NORTH DAKOTA
separate property state

 

Military Income:   Fully taxable. 

Military Spouse Residency Relief Act:  Service member's permanent duty station is in North Dakota. Spouse residing and working in state solely to be with service member. Service member and spouse maintain their legal residence in a state other than North Dakota. Self employment income and gambling winnings ARE NOT EXEMPT from ND taxation. Civilian spouse may file Form NDW-M with their employer to stop withholding of North Dakota income tax. A new form must be filed each year.

Forms Used:            

Filing Status:  Same as on the federal return.  Separate state returns are NOT permitted for married couples who filed a joint federal return.  If one spouse is not a resident, they must file jointly as nonresidents.

Attach Copy of Federal Return:  Yes

Not Taxed:

Other State Tax Credit:  Available.  Attach North Dakota 1CR and copy of other state return.   

Reciprocity States:  Minnesota and Montana.

Where to Mail:

Office of State Tax Commissioner
State Capitol 600 E. Boulevard Ave, Dept 127
Bismarck, ND  58505-0550

 
Forms:  (701) 328-3450

Refund Inquiry:  (701) 328-3450 
Online - Where's My Refund
(Paper returns may take up to six weeks to process)

General Information:  (701) 328-2770 Electronic Filing:  (701) 328-3102
Other Info:  Website:  www.nd.gov/tax/

State Tax Commissioner 
State Capitol 16th Floor 

600 E. Boulevard Ave.
Bismarck, ND  58505-0599

 
E-filing Info: 
Tax Form Instructions:
Resident Instructions Non-Resident Instructions
Military Information  

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence 
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both North Dakota residents, lived at their present location all year, and one or both had income.

Main Info Screen.

North Dakota 1 Form.  A joint resident North Dakota income tax return is prepared.  You must enter the appropriate School District Code and the Income Source Code from the options available.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of North Dakota, while the other member is a resident of a different state.  A North Dakota income tax return must be prepared due to the taxpayer or spouse having North Dakota earned income.

Main Info Screen.  For married couples, if the spouse or taxpayer is not a resident of North Dakota, a married filing joint tax return must be prepared as a nonresident.  For this example, the taxpayer is a resident of Oklahoma while the spouse is a resident of North Dakota.  In this case, you must use the North Dakota Schedule 1NR Form.  

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

North Dakota 1 Form.   A married filing joint return resident North Dakota income tax return should be prepared.  You must enter the appropriate School District Code and the Income Source Code from the options available.

 

North Dakota Form 1.  To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident income must be entered as a subtraction on the North Dakota Form 1.  You must enter Active Duty military pay on line 13 of the ND Form 1.

North Dakota 1NR Form - Tax Calculation for Nonresidents and Part-Year Residents.  This form is used to subtract out the other-states (Oklahoma) income.  Select the appropriate boxes and indicate the nonresident state as in the example.

Review the remainder of the North Dakota Form ND-1 and ND-1NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a North Dakota tax return due to one or both having North Dakota earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a North Dakota income tax return because the spouse worked in North Dakota.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

North Dakota Form 1.   A joint non-resident North Dakota income tax return should be prepared.  You must enter the appropriate School District Code and the Income Source Code from the options available. If both Taxpayer and spouse are nonresidents, use code 54-000.

North Dakota Form 1.  To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident income must be entered as a subtraction on the North Dakota Form 1.  You must enter Active Duty military pay on line 13 of the ND Form 1.

.  

North Dakota Form 1NR - Tax Calculation for Nonresidents and Part-Year Residents will be generated.  A nonresident military spouses income may not be taxed due to the MSRRA. Exempt the income using ND 1NR. Link on the North Dakota column on line 1 to a scratchpad.

Complete a scratchpad like the one in the example. Ensure you enter the nonresident military spouse's income as a negative number. SELF EMPLOYMENT INCOME AND GAMBLING WINNINGS ARE NOT EXEMPT FROM ND TAXATION.

Review the remainder of the North Dakota Form ND-1 and ND 1NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from North Dakota during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of North Dakota.  The Spouse and taxpayer must file a North Dakota tax return due to one or both of them having North Dakota earned income and possibly income from another state.

Main Info Screen.  The taxpayer and spouse moved from New Mexico to North Dakota during the year.  The spouse was a resident of New Mexico but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both New Mexico and North Dakota and must file a New Mexico income tax return because the spouse worked in New Mexico  The taxpayer is a resident of Indiana.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

North Dakota Form 1.   A joint part-year resident North Dakota income tax return should be prepared.  You must enter the appropriate School District Code and the Income Source Code from the options available.

North Dakota Form 1.  To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident income must be entered as a subtraction on the North Dakota Form 1.  You must enter Active Duty military pay on line 13 of the ND Form 1.

North Dakota Form 1NR will be generated.  This form is used to subtract out all the other-states (Indiana and New Mexico) income.  Fill in dates of residency and the other state's abbreviation.  In order for this form to work correctly you must change the Taxpayer's residency status from what the software defaults to.  To do this click on the Part-year resident block and simultaneously press CTRL & ENTER to override, then uncheck the box.  Do the same to the Full-year nonresident box this time check the box.  Enter the state of residency for the Taxpayer, in our example, Indiana.

Review the remainder of the North Dakota Form ND-1 and ND 1NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of North Dakota with Income from Another State  - Taxpayer is single or married.  The taxpayer must file a North Dakota tax return due to him or her having North Dakota earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota and a resident of North Dakota.  The taxpayer had a part-time job in Virginia while TDY therefore having North Dakota earned income and Virginia Earned Income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

North Dakota 1 Form.  A resident North Dakota income tax return is prepared.  North Dakota taxes residents on income from all sources, even income earned while living in another state (Virginia as in this example).  You must enter the appropriate School District Code and the Income Source Code for the options available.

North Dakota 1CR Form, Calculation of Credit for Income Tax Paid to Another State must be added to the tax return.  You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the taxpayer had withheld from his or her pay but the amount of tax imposed on them.  Line 1b is the amount of income earned in the other state (Virginia).  Line 6 is the amount of income tax liability on the (Virginia) tax return.   A copy of the other state's return must be attached to the North Dakota return if not e-filed.

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended North Dakota return must be filed because the taxpayer received new tax information after their North Dakota return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted. Enter an explanation changes in Part C.

North Dakota 1 - North Dakota Individual Income Tax.  The same North Dakota 1 Form that was used to file the return is used to amend the return.  Answer the questions as in the example.  You must check the box to lock in the original refund or balance due before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

North Dakota 1 - North Dakota Individual Income Tax.  Return to the North Dakota 1 form to determine if the taxpayer is receiving an additional refund or owes money.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.