North Dakota Individual Income Tax Return Booklet - Instructions and Tax Tables Only

Individual Income Tax Return Booklet - Instructions and Tax Tables Only
Individual Income Tax Booklet 2023
2023

NORTH DAKOTA

INDIVIDUAL
INCOME TAX
BOOKLET

FORM ND-EZ
FORM ND-1

TAX.ND.GOV
[email protected]

TAX COMMISSIONER
BRIAN KROSHUS

Contents
Refund of local sales tax.......................This page
Use tax requirement............................This page
Privacy Act information........................This page
Electronic filing and direct deposit options.......... 1
Changes for 2023........................................... 2
General instructions for all filers
	 Steps to completing your return.................... 4
	 Who must file a return................................. 4
	 Which form to use....................................... 6
	Reciprocity................................................. 6
	 When and where to file................................ 7
	 Extension of time to file............................... 7
	 Penalty and interest..................................... 7
	 Federal income tax return............................ 7
	 Changing your return................................... 7
	 Estimated tax requirement (for 2024)............ 8
	 How to file a return for a deceased taxpayer... 8
	 Disclosure notification.................................. 8
Instructions for Form ND-EZ............................ 9
	 Direct deposit of refund............................... 9

	 Balance due (payment options)................... 10
	 Before you file—tips for trouble-free filing..... 10
Instructions for Form ND-1............................ 11
	 Direct deposit of refund............................. 15
	 Balance due (payment options)................... 16
	 Before you file—tips for trouble-free filing..... 16
List of school district codes............................ 19
2023 Tax Table............................................. 20
How to assemble your
	 North Dakota return.................................. 29
Forms or assistance...................................... 30
Check the status of your refund...................... 30
Request a copy of your return
	 or other information.................................. 30

Taxpayer Bill of Rights
Obtain a copy of the North Dakota
Taxpayer Bill of Rights from our
website at www.tax.nd.gov

If you need a form or document mentioned in this booklet, you may obtain it from our website at
www.tax.nd.gov, or request it by phone, e-mail, fax, or letter—see the back cover of this booklet
for phone numbers and addresses.

You might be eligible for a refund of local sales tax!
Most city and county local tax ordinances contain a local sales tax maximum, which varies among the local
tax jurisdictions. If you pay local sales tax in excess of the jurisdiction’s maximum amount, you may apply
to the Office of State Tax Commissioner to obtain a refund of the excess local sales tax paid. For example, if
you purchase $4,000 of furniture in a city having a 1% sales tax and a local sales tax maximum of $25, the
retailer will collect $200 in state sales tax ($4,000 x 5%) and $40 in local sales tax ($4,000 x 1%) at the
time of purchase. You may apply to the Office of State Tax Commissioner to obtain a refund of $15, which
is the excess of the $40 local sales tax paid over the $25 local sales tax maximum. Apply for a Local Tax
Refund on our North Dakota Taxpayer Access Point (ND TAP) at www.tax.nd.gov/LocalTaxRefund.

Do you owe use tax?
If you purchased goods from a source outside North Dakota that you use or consume in North Dakota on
which you did not pay North Dakota sales tax, you may have to pay state and local sales taxes to North
Dakota. Technically, what you have to pay is called a “use tax.” The use tax applies to the same goods that
are subject to North Dakota’s sales tax. The use tax applies whether you purchased the goods in person at
an out-of-state location, or by mail, phone, or over the Internet.
If you purchased the goods in another state and did not pay any sales tax to that state, you must pay the
full use tax to North Dakota. However, if you did pay the other state’s sales tax but paid less than what
you would have paid in North Dakota, you must pay use tax to North Dakota equal to the difference. If
you purchased the goods in another country, you must pay the full use tax to North Dakota regardless of
whether you paid any tax to that country on the purchase.
If you owe use tax to North Dakota, you must file a North Dakota use tax return using the One Time
Remittance Form. You can obtain it from our website at www.tax.nd.gov, or you may call us at
701-328-1246.
Privacy Act Notification. In compliance with the Privacy Act of 1974, disclosure of the individual’s social security number on this
form is required under N.D.C.C. §§ 57-01-15 and 57-38-31, and will be used for tax reporting, identification and administration of
North Dakota tax laws. Disclosure is mandatory. Failure to provide the social security number may delay or prevent the processing of
this form.

 North Dakota

Isn’t it time to e-file
your return?

1

% of total returns filed for 2022 tax year

92% of filers e-file!

1. Go to our website at www.tax.nd.gov
2. Click on “I Need To . . .” at top of page,
then select “E-File My Taxes”

Do it yourself
With a computer and Internet access, you can
complete and electronically file your federal and
North Dakota returns—through an Internetbased tax preparation service or using tax
preparation software that you can buy from
any number of retail stores. Make sure the
software supports the forms you need to file
your North Dakota return.

10%
Paper

Paper

E-file

If eligible, you may be able to e-file for free or at a reduced cost. Use the
interactive tool on our website to determine if you qualify. Whichever method you
choose, the program will walk you step-by-step through the preparation of your
return.

Or have a tax expert help you
Free tax preparation assistance and electronic filing is available to eligible
filers at a Volunteer Income Tax Assistance (VITA) or Tax Counseling
for the Elderly (TCE) site set up by the IRS. Go to www.irs.gov or call
1-800-906-9887 to locate a site near you.
A professional tax preparer who is an Authorized IRS E-File Provider can
complete and electronically file your returns for you at a cost dependent on the
complexity of your return.

Choose

DIRECT DEPOSIT

for a

faster refund

Regardless of how you file, use DIRECT DEPOSIT for
secure, fast handling of your refund.
For more information, see page 9 if filing
Form ND-EZ, or see page 11 if using Form ND-1.

®

Direct
Deposit

2

North Dakota

Changes affecting you and your income tax
Developments, updates, and items of interest relating to individual income tax
EXPIRED: Tax relief credit for
North Dakota residents
The $350/$700 nonrefundable income
tax credit for full-year North Dakota
residents effective for tax years 2021
and 2022 expired with tax year 2022.

Income tax rate reduction
Effective beginning with tax year
2023, the existing five-bracket system
for individuals, estates, and trusts was
replaced with a three-bracket system.
Notably, there is now a 0% bracket
and the highest rate was reduced from
2.9% to 2.5%. Please see the Tax
Rate Schedule found on page 28 of
the individual income tax booklet for
more information.

North Dakota withholding
With the effective date of the rate
changes being January 1, 2023,
new wage withholding tables were
made available to employers so wage
withholding could be adjusted due to
the income tax rate reductions.
The highest tax rate was lowered to
2.5% and income tax withholding
rates on nonresident owners of
passthrough entities and nonresident
royalty owners were also lowered and
are reflected on the 2023 income tax
forms and instructions.

Military pay deduction
Beginning with tax year 2023, a
new individual income tax deduction
is provided for all military pay.
Previously, deductions were only
allowed for military pay related to
servicemembers mobilized for active
duty under Title 10 orders and for
military retirement pay.
In addition to service members on
active duty, the deduction is applicable
for all military pay received by
members of the national guard and
reserve members, and includes pay
for bonuses, education, and training.
The deduction is applicable to the
extent the pay was includable in the
individual’s North Dakota taxable
income.
If you had used Schedule ND-1SA in
prior tax years, you will now find the
entry for this deduction on
Form ND-1, line 10.

