If a Nebraska S corp tax return is filed with no income allocated to the state, it will reject with code F1120SN-0006:
Reject Code: F1120SN-0006
If Schedule I is not present, IncReportedNeAmt (line5) must be equal to NEAdjIncomeAmt (line 4)
If the income allocated to Nebraska is less than 100%, Schedule I, Apportionment for Multistate Business needs to be completed. A return getting this reject includes Schedule I but has no sales or gross receipts allocated to Nebraska.
If there is no income allocated to Nebraska, the return will need to be filed in paper form.
If the income is 100% Nebraska income, then Schedule I isn't needed and should be removed.
To allocate income to Nebraska, from the NE 1120S-N Menu select:
- Income Reported to Nebraska
- Nebraska Apportionment Factor - For each category of income, enter the total for all states and the total allocated to Nebraska, if any.
To remove Schedule I, in the "NE Apportionment Menu" select Remove apportionment schedule.
Additional Information: