebraska ID number, the amount remitted, and the tax period end date. Your check or money order must be postmarked by midnight of the due date to be timely. Credit card payment transactions must be completed by midnight on the due date to be timely.
For the Debit option, you instruct the system to transmit your EFT payment by indicating a Scheduled Payment Date during your telephone call or on your computer. The Scheduled Payment Date is the date you want your EFT payment debited from your bank account. Note that your Scheduled Payment Date must be a future business date. The Scheduled Payment Date cannot be the same day that you place your call or submit your payment on your computer. You can initiate your payment on the Timely Filed Date, as long as you successfully complete your call or submit your computer-generated payment before 5:00 p.m. Central Time. You can initiate your payment in advance, any time up to one year prior to the Timely Filed Date. This eliminates the need to wait until the last minute to schedule your payment.
Reference the Nebraska Electronic Reporting Schedule for a list of Timely Filed Dates. It is always recommended to initiate your tax payment at least one day in advance of the tax due date to allow time for corrections should they be necessary. The date for timely payment is based on when your EFT payment is initiated, not the date funds are actually debited from your bank account.
For the Credit payment option, your financial institution must successfully send your payment to the Federal Reserve on or before the Timely Filed Date. Those taxpayers using the ACH Credit option should contact their financial institutions to verify cutoff times for these transfers.
Regardless of which payment method you choose, if a tax due date falls on a weekend or a legal holiday, the Timely Filed Date becomes the next state business day. If you are using the ACH Debit option, you must complete your call no later than 5:00 p.m. Central Time on the timely filed date, and indicate your Scheduled Payment Date to be the following day.
Nebraska Withholding:
Under the EFT program, if you are making monthly withholding deposits, you will no longer need to file Nebraska 501N. You will still need to file your quarterly Form 941N and your annual W-3N. Form 941N is now available for filing via the Internet. Using this option will eliminate the need to mail in your Form 941N; however, your final W-3N reconciliation form must still be mailed to the department.
Sales and Use Tax/Retailer's Use Tax:
If you use EFT to pay state sales and use taxes, you will still need to file monthly or quarterly Nebraska Forms 10.
Using the Internet sales and use tax filing method will eliminate the need to mail in your monthly or quarterly Nebraska Form 10. For more information about this filing option, CLICK HERE.
Corporate Income Tax:
If you are paying corporate estimated income tax, you will no longer need to file Nebraska Form 1120N-ES with your remittance; however, you will still need to file your annual Form 1120N or 1120NF return. If you apply for an automatic extension of time, you will still need to file a Form 7004N.
Motor Fuels Excise Taxes:
If you are paying state motor fuels excise taxes, you will still need to file your monthly and quarterly electronic (EDI) tax returns.
If you are using ACH Debit, you will receive a confirmation number at the end of your successfully completed telephone call or computer payment submission. If you are using ACH Credit, you must contact your bank or other ACH provider to confirm the funds transfer.
With the exception of certain motor fuels tax programs, all amended tax returns must be submitted on paper forms. For withholding tax and sales and use tax, contact the Taxpayer Assistance line at 1-800-742-7474 (in Nebraska and Iowa) to request that an amended form be mailed to you. If you are calling from outside Nebraska or Iowa, call 402-471-5729. For motor fuels excise taxes, contact your Motor Fuels Account Representative or the Motor Fuels Taxpayer Assistance line at 1-800-554-3835.
With all taxes under this program, if there is a balance due on your amended return, you can make your amended tax payment using EFT, however, your amended return must be mailed to the department.
If you pay by EFT, you must still file your tax return showing zero liability. It is not necessary to initiate a zero-dollar EFT transfer.
No. Regardless of the EFT payment method you choose, you must submit a separate record for each type of tax paid and for each tax period. With the EFT Debit option, you can report multiple tax payments in a single call or computer submission, but these result in separate records sent to the state.
The Nebraska Department of Revenue contracts with U.S. Bank to supply these EFT Debit data collection services.
No sign-up is necessary. There is no registration form needed to be sent in prior to making tax payments. However, to make business tax payments to us, you must be licensed to pay Nebraska taxes, have your Nebraska State Identification Number, and be paying a tax type that is supported in the Nebraska EFT program.
To pay your Nebraska individual income tax liability, you must select the EFT Debit option. Be sure to carefully enter your social security number into the E-Pay program, because if you enter an invalid number, you may not be properly credited for your payment.
Whether individual or corporate, if you are making an estimated tax payment, you must already be set up to make estimated payments to Nebraska. For instructions on how to begin making estimated tax payments, contact Nebraska Taxpayer Assistance at 1-800-742-7474 (in Nebraska and Iowa) or 1-402-471-5729.
No notification to the Department of Revenue is needed. If you are statutorily mandated to remit payments by EFT, you cannot make your payments by other methods (except by credit card) without penalty assessments.