Below is a list of income that can be subtracted on your North Dakota return:
Interest From US Obligations
List the interest or dividend income from U.S. Savings Bonds and Securities that is included in your federal AGI that came from U.S. government obligations that is exempt from North Dakota tax.
ND Net Long-term Capital Gain/Loss
You can exclude 40% of the gain from your North Dakota income if it is included in your federal taxable income.
Exempt Income Of An Eligible Native American
You may enter your income from Indian reservation sources if you are a an enrolled member of a federally-recognized Indian tribe. Do not list income earned outside of the reservation.
Benefits Received From US Railroad Retirement Board
Enter any unemployment, sick pay or retirement benefits that were received from the U.S. Railroad Retirement Board that was included in your federal taxable income.
Income from Pass Through Entity subject to ND Financial Institution Tax
Certain S-Corps that elected to be taxed as a C Corp for ND purposes may require an adjustment to income you reported.
National Guard Reserve Member Federal Active Duty Pay Exclusion
You may enter the compensation received while being a member of the ND National Guard or the U.S. Armed Forces while being active duty. Do not enter exempted income from federal tax, or compensation received from for attending annual training, basic training, or for professional military education.
College SAVE Account Deduction
You are allowed a deduction for the contributions you made to a SAVE account of up to $5,000 ($10,000 if MFJ). You are allowed this deduction whether or not you were the owner of the account.
Qualified Dividend Exclusion
You may exclude 40% of your dividend income if they are qualified dividends and they are reportable to North Dakota. Multiply the qualified dividends from Form 1040 or 1040-SR, line 3a, by 40 percent and enter the result.
Military Retirement Benefit Exclusion
If you are a retired member of the U.S armed forces or reserves, or a surviving spouse of a deceased retired service member, you may subtract the amount of pay reported on your federal return on Form 1040 or 1040-SR, line 4d.
Statutory Adjustments - Schedule ND-1SA
- Renaissance zone income exemption
- New or expanding business income exemption
- Human organ donor deduction
- Employee workforce recruitment exclusion
- Stillborn child deduction
- National Guard or Reserve Member Exclusion While on Federal Active Duty
- College Expenses which are included in Form W-2 wages
Servicemember Civil Relief Act Adjustment - (Nonresident Return only).
Enter your amount of your compensation received for active duty in the U.S. armed forces, or for active duty in the commissioned corps.
Where to enter subtractions from North Dakota income?
You can enter these subtractions on your North Dakota return by following the steps below:
- State Section
- Subtractions from Income
For more information regarding these subtractions, please click here.