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FAQ Articles

How does the S-corporation report income, gains, and losses to its shareholders?

An S corporation is not subject to North Dakota income tax. Instead, the shareholders are responsible for reporting and paying any applicable North Dakota income tax on their shares of the S corporation’s income that is reportable to North Dakota. The S corporation reports the income or loss to every nonresident individual, estate, or trust shareholder on a North Dakota Schedule K-1 (Form 60).  The North Dakota Schedule K-1 (Form 60) is also used to report income or loss to every qualified subchapter S trust (QSST) and electing small business trust (ESBT) shareholder with a nonresident individual or estate beneficiary.

Unless there are any North Dakota statutory adjustments or credits to report to the shareholders, a North Dakota Schedule K-1(Form 60) is not required to be issued to any resident individual, estate, or trust shareholder. All income of the resident individual, estate, or trust shareholder is taxable to North Dakota, regardless of its source.

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

How does the S-corporation report income, gains, and losses to its shareholders?

An S corporation is not subject to North Dakota income tax. Instead, the shareholders are responsible for reporting and paying any applicable North Dakota income tax on their shares of the S corporation’s income that is reportable to North Dakota. The S corporation reports the income or loss to every nonresident individual, estate, or trust shareholder on a North Dakota Schedule K-1 (Form 60).  The North Dakota Schedule K-1 (Form 60) is also used to report income or loss to every qualified subchapter S trust (QSST) and electing small business trust (ESBT) shareholder with a nonresident individual or estate beneficiary.

Unless there are any North Dakota statutory adjustments or credits to report to the shareholders, a North Dakota Schedule K-1(Form 60) is not required to be issued to any resident individual, estate, or trust shareholder. All income of the resident individual, estate, or trust shareholder is taxable to North Dakota, regardless of its source.

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