Peace officer retirement
benefits deduction

Disabled employment tax
credit

Beginning with tax year 2023, a new
individual income tax deduction is
provided for certain peace officer
retirement benefits. A deduction is
provided for the retirement benefit
received from a retirement plan
maintained by an employer from
which the individual retired as a peace
officer. An individual is eligible for
the deduction if the individual has at
least 20 years of combined service as
a peace officer or was a peace officer
that has been medically certified
with a mental or physical disability
resulting in the inability to perform
their duties. For purposes of eligibility
for the deduction, a peace officer
is a licensed individual authorized
by federal, state, or local law to
investigate and enforce violations of
law. See Form ND-1, line 9.

In 2023, the North Dakota Legislature
reenacted and made permanent the
existing income tax credit related to
the employment of an individual with
developmental disabilities or severe
mental illness. The existing provisions
of the tax credit were unchanged,
except the statewide limitation on
the number of eligible employees was
removed and there is no limit. See
Schedule ND-1TC, line 22.

Adoption tax credit
An individual is allowed an income tax
credit for adoptions beginning with
tax year 2023. The credit is equal to
10% of the federal adoption credit
claimed and allowed against federal
income tax for the tax year and is
limited to 50% of the individual’s tax
liability. Any credit earned in excess of
the limit may be carried forward up to
three tax years. See
Schedule ND-1AC.

Contributions to maternity
home, child placing agency, or
pregnancy help center
An income tax credit is allowed
for contributions to a child placing
agency licensed by the North Dakota
Department of Health and Human
Services (DHS), a nonprofit maternity
home located in North Dakota, or a
pregnancy help center recognized by
DHS.
The credit is equal to 100% of the
contribution. The credit is limited to
50% of a taxpayer’s tax liability. Any
credit earned in excess of the limit
may not be carried over or back to
other tax years.
The credit is available to corporations,
individuals, estates, trusts, and
passthrough entities.

Free electronic filing available
to many individuals
Nearly 92% of all individual filers
electronically filed their 2022 North
Dakota income tax return. Many North
Dakotans are eligible to efile their
taxes for free, depending on income
and age.
Using the online ND Free File tool,
taxpayers can easily find out if they
qualify to file their federal and state
returns for free through certain tax
software products. Go to
www.tax.nd.gov and click on “I
Need To . . .” at the top of the page.
Then select “E-File My Taxes” to learn
more.
Taxpayers may also utilize free tax
preparation services available at the
IRS’s Volunteer Income Tax Assistance
(VITA) and Tax Counseling for the
Elderly (TCE) sites around the state.
These sites are run by either AARP
or the IRS. To find a VITA or TCE site
near you, use the VITA Locator Tool on
the IRS’s website at www.irs.gov or
call toll free 800-906-9887.

Stay informed of developments
Individuals, businesses, or other
interested persons may sign up to
receive email notifications when
a newsletter or other important
information is issued by the Office of
State Tax Commissioner. To sign up,
go to www.tax.nd.gov and select
“News Center” at the top of the page.
Then select “Email Sign-Up”.

North Dakota

(Page Intentionally Left Blank)

3

North Dakota

4

General information for all filers
Steps to completing your return
	 Step	

Action

	1	 Determine if you have to file a return............... see this page
	2	 Complete your federal return............................. see page 7
	 3	 Determine which form to use............................. see page 6
			 Have you considered efiling your return?........... see page 1

	

4	 Go to the applicable instructions—

			 If using Form ND-EZ....................................... see page 9
			 If using Form ND-1........................................see page 11

	
	
	

5	 Assemble your completed return.......... see inside back cover
6	Read “Before you file”.......................... see page 10 or 16
7	 File your return on or before April 15, 2024—

			 Where to file.................................................. see page 7
			 Need an extension?........................................ see page 7

Civilian spouse of U.S. armed
forces service member—If you
are a civilian spouse of a U.S. armed
forces service member, you must file a
2023 North Dakota individual income
tax return if both of the following
apply:
	 •	 You are required to file a 2023
federal individual income tax
return.
	 •	You were a full-year resident of
North Dakota for the 2023 tax
year. You are treated as a resident
for this purpose if you elect under
the federal Servicemembers Civil
Relief Act to be a North Dakota
resident for state tax purposes.
For more information, see the Civilian
Spouses of Military Service Members
income tax guideline.

Full-year nonresident

Who must file a return
Full-year resident

If you were a full-year resident of
North Dakota for the 2023 tax year
and you are required to file a 2023
federal individual income tax return,
you must file a 2023 North Dakota
individual income tax return. This
applies even if you worked outside
North Dakota (including employment
overseas) during the tax year or have
income from sources outside North
Dakota. You were a full-year resident
of North Dakota if you were a resident
of North Dakota for the entire tax year
or meet the statutory 7-month rule—
see “Statutory 7-month rule” on this
page.
Definition of resident—In these
instructions, the term “resident” refers
to an individual who is a legal resident
of North Dakota. Legal residence
(which is also called domicile) means
the place that is your permanent
home to which you always intend to
return whenever absent from it. If you
have more than one physical place of
abode, only one of them may be your
legal residence. Legal residence is
based on your intent and your actions.

Statutory 7-month rule—Even
though you were not a resident of
North Dakota for any part of the
tax year—that is, you were a fullyear nonresident—you must file as a
full-year resident of North Dakota if
you maintain a permanent place of
abode in North Dakota and spend in
the aggregate more than 210 days
of the tax year in North Dakota. A
permanent place of abode means a
house, apartment, or other dwelling
containing cooking and bathroom
facilities that is suitable for yearround living and is maintained on a
permanent or indefinite basis. This
7‑month rule does not apply if you
were (1) a part-year resident of North
Dakota, (2) a full-year nonresident
serving in the U.S. armed forces, or
(3) a full-year resident of Montana or
Minnesota covered by reciprocity.
Resident in U.S. armed forces—If
you were a full-year resident of North
Dakota serving in the U.S. armed
forces during the 2023 tax year
and you are required to file a 2023
federal individual income tax return,
you must file a 2023 North Dakota
individual income tax return as a fullyear resident. This applies regardless
of where you were stationed during
2023.

If you were a full-year nonresident of
North Dakota for the 2023 tax year,
you must file a 2023 North Dakota
individual income tax return if both of
the following apply:
	 •	 You are required to file a 2023
federal individual income tax
return.
	 •	 You derived gross income from
North Dakota sources during the
2023 tax year. (See the box on
page 5 for what is included in
gross income from North Dakota
sources.)
You were a full-year nonresident if you
were not a resident of North Dakota
for any part of the tax year and do not
meet the statutory 7-month rule—see
“Statutory 7-month rule” on this page.
Nonresident in U.S. armed forces—
If you were a full-year nonresident
of North Dakota serving in the U.S.
armed forces during the 2023 tax
year and you are required to file a
2023 federal individual income tax
return, you must file a 2023 North
Dakota individual income tax return
as a full-year nonresident if you have
gross income from North Dakota
sources other than your military
compensation.

