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, all of your income is taxable to the state regardless of where it was earned or the source of the income.
If you are a nonresident of North Dakota, your active duty 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 North Dakota National Guard or the U.S. Armed Forces Reserve, and you were mobilized or activated for federal active duty service under Title 10, United States Code, you can deduct the compensation you received for that service.
To enter the subtraction for active duty National Guard or Reserve duty, follow these steps in the program:
- State Section
- North Dakota Resident Return
- Subtractions from Income
- National Guard/Reserve member federal active duty pay exclusion - enter amount
For more information, see