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600 E. Boulevard Ave.
  Bismarck, ND 58505-0599
  701.328.7088 phone
  701.328.3700 fax
  877.328.7088 toll-free

Individual Income Tax Frequently Asked Questions

Question Categories


Resident Individuals

Who is a resident for North Dakota individual income tax purposes?

I am a resident of North Dakota. Am I required to file a North Dakota state income tax return?

I am a resident of North Dakota, but earned income in another state during the year. Do I report this income on my North Dakota income tax return?

I am a North Dakota resident serving in the U.S. armed forces, but I am stationed outside of North Dakota. Am I required to file a North Dakota income tax return?

I am a resident of North Dakota but I worked in Minnesota. Do I have to pay North Dakota income tax on my wages for working in Minnesota?

I am a North Dakota resident. Is my income eligible for exemption from Minnesota income tax under the North Dakota—Minnesota income tax reciprocity agreement?

I am a resident of North Dakota but I worked in Montana. Do I have to pay North Dakota income tax on my wages for working in Montana?

I am a North Dakota resident. Is income other than wages eligible for exemption from Montana income tax under the North Dakota—Montana income tax reciprocity agreement?

I moved into North Dakota during the year. Do I need to file a North Dakota income tax return?

I am a resident of North Dakota, but my spouse is a nonresident. How do we file our North Dakota income tax return if we file a joint federal return?

Nonresident Individuals

Who is nonresident for North Dakota individual income tax purposes?

When is a nonresident of North Dakota required to file a North Dakota individual income tax return?

I moved out of North Dakota during the year. Do I have to file a North Dakota income tax return?

I am a resident of Minnesota but I worked in North Dakota. Do I have to pay North Dakota income tax on my wages for working in North Dakota?

I am a Minnesota resident. Is my income eligible for exemption from North Dakota income tax under the North Dakota—Minnesota income tax reciprocity agreement?

I am a resident of Montana but I worked in North Dakota. Do I have to pay North Dakota income tax on my wages for working in North Dakota?

I am a Montana resident. Is income other than wages eligible for exemption from North Dakota income tax under the North Dakota—Montana income tax reciprocity agreement?

I am a citizen of a foreign country in the United States on a temporary visa and I have been working in North Dakota. Do I have to file a North Dakota income tax return?

Are winnings from gambling in North Dakota subject to your state’s income tax if I am from another state or a foreign country?

I am a nonresident of North Dakota and an owner of a business that conducts some of its business in North Dakota. Am I required to file a North Dakota income tax return?

I am a nonresident of North Dakota and I own land in North Dakota from which I receive both cash rent and oil royalty income. Am I required to file a North Dakota income tax return?

I am a nonresident of North Dakota. I was a partner in a partnership that was formed under North Dakota law and carried on part of its business in North Dakota. I sold my interest in the partnership. Is the gain on the sale of my partnership interest taxable in North Dakota?

I am a nonresident of North Dakota serving in the U. S. armed forces and am stationed in North Dakota. Do I need to file a North Dakota income tax return?

Native Americans

I live on an Indian reservation. Am I required to file a North Dakota income tax return?

I live on an Indian reservation in North Dakota where I am enrolled, but I earned some income on different Indian reservation in North Dakota. Is my income from the reservation on which I am not enrolled subject to North Dakota income tax?

I live and work on an Indian reservation and am a descendent of the tribe. Am I exempt from filing a North Dakota income tax return?

I am a Native American serving in the U.S. armed forces. Is my income exempt from North Dakota income tax?

Military Personnel (Active Duty and Retired)

I am a resident of North Dakota serving in the U.S. armed forces, but I am stationed outside of North Dakota. Am I required to file a North Dakota income tax return?

I am a resident of North Dakota serving in the U.S. armed forces, but my spouse is a nonresident of North Dakota. We file a joint federal income tax return. How do we file our North Dakota income tax return?

I am a nonresident of North Dakota serving in the U.S. armed forces, and I am stationed in North Dakota. Do I need to file North Dakota income tax return?

I recently retired from the U.S. armed forces. While in the service I was a nonresident of North Dakota and did not have to file a North Dakota income tax return. Upon my retirement, I took up residence in North Dakota. Is my military pension taxable by North Dakota?

I recently retired from the U.S. armed forces. While in the service I was a of North Dakota and I filed North Dakota income tax returns as required. At the time I retired I took up residence in another state. Is my military pension taxable by North Dakota?

I am a Native American serving in the U.S. armed forces. Is my income exempt from North Dakota income tax?

Does North Dakota provide any special deductions or exemptions for active or retired military personnel?

Income Tax Refunds

How can I check on the status of my refund?

Can you directly deposit my refund into my bank account?

What happens if my bank account is closed before the deposit is made, or my bank refuses to accept the deposit?

I was due a refund, but received a notice that the refund was applied to an obligation I had with another agency. Do I have any recourse?

Estimated Individual Income Tax

Am I required to pay estimated income tax to North Dakota?

I need to make a North Dakota estimated income tax payment, but I misplaced my estimated tax payment vouchers. What can I do?

Amended Returns

When am I required to amend my North Dakota state income tax return?

What forms do I use to amend my North Dakota state income tax return?

I received a notice from the Internal Revenue Service informing me of a change they made to my federal individual income tax return. Am I required to amend my North Dakota income tax return?

Electronic Filing (E-file)

Can I electronically file my North Dakota tax return?

What are the advantages to electronically filing my return?

If I electronically file my return before April 15th, and I have a balance due, do I have to pay the balance at the time I file the return?

Is there a fee to electronically file my North Dakota income tax return?

Extension of Time to File

How do I obtain an extension of time to file my North Dakota individual income tax return?

I am applying for an extension of time to file my return, and I expect to owe North Dakota state income tax. Can I send you an advance payment so I don’t have to pay interest on the tax due?

If I file for an extension of time to file my return, can I still file electronically?

