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Contents
Need assistance?
Assistance and forms .................................................................. This page You can download forms and find other
Changes for 2024 ................................................................................... 1 information on our website at:
tax.nd.gov
General instructions ................................................................................2
Email
Who must file .....................................................................................2
Individual, estate, trust, partnership,
When and where to file ........................................................................ 2 and S corporation income tax at
Extension of time to file ....................................................................... 2 individualtax@nd.gov
Penalty and interest ............................................................................ 2
Estimated tax payment (for 2025) ........................................................ 3 Call
Withholding from nonresident partners .................................................. 3 Individual income tax:
Composite filing ..................................................................................3 Questions 701-328-1247
Correcting a previously filed return ........................................................ 3 Forms 701-328-1243
Reporting federal changes .................................................................... 4 Partnership income tax:
W-2/1099 reporting requirement .......................................................... 4 Questions 701-328-1258
Disclosure notification ......................................................................... 4 Forms 701-328-1243
Use of information .............................................................................. 4 Speech/hearing impaired:
TDD 800-366-6888
General instructions for completing Form 58 .............................................. 4
Specific line instructions ..........................................................................5 Write
Form 58, Page 1, Items A-J .................................................................. 5 Office of State Tax Commissioner
Schedule FACT ................................................................................... 5 600 E. Boulevard Ave., Dept. 127
Bismarck, North Dakota 58505-0599
Schedule K ........................................................................................6
Schedule KP ..................................................................................... 10 Walk-in or appointment
Form 58, Page 1, Lines 1-12 ............................................................... 12 service
Schedule K-1 .................................................................................... 13 State Capitol Building, 8th Floor
Before you file Form 58 ..................................................................... 14 600 E. Boulevard Ave., Bismarck,
North Dakota
Required forms Monday through Friday
The following forms are needed to complete Form 58: 8:00 a.m. to 5:00 p.m.
(except holidays)
Form 58 Partnership return
Schedule FACT Calculation of North Dakota apportionment factor Walk-ins are welcome. To assure
Schedule K Total North Dakota adjustments, credits, and other availability and promptness of
items distributable to partners service, call in advance to make an
Schedule KP Partner information appointment.
Schedule K-1 Partner’s share of North Dakota income (loss), deductions,
adjustments, credits, and other items
The following forms may be needed:
Form 58-PV Partnership return payment voucher
Form 58-EXT Partnership extension payment voucher
Form 101 Application for extension of time to file a North Dakota Privacy Act Notification
In compliance with the Privacy Act of
income tax return 1974, disclosure of a Federal Employer
Form PWA Passthrough entity withholding adjustment Identification Number (FEIN) or social
Form PWE Nonresident passthrough entity member exemption and security number on this form is required under
certification N.D.C.C. §§ 57-01-15 and 57-38-42, and will
be used for tax reporting, identification, and
Download these forms from our website at tax.nd.gov. administration of North Dakota tax laws.
Disclosure is mandatory. Failure to provide
the FEIN or social security number may
delay or prevent the processing of this form.
Taxpayer Bill of Rights
Obtain a copy of the North Dakota Taxpayer Bill of Rights on the
Office of State Tax Commissioner’s website at
tax.nd.gov 28703 December 2024
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Changes affecting partnerships
Developments, updates, and items of interest relating to partnership income tax
Form 1099/K-1 withholding Renaissance Zone tax incentive Disabled employment tax credit
Partnerships claiming North Dakota changes effective August 1, 2023 In 2023, the North Dakota Legislature
withholding reported on a Form 1099 reenacted and made permanent the
or ND Schedule K-1 must correctly A variety of changes occurred to the existing income tax credit related to
identify which form the withholding Renaissance Zone program. One of the employment of an individual with
was reported on in their tax software the changes is the maximum length of developmental disabilities or severe
program. These forms are not an income tax incentive was changed mental illness. The existing provisions
interchangeable when e-filing. If the from 5 years to 8 years for a project of the tax credit were unchanged,
forms are not identified correctly, this that meets certain rehabilitation except the statewide limitation on
will delay processing of your return. thresholds. Specifically, for residential the number of eligible employees was
(except owner occupied) and removed and there is no limit.
Electronic filing commercial property, a rehabilitation
Partnerships with 10 or more owners level exceeding 75% is required Stay informed
are required to file the North Dakota to allow for an exemption up to 8 Individuals, businesses, or other
income tax return and pay any tax years. Rehabilitation exceeding 50% interested persons may sign up to
due on it by electronic means. If a is required for an exemption up to 5 receive email notifications when
partnership return with 10 or more years. For owner occupied residential a newsletter or other important
owners is filed on paper, the return property, rehabilitation exceeding information is issued by the Office of
will not be processed and may be 20% may qualify for an exemption up State Tax Commissioner. To sign up,
subject to penalties due to the failure to 8 years. go to tax.nd.gov and select “News
to file electronically. Center” at the top of the page. Then
For additional RZ information, please select “Email Sign-Up”.
Tax credit for contributions to refer to our website:
a maternity home, child placing tax.nd.gov/renaissance-zone-
agency, or pregnancy help center incentives.
An income tax credit is allowed Automation tax credit
for contributions to a child placing
agency licensed by the North Dakota The 2023 North Dakota Legislature
Department of Health and Human made changes to the automation
Services (DHS), a nonprofit maternity tax credit program. The program
home located in North Dakota, or a was expanded to include automation
pregnancy help center recognized by or robotic equipment purchased
DHS. See Schedule MCP. to upgrade or advance an animal
agricultural process.
Tax credit for compensation paid
to an apprentice The tax rate was changed to 15% of
the cost of the qualifying equipment.
Beginning with tax year 2023, an The annual maximum statewide tax
income tax credit was created for the credits authorized was increased from
employment of a qualified apprentice $1 million to $3 million per year.
in an apprenticeship program position
in North Dakota. Of the $3 million annual total amount,
$500,000 of tax credits is reserved
The apprentice must be in an each year for first-time claimants for
apprenticeship program certified by automation equipment and $500,000
the U.S. Department of Labor or be of tax credits is reserved each year
an electrical apprentice registered for first-time claimants for animal
under North Dakota law. agriculture equipment.
The credit is equal to 10% of the The program was also made
stipend or salary paid to the qualified permanent. Other provisions were
apprentice. The maximum credit a unchanged.
taxpayer can claim in all tax years is
$3,000 and limits the earning of a tax The requirement continues to exist for
credit to only five apprentices at the a claimant to subsequently file with
same time. the Office of State Tax Commissioner
a report of Improved Job Quality or
Increased Productivity.
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Form 58 Instructions 2024
North Dakota Partnership Income Tax Return
“N.D.C.C.” references are to the North Dakota Century Code, which contains North Dakota’s statutes.
“N.D. Admin. Code” references are to the North Dakota Administrative Code, which contains North Dakota’s rules.
Electronic filing North Dakota extension may be
General applied for by filing Form 101,
Partnerships with 10 or more owners
instructions are required to file the North Dakota Application for Extension of Time to
income tax return and pay any tax File a North Dakota Tax Return. This
Who must file due on it by electronic means. is not an automatic extension—there
A 2024 Form 58, Partnership Income must be good cause to request a
Tax Return, must be filed by a When and where to file North Dakota extension. Form 101
partnership that meets both of the The 2024 Form 58 must be filed on must be postmarked on or before the
following: or before (1) April 15, 2025, if filing due date of Form 58. Notification of
• It is required to file a 2024 for the 2024 calendar year, or (2) the whether the extension is accepted or
Form 1065, U.S. Return of 15th day of the fourth month following rejected will be provided by the
Partnership Income. the end of the tax year, if filing for Office of State Tax Commissioner.
a fiscal year beginning in the 2024
• It carries on business, or derives Extension interest. If Form 58 is
calendar year. If the due date falls
gross income from sources, in filed on or before the extended due
on a Saturday, Sunday, or holiday,
North Dakota during the 2024 tax date, and the total amount of tax due
the return may be filed on or before
year. is paid with the return, no penalty will
the next day that is not a Saturday, be charged. Interest on the tax due will
Investment partnership. A Sunday, or holiday. be charged at the rate of 12% per year
partnership that elects out of the from the original due date of the return
Note: Use the 2023 Form 58 if filing
partnership rules under I.R.C. to the earlier of the date the return is
for a fiscal year beginning in the 2023
§ 761(a)(1) and does not file a federal filed or the extended due date.
calendar year.
partnership return must file a 2024
Form 58 if it carries on investment If not required to file Prepayment of tax due. If an
activity, or derives any gross income electronically, mail Form 58 and all extension of time to file Form 58 is
from sources, in North Dakota during required attachments to: obtained, any tax expected to be due
may be paid on or before the regular
its 2024 tax year. A 2024 Form 1065 Office of State Tax Commissioner due date to avoid paying extension
must be completed on a pro forma 600 East Boulevard Ave., Dept. 127 interest. For more information,
basis and attached to Form 58. Bismarck, ND 58505-0599 including payment options, obtain the
Limited liability company (LLC). An 2024 Form 58-EXT.
