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2022
NORTH DAKOTA
PARTNERSHIP INCOME TAX
FORM 58
Includes: Schedule FACT
Schedule K
Schedule KP
Schedule K-1
Photo credit:
ND Tourism
Tax forms, guidelines, and more are
available at www.tax.nd.gov.
Email questions to individualtax@nd.gov.
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Contents
Need help?
Where to get help and forms ........................................................ This page You can download forms and find other
Changes for 2022 ................................................................................... 1 information on our website at:
General instructions ................................................................................2 www.tax.nd.gov
Who must file .....................................................................................2 Email
When and where to file ........................................................................ 2 Individual, estate, trust, partnership,
and S corporation income tax—
Extension of time to file ....................................................................... 2
individualtax@nd.gov
Penalty and interest ............................................................................ 2
Estimated tax payment (for 2023) ........................................................ 3 Call
Withholding from nonresident partners .................................................. 3 Individual income tax—
Composite filing ..................................................................................3 Questions 701-328-1247
Correcting a previously filed return ........................................................ 4 Forms 701-328-1243
Reporting federal changes .................................................................... 4 Partnership income tax—
W-2/1099 reporting requirement .......................................................... 4 Questions 701-328-1258
Disclosure notification ......................................................................... 4 Forms 701-328-1243
Use of information .............................................................................. 4 Speech/hearing impaired
General instructions for completing Form 58 .............................................. 4 TDD 800-366-6888
Specific line instructions ..........................................................................5
Write
Form 58, Page 1, Items A-J ..................................................................5 Office of State Tax Commissioner
Schedule FACT ...................................................................................5 600 E. Boulevard Ave., Dept. 127
Schedule K ........................................................................................7 Bismarck, ND 58505-0599
Schedule KP ..................................................................................... 10
Walk-in or appointment
Form 58, Page 1, Lines 1-12 ............................................................... 12
service
Schedule K-1 .................................................................................... 12 State Capitol Building, 8th Floor
Before you file Form 58 ..................................................................... 14 600 E. Boulevard Ave., Bismarck, ND
Monday through Friday
Required forms 8:00 a.m. to 5:00 p.m.
The following forms are needed to complete Form 58: (except holidays)
Form 58 Partnership return Walk-ins are welcome. To assure
Schedule FACT Calculation of North Dakota apportionment factor availability and promptness of
Schedule K Total North Dakota adjustments, credits, and other service, call in advance to make an
items distributable to partners appointment.
Schedule KP Partner information
Schedule K-1 Partner’s share of North Dakota income (loss), deductions,
adjustments, credits, and other items
The following forms may be needed:
Form 58-PV Partnership return payment voucher
Form 58-EXT Partnership extension payment voucher Privacy Act Notification
Form 101 Application for extension of time to file a North Dakota In compliance with the Privacy Act of 1974,
income tax return disclosure of a Federal Employer Identification
Form PWA Passthrough entity withholding adjustment Number (FEIN) or social security number
on this form is required under N.D.C.C.
Form PWE Nonresident passthrough entity member exemption and §§ 57-01-15 and 57-38-42, and will be
certification used for tax reporting, identification, and
administration of North Dakota tax laws.
Download these forms from our website at www.tax.nd.gov. Disclosure is mandatory. Failure to provide
the FEIN or social security number may delay
or prevent the processing of this form.
Taxpayer Bill of Rights
Obtain a copy of the North Dakota Taxpayer Bill of Rights on the
Office of State Tax Commissioner’s website at
www.tax.nd.gov
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Changes affecting partnerships
Developments, updates, and items of interest relating to partnership income tax
REMINDER: Form 58 efiling For questions and assistance, contact Eligibility for the credit was
requirement the Office of State Tax Commissioner extended to all taxpayers (not just
House Bill 1082 passed by the 2022 by sending an email to C corporations), the credit rate was
North Dakota Legislature requires a withhold@nd.gov or calling increased from 5% to 25%, and
partnership, S corporation, trust, or 701-328-1248. the wages on which the credit is
other passthrough entity with 10 or allowed was changed from the first
more owners (or beneficiaries, if a REMINDER: Changes to $6,000 paid in the first 12 months of
trust) to file its North Dakota income employer withholding return employment to the first $6,000 paid
tax return and pay any tax due on and payment requirements annually. The 2019 changes were
effective only for the 2019 and 2020
it by electronic means. This new House Bill 1082 passed by the 2021 tax years.
requirement applies to returns filed North Dakota Legislature made the
for tax years 2023 and after; it does following changes affecting the income The 2021 legislature reinstated the
not apply to the 2022 tax year. For tax withholding return and payment 2019 changes for two additional tax
more information about electronic requirements for employers: years—2021 and 2022—after which
filing of the North Dakota partnership
return (Form 58), S corporation • Effective for calendar years 2022 the changes will expire, and the law
return (Form 60), or fiduciary return and after, an employer may file will revert to how it read prior to
(Form 38), go to www.tax.nd.gov and Form 306, Income Tax Withholding 2019.
