PDF document

- 1 -

SCHEDULE K-1 (FORM 38)
OFFICE OF STATE TAX COMMISSIONER
SFN 28739 (12-2022)
2022

Beneficiary's Share of North Dakota Income (Loss),
Deductions, Adjustments, Credits, and Other Items

See separate instructions Final Amended
Part 1 Estate or trust information Estate's or trust's tax year:
A Estate's or trust's federal EIN Calendar year 2022 (Jan. 1 - Dec. 31, 2022)
Fiscal year: Beginning _________, 2022, Ending _________, 20____
B Name of estate or trust 11. Biodiesel/green diesel fuel sales equipment
credit
C Fiduciary's name, address, city, state, and ZIP code 12. Employer internship program credit
13. a. Research expense credit
b. Purchased research credit
14. a. Endowment fund credit (Schedule QEC)
Part 2 Beneficiary information b. Contribution amount (Schedule QEC)
D Beneficiary's SSN or FEIN (from Federal Schedule K-1) c. Endowment fund credit (ND Schedule K-1)
d. Contribution amount (ND Schedule K-1)
E Beneficiary's's name, address, city, state, and ZIP code
(from Federal Schedule K-1) 15. Workforce recruitment credit
16. Wages paid to mobilized employee credit
17. Nonprofit private primary school credit
18. Nonprofit private high school credit
F What type of entity is this beneficiary? ____________________________
19. Nonprofit private college credit
G If beneficiary is an individual, estate, or trust, beneficiary is a:
Full-year residentof North Dakota Part-year resident20. Automation credit - purchases after 12/31/18
of North Dakota 21. Develop. disabled/mentally ill employee credit
Full-year nonresident of North Dakota
H Is this an eligible nonresident beneficiary Nonresident individual, estate, or trust
Part 4
who elected to be included in a composite filing? Yes No beneficiary: North Dakota income
22. Interest income
All beneficiaries:
Part 3 North Dakota adjustments and tax credits 23. Ordinary dividends
24. Net short-term capital gain
1. Income from non-ND bonds and securities
2. State and local income taxes deducted 25. Net long term capital gain
3. Interest from U.S. obligations 26. Other portfolio and nonbusiness income
27. Ordinary business income
4. Renaissance zone income exemption
28. Net rental real estate income
5. New or expanding business income exemption
29. Other rental income
6. College SAVE contribution deduction
30. Directly apportioned deductions
7. Renaissance zone:
a. Historic property preservation credit 31. Final year deductions
b. Renaissance fund organization credit 32. Other
c. Nonparticipating property owner credit Part 5 Nonresident beneficiary: North Dakota
income tax withheld or composite tax paid
8. Seed capital investment credit
33. ND distributive share of income (loss)
9. Agricultural commodity processing
facility investment credit 34. North Dakota income tax withheld
10. Biodiesel/green diesel fuel blending credit 35. North Dakota composite income tax