LLC that is classified as a partnership Extension of time to file
for federal income tax purposes is An extension of time to file Form 58 Alternatively, a check or money
treated like a partnership for may be obtained in one of the order may be sent with a letter
North Dakota income tax purposes following ways: containing the following: (1) name of
and must file Form 58 if it meets the partnership, (2) partnership’s FEIN,
above conditions for filing. • Obtain a federal extension. (3) partnership’s address and phone
• Separately apply for a number, and (4) statement that the
Nonfiler penalty. If a partnership North Dakota extension. payment is a 2024 Form 58-EXT
does not file Form 58 as required, payment.
a minimum $500 penalty may be Federal extension. If an extension
assessed if the failure continues after of time to file the federal partnership Penalty and interest
receiving a 30-day notice to file from return is obtained, it is automatically If an extension of time to file
the Office of State Tax Commissioner. accepted as an extension of time to Form 58 was obtained, the tax
file Form 58. If this applies, a separate due may be paid by the extended
Disaster recovery tax exemptions. North Dakota extension does not have due date of the return without
Exemptions from state and local tax to be applied for, nor does the penalty, but extension interest will
filing and payment obligations are Office of State Tax Commissioner have apply—see “Extension interest” and
available to out-of-state businesses to be notified that a federal extension “Prepayment of tax due” on this page.
and their employees who are in has been obtained prior to filing
North Dakota on a temporary basis Form 58. The extended due date for If Form 58 is filed by its due date (or
for the sole purpose of repairing North Dakota purposes is the same as extended due date), but the total
or replacing natural gas, electrical, the federal extended due date. amount of tax due is not paid by the
or telecommunication transmission due date (or extended due date), a
property that is damaged, or under North Dakota extension. If a penalty equal to 5% of the unpaid tax
threat of damage, from a state- or federal extension is not obtained, or $5.00, whichever is greater, must
presidentially-declared disaster or but additional time is needed to be paid.
emergency. For more information, go complete and file Form 58, a separate
to tax.nd.gov.
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If Form 58 is filed after its due date • The nonresident partner elects to filing satisfies the North Dakota
(or extended due date), and there include the distributive share in a income tax filing and payment
is an unpaid tax due on it, a penalty composite filing—see “Composite obligations of the eligible nonresident
equal to 5% of the unpaid tax due or filing” on this page. partners included in it, which means
$5.00, whichever is greater, for the • The nonresident partner is a they do not have to separately file
month the return was due plus 5% of passthrough entity and elects their own North Dakota income tax
the unpaid tax due for each additional exemption from withholding on its returns. The composite filing method
month (or fraction of a month) during distributive share of North Dakota is optional and does not require prior
which the return remains delinquent income. For more information, approval from the Office of State Tax
must be paid. This penalty may not obtain Form PWE. Commissioner, and a choice to use it
exceed 25% of the tax due. may be made on a year-to-year basis.
Withholding procedure. This
In addition to any penalty, interest withholding requirement applies to Eligible nonresident partner. For
must be paid at the rate of 1% per a nonresident partner’s year-end purposes of this composite filing
month or fraction of a month, except distributive share of North Dakota method, a nonresident partner
for the month in which the tax was income, which is determined at the has the same meaning as that
due, on any tax due that remains end of the partnership’s tax year and used for withholding income tax
unpaid after the return’s due date (or reported on Form 58, Schedule KP, from nonresident partners—see
extended due date). Column 6. The requirement does “Withholding from nonresident
not apply to actual distributions partners” on this page. A nonresident
Estimated tax payment partner is eligible to be included in a
made to a nonresident partner
(for 2025) during the tax year. The withholding composite filing if both of the following
A partnership may, but is not required amount is calculated and reported apply:
to, make estimated income tax on Schedule KP, Column 7. If a • The nonresident partner’s
payments. For more information, nonresident partner meets certain only source of income within
including payment options, obtain the conditions, an amount less than the North Dakota is one or more
2025 Form 58-ES. amount calculated at the 2.50% passthrough entities. A
Withholding from tax rate may be withheld. For the passthrough entity includes a trust,
qualifying conditions, see Form PWA. partnership, S corporation, LLC
nonresident partners A partnership must submit a payment treated like a partnership or
A partnership must withhold for the total amount of withholding S corporation, and any other
North Dakota income tax at the rate of reported on Schedule KP, Column 7, similar entity.
2.50% from the year-end distributive with Form 58 when it is filed.
share of North Dakota income of a • The nonresident partner elects
nonresident partner. See “Publicly Publicly traded partnership. to be included in a composite
traded partnership” on this page for A publicly traded partnership, as filing. An election is indicated by
an exception to this requirement. defined under Internal Revenue Code the partnership’s calculation and
§ 7704(b), does not have to withhold reporting of a tax amount for the
Nonresident partner. For purposes North Dakota income tax from its nonresident partner on Form 58,
of this withholding requirement, a unitholders if it meets both of the Schedule KP, Column 8. (If the
nonresident partner means: following: distributive share is a loss, the tax
is zero.)
• an individual who is not domiciled • It is treated as a partnership for
in North Dakota; federal income tax purposes. The distributive share of North Dakota
• a trust, including a grantor trust, • It reports on Form 58, income included in a composite return
that is not organized under Schedule KP, every unitholder with is subject to tax even if it is under
North Dakota law. This only a North Dakota distributive share $1,000.
includes trusts that are subject to of income of over $500. Composite filing method
income tax; or
procedure. The tax under the
• a passthrough entity that has a Composite filing composite filing method is calculated
commercial domicile outside North A composite filing method is available and reported on Form 58, Schedule KP,
Dakota. A passthrough entity to a partnership with one or more Column 8. A partnership must submit
includes a partnership, eligible nonresident partners. Under a payment for the total tax reported on
S corporation, LLC treated like a this method, a partnership calculates Schedule KP, Column 8, with Form 58
partnership or S corporation, and the North Dakota income tax on an when it is filed.
any other similar entity. eligible nonresident partner’s year-end
Exemption from withholding. No distributive share of North Dakota Correcting a previously filed
withholding is required if any of the income and pays the tax with return
following apply: Form 58. The tax is calculated at If a partnership needs to correct an
the highest individual income tax error on Form 58 after it is filed, the
• The distributive share of rate (which is 2.50% for the 2024 partnership must file an amended
North Dakota income is less tax year), and no adjustments, return. There is no special form for
than $1,000. deductions, or tax credits are allowed this purpose. See “How to prepare an
in calculating the tax. A composite amended 2024 return” below.
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If a partnership paid too much tax return, an amended North Dakota 5. Complete Schedule KP on
because of an error on its 2024 Form 58 must be filed within 90 days page 5 of Form 58—see page 10.
Form 58, the partnership generally after the final determination of the 6. Complete lines 1 through 12 on
has three years from the due date of IRS changes or the filing of the page 1 of Form 58—see page 12.
the return (excluding extensions) or amended federal return. Enclose a
the date the return was actually filed, copy of the IRS audit report or the 7. Complete Schedule K-1, if
whichever is later, in which to file an amended federal partnership return required, for the partners—see
amended return to claim a refund of with the amended North Dakota page 13.
the overpayment. See N.D.C.C. Form 58. Rounding of numbers. Numbers
§ 57-38-40 for other time periods that may be entered on the return in
may apply. W-2/1099 reporting dollars and cents, or they may be
requirement rounded to the nearest whole dollar. If
How to prepare an amended 2024 Every partnership doing business in rounding, drop the cents if less than
return North Dakota that is required to file $0.50 and round up to the next whole
1. Obtain a blank 2024 Form 58. Federal Form 1099 or W-2 must also dollar amount if $0.50 or higher. For
2. Enter the partnership’s name, file one with the Office of State Tax example, $25.36 becomes $25.00,
current address, FEIN, etc., in the Commissioner. For more information, and $25.50 becomes $26.00.
top portion of page 1 of Form 58. obtain the guideline Income Tax
Withholding and see “Annual Filing Fiscal year filers. The tax year for
3. Fill in the “Amended return” circle Requirements - W-2 and 1099.” North Dakota income tax purposes
at the top of page 1 of Form 58. must be the same as the tax year
4. Complete Schedules FACT, Disclosure notification used for federal income tax purposes.
K, and KP using the corrected Upon written request from the Use the 2023 Form 58 if the
information. However, unless chairman of a North Dakota legislative partnership’s taxable year began in
there is an increase in the standing committee or Legislative the 2023 calendar year.
