Individual Income Tax

Form 28249 Request for Copies of Tax Returns

Corporate Income Tax

Form 40X Amended Corporation Income Tax Return

North Dakota Income Tax Forms: Everything You Need to Know

When it comes to filing income taxes, North Dakota isn’t very different from other states in the US. However, it’s always important to have a good understanding of the tax forms and the process that goes into filing them. In this article, we’ll take a look at North Dakota income tax forms and give you everything you need to know.

Overview of North Dakota Income Tax Forms

To start with, it’s important to note that North Dakota has a state income tax system, which means that all residents are required to file for state taxes based on their taxable income. The North Dakota Office of State Tax Commissioner is responsible for administering and enforcing the state’s income tax laws.

The most commonly used income tax form in North Dakota is Form ND-1, which is meant for individual taxpayers. Other forms that taxpayers may need to file include Form ND-1Qs, which is for individuals who have additional income from other states, and Form ND-2, which is for fiduciary income tax returns.

Deadlines for Filing

The deadline for filing North Dakota state income tax returns is usually the same as the federal income tax deadline, which falls on April 15th every year. However, if the deadline falls on a holiday or weekend, the deadline may be postponed until the following business day.

If you need more time to prepare your tax return, you can request an automatic extension by filing Form ND-1EXT on or before the original due date. With an extension, you’ll have until October 15th to file your tax return. However, keep in mind that an extension doesn’t give you more time to pay any taxes owed. You’ll still need to estimate and pay any taxes owed by the original due date.

Filing Status

When filing income taxes in North Dakota, you’ll need to know your filing status. The state’s tax laws recognize five filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child.

The filing status you choose can affect your tax liability and the deductions and credits you’re eligible for. For example, if you’re married, filing jointly may result in a lower overall tax liability compared to filing separately.

Taxable Income

North Dakota income tax is based on taxable income, which is the total amount of income you received during the year minus any deductions and exemptions you’re eligible for. Your taxable income may include wages, salaries, dividends, interest, capital gains, and rental income, among others.

Some common deductions and exemptions you may be eligible for include standard deductions, personal exemptions, and deductions for charitable contributions and retirement account contributions. The amount of deductions and exemptions you’re eligible for can vary based on your filing status and other factors.

Calculating Tax Liability

To calculate your North Dakota state income tax liability, you’ll first need to determine your taxable income using Form ND-1. Once you have your taxable income, you’ll use the state’s tax tables to figure out your tax liability.

North Dakota taxes are calculated based on a progressive tax system, which means that higher income earners pay a higher tax rate. The state currently has five tax brackets, with rates ranging from 1.1% to 2.9% for tax year 2021.

It’s worth noting that North Dakota residents may also be subject to local income taxes, depending on where they live. Currently, only cities and municipalities in North Dakota have the authority to impose local income taxes.

Deductions and Credits

As mentioned earlier, deductions and credits can reduce your overall tax liability and increase your refund. Some common deductions and credits available to North Dakota residents include:

State Income Tax Deduction: North Dakota taxpayers can deduct their state income tax payments from their federal taxable income.

Child and Dependent Care Credit: You may be eligible for this credit if you incurred expenses for the care of a child or dependent so that you could work or look for work.

Charitable Contributions: Donations made to qualified nonprofit organizations may be eligible for a tax deduction.

Earned Income Tax Credit: This credit is available to low-income taxpayers who have earned income from wages, salaries, or self-employment.

Property Tax Credit: North Dakota taxpayers who own or rent a home may be eligible for a credit against their income tax liability based on their property taxes paid.

Other taxes

Apart from income tax, North Dakota residents may be required to pay other taxes, including sales tax, property tax, and excise taxes. Here’s a brief overview of each of these taxes:

Sales Tax: North Dakota has a statewide sales tax rate of 5%, which is levied on most retail sales of tangible personal property and some services.

Property Tax: Property taxes are levied by county and local governments in North Dakota. The amount of tax owed is based on the assessed value of the property you own.

Excise Taxes: Excise taxes are taxes on specific goods and services, such as tobacco products, alcoholic beverages, and gasoline. North Dakota levies excise taxes on these products in addition to the state sales tax.

Final Thoughts

Filing income taxes can be stressful, but having a good understanding of North Dakota’s income tax system and the various forms and deadlines can make the process smoother. If you have any questions about your taxes or need assistance with filing your return, consider reaching out to a qualified tax professional or the North Dakota Office of State Tax Commissioner.