- 2 -

2022 Schedule K-1 Instructions for Beneficiary
SFN 28739 (12-2022), Page 2

Purpose of form If you are a partnership, estate or trust. The North Dakota
North Dakota Schedule K-1 (Form 38) S corporation, or a limited liability distributive share of income and
is a supplemental schedule provided company treated like a partnership or composite income tax paid, as shown
by a fiduciary of an estate or trust S corporation, and if your commercial in Part 5 of Schedule K-1 (Form 38),
to its beneficiaries. It provides domicile is located outside North are provided only for your information.
information the beneficiaries may Dakota, the schedule may also show If you later choose to revoke your
need to complete their North Dakota your distributive share of the following composite filing election and file your
income tax returns. For this purpose, items: own North Dakota income tax return,
follow the instructions to Parts 3
“beneficiary” includes an owner of a  North Dakota income subject through 5 to transfer the amounts
grantor trust.
to North Dakota income tax from Schedule K-1 (Form 38) to your
Resident individual, estate, or withholding. See Part 5 of the return.
trust beneficiary. If you are a North schedule.
Dakota resident individual, estate, or  North Dakota income tax Amended Schedule K-1 (Form 38).
trust, your entire distributive share withheld from your distributive If you receive an amended North
of income from the estate or trust is share of North Dakota income. Dakota Schedule K-1 (Form 38) from
subject to North Dakota income tax. See Part 5 of the schedule. the fiduciary for the estate or trust,
you generally must file an amended
North Dakota Schedule K-1 was issued  North Dakota income tax paid North Dakota income tax return to
to you only to show your distributive
on your distributive share
share of the estate’s or trust’s North report the revised information, in
of North Dakota income in a
Dakota statutory adjustments and which case a copy of the amended
composite filing. See “Composite
tax credits that may affect your North Schedule K-1 (Form 38) must be
filing election” under “General
Dakota income tax return. See Part 3 attached to your amended North
instructions” and Part 5 of the
of the schedule. Dakota income tax return. If you
schedule. previously elected to include your
Nonresident individual, estate, distributive share of North Dakota
or trust beneficiary. If you are General instructions income in a composite filing, and you
a nonresident individual, estate, These instructions explain where are not changing that election, you
or trust, only the portion of your to report the information from generally do not have to take any
distributive share of income from Schedule K-1 (Form 38) on the North action and should retain the amended
the estate or trust that is derived Dakota income tax return. Schedule K-1 (Form 38) for your tax
from North Dakota sources is subject records.
to North Dakota income tax. North Tax year. References to a North
Dakota Schedule K-1 was issued to Dakota form and line number
you to show your distributive share of contained in these instructions are Specific Instructions
the following items: references to the form in use for the
Part 3
2022 calendar year. However, if you
All beneficiaries–North Dakota
 North Dakota income, gains, file your return on a calendar year
adjustments and tax credits
losses, and deductions. See basis, but the estate or trust files its
Except for a nonresident beneficiary
Part 4 of the schedule. return on a fiscal year basis, report
who elected to be included in a
 North Dakota statutory the amounts on your return for the
composite filing, the information in
adjustments and tax credits. See year in which the estate’s or trust’s
Part 3 of Schedule K-1 (Form 38)
Part 3 of the schedule. fiscal year ends. For example, if
applies to all beneficiaries.
the estate or trust has a fiscal year
 North Dakota income tax
ending in February 2023, report the
withheld from your distributive The following lists show where to
amounts from the 2022 Schedule K-1
share of North Dakota income. enter an amount from Part 3 of
(Form 38) on your 2023 tax return.
See Part 5 of the schedule. Schedule K-1 (Form 38) on the North
The estate’s or trust’s tax year is Dakota income tax return. Use the
 North Dakota income tax paid shown at the top of the schedule. list that applies to your return. “Not
on your distributive share applicable” in the right-hand column
of North Dakota income in a Composite filing election. If Item H
means that the item does not apply
composite filing. See “Composite in Part 2 of Schedule K-1 (Form 38) is
and should not be entered on the
filing election” under “General checked “Yes,” you elected to include
return.
instructions” and Part 5 of the your distributive share of North
schedule. Dakota income in a composite filing
Lines 1–21
by the fiduciary. Ignore any amounts
Partnership or corporation shown in Parts 3 through 5 of Form ND-1 filer:
beneficiary. If you are a partnership, Schedule K-1 (Form 38); they are not Include the amount
C corporation, S corporation, or a applicable if you elected to be included from this schedule: On:
limited liability company treated like in a composite filing. The income tax Lines 1–2 Not applicable
a partnership or corporation, North paid on your behalf by the fiduciary Line 3 Form ND-1, line 6
Dakota Schedule K-1 was issued to under the composite filing method Line 4 Sch. RZ, Part 1, line 18
you only to show your distributive satisfies your North Dakota income Line 5 Sch. ND-1SA, line 2
share of North Dakota statutory tax filing and payment obligations Line 6 Form ND-1, line 12
adjustments and tax credits. See with respect to your North Dakota Line 7a Sch. RZ, Part 4, line 7
Part 3 of the schedule. distributive share of income from the Line 7b Sch. RZ, Part 5, line 4
Line 7c Sch. RZ, Part 6, line 6