amount reported on Schedule KP, Management, the law requires the
Column 6, of the amended return, Office of State Tax Commissioner to Specific line
enter on Schedule KP, Column 7, disclose the amount of any deduction
the same amount reported on or credit claimed on a tax return. instructions for
the previously filed return. Then Any other confidential information,
complete lines 1 through 3 on such as a taxpayer’s name or federal page 1 of
page 1 of Form 58. employer identification number, may
not be disclosed. Form 58, Items A-J
5. On line 5 of one of Form 58,
Complete Items A through J at
enter the total taxes due from the Use of information the top of page 1 of Form 58.
previously filed 2024 Form 58, All of the information on Form 58 and Then complete Schedule FACT,
page 1, line 3. its attachments is confidential by law Schedule K, and Schedule KP
6. Complete line 7 (overpayment) and cannot be given to others except before completing lines 1
or line 10 (tax due), whichever as provided by state law. Information through 12 on page 1 of Form 58.
applies. If there is an about the partners is required under
overpayment on line 7, enter the state law so the Office of State Item A - Tax year
full amount on line 9 (refund). On Tax Commissioner can determine The same tax year used for federal
an amended return, the amount the partner’s correct North Dakota income tax purposes (as indicated on
credited to the next year’s taxable income and verify if the the federal partnership return) must
estimated tax (line 8) may not be partner has filed a return and paid the be used for North Dakota income
increased or decreased. tax. tax purposes. Fill in the applicable
circle. If the partnership uses a fiscal
7. Attach a statement explaining the
year, enter the beginning and ending
reason(s) for filing the amended General instructions dates of the fiscal year. Use the 2024
return. If it is because of changes
the partnership or the IRS made for completing Form 58 only if the partnership’s tax
year began in the 2024 calendar year.
to the partnership’s 2024 Federal
Form 1065, attach a copy of the Form 58 Item B - Name and address
amended federal return or IRS Complete Federal Enter the legal name of the partnership
notice. on the first line of the name and
Form 1065 as follows:
8. Complete and provide a corrected address area. If the partnership
Schedule K-1 (Form 58) to the 1. Complete Federal Form 1065 (or publicly operates under a fictitious or
partners, as required. 1065-B) in its entirety. assumed name (which, in most states,
2. Complete Items A through J at must be recorded or registered with
Reporting federal changes the top of page 1 of the state), enter that name on the
If the Internal Revenue Service Form 58—see page 4. second line of the name and address
(IRS) changes or audits the federal area. If filing an amended return, enter
3. Complete Schedule FACT on
partnership return, or if a partnership the most current address.
page 2 of Form 58—see page 5.
files an amended federal partnership
4. Complete Schedule K on page 3
of Form 58—see page 6.
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Item C - Federal EIN Item H - Professional service • Multistate partnership
North Dakota uses the federal partnership If the partnership conducted its
employer identification number Indicate whether the partnership is trade or business both within
(FEIN) for identification purposes. a professional service partnership. and without North Dakota during
Enter the FEIN from page 1 of Federal A “professional service partnership” the tax year, complete lines
Form 1065. is a partnership that engages in the 1 through 14. However, if all
practice of law, accounting, medicine, of the partners consist of only
Item D - Business code number or any other profession in which the North Dakota resident individuals,
Enter the business code number from capital or the services of employees estates, and trusts, skip lines 1
the NAICS code list found on the are not a material income-producing through 13 and enter “1.000000”
Office of State Tax Commissioner’s factor. The services performed by on line 14.
website at tax.nd.gov. Enter the the partners themselves must be the
code that most closely describes the primary income-producing factor. A If the partnership has a partner
industry in which the partnership professional service partnership does OTHER THAN an individual, estate,
derives most of its income. not include one that primarily engages or trust, complete lines 1 through 14
Item E - Date business started in wholesale or retail sales activity, of Schedule FACT.
Enter the date the business started manufacturing activity, or any other Apportionment factor in
from page 1 of Federal Form 1065. type of activity in which the capital
general
or the services of employees are a
In general, the apportionment factor
Item F - Indicators material income-producing factor.
Fill in applicable circles, as follows: is a product of a formula consisting of
Item I - Publicly traded an equally-weighted average of three
Initial return. Fill in circle if this is partnership factors: property, payroll, and sales.
the first return filed in North Dakota Indicate whether the partnership is a Each factor represents the percentage
by the partnership. publicly traded partnership. A “publicly of the partnership’s North Dakota
Final return. Fill in circle if this is the traded partnership” is a partnership in activity compared to its total
last return to be filed in North Dakota which interests in it are either traded activity everywhere. A partnership
by this partnership. on an established securities market multiplies its business income by the
or are readily tradable on a secondary apportionment factor to determine
Farming/ranching partnership. market. the portion of its business income
Fill in circle if this is an LLC that is attributable to North Dakota.
registered as a farming and ranching Item J
LLC with the North Dakota Secretary Tiered partnership If the partnership includes the
of State. Indicate whether the partnership distributable share of income
holds an interest in one or more from another partnership in its
Filed by an LLC. Fill in circle if the other partnerships or limited liability apportionable business income, include
entity filing this return is an LLC. companies. If it does, attach a in the numerator and denominator
Composite return. Fill in this circle statement to Form 58 showing of each factor the partnership’s
only if (1) the partnership has one or the name and federal employer proportionate share of the other
more nonresident partners eligible to identification number of each partnership’s apportionment factors—
be included in a composite filing and partnership or LLC in which it holds an see the specific line instructions for
(2) all of them elected to include their interest. more information. Do not include in
distributive shares of North Dakota the factors any property, payroll, or
source income in a composite filing. Instructions for sales related to allocable nonbusiness
See “Composite filing” on page 3 for income—see the instructions to
more information. Schedule FACT Form 58, Schedule K, line 24, for what
constitutes allocable nonbusiness
Amended return. Fill in circle if (Form 58, page 2) income.
this return is being filed to correct a General instructions If the amount of any factor’s
previously filed 2024 Form 58. See All partnerships must complete the denominator is zero, exclude that
“Correcting a previously filed return” applicable portions of Schedule FACT. factor from the calculation.
on page 3 for more information.
If the partnership has ONLY individual, Special apportionment rules
Extension. Fill in circle if a federal estate, and trust partners, complete may apply in the case of certain
or state extension of time to file the Schedule FACT as follows: industries or unique circumstances.
return was obtained. See “Extension
of time to file” on page 2 for more • 100% North Dakota For additional information on the
information. partnership apportionment factor, see N.D.C.C.
If the partnership conducted all of Ch. 57-38.1 and N.D. Admin. Code
Item G - Number of partners its business within North Dakota Ch. 81-03-09.
Enter the total number of partners during the tax year, skip lines 1
and the number of each type of through 13 and enter “1.000000”
partner. on line 14.
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Specific line instructions one state, compensation is generally a tax measured by income in that
assigned to North Dakota based on jurisdiction. For more complete
Property factor the amount of compensation reported information, see N.D. Admin. Code
Lines 1 through 6 to North Dakota for unemployment §§ 81-03-09-29 and 81-03-09-30.
Owned and rented property compensation purposes. Whether
Line 14
Enter on the applicable line the or not state income tax was
Apportionment factor
average value of real and tangible withheld from an employee’s
Divide line 13 by the number of
personal property owned and rented compensation does not affect where
factors having an amount greater than
by the partnership. For owned the compensation is assigned for
zero in column 1 on lines 7, 8, and 12.
property, this generally means the apportionment factor purposes.
Enter the result on this line.
average of the original cost (before Include on this line in the applicable
depreciation) used for federal income column the partnership’s share of the
tax purposes. For rented property, payroll factor from a North Dakota
Instructions for
this generally means the amount of Schedule K-1 (Form 58), Part 6. For
rent paid multiplied by eight. Certain more complete information on Schedule K
property items are subject to special the payroll factor, see N.D. Admin.
rules. Do not include amounts related Code §§ 81-03-09-22 through (Form 58, page 3)
to construction in progress. Include on 81-03-09-25. All partnerships must complete
Schedule K. The purpose of this
line 5 the partnership’s share of the Sales Factor schedule is to show the total amount
property factor from a North Dakota
Schedule K-1 (Form 58), Part 6. Line 9 of North Dakota adjustments, credits,
Everywhere sales and other items distributable to
The average value of owned and Enter the partnership’s total its partners. These items may be
rented property is assigned to North sales or receipts, less returns or applicable to the preparation of the
Dakota if the property is located allowances, for the tax year. Sales partners’ North Dakota income tax
in North Dakota. The amount generally means all gross receipts returns.
attributable to mobile property is of a partnership. However, the types Schedule K-1 from another
generally assignable to North Dakota of sales or gross receipts included passthrough entity.
based on a ratio of the property’s in the sales factor depend on the Include on the applicable lines
time spent in North Dakota. For more nature of the partnership’s regular of Schedule K any adjustments,
complete information on the property business activities and may include credits, etc., from a North Dakota
factor, see N.D. Admin. Code amounts other than sales reported Schedule K-1, as instructed in the
§§ 81-03-09-15 through 81-03-09-21 on Form 1065, line 1. Include on this partner or beneficiary instructions to
and 81-03-09-33. line the partnership’s share of the that form.
