Hoping to make a tax credit contribution?

Nebraska taxpayers who want to support students in need of financial assistance to attend a school that works best for them are now offered a tax credit for contributions to Opportunity Scholarships of Nebraska (OSN)! Contributions made in 2024 can be claimed on your 2024 state income taxes.

Nebraska taxpayers with state income tax liability can claim up to 50% of their liability or $100K (or $1M for estates and trusts).

OSN will notify the Department of Revenue of the contribution and will send the taxpayer a contribution receipt.

If you would like assistance with this process, please contact us at givehope@nebraskaopportunity.org or call 402.205.7047. For all personal financial questions, please consult your tax professional.

What is an income tax credit?

A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the state income tax they owe. A taxpayer will subtract the credit amount from their state income tax liability. This can lower a tax payment or increase a tax refund. For example, if your total tax liability on your return is $1,000 but you claim a $500 tax credit, your net liability drops to $500.

Who can claim the Opportunity Scholarships Tax Credit?

These entities with state income tax liability can claim a nonrefundable tax credit for a contribution made to Opportunity Scholarships of Nebraska (OSN):

• Individuals

• Corporations

• S corps

• Estates and trusts

What if I give more than 50% of my state income tax liability.

If you give more than 50% of your 2024 liability, you can carry it over for up to 5 years. Even though the credit expires on October 31 of this year, the Dept of Revenue has stated it will honor the 5 year carryover provision (the second question on this page). 

So, if you contribute $10,000 to OSN this year, but you only end up with a $18,000 state income tax liability, you can claim 50%, or $9,000, for 2024 and claim the remaining $1000 in 2025.