According to the North Dakota Treatment of Military Personnel Guideline, residents of North Dakota are required to file a state return if they are required to file a federal return.
If you are a resident of North Dakota, serving in the U.S. armed forces during the tax year and you are required to file a federal individual income tax return, you must file a North Dakota individual income tax return as a full-year resident. This applies regardless of where you were stationed during the tax year.
If you are a nonresident of North Dakota, your military pay is not taxable on your North Dakota return.
- North Dakota should not be listed as your Home of Record on your W-2. If North Dakota is not listed on the W-2, the program will not tax the active duty military income.
If one spouse is a resident of North Dakota and the other is not, file a joint nonresident return for North Dakota.
National Guard or Reserve Member Exclusion:
If you are a member of the U.S. armed forces on active and reserve duty or a member of the national guard, your pay can be subtracted from your income on the North Dakota return.
To enter the subtraction for Military, National Guard or Reserve duty, follow these steps in the program:
- State Section
- North Dakota Resident Return
- Subtractions from Income
- Enter amount in box labeled "Military pay exclusion"
For more information, see: