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North Dakota Office of State Tax Commissioner
2018 Schedule ND-1CR instructions
General instructions Note: If another state assesses you additional jurisdictions. Do not include personal or
income tax after you file your North Dakota dependency exemptions, standard deduction or
income tax return, you have up to one year itemized deductions, or any other adjustment
Who is eligible following the date you paid the additional tax to to federal adjusted gross income allowed or
You may be eligible for a credit for income tax the other state to file an amended North Dakota required by the tax laws of the other state or its
paid to another state or local jurisdiction if both return to claim the credit and obtain a refund. local jurisdictions. Include your share of the
of the following apply: This applies even though the regular time income reported on a composite return—see
• You were a North Dakota resident for all or periods for filing a refund claim have expired. “Composite return” under “Who is eligible.”
part of the tax year.
Example: Taxpayer A is a full-year resident
• You paid income tax for the tax year to Did you work in Montana? of North Dakota. His federal adjusted gross
North Dakota and to the other state or local If you worked in Montana while a resident of income is $49,000, which consists of wages of
jurisdiction on the same income. If you North Dakota, the wages you receive for this $48,000 and interest income of $1,000. $5,000
were a part-year resident of North Dakota, work are not taxable by Montana under the of his wages was earned for work he performed
the credit is allowed if the eligible income income tax reciprocity agreement between in another state and is taxable by that state. The
was earned or received during the time you the two states. If this applies to you, but your amount to enter on line 1b of Schedule ND-1CR
were a North Dakota resident. employer withheld Montana income tax from is $5,000, which is the portion of his federal
A “state” means any of the other 49 U.S. states, the wages, do not complete this schedule. adjusted gross income that has a source in the
the District of Columbia, and a U.S. territory. Instead, you must file a Montana individual other state.
A “local jurisdiction” means a city, township, income tax return to obtain a refund of the
county, etc., within a state. Montana income tax withheld. Line 1c
Enter the portion of line 1b that was received or
Qualifying taxes—The credit is allowed for Income other than wages from Montana earned while a resident of North Dakota.
income taxes you paid to another state and sources—If you are a resident of North
any of its local jurisdictions. The credit is not Dakota and you paid income tax to Montana Example: Taxpayer B was a resident of a
allowed for income tax paid to a foreign country on income other than wages—such as income state other than North Dakota from January 1
or its local jurisdictions, nor is it allowed for any from a business, rental property, or the sale of through June 30 and a North Dakota resident
tax that is not an income tax (e.g., property or real property—complete Schedule ND-1CR to from July 1 through December 31. While a
sales taxes). calculate the allowable credit for the tax paid on resident of the other state, she received wages of
this income. $10,000 for working in that state. After moving
Composite return. If you are a North Dakota to North Dakota, she earned additional wages
resident who owned an interest in a partnership Did you work in Minnesota? of $18,000 for working in North Dakota. She
or other type of passthrough entity, and you If you worked in Minnesota while a resident also owns land located in the other state from
elected to be included in a composite return filed of North Dakota and maintained a home in which she received net rental income of $1,000
in another state or local jurisdiction on your North Dakota to which you returned at least per month ($12,000 for the year). Her federal
behalf by the passthrough entity, you may claim once every month, the wages you receive for adjusted gross income is $40,000 ($10,000 +
a credit for your share of the income tax paid on this work are not taxable by Minnesota under $18,000 + $12,000). The wages of $10,000
the composite return. the income tax reciprocity agreement between and the net rental income of $12,000 derived
Other jurisdiction’s income tax return—The the two states. If this applies to you, but your from the other state are taxable by that state.
credit is allowed only if you file an income tax employer withheld Minnesota income tax The amount to enter on line 1b of Schedule
return with the other state or local jurisdiction. from the wages, do not complete this schedule. ND-1CR is $22,000, which is the portion of
The credit is not allowed based on income tax Instead, you must file a Minnesota individual her federal adjusted gross income that has a
withholding shown on a Form W-2 or estimated income tax return to obtain a refund of the source in the other state. The amount to enter on
income tax paid to the other state or local Minnesota income tax withheld. line 1c of Schedule ND-1CR is $6,000, which
is the portion of her net rental income taxed by
jurisdiction. Income other than wages from Minnesota the other state that she received while a North
Joint filers with different residency statuses. sources—If you are a resident of North Dakota Dakota resident.
If you are filing a joint return and you and your and you paid income tax to Minnesota on
spouse have different residency statuses, the income other than wages—such as income Line 6
credit is available to either or both of you, if you from a business, rental property, or the sale of Enter on line 6 the amount of net income tax
meet the eligibility requirements. real property—complete Schedule ND-1CR to shown on the other state’s income tax return. If
calculate the allowable credit for the tax paid on you also paid income tax to a local jurisdiction
Credit for income tax paid to multiple states this income. in the other state, include the amount of net
income tax shown on the local jurisdiction’s
or local jurisdictions—If you paid income
income tax return (or, if applicable, the other
tax to more than one other state for the tax
year, complete a separate Schedule ND-1CR Specific line instructions state’s return). “Net income tax” means the
amount after income tax credits but before
for each state. If you also paid income tax to a Line 1b withholding and estimated taxes. Do not
local jurisdiction in another state, include the Enter the items of income, gain, loss, and include on this line income tax withholding
income tax paid to the local jurisdiction on the adjustments to income included in your federal shown on a Form W-2 or estimated income
Schedule ND-1CR completed for the state in adjusted gross income that have their source in tax paid to the other state or local jurisdiction.
which the local jurisdiction is located. Add the other state. Generally, they have their source Include your share of income tax paid on a
the separate credit amounts from all of the in the other state if they are taxable or deductible composite return—see “Composite return”
Schedule ND-1CR forms and enter the total on under the tax laws of the other state or its local under “Who is eligible.”
Form ND-1, line 21.
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