Payroll factor everywhere sales from a North Dakota
Schedule K-1 (Form 58), Part 6. Reminder: Be sure to attach to
Line 8 Form 58 any prescribed schedule or
Enter the amount of total Line 10 other supporting document specified
compensation paid to employees North Dakota sales in the instructions.
for the tax year. This includes gross For sales of tangible property, the
wages, salaries, commissions, and sale is assigned to North Dakota if the Property tax clearance
any other form of remuneration paid destination of the property is in North Dakota Century Code
to the employees. Use the amount North Dakota, regardless of the § 57-01-15.1 provides that, before
before deductions for deferred shipping terms. For sales of other certain state tax incentives may be
compensation, flexible spending plans, than tangible property, the sale claimed, a taxpayer must obtain a
and other payroll deductions. Do not is assigned to North Dakota if the property tax clearance record from
include amounts paid for employee income-producing activity which gave each North Dakota county in which
benefit plans that are not considered rise to the receipt is performed in the taxpayer holds a 50% or more
taxable wages to the employee. An North Dakota. Include on this line ownership interest in real property.
employee is an individual treated as the partnership’s share of the North The property tax clearance record(s)
an employee under the usual common Dakota sales from a North Dakota must be attached to the North Dakota
law rules, which generally mirror an Schedule K-1 (Form 58), Part 6. For tax return on which the incentive is
individual’s status for purposes of more complete information, see N.D. claimed. Certain tax incentives on
unemployment compensation and the Admin. Code §§ 81-03-09-26 through Form 58, Schedule K, are subject
Federal Insurance Contribution Act. 81-03-09-31 and 81-03-09-34. to this requirement. The incentives
Do not include on this line guaranteed subject to this requirement are
payments to partners. Line 11 identified in the box at the top of
Throwback sales Schedule K.
Compensation of an employee’s Enter the amount of sales shipped
services performed entirely within from a location in North Dakota that If the partnership is claiming any
North Dakota is assigned to are delivered to the U.S. government of the specified incentives, it must
North Dakota. For an employee whose or to another state or country complete the property tax clearance
services are performed in more than where the sales are not subject to section at the top of Schedule K. If
the partnership is required to attach
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a property tax clearance record, Line 5 Line 9
obtain one by completing the form New or expanding business Ag commodity investment tax
Property Tax Clearance Record, which income exemption credit
is available on the Office of State Tax If the partnership qualified for the If the partnership invested in a
Commissioner’s website. new or expanding business income qualified business for purposes of the
exemption under N.D.C.C. agricultural commodity processing
Line 1 Ch. 40-57.1, enter the exempt facility investment tax credit, multiply
Income from state, local, and portion of the partnership’s business the total amount invested during the
foreign securities and bonds income. See N.D. Admin. Code 2024 tax year by 30% and enter the
Enter on this line interest and 81-03-01.1-06§ for guidance on result on this line. The partnership
dividend income from state, local, calculating the amount of the exempt is allowed no more than $250,000
and foreign securities and bonds that income. Attach a statement in total credits for investments
is exempt from federal income tax. showing the calculation of the made in tax years 2005 and after.
Do not include interest income from exempt income. See N.D.C.C. Ch. 57-38.6. Attach
securities or bonds issued by a copy of the Ag Commodity
North Dakota or its political Line 6 Processing Facility Investment
subdivisions. Do not enter on this Eminent domain gain Reporting Form. Or, if claiming an
line any income that is treated Enter on this line the taxable portion agricultural commodity processing
as nonbusiness income subject of a gain from the disposition of facility investment credit from a
to allocation under N.D.C.C. property due to the exercise of North Dakota Schedule K-1, attach
§§ 57-38.1-04 through 57-38.1-08. eminent domain. a statement identifying the facility
Include the nonbusiness income on in which the investment was
Line 7a
Schedule K, line 24. made.
Renaissance zone historic
Line 2 property preservation tax credit Line 10
State and local income taxes Enter on this line the amount from Biodiesel or green diesel fuel
Enter on this line the taxes measured Schedule RZ, Part 7, line 4. Attach blending tax credit
by income that were incurred by Schedule RZ. If the partnership is a licensed
the partnership and deducted in supplier of biodiesel or green diesel
Line 7b
calculating the partnership’s ordinary fuel, it is allowed a credit equal to
Renaissance fund organization
income (loss). Include franchise or $0.05 per gallon for blending biodiesel
investment tax credit
privilege taxes measured by income or green diesel fuel having at least
Enter on this line the amount from
paid to any taxing authority, including a 5% blend (“B5”) that meets ASTM
Schedule RZ, Part 7, line 5. Attach
a foreign country. specifications. The blending must
Schedule RZ.
be done in North Dakota. For this
Line 3 Line 7c purpose, a “supplier” means a person
Interest from U.S. obligations Renaissance zone nonparticipating who distributes the biodiesel or green
Enter on this line interest income from property owner tax credit diesel fuel from a terminal in
U.S. obligations and from securities Enter on this line the amount from North Dakota. Enter the credit on this
the interest from which is specifically Schedule RZ, Part 7, line 6. Attach line. See N.D.C.C. § 57-38-01.22.
exempted from state income tax by Schedule RZ. Attach a statement showing the
federal statute. Include the portion of
dividend income from a mutual fund Line 8 calculation of the credit.
attributable to the fund’s investment Seed capital investment tax credit Line 11
in the same kinds of securities. If the partnership invested in a Biodiesel or green diesel fuel sales
qualified business for purposes of the
Do not enter on this line interest equipment tax credit
seed capital investment tax credit,
income from securities of the Federal If the partnership is a licensed seller
multiply the total amount invested
Home Loan Mortgage Corporation of biodiesel or green diesel fuel, it is
during the 2024 tax year by 45%
(Freddie Mac), Federal National allowed a credit equal to 10% of the
and enter the result on this line.
Mortgage Association (Fannie Mae), costs to adapt or add equipment to
See N.D.C.C. Ch. 57-38.5. Attach a
Government National Mortgage its North Dakota facility to enable it
copy of the Qualified Seed Capital
Association (Ginnie Mae), or from to sell diesel fuel having at least a
Business Investment Reporting
a federal income tax refund or 2% biodiesel or green diesel blend
Form. Or, if claiming a seed capital
repurchase agreement. Attach a (“B2”) that meets ASTM specifications.
investment credit from a
statement identifying the specific For this purpose, a “seller” means a
North Dakota Schedule K-1,
securities from which the interest person who acquires the fuel from
attach a statement identifying the
was derived. a wholesale supplier or distributor
qualified business in which the for resale to a consumer at a retail
Line 4 investment was made. location. Except for costs incurred
Renaissance zone exemption before January 1, 2005, include
Enter on this line the amount from eligible costs incurred before the tax
Schedule RZ, Part 7, line 1c. Attach year in which sales of the eligible
Schedule RZ. biodiesel or green diesel fuel begin.
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The credit is allowed in each of five Lines 14c and 14d. Enter on category of school, the credit equals
tax years, starting with the tax year these lines an endowment fund 50% of the contributions made to all
in which sales of the eligible biodiesel credit and the related contribution eligible schools within the category.
or green diesel fuel begin. Enter amount shown on a North Dakota (Note: For a partner other than
the credit on this line. See N.D.C.C. Schedule K-1 received from an estate, another passthrough entity, additional
§ 57-38-01.23. Attach a statement trust, partnership, or S corporation. limitations on the allowable credit
showing the calculation of the apply at the partner level.) A list of
Line 15
credit. the eligible schools within each of
Workforce recruitment tax credit the three categories of schools is
Line 12 If the partnership employs provided on page 15.