General Issues

What are the North Dakota individual income tax rates?

Where do I mail my North Dakota individual income tax return?

When do I have to file my North Dakota individual income tax return?

I forgot to include my payment for the balance due on my return. What should I do?

Can I use a credit card to pay the tax balance due on my return?

What if I cannot pay the balance due on my return?

How do I get a copy of my North Dakota income tax return?

I have moved since filing my North Dakota income tax return. How do I notify you of my change of address?

Does North Dakota recognize the federal Form 2848, Power of Attorney and Declaration of Representative?


Resident Individuals

Q: Who is a resident for North Dakota individual income tax purposes?

A: You are a resident of North Dakota for income tax purposes if (1) you are domiciled in North Dakota or (2) you are not domiciled in North Dakota but you maintain a permanent place of abode in North Dakota and spend more than seven months (which is equal to 210 days) of the tax year in North Dakota.

Your domicile is your residence by law and is commonly referred to as your legal residence. It generally 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 domicile. Domicile is based on your intent as supported by your actions. If you are domiciled in North Dakota for the entire tax year, you are a full-year resident of North Dakota for that year.

Even though you are not domiciled in North Dakota for any part of the tax year, North Dakota income tax law will treat you as a full-year resident of North Dakota if you maintain a permanent place of abode in North Dakota and spend more than seven months (which is equal to 210 days) of the tax year in North Dakota. “Permanent place of abode” means a house, apartment, or other dwelling containing cooking and bathroom facilities that is suitable for year-round living and is maintained on a permanent or indefinite basis. This statutory seven month rule does not apply to (1) individuals in the U.S. armed forces stationed in North Dakota who are domiciled in another state, (2) Minnesota or Montana residents covered under the income tax reciprocity agreements with those states, or (3) individuals who moved into or out of North Dakota during the tax year where the move constituted a change in domicile (that is, legal residence).

If you are domiciled in North Dakota for only part of the year, you are a part-year resident of North Dakota for that year.

Q: When is a resident of North Dakota required to file a North Dakota individual income tax return?

A: A North Dakota resident must file a North Dakota individual income tax return if the individual is required to file a federal individual income tax return for the same tax year.

Q: I am a resident of North Dakota and received wages for working in another state. Are these wages taxable on my North Dakota income tax return?

A: Yes. Wages received for work performed outside North Dakota are taxable on your North Dakota income tax return. In fact, a North Dakota resident is subject to North Dakota income tax on all income received from any source inside or outside North Dakota.

If the other state in which you worked has an income tax, you may have to file an income tax return and pay income tax to the other state. You will need to contact the tax or revenue agency in the other state for more information. If you are required to file an income tax return and pay income tax to the other state on the wages earned in that state, you are allowed a credit that will reduce your North Dakota income tax. To claim this credit, obtain and complete Schedule ND-1CR and attach it to your North Dakota return.

Q: I am a North Dakota resident serving in the U.S. armed forces, but I am stationed outside of North Dakota. Am I required to file a North Dakota income tax return?

A: All North Dakota residents, including those serving in the U.S. armed forces, are required to file a North Dakota individual income tax return if they are required to file a federal individual income tax return for the tax year. As a North Dakota resident, all of your income regardless of its source inside or outside North Dakota, including your military income, is subject to North Dakota income tax.

Q: I am a resident of North Dakota but I worked in Minnesota. Do I have to pay North Dakota income tax on my wages for working in Minnesota?

A: Yes. As a North Dakota resident, all of your income regardless of its source inside or outside North Dakota is subject to North Dakota income tax. Ordinarily, the wages you received for working in Minnesota would also be subject to Minnesota income tax; however, if you are eligible under the income tax reciprocity agreement between North Dakota and Minnesota, those wages are exempted from Minnesota income tax. (For more information, see the next question “I am a North Dakota resident. Is my income eligible for exemption from Minnesota income tax under the North Dakota—Minnesota income tax reciprocity agreement?

If you are eligible for reciprocity under the North Dakota—Minnesota income tax reciprocity agreement, but your employer withheld Minnesota income tax from wages that you earned in Minnesota, you will need to file a Minnesota individual income tax return to claim a refund of that withholding. For forms or assistance with your claim, contact the Minnesota Department of Revenue by calling 1-651-296-3781, or go to their website at www.taxes.state.mn.us. If you continue to work in Minnesota while a North Dakota resident and remain eligible for reciprocity, you can stop the withholding of Minnesota income tax from your wages earned in Minnesota by completing Form MW-R and giving it to your employer.

Q: I am a North Dakota resident. Is my income eligible for exemption from Minnesota income tax under the North Dakota—Minnesota income tax reciprocity agreement?

A: Compensation that a North Dakota resident receives for personal or professional services performed in Minnesota is exempt from Minnesota income tax under the reciprocity agreement if the individual maintains a permanent home in North Dakota to which the individual returns at least once each month while performing the services in Minnesota. “Compensation for personal or professional services” includes wages, salaries, tips, and commissions that an employee receives from an employer and, in limited cases, distributions from a partnership.

The following types of income that a North Dakota resident receives from sources in Minnesota are not eligible for exemption under the reciprocity agreement: (1) Income from tangible property, such as rents, royalties, and gains from its sales or exchange; (2) Income from gambling activity; (3) Income from a subchapter S corporation, other than wages; (4) Income from a business that is derived from the sale of goods; and, (5) Income from a business that provides personal or professional services where the sale of goods or the services of employees is more than incidental to the production of the income. For more information on situations involving income from a business conducted in Minnesota, contact the Minnesota Department of Revenue by calling 1-651-296-3781, or go to their website at www.taxes.state.mn.us.

Q: I am a resident of North Dakota but I worked in Montana. Do I have to pay North Dakota income tax on my wages for working in Montana?