North Dakota
Civilian spouse of U.S. armed
forces service member—If you
are a civilian spouse of a U.S. armed
forces service member, you are not
required to file a 2023 North Dakota
individual income tax return if all of
the following apply:
	 •	 Your service member spouse’s
permanent duty station is in North
Dakota.
	 •	 Your only gross income from North
Dakota sources was wages for
work performed in North Dakota.
	 •	 You resided in North Dakota only
because you wanted to live with
your service member spouse.
	 •	Both you and your service
member spouse were full-year
nonresidents of North Dakota for
the 2023 tax year. You are treated
as a nonresident for this purpose
if you elect under the federal
Servicemembers Civil Relief Act
to be a resident of a state other
than North Dakota for state tax
purposes.
For more information, see the Civilian
Spouses of Military Service Members
income tax guideline.

Minnesota or Montana resident—
If you were a full-year resident of
Minnesota for the 2023 tax year,
you do not have to file a 2023 North
Dakota individual income tax return if
both of the following apply:
	 •	 Your only gross income from North
Dakota sources was compensation
for personal or professional
services.
	 •	 You returned to your home in
Minnesota at least once each
month during the time you worked
in North Dakota.
If you were a full-year resident of
Montana for the 2023 tax year, you do
not have to file a 2023 North Dakota
individual income tax return if your
only gross income from North Dakota
sources was wages.
See “Reciprocity” on page 6 for more
information.
Nonresident alien—If you were a
nonresident alien of the United States
and received gross income from North
Dakota sources during the 2023 tax
year, you must file a 2023 North
Dakota individual income tax return.

Gross income from North Dakota sources
for nonresidents only
For a nonresident, “gross income
from North Dakota sources” includes
the following:

•	 Unemployment compensation
attributable to previous
employment in North Dakota.

•	 Compensation for services
performed in North Dakota,
such as wages, salaries, tips,
commissions, and fees.

Exceptions

•	 Income from tangible property
in North Dakota, such as rents,
oil and gas royalties, and gain
from the sale or exchange of the
property.
•	 Income from a trade or business
carried on in North Dakota,
whether as a sole proprietorship,
partnership, S corporation,
or limited liability company
treated like a partnership or
S corporation.
•	 Income from an estate or trust,
but only to the extent the income
is derived from tangible property
or a trade or business in North
Dakota.
•	 Income from gambling activity
carried on in North Dakota.

Gross income from North Dakota
sources does not include these items
received while a nonresident of
North Dakota: military pay, interest,
dividends, pensions, annuities,
gain from the sale or exchange of
intangible property, compensation
exempted under reciprocity with
Minnesota or Montana, compensation
exempted under federal military
and interstate commerce laws, or
compensation exempted under
North Dakota’s mobile workforce
exemption.
Note: Interest, dividends, gains,
and other income from intangible
property are included in gross income
from North Dakota sources if derived
from a trade or business carried
on in North Dakota, such as a sole
proprietorship, partnership, or
S corporation.

5

Except where an income tax treaty
between the United States and a
foreign country specifically exempts
income from taxation by a U.S. state,
income tax treaties between the U.S.
and foreign countries do not apply for
North Dakota income tax purposes.
Therefore, you may have to pay
North Dakota income tax on gross
income from North Dakota sources
even though the income is exempt
from U.S. income tax because of a
treaty. For more information, see
the guideline Income Taxation of
Nonresident Aliens under “Guidelines”
at www.tax.nd.gov.
Disaster recovery tax
exemptions—Exemptions from state
and local tax filing and payment
obligations are available to out-ofstate businesses and their employees
who are in North Dakota on a
temporary basis for the sole purpose
of repairing or replacing natural gas,
electrical, or telecommunication
transmission property that is
damaged, or under threat of damage,
from a state-or presidentially-declared
disaster or emergency. For more
information, go to www.tax.nd.gov.

Part-year resident

If you were a part-year resident of
North Dakota for the 2023 tax year,
you must file a 2023 North Dakota
individual income tax return if both of
the following apply:
	 •	 You are required to file a 2023
federal individual income tax
return.
	 •	 You derived gross income from
(1) any source inside or outside
North Dakota while you were
a resident of North Dakota or
(2) a North Dakota source while
you were a nonresident of North
Dakota. (See the box on this
page for what is included in gross
income from North Dakota sources
while a nonresident.)
You were a part-year resident of North
Dakota if you were a resident of North
Dakota for only part of the year. This
generally applies if you moved into
or out of North Dakota and the move
constituted a change in your legal
residence. See “Definition of resident”
on page 4.

6

North Dakota

Native Americans

If you are a Native American, you are
not subject to North Dakota income
tax and do not have to file a North
Dakota income tax return if all of the
following apply:
	 •	 You are enrolled as a member of a
federally-recognized Indian tribe.
	 •	 You lived on any Indian
reservation in North Dakota.
	 •	 You derived all of your income
from sources on any Indian
reservation in North Dakota.
If any of the above criteria are
not met, you may be subject to
North Dakota income tax. For more
information, see the guideline Income
Taxation of Native Americans under
“Guidelines” at www.tax.nd.gov.

Which form to use
If you are required to file a 2023
North Dakota individual income tax
return, see the box on this page to
determine whether you should use
Form ND-EZ or Form ND-1.

Reciprocity
North Dakota has income tax
reciprocity agreements with the states
of Minnesota and Montana. If certain
conditions in the agreements are met,
compensation for services is taxable
only by the state of residence.

Minnesota and Montana
residents

If you are a resident of Minnesota
and maintain a permanent home in
Minnesota to which you return at
least once each month during the
time you work in North Dakota, the
compensation you receive for personal
or professional services performed
in North Dakota is not taxable by
North Dakota. If you are a resident of
Montana, wages you receive for work
performed in North Dakota are not
taxable by North Dakota.
If you received wages covered by
reciprocity, and your employer
withheld North Dakota income tax of
$5.00 or more from them, you must
file a North Dakota individual income
tax return at the end of the tax year
to obtain a refund of the amount

Which form to use—Form ND-EZ or Form ND-1?
Use Form ND-EZ....if you answer No to ALL of the questions below.
Use Form ND-1......if you answer Yes to ANY of the questions below.
Note: If you are filing a joint return with your spouse, check “Yes” if
the answer is “Yes” for either you or your spouse.

	

Yes	No

1.	 Were you a nonresident of North Dakota at any time in 2023?.......	

	 

2.	 Do you have any North Dakota addition adjustments?
	 (*See Form ND-1, lines 2-3).....................................................	

	 

3.	 Do you have any North Dakota subtraction adjustments?
	 (*See Form ND-1, lines 5-16)...................................................	

	 

4.	 Are you claiming any North Dakota tax credits?
	 (*See Form ND-1, lines 21-23)..................................................	

	 

5.	
	
	
	

	 

Did you pay, or were you required to pay, North Dakota
estimated income tax for 2023, or did you apply an
overpayment (refund) from your 2022 North Dakota return
as an estimated payment for 2023? (*See Form ND-1, line 27).....	