Employer internship program tax extraordinary recruitment methods
credit to hire an employee to fill a hard- Election. A partnership may elect, on
If the partnership hired an eligible to-fill position in North Dakota, it is a contribution by contribution basis,
college student under a qualifying allowed a tax credit equal to 5% of to treat a contribution as having been
internship program set up in the compensation paid during the made during the 2024 tax year if it
North Dakota, it is allowed a credit first 12 months to the employee is made on or before the due date,
equal to 10% of the compensation hired to fill that position. The credit including extensions, for filing the
paid to the intern. For details, may be claimed in the first taxable 2024 Form 58. Make the election by
see N.D.C.C. § 57-38-01.24. The year beginning after the employee attaching to the return a document
partnership is allowed no more than completes the first 12 consecutive containing the following:
$3,000 of credits for all tax years. months of employment. For details,
1. A statement that the election is
see N.D.C.C. § 57-38-01.25.
Line 12a. Enter the allowable credit being made.
on this line. Line 15a. Enter the allowable credit 2. Name of qualifying school.
on this line.
Attach a schedule listing the names 3. Date of contribution.
of the employees, their social security Attach a schedule listing the names 4. Amount of contribution.
numbers, and wages paid. If the credit of the employees, their social
is received through a passthrough security numbers, wages paid, and To qualify, a contribution must be
entity, attach a copy of the statement employment start date. If the credit made directly to, or specifically
received from the passthrough entity. is received through a passthrough designated for the exclusive use of, a
entity, attach a copy of the statement qualifying school.
Line 12b. Enter the number of received from the passthrough entity. School network or organization.
eligible interns employed during the
2024 tax year. Disregard this line Line 15b. Enter the number of If a contribution is made payable
if the credit is from a passthrough eligible employees whose first 12 to the account or fund of a school
entity. months of employment ended during network or organization that governs
the partnership’s 2024 tax year. or benefits multiple schools, the
Line 12c. Enter on this line the contribution will qualify only if the
total compensation paid to eligible Line 15c. Enter the total partnership specifically designates it
interns during the 2024 tax year (as compensation paid to the eligible for the use of a qualifying school, and
shown on their 2024 Form W-2s). employees’ during their first 12 the network or organization separately
Disregard this line if the credit is from consecutive months of employment accounts for the funds on behalf of
a passthrough entity. ending in the partnership’s 2023 tax that school. The partnership must
year.
Line 13 obtain a statement from the network
or organization that identifies the
Research expense tax credit Line 16 qualifying school and the amount
A credit is allowed for conducting Credit for wages paid to a contributed to it. If the qualifying
qualified research in North Dakota. For mobilized employee school falls into both the primary and
details, see N.D.C.C. § 57-38-30.5. Enter on this line the amount from high school categories, also see the
Enter the allowable credit on this line. Schedule ME, line 13. N.D.C.C. next paragraph.
Attach a statement showing the § 57-38-31. Attach Schedule ME.
computation of the base amount Schools in both primary and high
and the credit. Lines 17 through 19 school categories. If a contribution
Line 14 Nonprofit private school tax is made to a qualifying school that
Endowment fund tax credit credits provides education in one or more
A tax credit is allowed for making a Tax credits are allowed under grades in both the primary school
contribution to a qualified endowment N.D.C.C. § 57-38-01.7 for making category (kindergarten through 8th
fund. For more information, charitable contributions to qualifying grades) and the high school category
see Schedule QEC (for filers of nonprofit private primary schools, (9th through 12th grades), a separate
Forms 38, 40, 58, and 60) Attach high schools, and colleges located credit is allowed for the portion of the
Schedule QEC. in North Dakota. A separate credit contribution designated for use within
is allowed for each of the three each school category. The partnership
Lines 14a and 14b. Enter on these categories of school—primary school, must obtain a statement from the
lines the applicable amounts from high school, and college. For each
Schedule QEC.
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qualifying school or the school Attach a copy of the Participating Unused credit: There is no carryover
network or organization that identifies Angel Investor Investment provision to succeeding tax years.
the qualifying school and shows Statement.
Line 24
the amount contributed within each
Line 21 Apprentice tax credit
category of school. If the partnership
Automation tax credit A tax credit is available for
does not obtain a statement, one-
If the partnership qualified for the compensation paid by a partnership
half of the total contribution will be
automation tax credit under N.D.C.C. to an apprentice. The credit equals
deemed to have been made to each
§ 57-38-01.41, enter on this line the 10% of the stipend or salary paid to
category of school.
amount of the credit shown on the a qualified apprentice employed in
Line 17. Enter on this line the credit approval letter issued to the North Dakota. The apprentice must be
allowable credit for contributions to partnership by the Office of State Tax in an apprenticeship program certified
qualified nonprofit private primary Commissioner. by the U.S. Department of Labor or
schools. be an electrical apprentice registered
Line 22 under North Dakota law. The credit
Line 18. Enter on this line the Credit for hiring an individual is allowed for up to five apprentices
allowable credit for contributions with a developmental disability or employed by the partnership at the
to qualified nonprofit private high mental illness same time.
schools. A tax credit is available for employing
an individual with a developmental Lifetime credit limit: A taxpayer is
Line 19. Enter on this line the disability or mental illness. To allowed no more than $3,000 in total
allowable credit for contributions to qualify, an employer must apply for tax credits for eligible wages paid in
qualified nonprofit private colleges. and obtain certification from the all tax years.
Line 20 North Dakota Department of Human
Line 24a.
Angel investor investment credit Services, Vocational Rehabilitation
Enter the allowable credit on this line.
Division, that the individual has a
Important! This line is only for severe disability, is eligible for the Attach a schedule listing the names
credits attributable to investments agency’s services, and requires of the employees, their social security
made in qualified businesses customized or supported employment numbers, wages paid and employment
by angel funds organized and to become employed. The credit is start date. If the credit is received
certified on or after July 1, 2017. equal to 25% of the wages paid to the through a passthrough entity, attach
If a partnership is a member of a individual during the tax year, up to a a copy of the statement received from
North Dakota angel fund that is maximum credit of $1,500 per year. the passthrough entity.
organized and certified on or after The credit is allowed for each eligible
July 1, 2017, a credit is allowed to individual hired. Attach a copy Line 24b.
the partnership if it participates in of the certification letter from Enter the number of eligible
a qualified investment made by the Human Services. apprentices employed during the 2024
tax year. Disregard this line if the
angel fund in a qualified business. Line 23 credit is from a passthrough entity.
The angel fund is required to provide Maternity home, child placing
a Participating Angel Investor agency, or pregnancy help center Line 24c.
Statement to the partnership, tax credit Enter the total amount of wages,
which evidences the partnership’s A tax credit is allowed for salaries, or other compensation paid
investment. For qualified investments contributions to the following to eligible apprentices employed
made after June 30, 2017, that fall organizations: (1) a child placing during the 2024 tax year (as shown
into the partnership’s 2024 tax year, agency licensed by the North Dakota on their 2024 Form W-2’s). Disregard
multiply the investment amount Department of Health and Human this line if the credit is from a
by the applicable credit rate shown Services (DHS), (2) a nonprofit passthrough entity.
on the statement. If a partnership maternity home located in North Line 25
participates in more than one qualified Dakota, or (3) a pregnancy help Professional service partnership
investment during the tax year, center recognized by DHS. guaranteed payments
calculate the credit separately for each
Participating Angel Investor Statement The credit is equal to 100% of the Lines 25a through 25c apply only
received and add the separately contribution and is limited to 50% of if the partnership marked “Yes” to
calculated amounts. a taxpayer’s tax liability. Enter on this Item H on page 1 of Form 58. See
line the amount from Schedule MCP, the instructions to Form 58, page 1,
Enter the credit amount on this line 8. Attach Schedule MCP. Item H, on page 5.
line. Do not enter on this line
an angel investor credit from The credit is available to corporations, Line 25a. Enter the total guaranteed
a North Dakota Schedule K-1. individuals, estates, trusts, and payments from Federal Form 1065,
A partnership is not allowed to passthrough entities. A tax credit Schedule K, line 4.
claim an angel investor credit from earned by a passthrough entity is Line 25b. Enter the portion of the
another passthrough entity. See passed through and allowed to each amount on line 25a that was made to
N.D.C.C. § 57-38-01.26 (effective owner in proportion to their respective individual partners as a reasonable
for investments made after June 30, interests in the passthrough entity.
2017).
