Updated October 4, 2026. Quick answer: Yes, for Nebraska’s NEST plan. The program says the deduction is “up to $10,000 ($5,000 if married, filing separately)”, and “Contributions in excess of $10,000 cannot be carried over” to a later year.
What Nebraska allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Deduction (reduction of federal adjusted gross income) |
| Limit | $10,000 per return; $5,000 if married filing separately |
| Plans that qualify | Nebraska’s NEST plan (the Nebraska Educational Savings Plan Trust); no other state’s plan is listed |
| Carryforward | None: excess contributions cannot be carried over to a future year |
| Not-qualified withdrawals | Cancellation refunds and non-qualified withdrawals are added back to the extent previously deducted |
| Source | Neb. Rev. Stat. 77-2716; NEST Direct 529 tax benefits page |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into a NEST account for one child can deduct the whole $10,000, because the limit is $10,000 per return. Anything above that earns no deduction this year and cannot be carried over.
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When the deduction comes back
The statute adds back withdrawals “to the extent previously deducted under subdivision (8)(b) of this section”. The program page says a K-12 withdrawal “may result in the recapture of a previously claimed Nebraska” deduction.
What changes in 2026
No change for tax year 2026 appears in the documents read for this page.
Federal rules
A state break sits beside the federal rules for 529 plans: the statute is 26 U.S.C. 529 and the IRS explains it in Publication 970, Tax Benefits for Education.
Common mistakes
- Planning to carry an excess contribution into next year; the program says it cannot be carried over.
Related: how Nebraska taxes retirement income, whether Nebraska taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- Neb. Rev. Stat. 77-2716, Income tax modifications: https://nebraskalegislature.gov/laws/statutes.php?statute=77-2716
- Tax Benefits: NEST Direct 529 College Savings Plan: https://nest529.com/tax-benefits/
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.