6.	 Are you going to use the 3-year income averaging method
	 for farm income (on Schedule ND-1FA) to calculate your tax?........	

	 
7.	 Are you going to make an extension payment on Form ND-1EXT?..	 	 
	

* The references show where to find more information.

withheld. If this applies to you and
you do not have any other gross
income from North Dakota sources,
complete Form ND-1 as follows:
	1.	Complete the applicable items
at the top of Form ND‑1, page 1
(through line E), as instructed.
	2.	For item F, fill in the circle next to
“MN/MT RECIPROCITY” at the top
of Form ND-1, page 1. Also enter
“MN” or “MT”, whichever applies, in
the space under “State.”
	3.	Leave lines 1 through 25 blank.
	4.	Fill in the amount of the North
Dakota income tax withheld on
lines 26, 28, 29, and 32.
	5.	File Form ND-1 with a copy of
your federal return and Form W-2s
showing North Dakota income tax
withholding.
If your wages are covered by
reciprocity and you do not want your
employer to withhold North Dakota
income tax from them, you must
obtain and complete Form NDW‑R and
give it to your employer.

North Dakota residents

If you are a resident of North Dakota
and maintain a permanent home in
North Dakota to which you return
at least once each month during

the time you work in Minnesota, the
compensation that you receive for
personal or professional services
performed in Minnesota is not taxable
by Minnesota. Also, wages you receive
for work performed in Montana while
a resident of North Dakota are not
taxable by Montana.
If you received wages covered
by reciprocity and your employer
withheld Minnesota or Montana
income tax from them, you must
file an income tax return with the
applicable state to obtain a refund of
the amount withheld. If your wages
are covered by reciprocity and you do
not want your employer to withhold
Minnesota or Montana tax from
them, you must give your employer
a properly completed Minnesota
Form MW-R or Montana Form MT-R,
whichever applies. For assistance and
forms, contact:
•	 Minnesota Department of Revenue
	 Email: individual.incometax@state.
	
mn.us
	 Phone: 651-296-3781
	Website: revenue.state.mn.us
•	 Montana Department of Revenue
	 Email: DORCustomerAssistance
	
@mt.gov
	 Phone: 406-444-6900
	Website: mtrevenue.gov

North Dakota

When and where to file
If you are filing on a calendar year
basis, you must file your 2023 North
Dakota individual income tax return
on or before April 15, 2024. If you are
filing on a fiscal year basis, you must
file on or before the 15th day of the
fourth month following the close of
your fiscal tax year. If the due date
falls on a Saturday, Sunday or holiday,
you have until the next day that is not
a Saturday, Sunday, or holiday to file
your return.
Mail your return to:
	 Office of State Tax Commissioner
	 PO Box 5621
	 Bismarck, North Dakota 58506-5621

Extension of time to file
You may obtain an extension of time
to file your North Dakota individual
income tax return by obtaining either
a federal extension or a North Dakota
extension.

Federal extension

If you obtain an extension of
time to file your federal return, it
will be recognized for North Dakota
individual income tax purposes. This
includes the automatic extension
allowed for being outside the U.S. and
Puerto Rico on April 15. You do not
have to file a separate state extension
form or notify the Office of State Tax
Commissioner that you have obtained
a federal extension prior to filing
your North Dakota return. Fill in the
circle next to “Extension” at the top of
Form ND-EZ or Form ND-1, whichever
applies.

North Dakota extension

If you do not obtain a federal
extension, but need additional time
to file your North Dakota return,
you may apply for a North Dakota
extension by completing and filing
Form 101. This is not an automatic
extension—you must have good cause
to request a North Dakota extension.
Form 101 must be postmarked on or
before the due date of your return.
You will be notified whether your
extension request is approved or
rejected. If approved, fill in the circle

next to “Extension” at the top of
Form ND-EZ or Form ND-1, whichever
applies.

Extension interest

If you obtain an extension and file
your North Dakota return on or before
the extended due date, and you pay
any tax balance due with the return,
no penalty will be charged. Interest
on any tax due on the return will be
charged at the rate of 12% per year
from the original due date of your
return to the earlier of the date you
file your return or the extended due
date.

Prepayment of tax due

If you are applying for an extension
of time to file, you may prepay
the tax that you expect to owe to
avoid paying extension interest. For
payment options, go to
www.tax.nd.gov and select “Make
A Payment.” If submitting a payment
by paper check or money order, you
must complete and submit a 2023
Form ND‑1EXT payment voucher with
the payment. Alternatively, you may
submit a paper check or money order
along with a letter containing the
following:
	 •	 Your name.
	 •	 Your social security number.
	 •	 Your address and phone number.
	 •	 Statement that you are making a
2023 Form ND-1EXT payment.
If you prepay your tax, you must file
Form ND-1 and claim the payment
on page 2, line 27; you may not file
Form ND-EZ.

Penalty and interest
If you obtain an extension of time to
file your return, you may pay the tax
due by the extended due date of the
return without penalty, but extension
interest will apply—see “Extension
interest” and “Prepayment of tax due”
on this page.
If you file your return by its due date
(or extended due date), but you do
not pay all of the tax due on it by the
return’s due date (or extended due
date), a penalty equal to 5% of the
unpaid tax due or $5.00, whichever is
greater, must be paid.

7

If you file your return after its due
date (or extended due date), and
there is an unpaid tax due on it, a
penalty equal to 5% of the unpaid tax
due or $5.00, whichever is greater,
applies for the month the return
was due, with an additional 5% of
the unpaid tax due for each month
(or fraction of a month) the return
remains delinquent, not to exceed
25% of the tax due.
In addition to any penalty, interest
must be paid at the rate of 1% per
month or fraction of a month, except
for the month in which the tax was
due, on any tax due that remains
unpaid after the return’s due date (or
extended due date).

Federal income tax return
You must complete your 2023
federal individual income tax return
(Form 1040 or 1040-SR) before you
complete your 2023 North Dakota
individual income tax return. Certain
information from your federal return
is needed to complete your North
Dakota return.
If you are filing your North Dakota
return on paper, you must attach
a complete copy of your federal
income tax return to your North
Dakota return. A complete copy
consists of Form 1040 or 1040‑SR
and all supplemental forms and
schedules. You do not have to include
depreciation schedules or any other
statements that you may have
prepared as supporting documentation
to your federal return.

Changing your return
If you need to change your North
Dakota return after you file it, you
must file an amended return. There is
no special form for this purpose. See
“How to prepare an amended return”
on page 8.
If you paid too much tax because of
an error in your return, you generally
have three years after you file your
original return to file an amended
return to correct the error and claim
a refund of the overpayment. For
other time periods that may apply,
see North Dakota Century Code
§ 57-38-40 or contact the Office of
State Tax Commissioner.

8

North Dakota

Penalty and interest apply to
additional tax due on an amended
return.

changes you or the IRS made to
your federal return, attach a copy
of the amended federal return or
IRS notice. If amending to claim
a net operating loss carryback,
attach Form 1045 or 1040X.