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salary for personal services, completing lines 26a and 26b, the
regardless of where the services partnership must attach the following Instructions for
were performed. Do not include any to Form 58: Schedule KP
guaranteed payments for other than
• A statement on which each item
personal services. (Form 58, page 5)
of nonbusiness income is shown Schedule KP must be completed
Line 25c. Enter the portion of the along with its related expenses. to provide information about each
amount on line 25b that was made • A statement explaining the basis partner. If the partnership has more
to nonresident individual partners for for treating the item of income than seven partners, complete and
personal services performed within as nonbusiness income subject to attach additional schedules as needed
North Dakota. allocation. to list all partners. If more than one
Line 26 • If an item of nonbusiness income Schedule KP is needed, complete
Allocable nonbusiness income is allocated to a state other than lines 1 through 4 on only one of them,
Lines 26a and 26b apply only if the North Dakota, a copy of that other and include the combined amount
partnership meets all of the following: state’s income tax return must for all of the schedules on that one
be attached. If the partnership is schedule.
• It is a multistate partnership, i.e., not required to file an income tax
it carries on its trade or business return with the other state, the All partners
activity both within and without partnership must indicate this in (Columns 1 through 5)
North Dakota. the attached statement. Columns 1 and 2
• It has one or more nonresident Enter the name, mailing address, and
individual, estate, or trust Line 26a. Enter the total allocable
partners. income (less related expenses) partner’s identifying number as shown
from all sources within and without on the partner’s Federal Schedule K-1.
• It has allocable nonbusiness North Dakota. If the partner is a single member
income. Generally, all income LLC that is a disregarded entity for
received by a partnership is Line 26b. Enter the portion of the federal income tax purposes, enter
considered business income unless amount on line 24a that is allocable to the owner’s name, address, and
clearly classifiable as nonbusiness North Dakota. identifying number.
income. The classification of
Line 27
income by the labels used to Column 3
Disposition of I.R.C. Section 179
describe it—for example, interest, Identify the entity type of the partner
property
dividends, rents, royalties, by entering the applicable code letter
Lines 27a through 27b apply only if
operating income, or nonoperating as follows:
the partnership sold, exchanged, or
income—is generally not relevant Entity type Code letter
disposed of property for which an
in determining whether income is Individual ..................... I
I.R.C. Section 179 deduction was
business or nonbusiness income. C corporation ................ C
passed through to the partners.
For more information, see N.D. S corporation ................ S
Note: The partnership is required
Admin. Code § 81-03-09-03. Partnership ................... P
to report this same information on
Nonbusiness income is not a separate statement attached to Estate .......................... E
apportioned using the apportionment Federal Form 1065, Schedule K, Trust ............................ T
factor (from Schedule FACT) but is line 20c. Exempt organization ...... O
allocated within or without North Note: A “C corporation” is a
For lines 27a through 27d, multiply
Dakota as provided under N.D.C.C. corporation that files Federal
the corresponding combined amount
§§ 57-38.1-04 through 57-38.1-08 Form 1120; an “S corporation”
for all partners as reported on
and N.D. Admin. Code is a corporation that files Federal
Federal Form 1065, Schedule K,
§ 81-03-09-09. Expenses must be Form 1120S; and the “Trust” entity
line 20c, by the apportionment factor
attributed to the nonbusiness income type applies to a trust that files
from Schedule FACT, line 14, and
in a manner which fairly distributes Federal Form 1041 or, in lieu of
enter the result. However, if the
all of the partnership’s expenses to its filing Federal Form 1041, elects an
property disposed of is treated as a
business and nonbusiness income. alternative reporting method under
nonbusiness asset the gain or loss
If the partnership has an item of from which is subject to allocation the federal income tax regulations,
nonbusiness income subject to under N.D.C.C. §§ 57-38.1-04 through and to an IRA (generally filing Federal
allocation, the partnership must take 57-38.1-08, subtract the amounts Form 990-T to report Unrelated
this into account when calculating for that asset before multiplying by Business Taxable Income.)
the North Dakota distributive share the apportionment factor. Include the If the partner is an LLC that is a
of income or loss reportable on nonbusiness gain or loss from the disregarded entity for federal income
Schedule KP and Schedule K-1 disposition on Form 58, Schedule K, tax purposes or a nominee on Federal
(Form 58). See the instructions to line 26. Schedule K-1, enter the code letter
Schedule KP, Column 6, on page 10 for the type of entity of the entity’s
for more information. In addition to owner. If the LLC is treated like a
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C corporation, partnership, or S
corporation, enter the code letter for Worksheet for Schedule KP, Column 6
that particular entity type. For nonresident partners and tax-exempt organization partners only—
see instructions to Schedule KP, Column 6.
Column 4 1. Partner’s amount from Schedule KP, Column 5 ........................1 _______________
Enter the partner’s ownership
2. Professional service partnership only:
percentage as provided in the Guaranteed payments for services only
partnership agreement. (This percentage included in the amount on line 1.............. 2 _______________
may differ from the partner’s profit or 3. Allocable income (less related expenses)
loss percentage.) included in the amount on line 1.............. 3 _______________
Column 5 4. Interest from U.S. obligations included
in the amount on line 1 .......................... 4 _______________
Enter the sum of the following
items from the partner’s Federal 5. Add lines 2, 3, and 4 ............................................................5 _______________
Schedule K-1 (Form 1065), Part III: 6. Apportionable income (loss). Subtract line 5 from line 1 ...........6 _______________
7. Apportionment factor from Schedule FACT, line 14 ...................7 __.____________
Box 1 Ordinary business income
(loss) 8. Multiply line 6 by line 7 ........................................................8 _______________
9. Professional service partnership only: Guaranteed payments
Box 2 Net rental real estate income for services performed within North Dakota ......................9 _______________
(loss) 10. Allocable income (less related expenses) reportable to
Box 3 Other net rental income North Dakota ................................................................... 10 ______________
(loss) 11. Add lines 8, 9 and 10. Enter result in Column 6 ...................... 11 ______________
Box 4c Total guaranteed payments
• a trust, including a grantor trust, payments are not apportioned, but
Box 5 Interest income that is not organized under are allocated to the state where
Box 6a Ordinary dividends North Dakota law. This only the services were performed by
Box 7 Royalties includes trusts that are subject to the partner. See the instructions
Box 8 Net short-term capital gain income tax; or to Form 58, page 1, Item H, on
(loss) • a passthrough entity that has a page 5 for more information.
Box 9a Net long-term capital gain commercial domicile outside North • The partnership has an item of
(loss) Dakota. A passthrough entity nonbusiness income subject to
includes a partnership, allocation. See the instructions to
Box 10 Net section 1231 gain (loss) S corporation, LLC treated like a Form 58, Schedule K, line 26, on
Box 11 Other income (loss) partnership or S corporation, and page 10 for more information.
Box 12 Section 179 deduction any other similar entity. • The amount in Column 5 includes
Box 13 Other deductions (In the case For a tax-exempt organization partner, interest from U.S. obligations.
of an individual, trust, or only report its distributive share of Column 7
estate partner, only include North Dakota income in Column 6. Nonresident partner only
deductions that are allowed Columns 7 and 8 do not apply to a If a nonresident partner’s distributive
as a deduction from gross tax-exempt organization partner. share of North Dakota income
income in calculating adjusted in Column 6 is $1,000 or more,
gross income for federal Column 6
income tax purposes.) Nonresident partner and tax- multiply the amount in Column 6 by
exempt organization partner only 2.50% (.025) and enter the result
Box 20 Include the gain (loss) Complete Column 6 for each in Column 7. However, the following
from an I.R.C. Section 179 nonresident partner and tax-exempt exceptions apply:
property disposition. For organization partner. Except as • If a nonresident partner gives you
purposes of calculating provided below, multiply the a completed Form PWA, enter the
the gain or loss, include partner’s amount in Column 5 by amount from line 5 of Form PWA
all of the Section 179 the apportionment factor from in Column 7 and fill in the circle
deduction passed through Schedule FACT, line 14, and enter the under “Form PWA or Form PWE.”
to the partner, regardless of result in Column 6.
whether or not the partner • If a nonresident partner gives
actually deducted all of it. Exception: Complete the Worksheet you a completed Form PWE, leave
for Schedule KP, Column 6 on this Column 7 blank and fill in the circle
Nonresident partners and page to calculate the amount to enter under “Form PWA or Form PWE.”
tax-exempt organization in Column 6 if any of the following • If a nonresident partner elected to
partners only apply: be included in a composite filing,
• The partnership is a professional leave Column 7 blank and see the
(Columns 6 through 8) instructions to Column 8.
For purposes of Columns 6 through 8, service partnership that made
a nonresident partner means: guaranteed payments for services See “Withholding from nonresident
performed by nonresident partners” on page 3 for more
• an individual who is not domiciled individual partners. These information.
in North Dakota;
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Column 8 Line 8 Interest. Calculate the interest
Nonresident partner only Application of overpayment to amount as follows:
Note: Leave Column 8 blank if 2025
• If an extension of time to file
Column 7 was completed for the If there is an overpayment on line 7,
Form 58 was obtained, extension
nonresident partner. the partnership may elect to apply
interest is calculated at the rate of
part or all of it as an estimated
12% per year on any tax due from
Complete Column 8 for each payment toward its 2025 tax liability.
the due date of the return to the
nonresident partner electing to To make the election, enter the
earlier of the extended due date or
be included in a composite filing. portion of line 7 to be applied on
the date the return was filed.
