North Dakota Statutory Adjustments

Statutory Adjustments
Schedule ND-1SA
STATUTORY ADJUSTMENTS

Schedule ND-1SA

OFFICE OF STATE TAX COMMISSIONER

2023

SFN 28710 (12-2023)

Attach to Form ND-1

Name (First, MI, Last Name)

Your Social Security Number

Important! All taxpayers must read this section. If you are claiming a deduction on line 4 or 5 of this schedule,
you must complete this section. See "Property tax clearance" in instructions for details.
► Do you (or does your spouse, if filing jointly) hold a 50 percent or more ownership interest in real
Yes
No
property located in North Dakota?
If yes, enter name of each North Dakota county in which you or your spouse holds a 50% or more interest in real property:

_________________________________________________________________________________

Attach to Form ND-1 the completed Property Tax Clearance Record obtained from each county identified above.
Additions
1. Lump sum distribution from Federal Form 4972

(NA) 1

2. Loss from S corporation taxed as C corporation

(NB) 2
3

3. Total additions. Add lines 1 and 2. Enter result on Form ND-1, line 3
Subtractions
4. Renaissance zone income exemption (Attach Schedule RZ)
5. New or expanding business income exemption

(S7) 4
(NH) 5

6. Human organ donor expense deduction

(NL) 6

7. Employee workforce recruitment exclusion

(CA) 7

8. a. Stillborn child deduction
b. 11-digit certificate number from Certification
(CC) 8b
of Fetal Death
(CD) 8c
c. Date of death from Certification of Fetal Death
9. Employer reimbursement of college expenses which is included in taxable wages on
Form W-2 (Attach statement or letter from employer - see instructions)

(CB) 8a

(CE) 9

10. Income from S corporation taxed as C corporation

(S6) 10

11. Total subtractions. Add lines 4 through 8a, 9, and 10. Enter result on Form ND-1, line 16

Instructions

If you have any of the adjustments
shown on this schedule, you must
complete and attach it to Form ND-1.

The property tax clearance record(s)
must be attached to the North Dakota
tax return on which the incentive is
claimed. The deductions on lines 4
and 5 of this schedule are subject to
this requirement.

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.

If you are claiming the deduction
on line 4 or line 5 of this schedule,
you must complete the property tax
clearance section at the top of the
schedule. If you are required to attach
a property tax clearance record from
a county, obtain one by using the
form Property Tax Clearance Record
available on the Office of State Tax
Commissioner’s website at
www.tax.nd.gov.

Property tax clearance
North Dakota Century Code (N.D.C.C.)
§ 57-01-15.1 provides that, before
certain state tax incentives may be
claimed, a taxpayer must obtain a
property tax clearance record from
each North Dakota county in which
the taxpayer holds a 50% or more
ownership interest in real property.

Line 1 - Lump sum distribution
If you received a lump-sum
distribution from a qualified retirement
plan that you elected to report on
Federal Form 4972 (Tax On LumpSum Distributions), you must enter on
this line the amount from Form 4972,
line 6 plus line 10. However, if you
received the distribution while a
nonresident of North Dakota, do not
make an entry on this line.

11

Line 2 - Loss from certain S
corporations
Enter on this line the amount of a
loss adjustment reported to you by
an S corporation that elected to be
taxed as a C corporation for North
Dakota income tax purposes. For
more information, see the guideline
Adjustment For Income (Loss) From
An S Corporation Electing To Be Taxed
As A C Corporation under “Guidelines”
at www.tax.nd.gov.
Line 4 - Renaissance zone income
exemption
If you qualified for the business
or investment income exemption
under the North Dakota renaissance
zone program, enter the sum of the
amounts from Schedule RZ, Part 7,
line 1c. Attach Schedule RZ.

2023 Schedule ND-1SA
SFN 28710 (12-2023), Page 2

Line 5 - New or expanding
business income exemption
If you operate a business as a sole
proprietorship and were granted a
new or expanding business income
exemption under N.D.C.C.
Ch. 40-57.1, enter the portion of your
net business income that is eligible for
the exemption. For more information
on how to calculate the amount of
the exempt income, see North Dakota
Administrative Code
§ 81-03-01.1‑06. Include on this line
a new or expanding business income
exemption from a North Dakota
Schedule K-1.

Line 7 - Employee workforce
recruitment exclusion
If you receive a statement from
your employer verifying that your
employer qualified for the North
Dakota workforce recruitment income
tax credit based on your employment,
enter on this line the amount of
the signing bonus, moving expense
payment, or non-typical fringe benefit
payment shown on the statement,
but only to the extent it is included in
your federal taxable income for the
tax year.

Line 6 - Organ donor deduction
If you or your dependent, while
living, donates part or all of a liver,
pancreas, kidney, intestine, lung,
or bone marrow for transplantation
into another human being, you may
deduct up to $10,000 of qualified
expenses related to the donation that
you incurred during the tax year.

Line 8 - Stillborn child deduction
You are allowed a deduction if you
meet all of the following conditions:

Qualified expenses means:

		 Lost wages not compensated for
by sick pay.

		 Unreimbursed medical expenses

(as defined for federal income tax
purposes) that you did not deduct
in calculating your federal taxable
income.

The expenses are deductuble in the
tax year in which they are incurred.
They are incurred when the medical
care is actually provided, and not
when the expenses are billed or paid.
Enter on this line qualified expenses
incurred during the tax year.

Attach a copy of the statement
received from your employer.

		 You are the parent of a child who
was stillborn in 2023.

		 You received or obtained a

certified copy of a Fetal Death
Record (Certification of Fetal
Death) from the North Dakota
Department of Health, Division
of Vital Records. This deduction
is allowed only if a Fetal Death
Record was filed with the North
Dakota Division of Vital Records.

		 You would have been eligible to

claim the child as a dependent
on your 2023 federal income
tax return if the child had been
born alive. For information on
who is entitled to a federal
dependency exemption, see IRS
Publication 501.

If eligible, enter $4,892 on line 8a and
complete lines 8b and 8c.

Line 9 – College expense
reimbursement deduction
If your employer paid to you, or
on your behalf, an amount as
reimbursement of expenses you
incurred for higher education or
career and technical education, and
the reimbursement was included in
the taxable wages reported in Box 1
of your Form W-2, enter the taxable
reimbursement on this line. Do not
enter on this line any portion of a
reimbursement that you deducted or
excluded from your federal taxable
income.
Attach a statement or letter from
your employer containing the
following information:

		 A statement that the employer

paid to you, or on your behalf,
an amount as reimbursement for
higher education or career and
technical education expenses you
incurred.

		 Amount of reimbursement

included in the taxable wages
reported in Box 1 of your
Form W-2.

Line 10 - Income from certain
S corporations
Enter on this line the amount of an
income adjustment reported to you
by an S corporation that elected to
be taxed as a C corporation for North
Dakota income tax purposes. For
more information, see the guideline
Adjustment For Income (Loss) From
An S Corporation Electing To Be Taxed
As A C Corporation under “Guidelines”
at www.tax.nd.gov.