Change to federal return

By law, you must file an amended
North Dakota return to report
changes made to your federal return.
This applies whether the changes
are attributable to your filing of
an amended federal return or an
audit or correction by the IRS. The
amended North Dakota return must
be filed within 90 days after filing
the amended federal return or within
90 days after the final determination
of the IRS changes.

How to prepare an
amended return
	 1.	Obtain a blank Form ND-1 for the
tax year affected by the changes.
	 2.	Enter your name, current address,
social security number, and other
information required at top of
return.
	 3.	Fill in the circle next to “Amended
return: General” or “Amended
return: Federal NOL,” whichever
applies, in the top right-hand
corner of the return. See
“Amended return” on page 11 for
more information.

Estimated tax
requirement (for 2024)
You must pay estimated North Dakota
income tax for the 2024 tax year if all
of the following conditions apply:
	 1.	You are required to pay estimated
federal income tax for 2024.
	 2.	Your North Dakota net tax liability
for 2023 is $1,000 or more. (If
you are not required to file a
North Dakota return for 2023, you
do not have to pay estimated tax
for 2024.)
	 3.	You expect to owe (after
subtracting any estimated North
Dakota income tax withholding)
at least $1,000 in North Dakota
income tax for 2024.
	 4.	You expect your North Dakota
income tax withholding for 2024
to be less than the smaller of the
following:
	

	 4.	Complete the return through the
net tax liability line.
	 5.	Leave the line for income tax
withholding blank unless you are
claiming an additional amount not
previously claimed.
	 6.	On the “Total payments” line,
enter the net tax liability shown
on your original return or
previously filed amended return.
If the net tax liability has not been
fully paid at the time the amended
return is filed, only enter the
amount of tax that has been paid.
	 7.	Complete the remaining portion
of the return according to the
instructions. On an amended
return, you may not adjust
the amount of any voluntary
contribution, nor the amount of an
overpayment applied to the next
year’s estimated tax.
	 8.	Attach a statement explaining why
you are changing your return.
If you are doing so because of

	

(a)	 90% of your 2024 North
Dakota net tax liability.
Note: Substitute 66 2/3%
if a qualified farmer—
see instructions for 2024
Form ND‑1ES.
(b)	 100% of your 2023 North
Dakota net tax liability. If
you moved into North Dakota
during 2023 and had no
income from North Dakota
prior to the move, this 100%
threshold does not apply;
you must satisfy the 90%
threshold in part (a).

In general, one-fourth (25%) of the
total estimated tax required to be paid
for the 2024 tax year must be paid by
April 15, June 15, and September 15,
2024, and January 15, 2025.
For payment options, go to
www.tax.nd.gov and select “Make
A Payment.” If submitting a payment
by paper check or money order, you
must complete and submit a 2024
Form ND‑1ES payment voucher with
the payment.

How to file a return for a
deceased taxpayer
If a final federal income tax return
is required to be filed for a decedent
for the year of death, a final North
Dakota income tax return also must
be filed. A court-appointed personal
representative is responsible for filing
the decedent’s final return, even
if there is a surviving spouse. The
information from the final federal
return is used to complete the final
North Dakota return, and the North
Dakota return is to be signed in the
same manner as required for federal
income tax purposes. If there is
a personal representative and no
surviving spouse, a copy of the court
document showing the appointment
must be attached to the final return.
If there is a surviving spouse and
the final return will be filed on a joint
basis, a refund will be mailed in both
spouses’ names.
If there is no surviving spouse and
no personal representative has been
appointed for the decedent, attach
a copy of the death certificate and a
copy of one of the following:
	 •	 Letter of Testamentary.
	 •	 Letter of Administration.
	 •	 Affidavit for Collection of Personal
Property of Decedent.
For assistance, see back cover of
booklet.
Fill in the circle for “Deceased” and
enter the date of death next to
the deceased taxpayer’s name on
Form ND-EZ or Form ND-1, whichever
applies.

Disclosure notification
Upon written request from the
chairman of a North Dakota legislative
standing committee or Legislative
Management, the law requires the
Office of State Tax Commissioner to
disclose the amount of any deduction
or credit claimed on a tax return. Any
other confidential information, such as
a taxpayer’s name or social security
number, may not be disclosed.

North Dakota

9

2023 Form ND-EZ instructions
	 Before you begin . . .
	
●	 Are you eligible to use Form ND-EZ? See “Which form to use” on page 6.
	
●	 Be sure to have a copy of your completed 2023 federal income tax return (Form 1040 or 1040-SR)
		 at hand. You will need information from it to complete Form ND-EZ.
	 Note: A complete copy of your federal return must be filed with your state return.

Instructions for top of
Form ND‑EZ

Manufacturing............................... 7

Name and address

Enter your full name and current
address. If you are married and filing
a joint return, include your spouse’s
full name. If the taxpayer died during
the 2023 tax year, fill in the circle
for “Deceased” and enter the date of
death.

Social security numbers

Enter your social security number. If
married filing jointly, also enter your
spouse’s social security number.

Item A - Filing status

Fill in the circle next to the filing
status that you used on your 2023
Form 1040 or 1040-SR.

Item B - School district
code

Select the code number from the list
of school district codes on page 19.

Item C - Income source
code

Select from the following list the code
number corresponding to the area
from which you derived the majority
of your income for the tax year.
Source	
of income	

Accounting, legal, health, motel,
	 and other personal or professional
	 services not classified elsewhere... 5
Construction................................. 6

Code
number

Farming, ranching, or
	 agricultural production................. 1
Retail, wholesale trade, and
	 eating and drinking places........... 2
Federal, state, county, or city
	 government service.................... 3
Public or private education.............. 4

Transportation, communication,
	 and public utilities....................... 8
Exploration, development, and
	 extraction of coal, oil, and
	 natural gas................................ 9
Banking, insurance, real estate,
	 and other financial services........ 10
Military service............................ 11
Retirement
	 (Pensions, annuities, IRAs, etc.). 12

Item D - Extension

Fill in the circle next to “Extension”
only if you have an extension to
file your North Dakota return. See
“Extension of time to file” on page 7.

Instructions for lines 1-9
of Form ND-EZ
Line 3 - Withholding

Enter the North Dakota income tax
withheld shown on a 2023 Form W-2,
Form 1099, or North Dakota
Schedule K-1. Also enter North
Dakota income tax withheld shown
on a 2022 North Dakota Schedule K-1
if the tax year of the partnership,
S corporation, estate, or trust shown
on the Schedule K-1 is a fiscal year
ending in your 2023 tax year. Be sure
the state identified on the Form W-2
or Form 1099 is North Dakota. Do
not enter on this line North Dakota
extraction or production taxes
withheld from mineral interest income,
such as an oil or gas royalty, because
they are not income taxes. Include a
copy of the Form W-2, Form 1099,
or North Dakota Schedule K-1.

Line 5 - Voluntary
contribution of
overpayment

If you have an overpayment on
line 4, you may make a voluntary
contribution of part or all of it to any
of the three funds on this line. Enter
the amount you wish to contribute on
the line to the right of the fund name.
If contributing, you must contribute at
least $1.00 to the fund. A contribution
will reduce your refund.

