The 2023 tax season is starting. The due date to file federal tax returns and North Dakota returns will be here before you know it. Help yourself by learning all the ins and outs of your state tax requirements. It could save you money in the long run.
Who Must File North Dakota Income Taxes?
If you are a resident of North Dakota and have filed a federal income tax return, you must file a North Dakota tax return. Even if you have derived part of your income outside North Dakota, you still must file in the state.
A nonresident who files a federal tax return and has earned income in North Dakota must file a North Dakota tax return. The state of North Dakota defines a nonresident as someone who has lived in North Dakota for less than 7 months. An exception to the requirement to file in North Dakota is if you are a resident of Minnesota or Montana. Serving in the U.S. armed forces also exempts you from filing in North Dakota.
What Are the Forms to Use?
Income tax forms can be found on the nd.gov website. To fill out your paper individual income tax return, you will need to use Form ND-1. A full-year resident with no adjustments or credits fills out Form ND-EZ.
For convenience to part-year and nonresidents, tax Form ND-1NR is available.
What Is the Tax Rate in North Dakota?
North Dakota has a progressive income tax. This means that there are different rates within the tax brackets. For individual filings, there are several rates you must be aware of for your income range. The 2022 tax rates for single individuals are as follows:
- income $0 to $41,775: 1.1 percent
- income $41,775 to $101,050: 2.04 percent plus $459.53
- income $101,050 to $210,825: 2.27 percent plus $1,668.74
- income $210,825 to $458,350: 2.64 percent plus $4,160.63
- income $458,350 plus: 2.9 percent plus $10,695.29
Married or joint filing also has several rates such as:
- income $0 to $69,700.: 1.1 percent
- income $69,700 to $168,450: 2.04 percent plus $766.70
- income $168,450 to $256,650: 2.27 percent plus $2,781.20
- income $256,650 to $458,350: 2.64 percent plus $4,783.34
- income $458,350 plus: 2.9 percent plus $10,108.22
North Dakota has one of the lowest individual and joint income taxes in the U.S. You can find more details on the North Dakota Tax Commissioner website.
What Are the Filing Deadline and Extension Process?
The deadline for income tax filing and paying income taxes for North Dakota is April 15, 2023. This will cover gross income earned between Jan. 1 and Dec. 31, 2022.
There are times when a taxpayer may not be able to file their state taxes by the due date. In North Dakota, if you don't owe any taxes, you don't have to prepare and request an extension. But if you expect a tax refund, you'll need to file an income tax return, or you won’t receive it.
North Dakota will accept an extension accepted by the IRS. You won't have to file a state return. In lieu of filing a federal extension, you can file ND Form 101. If you have filed an extension with the IRS, fill in the extension box on the North Dakota tax return to avoid penalties.
Keep in mind if you owe North Dakota (or the IRS) taxes and don't file your tax return by April 15, 2023, you will be subject to late penalties. Plus, you will also be subject to penalties if you don't pay your owed taxes by the due date. And you will have to pay interest on the owed taxes.
What Are the Penalties for Late Filing and Underpayment of Taxes?
When it comes to avoiding some penalties, make it a priority to file your tax return by the due date or ask for an extension. The late filing penalties are higher than the late payment penalties. This means, even if you don't have the money to pay your taxes, file anyway.
For instance, the North Dakota Office of State Tax Commissioner will apply a 12 percent annual interest fee each month for failure to file a tax return.
If you are unable to pay, call the tax commissioner at 701-328-1244 or email at email@example.com. Save yourself the future headache by working with the tax commissioner on your options.
Bottom line: you must file on time or ask for an extension in a timely manner.
Taxes are due on April 15, 2023, regardless of if you file or not. You are required to pay at least 90 percent of your taxes.
Where do I Mail/E-file My North Dakota Return?
If you are expecting a refund or are enclosing payment with your tax return, then send it to Office of State Tax Commissioner P.O. Box 5621 Bismarck, ND 58506-5621. But if you are filing an extension and are including a tax payment, then mail it to the Office of State Tax Commissioner P.O. Box 5622 Bismarck, ND 58506-5622.
Because North Dakota participates in the IRS federal/state e-file program, you can electronically file both returns simultaneously.
There is also North Dakota's e-filing service. ND Free File is for those individuals who have a federal adjusted gross income (AGI) of up to $72,000. It is also for active-duty military with less than $72,000 AGI. There are other qualifications, so go online at ND Free File for more information.
How Do I Pay Taxes Due?
Taxpayers have a few options when it comes to paying their ND taxes. One is a direct online payment through their bank account. This is a free option, and it's easy.
You may also use a debit card or credit card. There is a convenience fee of $3.95 flat rate for debit cards and 2.49 percent for credit cards. Submit payment through North Dakota’s OKTAP.
A check or money order can also be used. Mail with voucher Form ND-1V and attach it to your check.
Where Can I Check My North Dakota Refund Status?
North Dakota has a “Where’s My Refund” tool that will check the status of your individual income tax return. The state has a video that shows you how to use the tool. The tool will show you when your return is being processed and when your refund was sent out. The "Where's My Refund" tool is updated once a day. To use it, you will need your Social Security number, amount of your refund and filing status.
You can sign up for direct deposit to your bank account if you file online. That will speed up the process.
Sign up for text alerts or emails saying exactly when your refund was issued.
What About State Taxes if You’re Self-employed?
A self-employed individual doesn’t pay a corporate tax. Instead, income is filed under their personal North Dakota state tax return.
What About North Dakota State Taxes if You’re a Business?
The corporate income tax rate in North Dakota ranges from 1.41 percent to 4.31 percent. S-corporations, LLCs and partnerships don't pay a corporate income tax. Instead, these three are treated as pass-through entities. This means that the taxes pass through to the owners. The owners must declare the income on their personal tax returns.
Rates and dates in this article are correct as of publication. But check for any changes at ND Tax before you file.
- ND Tax North Dakota: Individual Income Tax
- ND Tax North Dakota: Current year (2020) Individual Income Tax Forms
- eFile: Tax Brackets, Rates and Standard Deductions in North Dakota
- eFile: North Dakota Income Taxes and ND State Tax Forms
- ND Tax North Dakota: FAQ Articles
- ND Tax North Dakota: FAQ Articles Subchapter S-Corporation Tax
- ND Tax North Dakota: For Business
- ND Tax North Dakota: Tax Facts – Doing Business in North Dakota
- ND-1 Tax Form
Anne attended University of Akron and went on to have a career in television sales. Working as a commercial property and casualty insurance agent for nine years allowed her to learn about different businesses' needs. She has also owned an advertising agency where she created marketing capaigns for various clients. Anne has written for several publications. She currently resides in Charleston, SC.