Federal tax changes will impact Nebraskans. There will be people who won’t be able to take much of a deduction on their state income taxes. Governor Pete Ricketts is working on ways to even that out so residents won’t be hit so hard in the pocketbook.
Ricketts says the federal tax plan is doing away with personal exemptions and going to a bigger standard deduction to simplify the process. However, Nebraska’s state code is tied to the federal and if they do nothing the result will be about a $200-million tax increase on Nebraskans. Ricketts says there is a fix-it bill, LB 1090, that increases the personal exemptions so residents won’t see that tax increase.
If that bill doesn’t pass an average family of four will see their taxes go up about $536 a year.