Line 6 - Direct deposit of
refund

If you want us to deposit your refund
directly into your bank account,
complete items a, b, and c below
line 6. Check with your financial
institution to see if it will accept direct
deposit and to obtain the correct
routing and account numbers.
Routing number (Item a)—Enter
the 9‑digit routing number. The first
two digits must be within the range of
01 through 12 or 21 through 32.
Account number (Item b)—Enter
the account number. It may have
up to 17 digits (both letters and
numbers). Include hyphens, but omit
special symbols.
If depositing into a checking account,
see the sample check on page 10 for
where to find the routing and account
numbers. If depositing into a savings
account without a check writing
feature, ask your financial institution
for the correct account number to use.

10

North Dakota

Sample check for direct deposit (line 6)
Taxpayer(s) Name(s)	
9999 Main Ave.
Anytown, ND 99999	
Pay to
Order of __________________________________________	

9999
15-0000/0000

$ __________

________________________________________________________	
Your Bank
Anytown, ND USA 99999
Memo _______________________	

Dollars

___________________________

: 123456789 : 12345678912345678 • 9999

	Routing number	

	

(Item a)	

Account number	
(Item b)	

Please note:
	 •	 Do not use the number on a
deposit slip for the routing or
account number.
	 •	 You will not receive notification of
when the deposit is made by our
office. Contact your bank or check
your bank statement to verify the
deposit.
	 •	 If the routing or account number
is incorrect, or if your financial
institution does not accept the
direct deposit, a paper check will
be issued.
	 •	 Due to electronic banking
rules, the Office of State Tax
Commissioner will not allow a
direct deposit to or through a
foreign financial institution. In this
case, a paper check will be issued.

Line 8 - Voluntary
contribution

If you have a tax due on line 7, you
may make a voluntary contribution
to any of the three funds on this
line. Enter the amount you wish to
contribute on the line to the right of
the fund name. If contributing, you
must contribute at least $1.00 to a
fund. A contribution will increase your
balance due.

Line 9 - Balance due

The balance due must be paid in full
with your return. You may pay the
balance due online with an electronic
check or a debit or credit card. To pay
online, go to www.tax.nd.gov and
select “Make A Payment.”

Do not include the check number
as part of the account number.

If you are filing a paper return and
paying the balance due with a paper
check or money order, complete a
2023 Form ND‑1PRV payment voucher
and enclose it with the payment.
However, if you are filing your return
electronically, complete and submit
a 2023 Form ND‑1V with the paper
check or money order. Make check or
money order payable to “ND State Tax
Commissioner,” and write the last four
digits of your social security number
and “2023 Form ND-EZ” on your
check or money order. A check must
be drawn on a U.S. or Canadian bank,
be in U.S. dollars, and use a standard
9-digit routing number. A check drawn
on a foreign bank (except one in
Canada) cannot be accepted.

Signatures

Sign and date your return. If a joint
return, both spouses must sign.

Form 1099-G consent and
disclosure authorization

mail. The 2024 Form 1099-G will be
available on our website in January
2025. For more information, go to our
website at www.tax.nd.gov.
Disclosure authorization. Fill in
the circle for this item if you want to
authorize our office to communicate
directly with your tax return preparer
about your 2023 return. This may
include requesting information needed
to process the return and responding
to inquiries from your preparer
about correction notices you receive
from us. The authorization does not
allow your preparer to receive your
refund check, to bind you in any
way, or to legally represent you.
The authorization only applies to the
individual whose printed name and
signature appear in the preparer’s
signature area, and it automatically
expires on the due date (including
extensions) for filing your 2024
return.

Before you file, did you—
	 Sign your return?
	

An unsigned return is incomplete.

	 Include a complete copy of
	

your federal return?

Return is incomplete without it.

	 Write your social security
	

number on return?

We use this number to identify
your return.

	 Check your math?
	

Most common error made.

At the bottom of Form ND-EZ (below
line 9), fill in the applicable circle(s) to
indicate if you want either or both of
the following items to apply.

	 Include all Form W-2s?

Form 1099-G consent. If there
is an overpayment on your 2023
Form ND‑EZ, line 4, federal tax law
requires our office to file with the
IRS and mail to you a Form 1099-G
showing the overpayment amount.
You may need this information
when preparing your 2024 federal
income tax return. Fill in the circle
for this item if you want to obtain
Form 1099‑G electronically from our
website instead of receiving it by

	 Use the correct postage?

	

	

Also include a copy of a 1099
or Schedule K-1 showing North
Dakota withholding.
Avoid mailing problems by using
the correct postage.

Important! If your return is missing
your signature or a copy of your
federal return, it will be sent back to
you. This may result in late filing and
payment charges if you resubmit it
after the due date.

For worry-free filing, file your
return electronically—see
page 1!

North Dakota

11

2023 Form ND-1 instructions
	 Before you begin . . .
	

●	 Be sure to have a copy of your completed 2023 federal income tax return (Form 1040 or 1040-SR) at
hand. You will need information from it to complete Form ND-1.

	 Note: A complete copy of your federal return must be filed with your state return.

Nonresident of North
Dakota for part or all of the
2023 tax year
If you were a nonresident of North
Dakota for part or all of the 2023
tax year, first complete Form ND-1
through line 19. Then complete
Schedule ND‑1NR to calculate
the amount of your tax. On
Schedule ND‑1NR, you will indicate
whether you were a nonresident for
part or all of the tax year by filling in
your residency information at the top
of the schedule.

If you are married and filing a joint
return, and either you or your spouse
was a nonresident of North Dakota for
part or all of the tax year, you must
complete Schedule ND-1NR on a joint
basis and attach it to Form ND-1. On
Schedule ND-1NR, each of you must
indicate your residency status by filing
in your residency information at the
top of the schedule.

Instructions for top of
page 1 of Form ND‑1
Fiscal year filer only

Social security numbers

Enter your social security number
(and your spouse’s social security
number, if married filing jointly).

Item A - Filing status

Fill in the circle next to the filing
status that you used on your 2023
Form 1040 or 1040-SR.

Item B - School district code
Select the code number from the list
of school district codes on page 19.

Item C - Income source
code

Select from the following list the code
number corresponding to the area
from which you derived the majority
of your income for the tax year.
Source	
of income	

Code
Number

Farming, ranching, or
	 agricultural production................. 1
Retail, wholesale trade, and
	 eating and drinking places........... 2
Federal, state, county, or city
	 government service.................... 3

If you are filing your 2023 federal
income tax return (Form 1040 or
1040-SR) on a fiscal year basis, you
must file your 2023 North Dakota
income tax return for the same fiscal
year. Enter in the spaces provided at
the top of Form ND-1 the ending date
of your fiscal tax year.

Public or private education.............. 4

Name and address

Exploration, development, and
	 extraction of coal, oil, and
	 natural gas................................ 9

Enter your full name and current
address. If you are married and filing
a joint return, include your spouse’s
full name. If the taxpayer died during
the 2023 tax year, fill in the circle
for “Deceased” and enter the date of
death.