- 3 -

2022 Schedule K-1 Instructions for Beneficiary
SFN 28739 (12-2022), Page 3

 Line 8        Sch. ND-1TC, line 4       Line 13b    Sch. TC, line 7               Lines 24-25   Line 4
 Line 9        Sch. ND-1TC, line 3       Line 14a    Sch. TC, line 15              Lines 26–30   Line 5
 Line 10       Sch. ND-1TC, line 6       Line 14b    Sch. SA, line 5               Line 31       Line 4 (if capital 
 Line 11       Sch. ND-1TC, line 7       Line 14c    Sch. TC, line 15                          loss) or line 8 (if net 
 Line 12       Sch. ND-1TC, line 8a      Line 14d    Sch. SA, line 5                           operating loss)
 Line 13a      Sch. ND-1TC, line 9a      Line 15     Sch. TC, line 18              Line 32       Line 8
 Line 13b      Sch. ND-1TC, line 9b      Line 16     Sch. TC, line 19
 Line 14a      Sch. ND-1TC, line 15b     Line 17     Sch. TC, line 3              Part 5
 Line 14b      See instructions to       Line 18     Sch. TC, line 2
                 Form ND-1, line 4       Line 19     Sch. TC, line 1              Nonresident beneficiary only
 Line 14c      Sch. ND-1TC, line 15b     Line 20     Sch. TC, line 22             Lines 33 through 35 only apply 
 Line 14d      See instructions to       Line 21     Sch. TC, line 5              if you are (1) an individual not 
                 Form ND-1, line 4                                                domiciled in North Dakota, (2) a 
 Line 15       Sch. ND-1TC, line 11a    Forms 58 and 60:                          trust, including a grantor trust, not 
 Line 16       Sch. ND-1TC, line 13     Include the amounts from lines 1–21 of    organized under North Dakota law, 
 Line 17       Sch. ND-1PSC, line 4     this schedule on the applicable lines of  or (3) a passthrough entity, such 
 Line 18       Sch. ND-1PSC, line 13    Schedule K of Form 58 or Form 60.         as a partnership, with a commercial 
 Line 19       Sch. ND-1PSC, line 22                                              domicile outside North Dakota.
 Line 20       Sch. ND-1TC, line 22     Part 4
 Line 21       Sch. ND-1TC, line 23     Nonresident individual, estate,           Line 33
Form 38 filer:                          or trust beneficiary only–North           This is the net amount of your North 
Include the amount                      Dakota income (loss)                      Dakota distributive share of income 
from this schedule: On:                 If you are a nonresident individual,      (loss) from the estate or trust. Do 
 Lines 1–2     Not applicable           estate, or trust, lines 22 through 32 of  not enter the amount from this line 
 Line 3        Form 38, page 2,         Part 4 show your share of the estate’s    anywhere on your return. It is for 
                 Part 1, line 4a        or trust’s North Dakota income, gains,    your information only.
 Line 4        Sch. RZ, Part 1, line 18 losses, and deductions that you must 
 Lines 5-6     Form 38, page 2,         report on your North Dakota income        Line 34
                 Part 1, line 4d        tax return. Transfer these amounts to     This is the amount of North Dakota 
 Line 7a       Sch. RZ, Part 4, line 7  your North Dakota income tax return       income tax withheld by the fiduciary 
 Line 7b       Sch. RZ, Part 5, line 4  as instructed below based on the type     from your North Dakota distributive 
 Line 7c       Sch. RZ, Part 6, line 6
 Line 8        Sch. 38-TC, line 3       of return you are filing.                 share of income. Enter this amount on 
                                                                                  your return as follows:
 Line 9        Sch. 38-TC, line 2       If the full amount of any item is 
 Line 10       Sch. 38-TC, line 4       not included in your adjusted gross          If an individual, enter on 
 Line 11       Sch. 38-TC, line 5
 Line 12       Sch. 38-TC, line 6a      income on your federal income tax           Form ND-1, line 26.
 Line 13a      Sch. 38-TC, line 7a      return because of limitations on the         If an estate or trust, enter on 
 Line 13b      Sch. 38-TC, line 7b      deductibility of a passive activity loss,   Form 38, page 1, line 8.
 Line 14a      Sch. 38-TC, line 12c     capital loss, section 179 deduction, or      If a partnership, enter on 
 Line 14b      Form 38, page 2,         for any other reason, enter on your 
                                                                                    Form 58, page 1, line 4.
                 Part 1, line 2         North Dakota return only that portion 
 Line 14c      Sch. 38-TC, line 12c     of the item included in your federal         If an S corporation, enter on 
 Line 14d      Form 38, page 2,         adjusted gross income.                      Form 60, page 1, line 5.
                 Part 1, line 2
 Line 15       Sch. 38-TC, line 9a      Attach a statement to your                Attach a copy of North Dakota 
 Line 16       Sch. 38-TC, line 11      North Dakota income tax return            Schedule K-1 (Form 38) to your 
 Line 17       Sch. 38-TC, line 15      explaining any difference between         return.
 Line 18       Sch. 38-TC, line 16
 Line 19       Sch. 38-TC, line 17      the amount shown on North 
 Line 20       Sch. 38-TC, line 18      Dakota Schedule K-1 (Form 38)             Line 35
 Line 21       Sch. 38-TC, line 19      and the amount reported on your           If you elected to include your North 
                                        North Dakota income tax return.           Dakota distributive share of income 
Form 40 filer:                                                                    (loss) in a composite filing, this is the 
Include the amount                      Form ND-1 filer (nonresident
from this schedule: On:                 only):                                    amount of North Dakota composite 
                                                                                  income tax paid on your behalf by the 
 Line 1        Sch. SA, line 4          Include the amount On Schedule ND-1NR,    fiduciary. For more information, see 
 Line 2        Sch. SA, line 3          from this schedule: Column B:
 Line 3        Sch. SA, line 10          Lines 22-23   Line 2                     “Composite filing election” on page 1 
 Line 4        Sch. RZ, Part 1, line 18  Lines 24-25   Line 4                     of these instructions. 
 Line 5        Form 40, page 1, line 9   Lines 26–30   Line 6                     Note: If you later choose to file 
 Line 6        Not applicable            Line 31       Line 4 (if capital 
 Line 7a       Sch. RZ, Part 4, line 7               loss) or line 8 (if net      your own North Dakota income tax 
 Line 7b       Sch. RZ, Part 5, line 4               operating loss)              return, you may claim this amount 
 Line 7c       Sch. RZ, Part 6, line 6   Line 32       Line 8                     as a tax payment on your return. 
 Line 8        Sch. TC, line 11                                                   Attach a copy of the North Dakota 
 Line 9        Sch. TC, line 14         Form 38 filer (nonresident only):         Schedule K-1 (Form 38) to your return 
 Line 10       Sch. TC, line 12         Include the amount   On Page 2, Part 2,   to support the amount claimed.
 Line 11       Sch. TC, line 13         from this schedule:   Column B:
 Line 12       Sch. TC, line 16          Line 22       Line 1
 Line 13a      Sch. TC, line 6           Line 23       Line 2

PDF file checksum: 570342999

(Plugin #1/9.12/13.0)