A: Yes. As a North Dakota resident, all of your income regardless of its source inside or outside North Dakota is subject to North Dakota income tax. Ordinarily, the wages you received for working in Montana would also be subject to Montana income tax; however, under the income tax reciprocity agreement between North Dakota and Montana, the wages you received for working in Montana are exempted from Montana income tax because you are a North Dakota resident. If your employer withheld Montana income tax from the wages earned in Montana, you will need to file a Montana individual income tax return to claim a refund of that withholding. For forms or assistance with your claim, contact the Montana Department of Revenue by calling 1-406-444-6900, or go to their website at www.mt.gov/revenue.

Q: I am a North Dakota resident. Is income other than wages eligible for exemption from Montana income tax under the North Dakota—Montana income tax reciprocity agreement?

A: No. The reciprocity agreement between North Dakota and Montana only covers wages paid by an employer to an employee that are subject to federal income tax withholding and reported on Form W-2.

Q: I moved into North Dakota during the year. Do I have to file a North Dakota income tax return?

A: If your move into North Dakota constitutes a change in your domicile (or legal residence), you would be a part-year resident of North Dakota for the tax year. You would have to file a North Dakota individual income tax return if (1) you are required to file a federal individual income tax return for the tax year and (2) you have income that is taxable by North Dakota.

As a part-year resident of North Dakota, you would have income that is taxable by North Dakota if (1) you have any gross income from a North Dakota source during the time you were a nonresident of North Dakota or (2) you have any gross income from any source inside or outside North Dakota during the time you were a North Dakota resident, or both.

Q: I am a resident of North Dakota, but my spouse is a resident of another state. How do we file our North Dakota income tax return if we file a joint federal return?

A: Because you are filing a joint federal individual income tax return, you are required to file a joint North Dakota individual income tax return as well. However, because your spouse is a nonresident of North Dakota, you need to complete and attach a separate supplemental schedule, Schedule ND-1NR, to your North Dakota income tax return, Form ND-1. On the supplemental schedule, you will provide information about the residency status of you and your spouse. You will also show the adjusted gross income from your federal return and then separately show the portion of that joint federal amount that is reportable to and taxable by North Dakota. As a final step on the supplemental schedule, you will calculate the North Dakota income tax liability for your situation.

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Nonresident Individuals

Q: Who is a nonresident for North Dakota individual income tax purposes?

A: You are a nonresident for North Dakota individual income tax purposes if you are not a resident as defined under North Dakota income tax law. North Dakota income tax law defines a resident as an individual who either (1) is domiciled in North Dakota or (2) is not domiciled in North Dakota but maintains a permanent place of abode in North Dakota and spends more than seven months (which is equal to 210 days) of the tax year in North Dakota.

Domicile refers to an individual’s residence by law and is commonly referred to as one’s legal residence. It generally means the place that is the permanent home to which an individual always intends to return whenever absent from it. If an individual has more than one physical place of abode, only one of them may be the individual’s domicile. Domicile is based on the intent and actions of an individual.

You are a full-year nonresident of North Dakota if you are not domiciled in North Dakota for any part of the tax year. If you are domiciled in North Dakota for only part of the tax year, you are a part-year resident of North Dakota.

Even though you are not domiciled in North Dakota for any part of the tax year, North Dakota income tax law will treat you as a full-year resident of North Dakota if you maintain a permanent place of abode in North Dakota and spend more than seven months (which is equal to 210 days) of the tax year in North Dakota. “Permanent place of abode” means a house, apartment, or other dwelling containing cooking and bathroom facilities that is suitable for year-round living and is maintained on a permanent or indefinite basis. This statutory seven month rule does not apply to (1) individuals in the U.S. armed forces stationed in North Dakota who are domiciled in another state, (2) Minnesota or Montana residents covered under the income tax reciprocity agreements with those states, or (3) individuals who moved into or out of North Dakota during the tax year where the move constituted a change in domicile (that is, legal residence).

Q: When is a nonresident of North Dakota required to file a North Dakota individual income tax return?

A: A nonresident of North Dakota is required to file a North Dakota individual income tax return if the individual (1) is required to file a federal individual income tax for the tax year and (2) has any gross income from North Dakota sources.

Q: I moved out of North Dakota during the year. Do I have to file a North Dakota income tax return?

A: If your move out of North Dakota constitutes a change in your domicile (or legal residence), you would be a part-year resident of North Dakota for the tax year. You would have to file a North Dakota individual income tax return if (1) you are required to file a federal individual income tax return for the tax year and (2) you have income that is taxable by North Dakota.

As a part-year resident of North Dakota, you would have income that is taxable by North Dakota if (1) you have any gross income from any source inside or outside North Dakota during the time you were a North Dakota resident or (2) you have any gross income from a North Dakota source during the time you were a nonresident of North Dakota, or both.

Q: I am a resident of Minnesota but I worked in North Dakota. Do I have to pay North Dakota income tax on my wages for working in North Dakota?

A: The wages you received for working in North Dakota are subject to North Dakota income tax unless you are eligible under the income tax reciprocity agreement between North Dakota and Minnesota. If you are eligible for reciprocity, the wages are exempt from North Dakota income tax. (For more information, see the next question "I am a North Dakota resident. Is my income eligible for exemption from Minnesota income tax under the North Dakota—Minnesota income tax reciprocity agreement?")

If you are eligible for reciprocity under the North Dakota—Minnesota income tax reciprocity agreement, but your employer withheld North Dakota income tax from the wages you earned in North Dakota, you will need to file a North Dakota individual income tax return to claim a refund of that withholding. For forms or assistance with your claim, contact the North Dakota Office of State Tax Commissioner by calling 701-328-1247, or go to our website at www.nd.gov/tax/. If you continue to work in North Dakota and remain eligible for reciprocity, you can stop the withholding of North Dakota income tax from your wages earned in North Dakota by completing Form NDW-R and giving it to your employer.

Q: I am a Minnesota resident. Is my income eligible for exemption from North Dakota income tax under the North Dakota—Minnesota income tax reciprocity agreement?

