Who Must File a North Dakota Income Tax Return?
According to North Dakota Instructions for Form ND-1, you must file a ND tax return if any of the following apply:
Full-Year Residents
You must file if:
- You were a full-year resident of North Dakota during the tax year and
- You are required to file a federal individual income tax return.
- This requirement applies even if you earned income outside of North Dakota.
Part-Year Residents
You must file if:
- You were a part-year resident of North Dakota during the tax year and
- You are required to file a federal return and
- You earned gross income from any source (inside or outside North Dakota) while a resident.
Nonresidents
You must file if:
- You are a nonresident of North Dakota and
- You are required to file a federal return and
- You earned income from North Dakota sources (e.g., wages, rents, royalties, or business income).
Does North Dakota Have a State Income Tax?
Yes. North Dakota imposes a state income tax on individuals. Employers are required to withhold state income tax from wages that are subject to federal income tax withholding.
North Dakota uses a progressive tax system, meaning tax rates increase with higher income levels. The specific tax brackets and rates vary based on your filing status and income.
Can I file a different filing status than my federal return?
North Dakota requires that you use the same filing status that you used for your federal return.
Reciprocal Agreements with Other States
North Dakota has reciprocity agreements with Minnesota and Montana:
- If you are a North Dakota resident working in Minnesota, and you maintain a permanent home in North Dakota and return to it at least once a month, your Minnesota wages are not taxable by Minnesota.
- Similarly, wages earned in Montana while a resident of North Dakota are not taxable by Montana.
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