Accounting, legal, health, motel,
	 and other personal or professional . 	
	 services not classified elsewhere... 5
Construction................................. 6
Manufacturing............................... 7
Transportation, communication,
	 and public utilities....................... 8

Banking, insurance, real estate,
	 and other financial services........ 10
Military service............................ 11
Retirement
	 (Pensions, annuities, IRAs, etc.). 12

Item D - Amended return

If you are filing this return to change
a return you previously filed for the
2023 tax year, fill in the circle next to:
	•	Amended return: General—
		 if you are changing the return
for any reason other than
a federal net operating loss
carryback.
	•	 Amended return: Federal
		 NOL—
		 if you are changing the return
because of a federal net
operating loss carryback.
See “Changing your return” on page 7
for more information.

Item E - Extension

Fill in the circle next to “Extension”
only if you have an extension to
file your North Dakota return. See
“Extension of time to file” on page 7.

Item F - MN/MT reciprocity

Fill in the circle next to “MN/
MT Reciprocity” only if you are a
Minnesota or Montana resident who
is filing this return solely to claim a
refund of North Dakota income tax
because of reciprocity. See page 6 for
details.

Instructions for
lines 1-37 of Form ND-1
Line 1b - Federal taxable
income

On Form 1040 or 1040-SR, line 15,
you are instructed to enter “-0-”
for your federal taxable income if it
calculates out to be less than zero.
However, for purposes of completing
Form ND-1, enter the negative
number on line 1b. Enter a minus sign
(-) to the left of the number.

12

North Dakota

Line 2 - Contribution
adjustment

Enter on this line the amount, if any,
from Schedule ND-1PG, line 15,
or Schedule  ND-1QEC, line 16.
However, if you are claiming a credit
on both Schedule ND-1PG, line 7, and
Schedule ND-1QEC, line 5, or you
are claiming an endowment credit
from a North Dakota Schedule K-1,
obtain and complete the Contribution
Adjustment Worksheet to calculate
the amount to enter on this line. The
worksheet is available online at
www.tax.nd.gov. Include a copy
of the worksheet.
If you claimed the standard deduction
on your 2023 Form 1040 or 1040SR, line 12, you do not have to
make an adjustment on this line
unless you are claiming a credit
on Schedule ND‑1QEC based on
a contribution you made from an
individual retirement account under
I.R.C. § 408(d). See the instructions
to Schedule ND 1QEC, line 13.
If you are only claiming an unused
planned gift or endowment credit
carried over from a prior tax year, and
none of the contribution on which it is
based was carried over and deducted
on your 2023 Form 1040 or 1040-SR,
no adjustment is required on this line.

Line 5 - U.S. obligation
interest

Enter the following on this line:
	 •	 Interest income from U.S.
obligations.
	 •	 Interest income from other
securities that is specifically
exempted from state income tax
by federal statute.
	 •	 The portion of dividend income
from a mutual fund attributable
to investment in U.S. obligations
and other securities the interest
from which is exempted from state
income tax by federal statute.
Common sources of interest income
that may be entered on this line
include:
	 •	 U.S. savings bonds and Treasury
bills and notes.
	 •	 Securities issued by:
	
	

Banks for cooperatives
Commodity Credit Corporation

	
	
	
	
	
	
	

Federal Deposit Insurance 		
Corporation
Federal Farm Credit System
Federal Home Loan Banks
Federal Intermediate Credit Banks
Federal Land Banks
Federal Savings & Loan Insurance 	
Corporations
Student Loan Marketing
Association

Do not enter on this line interest
income from securities of the Federal
Home Loan Mortgage Corporation
(Freddie Mac), Federal National
Mortgage Association (Fannie Mae),
and Government National Mortgage
Association (Ginnie Mae), nor from
a federal income tax refund or
repurchase agreement.

Line 6 - Net long-term
capital gain exclusion

If your federal taxable income
includes a net long-term capital gain
(including a capital gain distribution
from a mutual fund), you may be able
to exclude 40 percent of the gain from
your North Dakota taxable income.
If you were a full-year nonresident
or a part-year resident of North
Dakota for the year, only a net longterm capital gain reportable to North
Dakota is eligible for the exclusion. A
net long-term capital gain included in
an amount entered on line 7, or 16
of Form ND-1 is not eligible for the
exclusion.
Complete the worksheet on page 13
to calculate the amount to enter on
this line.

Line 8 - U.S. Railroad
Retirement Board benefits

Enter on this line the portion of
any unemployment, sick pay, or
retirement benefits received from the
U.S. Railroad Retirement Board that
are taxable on your federal income tax
return. The U.S. Railroad Retirement
Board will be shown as the payer
or employer on the Form 1099‑G
(unemployment), Form W-2 (sick
pay), or Forms RRB‑1099 and
RRB‑1099-R (retirement) issued to
you.

Line 9 - Licensed peace
officer retirement benefits
exclusion

Certain retirement benefits of a
licensed peace officer are excludable
from North Dakota taxable income.
The exclusion is allowable for a retired
licensed peace officer with a minimum
of 20 years of service or that was
retired disabled. If allowable, enter
on this line the amount of taxable
retirement benefits included in federal
taxable income on Form 1040 or
Form 1040-SR, line 5b. Only include
benefits issued by your employer’s
retirement plan, generally found
on Form 1099-R, box 2a. Attach
Form 1099-R to your return.
For the first tax year claiming this
exclusion, also provide the following
with your return:
	 •	 If having at least 20 years of
licensed status in North Dakota:
	

Line 7 - Native American’s
exempt income

If you are an enrolled member of a
federally-recognized Indian tribe who
lived on any Indian reservation in
North Dakota for all of 2023, enter
on this line income you derived from
sources on any Indian reservation
in North Dakota. This includes the
portion of the Standing Rock and Lake
Traverse Indian Reservations situated
in South Dakota. Do not enter income
derived from non-reservation sources
in North Dakota. If you lived in North
Dakota in 2023, but you did not reside
on an Indian reservation for part
or all of 2023, do not enter income
earned or received while living off the
reservation.

o	 Attach page 1 of your Peace
Officer Standards and Training
(POST) board training profile
document. A copy may be
obtained from the POST board.

	 •	 If meeting 20 years of licensed
status attributable to service other
states:
	

o	 Attach documentation from
each official licensing board or
jurisdiction to reflect the years
or term of licensed service,
totaling at least 20 years.

	 •	 For retired disabled:
	

o	 Attach the documentation from
the employer’s plan or medical
documentation to substantiate
the individual became medically
or physically disabled while
employed as a licensed peace
officer and unable to discharge
the person’s duties.

North Dakota
For additional information, please see
Guideline – Income Tax: Licensed
Peace Officer Retirement Exclusion on
our website.

Line 10 - Military pay
exclusion

Enter on this line the military pay you
received as a member of the U.S.
armed forces on active and reserve
duty and a member of the national
guard. The deduction is allowed to the
extent the military pay is included in
federal taxable income. Military pay
for purposes of this deduction is all
military pay, including federal pay for
training, education, mobilization, and
bonuses and state pay when called to
state active duty. Include Form W-2.

nonresident of North Dakota. Include
a copy of Form W-2 showing the
military pay.
If you are a nonresident with military
pay that does not qualify under the
Servicemember Civil Relief Act, refer
to the instructions for Line 10.