A: Compensation that a Minnesota resident receives for personal or professional services performed in North Dakota is exempt from North Dakota income tax under the reciprocity agreement if the individual maintains a permanent home in Minnesota to which the individual returns at least once each month while performing the services in North Dakota. “Compensation for personal or professional services” includes wages, salaries, tips, and commissions that an employee receives from an employer and, in limited cases, distributions from a partnership.

The following types of income that a Minnesota resident receives from sources in North Dakota are not eligible for exemption under the reciprocity agreement: (1) Income from tangible property, such as rents, royalties, and gains from its sales or exchange; (2) Income from gambling activity; (3) Income from a subchapter S corporation, other than wages; (4) Income from a business that is derived from the sale of goods; and, (5) Income from a business that provides personal or professional services where the sale of goods or the services of employees is more than incidental to the production of the income. For more information on situations involving income from a business conducted in North Dakota, contact the North Dakota Office of State Tax Commissioner by calling 701-328-1247, or go to our website at www.nd.gov/tax/.

Q: I am a resident of Montana but I worked in North Dakota. Do I have to pay North Dakota income tax on my wages for working in North Dakota?

A: No. The wages you received for working in North Dakota are exempt from North Dakota income tax under the income tax reciprocity agreement between North Dakota and Montana.

If your employer withheld North Dakota income tax from the wages you earned in North Dakota, you will need to file a North Dakota individual income tax return to claim a refund of that withholding. For forms or assistance with your claim, contact the North Dakota Office of State Tax Commissioner by calling 701-328-1247, or go to our website at www.nd.gov/tax/. If you continue to work in North Dakota while a Montana resident, you can stop the withholding of North Dakota income tax from your wages earned in North Dakota by completing Form NDW-R and giving it to your employer.

Q: I am a Montana resident. Is income other than wages eligible for exemption from North Dakota income tax under the North Dakota—Montana income tax reciprocity agreement?

A: No. The reciprocity agreement between North Dakota and Montana only covers wages paid by an employer to an employee that are subject to federal income tax withholding and reported on Form W-2.

Q: I am a citizen of a foreign country in the United States on a temporary visa and I have been working in North Dakota. Do I have to file a North Dakota income tax return?

A: Yes. As a nonresident alien of the United States, you must file a North Dakota individual income tax return to report the compensation income you receive for the work performed in North Dakota. This applies even though the compensation income is exempt from U.S. income tax under an income tax treaty between the U.S. and your home country. North Dakota does not recognize income tax treaties between the U.S. and foreign countries. Whether you have to pay any North Dakota income tax on the compensation income will depend on the amount of the compensation income and allowable deductions. For details on how to complete and file a North Dakota return, obtain our income tax guideline: Income Taxation of Nonresident Aliens.

Q: Are winnings from gambling in North Dakota subject to your state’s income tax if I am from another state or a foreign country?

A: Yes. If you are a resident of another state (and not a nonresident alien temporarily present in the United States), and you are required to file a federal individual income tax for the tax year, you would have a requirement to file a North Dakota individual income tax return to report the gambling winnings from North Dakota sources. If you are a resident of Minnesota or Montana, gambling income from North Dakota sources is not eligible for exemption from North Dakota income tax under the income tax reciprocity agreements with those states.

If you are from a foreign country, such as Canada, and are a nonresident alien of the United States, you must file a North Dakota individual income tax return to report the gambling winnings from North Dakota sources. Whether you have to pay any North Dakota income tax on the gambling winnings will depend on the amount of those winnings and allowable deductions. For details on how to complete and file a North Dakota return, obtain our income tax guideline: Income Taxation of Nonresident Aliens.

Except for North Dakota lottery winnings, North Dakota income tax is not required by law to be withheld from gambling winnings in North Dakota. This differs from the treatment under federal income tax law where gambling establishments are required to withhold federal income tax from certain types of gambling winnings. The absence of North Dakota income tax withholding is sometimes the reason some nonresidents have thought that gambling winnings are not subject to North Dakota income tax.

Q: I am a nonresident of North Dakota and an owner of a business that conducts business in North Dakota. Am I required to file a North Dakota income tax return?

A: You would have to file a North Dakota individual income tax if you (1) are required to file a federal income tax return for the tax year and (2) the business generates gross income that you are required to report on your federal return. This applies whether you are the owner of a sole proprietorship or you hold an interest in a partnership, subchapter S corporation, or a limited liability company. The state filing requirement is based on gross income, which is the amount of income before business expenses are deducted; therefore, it is possible to have a state filing requirement even if the business generates a net loss for the tax year.

If your business conducts all of its business in North Dakota, then all of the gross income (and related business expenses) from the business are reportable to North Dakota. On the other hand, if your business conducts its business both inside and outside North Dakota, then special allocation and apportionment rules will apply in determining the amount of the business’s gross income (and related business expenses) that must be reported to North Dakota.

Q: I am a nonresident of North Dakota and I own land in North Dakota from which I receive both cash rent and oil royalty income. Am I required to file a North Dakota income tax return?

A: If you have gross income from North Dakota sources and are required to file a federal income tax return, you are required to file a North Dakota individual income tax return. For a nonresident, gross income from North Dakota sources includes income from tangible property located in North Dakota, such as rents, royalties, and gains from the sale or exchange of the tangible property.

Q: I am a nonresident of North Dakota. I was a partner in a partnership that was formed under North Dakota law and carried on part of its business in North Dakota. I sold my interest in the partnership. Is the gain on the sale of my partnership interest taxable in North Dakota?

A: No. A partnership interest is an intangible asset and, in the case of a nonresident individual, North Dakota income tax law excludes a gain from the sale of an intangible asset from North Dakota income tax. Similarly, if you had sold your partnership interest at a loss, the loss would not be deductible for North Dakota income tax purposes.