Multiply the amount in Column 6 by line 8. If this election is made, the
2.50% (.025) and enter the result in election and the amount applied may • If the total amount of tax due
Column 8. If the amount in Column 6 not be changed after the return is is not paid by the due date (or
is zero or less, enter zero in Column 8. filed. If this is an amended return, do extended due date) of the return,
See “Composite filing” on page 3 for not make an entry on this line. interest is calculated at the rate
more information. of 1% per month or fraction of a
Line 10 month on the unpaid tax, except
Specific line Tax due for the month in which the return
A tax due must be paid in full with the was due.
instructions for return when the return is filed. See
the instructions to line 12 for payment Line 12
page 1 of options. Balance due
The balance due must be paid in full
Form 58, lines 1-12 Line 11 with the return. The payment may
Complete Schedule FACT, Penalty and interest be made electronically in one of the
The Office of State Tax Commissioner following ways:
Schedule K, and Schedule KP will notify the partnership of any
before completing lines 1 penalty and interest payable on a tax • Online—A payment may be made
through 12 on page 1 of due shown on Form 58. However, the online with an electronic check or a
Form 58. partnership may calculate the penalty debit or credit card. The electronic
and interest amounts and include check option is free. North Dakota
Line 4 them in the balance due on Form 58. contracts with a national payment
Income tax withholding service to provide the debit or
Enter the North Dakota income Penalty. Calculate the penalty credit card option. There is a fee
tax withholding shown on a 2024 amount as follows: for the debit or credit option, none
Form 1099 or North Dakota • If Form 58 is filed by the due date of which goes to the State of North
Schedule K-1. Be sure the state (or extended due date), but the Dakota. To pay online, go to
identified on the Form 1099 is total amount of tax due is not paid www.tax.nd.gov/payment.
North Dakota. Also enter the with the return, the penalty is • Electronic funds transfer—A
North Dakota income tax withholding equal to 5% of the unpaid tax or payment may be made by means
shown on a 2023 North Dakota $5.00, whichever is greater. of an Automated Clearing House
Schedule K-1 if the entity that issued
it has a fiscal tax year ending in • If Form 58 is filed after its due (ACH) credit transaction that
the partnership’s 2024 tax year. Do date (or extended due date), and the taxpayer initiates through
not enter on this line North Dakota there is an unpaid tax due on it, a its banking institution. For more
extraction or production taxes penalty equal to 5% of the unpaid information, go to our website at
withheld from mineral interest income, tax due (with a $5.00 minimum) tax.nd.gov.
such as an oil or gas royalty, because applies for the month the return
If paying with a paper check or money
they are not income taxes. Attach a was due, plus 5% of the unpaid
order, complete a 2024 Form 58-PV
copy of the Form 1099 or tax due (with a $5.00 minimum)
payment voucher and enclose it with
North Dakota Schedule K-1. for each month or fraction of a
the payment. Make the check or
month the return remains unfiled,
money order payable to “ND State
Line 5 not to exceed the greater of 25%
Tax Commissioner,” and write the last
Estimated tax payments of the unpaid tax due or $25.00.
Enter the amount paid with the 2024 four digits of the partnership’s FEIN
Forms 58-EXT and 58-ES plus any and “2024 Form 58” on the check or
overpayment applied from the 2023 money order. A check must be drawn
Form 58. However, if filing an amended on a U.S. or Canadian bank, be in U.S.
return, do not enter any previously dollars, and use a standard nine-digit
paid estimated tax amount; instead, routing number. A check drawn on a
enter the amount of the total taxes foreign bank (except one in Canada)
due from line 3 of the previously filed cannot be accepted.
original or amended return.
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Amended schedule. If a partnership Lines 3 through 5. Enter on the
Instructions files an amended Form 58, the corresponding lines the partner’s
for completing partnership must issue amended share of each amount shown on
North Dakota Schedule K-1 forms to Form 58, Schedule K, lines 3
Schedule K-1 its partners. Fill in the “Amended” through 5.
A partnership is not subject to circle at the top of the North Dakota
Line 6. Enter on this line the amount
North Dakota income tax. Instead, Schedule K-1 (Form 58).
determined by multiplying the amount
the partners are responsible for Final schedule. Fill in the “Final” on Form 58, Schedule K, line 6, by the
reporting and paying any applicable circle at the top of the North Dakota same percentage used to determine
North Dakota income tax on their Schedule K-1 (Form 58) if it is the last the partner’s distributive share of
shares of the partnership’s income one to be issued by the partnership to income (loss) from the partnership.
reportable to North Dakota. the partner.
Lines 7 through 24 Enter on the
The North Dakota Schedule K-1 Part 2 corresponding lines the partner’s
(Form 58) must be used by a share of each amount shown on
partnership to provide its partners Partner information
Form 58, Schedule K, lines 7 through
with information they will need to Item E 24. Also, for the following lines,
complete a North Dakota income Enter the code letter for the partner additional supporting information
tax return. The information to be from Form 58, Schedule KP, Column 3. must be provided with Schedule K-1.
included in the schedule will depend
on the type of partner. In the case of Item F Lines 8 and 9. Provide a statement
certain credits reported on Schedule If the partner is an individual, estate, identifying the qualified business
K-1 (Form 58), additional supporting or trust, fill in the applicable circle to or qualified agricultural commodity
information must be provided with indicate the legal residency status of processing facility in which the
Schedule K-1 — see the instructions the partner for North Dakota income qualifying investment was made.
to Part 3. tax purposes. If an individual partner
changed his or her legal residency Line 14. Provide a statement
A North Dakota Schedule K-1 (Form to or from North Dakota during the identifying the qualified nonprofit
58) must be completed and given to: tax year, mark the part-year resident organization and the qualified
status. In the case of an estate or trust endowment fund to which the
• Each nonresident partner for qualifying contribution was made.
partner, only the full-year resident or
which the partnership is required
full-year nonresident status will apply.
to report the North Dakota Line 20. Provide a statement
distributive share of income on Item G identifying the angel fund that made
Form 58, Schedule KP, Column 6. For an eligible nonresident partner, the qualified investment in the
• Each partner to which a share of indicate whether the partner is qualified business.
a North Dakota adjustment or tax included in a composite filing by filling Part 4
credit from Form 58, Schedule K, in the applicable circle.
Nonresident individual,
lines 1 through 24, is distributable. Item I estate, or trust partner
• Each partnership or corporation Enter the partner’s ownership only — North Dakota income
partner for the purpose of percentage from Form 58,
reporting a share of the Schedule KP, Column 4. (loss)
apportionment factors from Complete Part 4 for a nonresident
Form 58, Schedule FACT. Part 3 individual, estate, or trust partner.
• Each tax-exempt organization All partners—
Line 25
partner. North Dakota adjustments Partnership’s apportionment
If there are no North Dakota and tax credits factor
If there are any North Dakota
adjustments or tax credits on Form 58, Enter the partnership’s apportionment
adjustments or tax credits on
Schedule K, lines 1 through 24, a factor from Form 58, Schedule FACT,
Form 58, Schedule K, lines 1
North Dakota Schedule K-1 does not line 14.
through 24, complete this part for all
have to be given to a North Dakota Lines 26 through 39
partners.
resident individual, estate, or trust. Income and loss items
Lines 1 and 2. Enter on the
In addition to the North Dakota Except as provided under
corresponding lines the amount
Schedule K-1 (Form 58), the Exceptions 1 through 3 below,
determined by multiplying each
partnership must provide the multiply the corresponding
amount shown on Form 58,
partner with a copy of the Partner’s amount from the partner’s Federal
Schedule K, lines 1 and 2, by the
Instructions for North Dakota Schedule K-1, Part III, boxes 1 through
same percentage used to determine
Schedule K-1 (Form 58). 13, and any I.R.C. § 179 property
the partner’s distributive share of disposition gain (loss) included in box
A copy of all North Dakota income (loss) from the partnership. 20 by the partnership’s apportionment
Schedule K-1 forms must be enclosed factor from Schedule FACT, line 14, and
with Form 58 along with any required enter the result on the corresponding
supporting statements. line of Part 4, lines 26 through 39.