Line 12 - ND College SAVE
contribution deduction

If you are a nonresident with
military pay that qualifies under the
Servicemember Civil Relief Act, refer
to the instructions for Line 11.

If you made a contribution during the
tax year to a North Dakota College
SAVE account administered by the
Bank of North Dakota, you are allowed
a deduction for the contribution, up
to a maximum of $5,000 ($10,000,
if married filing jointly). You are
allowed the deduction regardless of
whether you or someone else owns
the account. A rollover of funds from
another I.R.C. Section 529 college
savings plan into a North Dakota
College SAVE account does not qualify.

Line 11 - Servicemember
Civil Relief Act adjustment

Line 13 - Qualified dividend
exclusion

If you were a full-year nonresident of
North Dakota for the tax year, enter
on this line compensation received for
active duty in the U.S. armed forces or
the commissioned corps of the Public
Health Service or National Oceanic
and Atmospheric Administration. If
a part-year resident, only enter the
amount received for service while a

If you were a full-year resident of
North Dakota during the tax year,
multiply the qualified dividends from
Form 1040 or 1040-SR, line 3a, by
40 percent and enter the result.

If you were a part-year resident or
full-year nonresident of North Dakota
during the tax year, multiply the
portion of the qualified dividends from

13

Form 1040 or 1040-SR, line 3a, that
are reportable to North Dakota by
40% and enter the result. Note: Only
include dividends that are reported on
Schedule ND-1NR, line 2, column B.

Line 14 - Military retirement
benefit pay exclusion

If you are a retired military service
member, or a surviving spouse of
a deceased retired military service
member, enter on this line the amount
of taxable military retirement benefits
that you reported on Form 1040 or
Form 1040‑SR, line 5b. Only include
benefits received as a retired member
of the U.S. armed forces or its reserve
components, Army National Guard, or
Air Force National Guard. “U.S. armed
forces” means the Army, Navy, Air
Force, Marine Corps, and Coast Guard.
Do not enter on this line retirement
benefits received for federal civil
service employment as a military
technician (dual status). Include a
copy of the Form 1099-R from the
Defense Finance and Accounting
Service.

Line 15 - Social security
benefit exclusion

Enter on this line the taxable portion
of your Social Security benefits
reported on Form 1040 or 1040-SR,
line 6b.

Worksheet For Net Long-Term Capital Gain Exclusion (Form ND-1, Line 6)
Capital gain distribution — If you reported capital gain distributions on Form 1040 or 1040-SR, line 7 (and you did not
have to complete Schedule D), skip lines 1 and 2 and enter the distributions on line 3 of this worksheet.
1.	 Enter amount from 2023 Schedule D (Form 1040), line 15. If zero or less, stop here; no exclusion is allowed	 1 _____________
2.	 Enter amount from 2023 Schedule D (Form 1040), line 16. If zero or less, stop here; no exclusion is allowed	 2 _____________
3.	 Enter the smaller of line 1 or line 2........................................................................................................ 3 _____________
	

•	 If a full-year resident, enter the amount from line 3 on line 5 and go to line 6.

	

•	 If a full-year nonresident or part-year resident, go to line 4.

4.	 Complete lines 4a through 4d using only the capital gains and losses reportable to North Dakota:
	

a.	 North Dakota net short-term capital gain (loss)...................................................... 4a _____________

	

b.	 North Dakota net long-term capital gain (loss)....................................................... 4b _____________

	

c.	 Combine lines 4a and 4b. If zero or less, enter -0-................................................. 4c _____________

	

d.	 Enter the smaller of line 4b or line 4c................................................................... 4d _____________

5.	 If a full-year resident, enter amount from line 3. Otherwise, enter smaller of line 3 or line 4d........................ 5 _____________
6.	 Portion of line 5 included in an amount entered on Form ND-1, line 7, or 16................................................ 6 _____________
7.	 Subtract line 6 from line 5.................................................................................................................... 7 _____________
8.	 Multiply line 7 by 40% (.40). Enter this amount on Form ND-1, line 6......................................................... 8 _____________

14

North Dakota

Do not enter on this line taxable Tier 1
Social Security equivalent benefits
reported on a Form RRB-1099 from
the U.S. Railroad Retirement Board;
instead, enter the taxable portion of
these benefits on Form ND-1, line 9.
If you receive both Tier 1 benefits
(Form RRB-1099) and social security
benefits (Form SSA-1099) determine
the amount to enter on Form ND‑1,
lines 8 and 15, respectively, by
multiplying the amount from
Form 1040 or 1040-SR, line 6b, by
a ratio equal to the gross amount
of each type of benefit divided by
the gross amount of both benefits
combined.

Line 16 - Other additions/
subtractions

		
Marriage Penalty Credit Worksheet
Complete this worksheet to determine the amount to enter on Form ND-1, line 22.
	 1.	 Is your filing status Married filing jointly?
		
	 No. Stop; you do not qualify for the credit.
		
	 Yes. Enter your taxable income from Form ND-1, line 18.......1	___________
	 2.	 Is the amount on line 1 more than $74,862?
		
	 No. Stop; you do not qualify for the credit.
		
	 Yes. Go to line 3.
	 3.	 a. Enter your qualified income.................... 3a __________
		 b. Enter your spouse’s qualified income....... 3b __________
	 4.	 Enter the smaller of line 3a or line 3b.......................................4	__________
	 5.	 Is the amount on line 4 more than $43,980?
		
	 No. Stop; you do not qualify for the credit.

See the instructions to
Schedule ND‑1SA for information
about the following:

13,850.00
		
	 Yes. Go to line 6..............................................................5	__________

	 •	 Lump sum distribution from
Federal Form 4972

	 7.	 Calculate the tax on the amount on line 6 using the
		
Single tax rate schedule on page 28.......................................7	__________

	 •	 Loss from S corporation taxed as
C corporation

	 8.	 Subtract line 6 from line 1........................... 8	___________

	 •	 Renaissance zone income
exemption

	 9.	 Calculate the tax on the amount on line 8 using the
		
Single tax rate schedule on page 28.......................................9	__________

	 •	 New or expanding business income
exemption
	 •	 Human organ donor deduction
	 •	 Employee workforce recruitment
exclusion
	 •	 Stillborn child deduction
	 •	 College expense reimbursement
deduction
	 •	 Income from S corporation taxed
as C corporation
Enter on this line the total
subtractions from Schedule ND-1SA.
Include Schedule ND-1SA.

Line 20 - Tax

If you were a full-year resident for
the tax year, use the Tax Table on
page 20 to calculate your tax. This
also applies if you are married filing
jointly and both you and your spouse
were full-year residents for the tax
year.
If you were a full-year nonresident
or a part-year resident for the
tax year, you must complete
Schedule ND-1NR to calculate your
tax. This also applies if you are
married filing jointly and either you

	 6.	 Subtract line 5 from line 4......................................................6	__________

	 0.	 Calculate the tax on the amount on line 1
1
		 using the Married filing jointly tax rate
		 schedule on page 28................................ 10	___________
	11.	 Add lines 7 and 9.................................................................11	__________
	 2.	 Subtract line 11 from line 10. If result is zero or less,
1
		 stop; you do not qualify for the credit.....................................12	___