Q: I am a nonresident of North Dakota serving in the U. S. armed forces and am stationed in North Dakota. Do I need to file a North Dakota income tax return?

A: No, provided you do not have any income from North Dakota sources other than your military compensation. Income from North Dakota sources that would require you to file a North Dakota individual income tax return includes wages and other compensation for civilian work (on or off of a military base); income from tangible property, such rents, mineral interest royalties, and ordinary and capital gains; income from gambling activity in North Dakota; and income from a trade or business that operates in North Dakota, such as a sole proprietorship, partnership, subchapter S corporation, and limited liability company.

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Native Americans

Q: I live on an Indian reservation. Am I required to file a North Dakota income tax return?

A: 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 live on any Indian reservation in North Dakota; and
  • You derive all of your income from sources on any Indian reservation in North Dakota or from sources outside North Dakota.

See our income tax guideline, Income Taxation of Native Americans for more information.

Q: I live on an Indian reservation in North Dakota where I am enrolled, but I earned some income on different Indian reservation in North Dakota. Is my income from the reservation on which I am not enrolled subject to North Dakota income tax?

A: No. For tax years 2007 and after, North Dakota income tax law exempts income earned on any reservation in North Dakota regardless of which Indian reservation you live on in North Dakota.

Q: I live and work on an Indian reservation and am a descendent of the tribe. Am I exempt from filing a North Dakota income tax return?

A: No, it is not enough to be a descendant. You must be an enrolled member of a federally-recognized Indian tribe in North Dakota in addition to living and working on an Indian reservation.

Q: I am a Native American serving in the U.S. armed forces. Is my income exempt from North Dakota income tax?

A: If your legal residence is on an Indian reservation in North Dakota, the compensation you receive for active duty service in the U.S. armed forces is exempt from North Dakota income tax regardless of whether the service is performed within or without North Dakota.

If your legal residence is located in another state (whether or not it is on an Indian reservation), the compensation you receive for active duty service in the U.S. armed forces is exempt from North Dakota income tax regardless of whether the service is performed within or without North Dakota.

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Military Personnel (Active Duty And Retired)

Q: I am a resident of North Dakota serving in the U.S. armed forces, but I am stationed outside of North Dakota. Am I required to file a North Dakota income tax return?

A: All North Dakota residents, including those serving in the U.S. armed forces, are required to file a North Dakota individual income tax return if they are required to file a federal individual income tax return for the tax year. As a North Dakota resident, all of your income regardless of its source inside or outside North Dakota, including your military income, is subject to North Dakota income tax.

Q: II am a resident of North Dakota serving in the U.S. armed forces, but my spouse is a nonresident of North Dakota. We file a joint federal income tax return. How do we file our North Dakota income tax return?

A: Because you are filing a joint federal individual income tax return, you are required to file a joint North Dakota individual income tax return as well. However, because your spouse is a nonresident of North Dakota, you need to complete and attach a separate supplemental schedule, Schedule ND-1NR, to your North Dakota return, Form ND-1. On the supplemental schedule, you will provide information about the residency status of you and your spouse. You will also show the adjusted gross income from your federal return and then separately show the portion of that joint federal amount that is reportable to and taxable by North Dakota. As a final step on the supplemental schedule, you will calculate the North Dakota income tax liability for your situation.

Q: I am a nonresident of North Dakota serving in the U.S. armed forces and am stationed in North Dakota. Do I have to file a North Dakota income tax return?

A: No, provided you do not have any income from North Dakota sources other than your military compensation. Income from North Dakota sources that would require you to file a North Dakota individual income tax return includes wages and other compensation for civilian work (on or off of a military base); income from tangible property, such rents, mineral interest royalties, and ordinary and capital gains; income from gambling activity in North Dakota; and income from a trade or business that operates in North Dakota, such as a sole proprietorship, partnership, subchapter S corporation, and limited liability company.

See our income tax guideline Income Taxation of Military Personnel for more information.

Q: I recently retired from the U.S. armed forces. While in the service I was a nonresident of North Dakota and did not have to file a North Dakota income tax return. Upon my retirement, I took up residence in North Dakota. Is my military pension taxable by North Dakota?

A: Yes. Once you took up residence in North Dakota, all of your income from that point on, regardless of its source, became subject to North Dakota income tax. In the case of your military pension, the portion of your pension that is taxable for federal income tax purposes is also taxable by North Dakota. If you are required to file a federal individual income tax return for the tax year, you will have to file a North Dakota individual income tax return and report to North Dakota your pension plus any other income you received after you took up residence in North Dakota.

Q: I recently retired from the U.S. armed forces. While in the service I was a resident of North Dakota and filed North Dakota income tax returns as required. However, when I retired, I took up residence in another state. Is my military pension taxable by North Dakota?

A: No. Once you took up residence in another state, you became a nonresident of North Dakota. While you are a nonresident of North Dakota, any pension payments you receive are not subject to North Dakota income tax.

Q: I am a Native American serving in the U.S. armed forces. Is my income exempt from North Dakota income tax?

A: If your legal residence is on an Indian reservation in North Dakota, the compensation you receive for active duty service in the U.S. armed forces is exempt from North Dakota income tax regardless of whether the service is performed within or without North Dakota.

If your legal residence is located in another state (whether or not it is on an Indian reservation), the compensation you receive for active duty service in the U.S. armed forces is exempt from North Dakota income tax regardless of whether the service is performed within or without North Dakota.

Q: Does North Dakota provide any special deductions or tax credits for active or retired military personnel?

A: Current North Dakota individual income tax law provides only one special deduction for active members of the military. A member of the North Dakota National Guard or a reserve component of any branch of the U.S. armed forces who is mobilized for federal active duty under Title 10 of the U.S. Code may deduct the compensation received for the federal active duty service in calculating North Dakota taxable income. This does not include combat pay that is exempt from federal income tax. It also does not include compensation received for attending annual training, basic military training, professional military education, or active duty for which the member volunteered and did not receive mobilization orders.

