Determining Income Tax Withholding on Wages Paid to A Nebraska Resident -- When Other States' Withholding Applies

005.01 If an employer is required to withhold Nebraska income tax pursuant to Reg-21-001, all wages paid to a resident of Nebraska are subject to withholding even if some or all of his or her work for which the wages are paid was performed outside Nebraska. 005.02 If an employer is required to deduct and withhold income taxes of other states, political subdivisions of other states, or the District of Columbia, from wages paid to a resident of Nebraska, the employer must deduct and withhold the amount of Nebraska income tax withholding determined under these regulations minus the amount required to be deducted and withheld from those wages under the laws, rules, and regulations of another state, political subdivision of another state, or the District of Columbia. Examples: 005.02A If a Nebraska resident is paid $1,000 per week by an employer who is required to deduct and withhold both Nebraska and Kansas income taxes from these wages, and the amount of income tax required to be withheld is $20 for Nebraska and $12.50 for Kansas, the amount of Nebraska tax required to be deducted and withheld is $7.50. 005.02B If a Nebraska resident is paid $1,000 per week by an employer who is required to deduct and withhold both Nebraska and Iowa income taxes from these wages and the amount of income tax required to be withheld is $20 for Nebraska and $25 for Iowa, no Nebraska income tax withholding is required. (Neb. Rev. Stat. §§ 77-2753, and 77-2790. October 26, 2014.)