Virtual Assistant Taxes in Nebraska - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Virtual Assistant in Nebraska

The Cornhusker State offers a growing landscape for remote professionals, and as a Virtual Assistant in Nebraska, understanding your tax obligations is crucial for financial success.

As a self-employed individual, the federal government requires reporting all business income and expenses on Schedule C (Profit or Loss From Business) with your Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions.

How Nebraska Handles Gig Worker Taxes

As a resident of Nebraska, a state income tax return is generally required, even if your income is solely from out-of-state sources. Nebraska utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Nebraska’s income tax rates are expected to remain consistent with prior years, though it’s always best to confirm with the Nebraska Department of Revenue. The primary form for self-employed individuals to report income and calculate tax liability is Form 1040-N, Nebraska Individual Income Tax Return.

Nebraska also allows for itemized deductions mirroring many federal deductions, potentially reducing your overall tax burden. Estimated tax payments are typically required quarterly if you anticipate owing $1,000 or more in Nebraska income tax. Failing to make timely estimated payments can result in penalties. The Nebraska Department of Revenue provides resources and tools to help calculate estimated taxes and make payments online. It’s important to note that Nebraska offers a standard deduction, which may be more beneficial than itemizing depending on your individual circumstances. Keep meticulous records of all income and expenses to accurately complete your Nebraska tax return.

For more information and resources, please visit the Nebraska Department of Revenue: https://revenue.nebraska.gov/

Key Tax Deductions for Home-Based Virtual Assistants

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is only used for your virtual assistant work. “Regular use” implies consistent and frequent use for business purposes. Taxpayers can choose between the simplified method (a standard rate of $5 per square foot, up to 300 square feet) or the actual expense method, calculating deductions for mortgage interest, rent, utilities, and depreciation.
• Hardware & Software: The cost of essential hardware, such as computers, webcams, and printers, is generally deductible. Software subscriptions vital to your business, including programs like Adobe Creative Cloud, project management tools, and website hosting fees, are also deductible expenses.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Accurate record-keeping is essential to substantiate this percentage.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, any travel directly related to your business – such as client meetings or trips to purchase supplies – can be claimed using the standard mileage rate or actual expenses.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when working for a traditional employer. Remember, half of the self-employment tax is deductible from your gross income.