Federal law provides that a state may not use the active duty military compensation of a nonresident servicemember to calculate the tax on other income of the nonresident servicemember or the servicemember’s nonresident spouse that is sourced in the state if it causes an increase in the tax. This federal law applies to North Dakota. If a nonresident of North Dakota in the U.S. armed forces is required to file a North Dakota income tax return because the servicemember or the servicemember’s spouse has nonmilitary income that is taxable by North Dakota, the servicemember’s military compensation may be deducted in calculating North Dakota taxable income.

Current North Dakota income tax law does not provide for any special deductions for retired military members.

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Income Tax Refunds

Q: How can I check on the status of my refund?

A: You may check the status of your refund on our web site. Click on this link: Where’s My Refund? This will take you to a secure web page where you will find instructions on how to make your inquiry. You must have either a copy of your North Dakota income return or the following information from that return:

  • Your name (and spouse’s name, if joint return)
  • Your social security number (and spouse’s social security number, if a joint return)
  • Tax year for which the return was filed
  • Your filing status from your return
  • The exact amount of your refund

A refund on an electronically filed return generally is issued within 7 business days, and a refund on a paper return can take up to 6 weeks to process.

Q: Can you directly deposit my refund into my bank account?

A: Yes. If you electronically file your North Dakota income tax return, or use Form ND-1 if you file on paper, you may elect to direct deposit your refund into your checking or savings account by providing the proper bank information on your return. It is recommended that you contact your bank or other financial institution to make sure it will accept direct deposits, and to obtain the routing and account numbers to enter on your return. If an incorrect routing or account number is entered on the return, or your financial institution does not accept the direct deposit, a paper check will be issued. Do not use the numbers off of a deposit slip for the routing or account number. Our office does not issue a separate notification of when the direct deposit is made. Before contacting our office to check on the status of your refund, first contact your financial institution to find out if your refund has been deposited.

Q: What happens if my bank account is closed before the deposit is made, or my bank refuses to accept the deposit?

A: The bank will notify our office that the deposit was refused. We will then issue you a check and mail it to you at the address listed on your return.

Q: I was due a refund, but I received a notice from your office informing me that my refund was applied to an obligation that I had with another agency. Do I have any recourse?

A: Yes. Contact the agency identified in the notice that you received from our office. North Dakota’s income tax refund offset law provides that an individual income tax refund must be applied to offset (or reduce) a debt that the taxpayer owes to a state or federal agency specifically identified in that law. The agency identified in the notice that you received is one of the agencies identified in the law. Our office is unable to assist you with any questions or problems relating to the debt to the other agency.

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Estimated Individual Income Tax

Q: Am I required to pay estimated income tax to North Dakota?

A: You may be required to pay estimated income tax to North Dakota if are required to pay federal estimated income tax and you expect your North Dakota net tax liability to be $500 or more. To find out if you are required to pay estimated income tax to North Dakota, see the instructions to Form ND 1ES, Estimated Income Tax—Individuals, which is available on our web site under Individual Income Tax Forms. If you are required to pay estimated income tax to North Dakota but fail to do so, or you do not pay the required minimum amount, you will be subject to interest charges for the nonpayment or underpayment.

Q: I need to make a North Dakota estimated income tax payment, but I misplaced my estimated tax payment vouchers. What can I do?

A: You have a couple of options.

Option 1: You can print a blank voucher from our web site under Individual Income > Forms > Individual Income Tax Forms and Instructions. For tax years before 2010, look for Form 400-ES. For tax years 2010 and after, look for Form ND-1ES. Mail the completed voucher along with your check (or money order) to:

Office of the State Tax Commissioner
PO Box 5622
Bismarck, ND 58506-5622

Option 2: You can make your estimated income tax payment by credit card. You may make your payment with a MasterCard®, American Express® Card, Discover® Card, or Visa® Card. To make your payment by credit card, go to Link2Gov Corporation’s web site at www.ndtaxpayment.com or call them toll-free at 1-888-ND-TAXES (1-888-638-2937). A convenience fee will be charged to your credit card by Link2Gov Corporation for its services. The State of North Dakota does not receive any part of this fee. You will be told what the fee is during the transaction and you will have the option to continue or cancel the transaction. If you use this option, do not use or send us an estimated payment voucher.

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Amended Returns

Q: When am I required to amend my North Dakota state tax return?

A: You must file an amended North Dakota tax return when an item on your original return was reported incorrectly or to report changes made to your federal income tax return, including changes made by the Internal Revenue Service. 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.

Q: What forms do I use to amend my North Dakota state tax return?

A: A special form is not provided for filing an amended North Dakota individual income tax return. Instead, obtain a blank North Dakota individual income tax return for the tax year affected by the changes. For example, if you have to make a change to your income tax return for the 2009 tax year, obtain a blank 2009 North Dakota income tax form and indicate that it is an amended return by filling in the amended return circle at the top of the first page. Instructions on how to fill out the amended return are provided in the instruction booklet for the applicable tax year’s form. Blank forms and their instructions are available on our web site under Individual Income Tax Forms.

Q: I received a notice from the Internal Revenue Service informing me of a change they made to my federal individual income tax return. Am I required to amend my North Dakota income tax return?

A: Yes. Any time a change is made to your federal individual income tax return, either by you or the Internal Revenue Service, you are required to amend your North Dakota individual income tax return for that same tax year. 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. You must attach a copy of the Federal Form 1040X or a copy of the IRS notice.

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Electronic Filing (E-file)

Q: Can I electronically file my North Dakota return?

A: Yes. North Dakota participates in the Internal Revenue Service’s Federal/ State E-file program. This program allows you to electronically file both your federal individual income tax return and North Dakota individual income tax return at the same time. To electronically file your North Dakota return, you must file it with your federal return. Your tax information is keyed into a computer and sent to the Internal Revenue Service, which then sends the state portion to North Dakota. You can use one of three options to electronically file.