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For “Other deductions” from box 13 If the calculation of any amount on Line 44
of Federal Schedule K-1, only include lines 26 through 39 of Part 4 was Total factors
deductions that are allowed as a affected by the removal or inclusion Enter in the corresponding column the
deduction from gross income in of net nonbusiness income, attach partner’s share of the partnership’s
calculating adjusted gross income for a statement to the partner’s North total factor amounts from Form 58,
federal income tax purposes. Dakota Schedule K-1 (Form 58) Schedule FACT, Column 1, lines 7, 8,
identifying the net nonbusiness and 12.
For purposes of calculating the gain income and showing the calculation of
or loss for I.R.C. § 179 property the amount entered on the applicable Before you file
dispositions included in box 20 of line(s) of Part 4.
Federal Schedule K-1, include all of
Form 58
the Section 179 deduction passed Exception 3: Interest from U.S.
through to the partner, regardless of obligations. Do not include interest Signatures
whether or not the partner actually from U.S. obligations in determining The return must be signed and dated
deducted all of it. the amount to enter on Part 4, line 30. by a general partner or an authorized
representative of the partnership.
Exception 1: Professional service Part 5
If the partnership pays someone
partnership. If the partnership is Nonresident partner and other than one of its partners or
a professional service partnership,
calculate the amount to enter on tax-exempt organization an employee of the partnership to
line 29 (guaranteed payments) by partner only prepare the return, the paid preparer
adding the following two amounts: Complete Part 5 for a nonresident also must sign and date the return.
partner and a tax-exempt organization
• Guaranteed payments for services partner for which an amount was Preparer authorization check-off
performed within North Dakota by required to be entered on Form 58, The partnership may authorize the
the partner. Schedule KP, Column 6. Office of State Tax Commissioner to
• Guaranteed payments for other discuss matters pertaining to its 2024
Line 40
than personal services multiplied Form 58 with the preparer who signed
North Dakota distributive share of
by the partnership’s apportionment it. To do so, fill in the circle next to
income (loss)
factor from Schedule FACT, line 14. the signature area in the lower right-
Enter the partner’s North Dakota hand corner of page 1 of Form 58.
Exception 2: Allocable distributive share of income (loss) This authorization applies only to the
nonbusiness income. If the from Form 58, Schedule KP, Column 6. individual whose signature and printed
partnership treated any part of a name appear in the paid preparer
Line 41
distributable item of income from section of the signature area. It does
North Dakota income tax withheld
the partner’s Federal Schedule K-1 not apply to the firm, if any, shown in
Enter the amount of North Dakota
as nonbusiness income subject to that section.
income tax withheld from the
allocation, calculate the amount to
partner’s North Dakota distributive
enter on the corresponding line of this This authorization allows the Office of
share of income from Form 58,
part in the following steps: State Tax Commissioner to contact the
Schedule KP, Column 7. preparer to answer any questions that
1. Subtract the net nonbusiness may arise during the processing of the
Line 42
income (gross amount less partnership’s return. It also authorizes
North Dakota composite income
related expenses) from the preparer to respond to questions
tax
the applicable distributable and to provide any information
Enter the amount of North Dakota
amount shown on the Federal missing from the return, to contact
composite income tax on the partner’s
Schedule K-1. the Office of State Tax Commissioner
North Dakota distributive share of
to inquire about the status of the
2. Multiply the remaining income from Form 58, Schedule KP,
return’s processing and related refund
distributive amount, if any, (from Column 8.
step one) by the partnership’s or payment, and to respond to Office
apportionment factor from Part 6 of State Tax Commissioner notices
Schedule FACT, line 14. Partnership or corporation that the partnership shares with the
preparer pertaining to math errors
3. Add the result (from step two) partner only or return preparation. (The Office of
to the portion, if any, of the net Complete Part 6 for a partner that is State Tax Commissioner notices will
nonbusiness income allocable a partnership, corporation, or other be sent only to the partnership.)
to North Dakota, and enter the entity treated like a partnership or
result on the corresponding line corporation. This authorization automatically
of Part 4. expires on the due date (including
Line 43 extensions) for filing the 2025
Note: If any portion of the net North Dakota factors Form 58.
nonbusiness income removed from the Enter in the corresponding column the
distributable amount (in step 1 above) partner’s share of the partnership’s
is allocable outside North Dakota, do North Dakota apportionment
not enter it anywhere on North Dakota factor amounts from Form 58,
Schedule K-1 (Form 58). Schedule FACT, Column 2, lines 7, 8,
and 12.
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This authorization does not authorize
the preparer to receive a refund Qualified nonprofit private schools
check, to bind the partnership in (for Form 58, Schedule K, lines 17 through 19)
any way (including any additional For purposes of the credits on Form 58, Schedule K, lines 17 through 19, the following
tax liability), or to represent the lists the qualifying schools in each school category. (Note: These lists are subject to
change.)
partnership before the Office of State
Primary Schools (Grades K through 8)
Tax Commissioner for any other
Anne Carlsen Center (Jamestown) School of the Holy Family (Mandan)
purpose. Bishop Ryan Catholic School (Minot) Shanley High-Sacred Heart Middle School
Assembling a paper return Brentwood Adventist Christian School (Fargo)
Please assemble Form 58 and its (Bismarck) Shiloh Christian School (Bismarck)
required attachments in the following Capstone Classical Academy (Fargo) SonShine Elementary (Minot)
Cathedral of the Holy Spirit Elementary St Alphonsus Elementary School
order: School (Bismarck) (Langdon)
1. Form 58. Children’s Montessori Center (Fargo) St Anne Elementary School (Bismarck)
Christ the King Catholic Montessori St Ann’s Catholic School (Belcourt)
2. Schedule FACT. School (Mandan) St Bernard Mission School (Fort Yates)
3. Schedule K. Dakota Memorial School (Minot) St Catherine Elementary School
4. Schedule KP. Dakota Montessori School (Fargo) (Valley City)
Forest River School (Fordville) St John’s Academy (Jamestown)
5. All other required North Dakota Full Circle Academy (Fargo) St John’s Elementary School (Wahpeton)
schedules and forms (other than Grace Lutheran Elementary School St Joseph Elementary School (Mandan)
North Dakota Schedule K-1 (Fargo) St Joseph Elementary School
forms). Hillcrest SDA School (Jamestown) (Devils Lake)
Holy Family – St. Mary’s Elementary St Joseph’s Elementary School (Williston)
6. North Dakota Schedule K-1 School (Grand Forks) St Mary’s Academy (Bismarck)
forms. Holy Spirit Elementary School (Fargo) St Mary’s Elementary School (Bismarck)
7. Required supporting statements. Hope Christian Academy (Dickinson) St Michael’s Elementary School
8. Complete copy of Form 1065 Invitation Hill Adventist School (Grand Forks)
(Dickinson) St. Monica’s Montessori (Fargo)
(or 1065-B) including Federal Johnson Corners Christian Academy The Innovation School (Bismarck)
Schedule K-1 forms. (Watford City) Trinity Elementary East School
A balance due may be paid Little Flower Elementary School (Rugby) (Dickinson)
electronically (see page 12 of these Martin Luther School (Bismarck) Trinity Elementary North School
Nativity Elementary School (Fargo) (Dickinson)
instructions). If paying with a paper New Testament Baptist Christian School Trinity Elementary School (West Fargo)
check, enclose the check and a 2024 (Larimore) Trinity Elementary West School
Form 58-PV payment voucher with the Oak Grove Lutheran Elementary School (Dickinson)
return. (Fargo) Trinity Jr/High School (Dickinson)
Our Redeemer’s Christian School (Minot) Valley City Christian School (Valley City)
Prairie Learning Education Center Victory Christian School (Jamestown)
(Raleigh) Williston Trinity Christian School
Prairie Voyager Adventist School (Williston)
(Grand Forks)
High Schools (Grades 9 through 12)
Anne Carlsen Center (Jamestown) Our Redeemer’s Christian School (Minot)
Bishop Ryan Catholic School (Minot) Prairie Learning Education Center
Dakota Adventist Academy (Bismarck) (Raleigh)
Dakota Memorial School (Minot) School of the Holy Family (Mandan)
Hope Christian Academy (Dickinson) Shanley High-Sacred Heart Middle School
Johnson Corners Christian Academy (Fargo)
(Watford City) Shiloh Christian School (Bismarck)
New Testament Baptist Christian School St Mary’s Central High School (Bismarck)
(Larimore) Trinity Jr/High School (Dickinson)
Oak Grove Lutheran Middle/High School Williston Trinity Christian School
(Fargo) (Williston)
Colleges (Education above 12th grade)
Jamestown College (Jamestown) United Tribes Technical College
Trinity Bible College (Ellendale) (Bismarck)
Turtle Mountain Community College University of Mary (Bismarck)
(Belcourt) ND Independent College Fund
(Bismarck)
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