The following is being issued to announce a Nebraska Supreme Court decision that impacts Nebraska individual income tax this year and in future years:
On Friday, August 3, 2012, the Nebraska Supreme Court ruled the Nebraska Campaign Finance Limitation Act unconstitutional. The result is that, effective immediately, taxpayers can no longer donate a portion of their income tax refund to the Nebraska Campaign Finance Contribution Fund on Form 1040N, line 43. Returns reporting an amount on Form 1040N, line 43 will still be accepted, however, any amount included in this line will be reduced to zero and the same amount will be added to the refund. Beginning with tax year 2012, the Nebraska Campaign Finance Contribution Fund will be eliminated from the Form 1040N completely.