Option 1: Ask your tax preparer

If your tax preparer is an Authorized IRS E-file Provider, your preparer can electronically file your federal and North Dakota returns. Many Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites set up by the IRS are Authorized IRS E-file Providers.

Option 2: Purchase off-the-shelf software

With a computer, Internet access, and the right software, you can electronically file your federal and North Dakota returns yourself. Ask your local software retailer about the available software programs offering IRS’s Federal/State E-file program. Make sure the program supports the electronic filing of North Dakota’s individual income tax forms.

Option 3: Use an Internet on-line service

Go to the Internet and check out the on-line filing services that offer the IRS’s Federal/State E-file program. Links to the available on-line services can be found on our web site under Individual Income > Electronic Filing.

Free and discounted e-filing options

You may be eligible to electronically file your returns free-of-charge. Several tax preparers, tax preparation software providers, and Internet online services offer free or discounted electronic tax filing. Additional information on who provides these services is available on our web site under Individual Income > Electronic Filing.

Q: Are there any advantages to electronically filing my return?

A: Yes. Electronically filing your North Dakota individual income tax return provides the following advantages:

  • Fast processing—Your return can be processed much faster than one filed on paper.
  • Fast refund—Because your return is processed more quickly, you get your refund sooner. And if you elect to have your refund direct deposited into your checking or savings account, you can get your refund weeks sooner than you would if you filed a paper return.
  • More accurate—Tax preparation software eliminates many errors and omissions that often occur with paper returns. E-filing also eliminates many errors by our office during the processing of the return.
  • Proof of filing—You can meet your federal and North Dakota tax obligation at the same time. The IRS and North Dakota will let you know that your return has been received and accepted.
  • Convenience—You can file early and pay any tax balance due by April 15. In addition, there is no worry about missing forms, assembling all of your forms, mailing your return on time, or insufficient postage, etc.

Q: If I electronically file my return before April 15th, and I have a balance due, do I have to pay the balance due at the time I file the return?

A: No. One of the conveniences of electronically filing is that you can electronically file your return early but make your payment of a tax balance due at any time up to and including the April 15th due date. You can pay your balance due by check, money order, or by credit card.

If you pay by check or money order, you will need to complete Form ND-1V and submit it along with your payment to our office. Form ND-1V will be provided to you by your tax preparer or, if you electronically file yourself, by your software program after you receive confirmation that your e-filed return was accepted by our office. If, for whatever reason, you do not receive a Form ND-1V, you may submit your payment with a cover letter containing your name, social security number, address, a statement that you are paying the balance due on your North Dakota individual income tax return, and the applicable tax year.

You may pay your tax balance due with a MasterCard®, American Express® Card, Discover® Card, or Visa® Card. To make your payment by credit card, go to Link2Gov Corporation’s web site at www.ndtaxpayment.com or call them toll-free at 1-888-ND-TAXES (1-888-638-2937). A convenience fee will be charged to your credit card by Link2Gov Corporation for its services. The State of North Dakota does not receive any part of this fee. You will be told what the fee is during the transaction and you will have the option to continue or cancel the transaction. If you pay with a credit card, do not use Form ND-1V.

Q: Is there a fee to electronically file my North Dakota income tax return?

A: You may be charged a fee to file your taxes electronically. If you use a paid tax preparer to file your return, the preparer may charge a fee for this service, which will vary from among preparers. If you are filing your own return using an online tax preparation service, the service provider may charge a fee, none of which goes to the State of North Dakota. We do not subsidize service providers, nor do we receive any money from them to put their link on our website. Links to the available approved on-line services and software programs can be found on our web site under Individual Income > Electronic Filing.

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Extension Of Time To File

Q: How do I obtain an extension of time to file my North Dakota individual income tax return?

A: 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 individual income tax return, it will be recognized for North Dakota 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, nor do you have to notify the Office of State Tax Commissioner that you have obtained a federal extension prior to filing your North Dakota return.

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.

Extension interest charge

If you file your North Dakota return on or before its extended due date, and you pay any tax due with the return, no penalty will be charged. However, interest on the tax due will be charged at the rate of 12% per year from the original due date of the return to the earlier of the date the return is filed or the extended due date.

You can avoid the interest charge by prepaying the tax you expect to owe by the regular due date of the return. To do so, submit a check or money order along with a completed Form ND-1EXT. This form can be printed from our web site under Individual Income Tax Forms. Alternatively, you can prepay using a credit card by calling toll-free 1-888-638-2937 or going to the web site of Link2Gov Corporation at www.ndtaxpayment.com. A convenience fee will be charged to your credit card by Link2Gov Corporation for its services, none of which goes to the State of North Dakota. You will be told what the fee is during the transaction and given the option to continue or cancel the transaction.

Q: I am applying for an extension of time to file my return, and I expect to owe North Dakota state income tax. Can I prepay the tax so I don’t have to pay interest on the tax due?

A: Yes. You can avoid the interest charge by prepaying the tax you expect to owe by the regular due date of the return. To do so, submit a check or money order along with a completed Form ND-1EXT. This form can be printed from our web site under Individual Income Tax Forms. Alternatively, you can prepay using a credit card by calling toll-free 1-888-638-2937 or going to the web site of Link2Gov Corporation at www.ndtaxpayment.com. A convenience fee will be charged to your credit card by Link2Gov Corporation for its services, none of which goes to the State of North Dakota. You will be told what the fee is during the transaction and given the option to continue or cancel the transaction.

Q: If I file for an extension of time to file my return, can I still file electronically?

A: Yes. You can electronically file your return up until the time electronic returns are no longer accepted. This applies whether or not you have an extension of time to file your return.

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General Issues

Q: What are the North Dakota individual income tax rates?

