Is state sales tax paid throughout the year deductible on income taxes in Nebraska?

This is a federal-only deduction if you itemize using Sched A. However, if your income taxes paid to Nebraska are higher in 2006, you may wish to use this as your deduction instead. You are free to choose, but typically you use the higher of income tax paid or sales tax.

--A Damn Fine Tax Advisor

On your federal return, if you itemize, you have a choice of deducting state and local income taxes, or sales tax paid. In most cases, if you live in a state that has a state income tax, taking the state and local tax option gives you a larger deduction, but look at both to be sure.

It's a legitimate deduction on the federal form, if you're itemizing, but I'm not sure about the state one. However, usually the amounts from the federal one carry to the state tax returns.