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     Schedule     North Dakota Office of State Tax Commissioner
     ME              Credit For Wages Paid to Mobilized
                     Employee                                                                                                                       2018
                                                                                                                                                     Attach to
                                                                                                                                                  Form ND-1, 38, 40,
                                                                                                                                                     58 or 60
Taxpayer's name as shown on return                                                                        Social security number or FEIN

                                                 Name of mobilized employee                               Social security number

    Employee 1 . . . . . . . . . .

    Employee 2 . . . . . . . . . .
Employee 3 . . . . . . . . . .

                                                                                          Employee 1 Employee 2                                      Employee 3
1.   Enter beginning and ending dates for portion of
     mobilization period falling into your 2018 tax year                                1 From       From                                           From
                                                                                          To         To                                              To

2.   Amount of wages that you would have paid during
     the period of mobilization (shown on line 1) if the
     employee had not been mobilized . . . . . . . . . .                                2
3.   Amount of federal active duty wages received by
     employee during the period of mobilization (shown
     on line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4.   Subtract line 3 from line 2.  If zero or less, stop
  here; you are not eligible for the credit . . . . . .                                 4

5.   Amount of wages that you actually paid during the
     period of mobilization (shown on line 1) . . . . . . . .                           5

6.  Enter smaller of line 4 or line 5 . . . . . . . . . . . . . . . . . .               6
7.  Multiply line 6 by 25% (.25) . . . . . . . . . . . . . . . . .                      7
8.  Maximum credit . . . . . . . . . . . . . . . . . . . . . . . . .                    8      1,000      1,000                                               1,000

9.  Credit.  Enter smaller of line 7 or line 8 . . . . . . . . .                        9
10.  Add the credit amounts on line 9 for all employees and enter result . . . . . . . . . . . . . . . . . . . . . . . .                          10

11.  Unused credit carryover, if any, from prior tax year(s).  If Form 58 or 60 filer, enter -0- . . . . . . . . . .                              11
12.  Total available credit.  Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             12

13.  Amount of line 12 used to reduce tax in 2018.  See instructions.  Enter this amount on the applicable
       form below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

     If you are filing: Enter amount from line 13 of this schedule on:
     Form ND-1 . . . . . . . . .  Schedule ND-1TC, line 13
     Form 38 . . . . . . . . . . .  Schedule 38-TC, line 11
     Form 40 . . . . . . . . . . .  Form 40, Schedule TC, line 21, or Schedule CR, Part III, line 21
     Form 58 . . . . . . . . . . .  Form 58, Schedule K, line 17
     Form 60 . . . . . . . . . . .  Form 60, Schedule K, line 14

14.  Unused credit carryover to 2019.  See instructions.  If Form 58 or 60 filer, enter zero . . . . . . . . . . .                                14

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North Dakota Office of State Tax Commissioner
2018 Schedule ME instructions

The amount of military pay received during
Line 1 - Mobilization period the period of mobilization can be determined
Who is eligible?
Enter the beginning and ending dates from the employee’s military Leave and
You may be eligible for an income tax
during your 2018 tax year that the eligible Earnings Statement(s).
credit if you have an eligible employee
employee was in mobilization status.
who was mobilized for active duty in the Example 4. Assume the same facts as
U.S. armed forces during the tax year. Example 1. You file on a calendar year in Example 3 (in the line 2 instruction).
basis (January through December), and Based on the employee’s military Leave and
An eligible employee is an individual who
the eligible employee’s mobilization Earnings Statements, the employee received
is:
period runs from October 1, 2018, to military wages of $3,750 during the period
• a legal resident of North Dakota, November 30, 2019. Enter “10/01/2018” October 1, 2018, through December 31,
• a member of the National Guard or a and “12/31/2018” in the spaces for “From” 2018. Enter $3,750 on line 3.
reserve component of any branch of the and “To,” respectively.

U.S. armed forces, and Example 2. You file on a calendar basis, Line 5 - Employer’s actual wage
• mobilized for federal active duty under and the employee’s mobilization period payments
Title 10 of the United States Code began on March 1, 2017, and ended Enter the amount of wages you actually paid
during the employer’s tax year. June 30, 2018. Enter “1/01/2018” and to the eligible employee during the period of
“6/30/2018” in the applicable spaces.
You are eligible for the credit if, during the mobilization (shown on line 1).
period of mobilization: The credit is not allowed if no part of the Example 5. Assume the same facts as
mobilization period falls within your 2018
• you continue to pay part or all of the in Example 3 (in the line 2 instruction).
tax year.
eligible employee’s wages, and During the mobilization period, you
continued to pay a reduced gross wage
• the federal active duty wages received
Line 2 - Employer’s deemed wages of $250 plus a 401k contribution match
by the eligible employee are less than
for mobilization period of $10 on each pay day. Enter $1,560 on
the wages that you would have paid
Enter the amount of wages you would have line 5. This is the sum of the gross wages of
if the eligible employee had not been
paid to the eligible employee during the $1,500 ($250 x 6) plus your matching 401k
mobilized.
period of mobilization (shown on line 1) if contributions of $60 ($10 x 6).
For this purpose, “wages” means the sum the employee had not been mobilized.
of:
Example 3. You are a calendar year filer, Line 11 - Prior year carryover
• gross wages before reduction by payroll and you have an eligible employee who was
Enter the portion of an unused mobilized
taxes, elective contributions to a defined mobilized from October 1, 2018, through
employee income tax credit, if any, from the
contribution plan, and any other payroll December 31, 2018. Prior to mobilization,
2017 tax year. If filing Form 58 or 60, enter
deduction, plus you paid the employee gross wages of
zero.
• employer’s contributions to the $1,500 on the 15th and the last working day
employee’s defined contribution plan. of each month. Under a salary reduction
arrangement, the employee contributed Line 13 - Current year credit
“Defined contribution plan” means a $60 to a 401k plan each pay period, which Enter on this line the portion of the total
401(k), 403(b), profit-sharing, stock bonus, you matched. The 401k contributions available tax credit on line 12 that is being
money purchase, or any other plan meeting were deposited into the plan account each used to reduce the 2018 tax. If there is an
the definition of a defined contribution plan pay day. Enter $9,360 on line 2, which is unused credit carryforward from a prior
under Internal Revenue Code Section 414. the amount you would have paid had the tax year on line 11, use the credits in the
employee not been mobilized. This is the order that is most beneficial. If the taxpayer
sum of the gross wages of $9,000 ($1,500 x is a partnership, S corporation, or limited
6) plus your matching 401k contributions of liability company treated like a partnership
Specific line instructions $360 ($60 x 6). or S corporation, enter the amount from
Eligible employee information line 12, and skip line 14.
Enter the name and social security number Line 3 - Federal active duty pay
for each eligible employee. If you have Enter the amount of wages the eligible Line 14 - Carryover to 2019
more than three eligible employees, employee actually received during the If the total available tax credit on line 12
complete additonal schedules as needed. period of mobilization (shown on line 1) exceeds the amount on line 13, enter on this
for his or her federal active duty service. line the portion of the excess that is eligible
You will need to obtain this information for carryover to the 2019 tax year. Unused
from the employee or his or her designated credits from the 2016, 2017 and 2018 tax
representative, depending on the situation. years are eligible for carryover to 2019. If
filing Form 58 or 60, enter zero.

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