A: The North Dakota individual income tax rates change each tax year due to the indexing of the income brackets to account for inflation. Therefore, the applicable tax rates depend on the tax year you are interested in. To see the applicable tax rates for a particular tax year, see the instruction booklet for that tax year’s individual income tax form, which can be found on our web site under Individual Income Tax Forms.

Following are the individual income tax rates for the 2010 tax year—

Single

If North Dakota taxable income is:
Over But not over Your tax is equal to:
$0 $34,000 1.84% of North Dakota taxable income
$34,000 $82,400 $625.60 + 3.44% of the amount over $34,000
$82,4000 $171,850 $2,290.56 + 3.81% of the amount over $82,400
$171,850 $373,650 $5,698.61 + 4.42% of the amount over $171,850
$373,650   $14,618.17 + 4.86% of the amount over $373,650

Married filing jointly, or
Qualifying Widow(er)

If North Dakota taxable income is:
Over But not over Your tax is equal to:
$0 $56,850 1.84% of North Dakota taxable income
$56,850 $137,300 $1,046.04 + 3.44% of the amount over $56,850
$137,300 $209,250 $3,813.52 + 3.81% of the amount over $137,300
$209,250 $373,650 $6,554.82 + 4.42% of the amount over $209,250
$373,650   $13,821.30 + 4.86% of the amount over $373,650

Head of Household

If North Dakota taxable income is:
Over But not over Your tax is equal to:
$0 $45,550 1.84% of North Dakota taxable income
$45,550 $117,650 $838.12 + 3.44% of the amount over $45,550
$117,650 $190,550 $3,318.36 + 3.81% of the amount over $117,650
$190,550 $373,650 $6,095.85 + 4.42% of the amount over $190,550
$373,650   $14,188.87 + 4.86% of the amount over $373,650

Married filing separately

If North Dakota taxable income is:
Over But not over Your tax is equal to:
$0 $28,425 1.84% of North Dakota taxable income
$28,425 $68,650 $523.02 + 3.44% of the amount over $28,425
$68,650 $104,625 $1,906.76 + 3.81% of the amount over $68,650
$104,625 $186,825 $3,277.41 + 4.24% of the amount over $104,625
$186,825   $6,910.65 + 4.86% of the amount over $186,825

Q: Where do I mail my North Dakota individual income tax return?

A: If you are filing a paper return, mail your completed North Dakota individual income tax return to:

Office of the State Tax Commissioner
PO Box 5621
Bismarck, ND 58506-5621

Q: When do I have to file my North Dakota individual income tax return?

A: Unless you have obtained an extension of time to file your North Dakota individual income tax return, it is due on the 15th day of the 4th month following the end of the tax year. For most individuals, this is April 15th. If this due date falls on a Saturday, Sunday, or state holiday, the due date is the next day that is not a Saturday, Sunday, or state holiday.

Q: I forgot to include my payment for the balance due on my return. What should I do?

A: Mail your check or money order with a cover letter containing your name, social security number, address, a statement that you are paying the balance due on your North Dakota individual income tax return, and the applicable tax year. (Please do not send cash.)

Alternatively, you may pay your tax balance due with a MasterCard®, American Express® Card, Discover® Card, or Visa® Card. To make your payment by credit card, go to Link2Gov Corporation’s web site at www.ndtaxpayment.com or call them toll-free at 1-888-ND-TAXES (1-888-638-2937). A convenience fee will be charged to your credit card by Link2Gov Corporation for its services. The State of North Dakota does not receive any part of this fee. You will be told what the fee is during the transaction and you will have the option to continue or cancel the transaction.

Q: Can I use a credit card to pay the tax balance due on my return?

A: Yes. You can use an accepted credit card to pay any income tax related to your North Dakota individual income tax return. This includes any tax due on your return, any required estimated income tax payments, and any prepayment of your expected tax due on a return with an extension. Accepted credit cards are MasterCard®, American Express® Card, Discover® Card, and Visa® Card. To make your payment by credit card, go to Link2Gov Corporation’s web site at www.ndtaxpayment.com or call them toll-free at 1-888-ND-TAXES (1-888-638-2937). A convenience fee will be charged to your credit card by Link2Gov Corporation for its services. The State of North Dakota does not receive any part of this fee. You will be told what the fee is during the transaction and you will have the option to continue or cancel the transaction.

Q: What if I cannot pay the balance due on my tax return?

A: If you are unable to pay the entire tax due on your North Dakota individual income tax return, be sure to file your return by the due date (or extended due date, if applicable). Pay as much of the tax due as you can using any of the allowable payment methods. We will bill you for the unpaid amount. Any tax remaining unpaid after the due date (or extended due date, if applicable) will be subject to a penalty charge of 5% and an interest charge of 1% per month or fraction of a month. If you need to make an arrangement to pay your tax due over a period of time, please contact our Accounts Receivable Section at (701) 328-1244, and ask to speak with a collection officer. Don’t put off filing your return, and do not hesitate to contact our office for assistance in satisfying your North Dakota income tax obligation.

Q: How do I get a copy of my North Dakota return?

A: You may request a copy of your North Dakota individual income tax return by completing the Request for Copies of Tax Returns Form and mailing or faxing it to our office. Mail it to:

Office of the State Tax Commissioner
600 E. Boulevard Ave., Dept 127
Bismarck, ND 58505-0599

Or fax it to 701-328-1942.

Q: I have moved since filing my North Dakota income tax return. How do I notify you of my change of address?

A: Complete the Change of Address Notification for Individual Income Tax Form and mail it to:

Office of the State Tax Commissioner
600 E. Boulevard Ave., Dept 127
Bismarck, ND 58505-0599

Q: Does North Dakota recognize the federal Form 2848, Power of Attorney and Declaration of Representative?

A: No. The federal power of attorney does not cover North Dakota income taxes. Instead, North Dakota Form 500 should be used to authorize disclosure of confidential tax information or to designate a representative (power of attorney) for North Dakota tax purposes.

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