click on For Businesses>E-File. Return, on an annual basis instead
of quarterly if the amount of North To qualify for the credit, an employer
REMINDER: Change to efiling Dakota income tax withheld in must apply for and obtain from the
the previous calendar year was North Dakota Department of Human
requirement for W-2s and Services, Vocational Rehabilitation
less than $1,000. This is a $500
1099s increase in the threshold applicable Division, a letter certifying that the
Beginning with returns that are due to calendar years before 2022. individual has a severe development
on January 31, 2023, businesses or mental disability, is eligible for
are required to electronically file • Effective for calendar years 2022 the agency’s services, and requires
Forms W-2 and 1099. and after, Form 306, Income customized or supported employment
Tax Withholding Return, and the to become employed.
Electronically filing these forms can tax due on it must be submitted
easily be done in one of the following electronically on a quarterly basis See Form 58, Schedule K, line 22.
ways: if the amount of North Dakota
income tax withheld in the Staying on top of
• North Dakota Taxpayer Access previous calendar year was $1,000
Point (ND TAP) at or more. developments
www.tax.nd.gov/tap Businesses or other interested
If you do not already have a ND For questions and assistance, contact persons may sign up to receive
TAP account, select “Sign Up For the Office of State Tax Commissioner email notifications when a newsletter
Access”. by sending an email to or other important information
• Third-party accounting withhold@nd.gov or calling is issued by the Office of State
software 701-328-1248. Tax Commissioner. There is a
separate update list for each tax
A business should check its type administered by the Tax
accounting software or contact the REMINDER: 2-year extension
accounting software provider to of 2019 changes to disabled Commissioner. To sign up, go to
www.tax.nd.gov and select “Email
see if it provides electronic filing employment credit
Sign-Up” under “News Center”.
of Forms W-2 and 1099 with North
In 2019, the North Dakota Legislature
Dakota.
expanded the income tax credit for
hiring a qualifying developmentally
disabled or mentally ill individual.
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Form 58 Instructions 2022
North Dakota Partnership Income Tax Return
“N.D.C.C.” references are to the North Dakota Century Code, which contains North Dakota’s statutes.
“N.D. Admin. Code” references are to the North Dakota Administrative Code, which contains North Dakota’s rules.
threat of damage, from a state- or North Dakota extension. If a
General presidentially-declared disaster or federal extension is not obtained, but
instructions emergency. For more information, go additional time is needed to complete
to www.tax.nd.gov. and file Form 58, a separate North
Who must file Dakota extension may be applied
A 2022 Form 58, Partnership Income Electronic Filing for by filing Form 101, Application
Tax Return, must be filed by a Partnerships with 10 or more owners for Extension of Time to File a North
partnership that meets both of the are required to file the North Dakota Dakota Tax Return. This is not an
following: income tax return and pay any tax automatic extension—there must
• It is required to file a 2022 due on it by electronic means. be good cause to request a North
Dakota extension. Form 101 must be
Form 1065, U.S. Return of
Partnership Income. When and where to file postmarked on or before the due date
• It carries on business, or derives The 2022 Form 58 must be filed on of Form 58. Notification of whether
gross income from sources, in or before (1) April 15, 2023, if filing the extension is accepted or rejected
North Dakota during the 2022 tax for the 2021 calendar year, or (2) the will be provided by the Office of State
year. 15th day of the 4th month following Tax Commissioner.
the end of the tax year, if filing for Extension interest. If Form 58 is
Investment partnership. A a fiscal year beginning in the 2022 filed on or before the extended due
partnership that elects out of the calendar year. If the due date falls date, and the total amount of tax due
partnership rules under I.R.C. on a Saturday, Sunday, or holiday, is paid with the return, no penalty will
§ 761(a)(1) and does not file a federal the return may be filed on or before be charged. Interest on the tax due
partnership return must file a 2022 the next day that is not a Saturday, will be charged at the rate of 12% per
Form 58 if it carries on investment Sunday, or holiday. year from the original due date of the
activity, or derives any gross income
from sources, in North Dakota during Note: Use the 2021 Form 58 if return to the earlier of the date the
its 2022 tax year. A 2022 Form 1065 filing for a fiscal year beginning in return is filed or the extended due
must be completed on a pro forma the 2021 calendar year. date.
basis and attached to Form 58. If not required to file Prepayment of tax due. If an
Limited liability company (LLC). electronically, mail Form 58 and all extension of time to file Form 58 is
A limited liability company that is required attachments to: obtained, any tax expected to be due
may be paid on or before the regular
classified as a partnership for federal Office of State Tax Commissioner due date to avoid paying extension
income tax purposes is treated like a 600 East Boulevard Ave., Dept. 127 interest. For more information,
partnership for North Dakota income Bismarck, ND 58505-0599 including payment options, obtain the
tax purposes and must file Form 58
2022 Form 58-EXT.
if it meets the above conditions for Extension of time to file
filing. An extension of time to file Form 58 Alternatively, a check or money
Nonfiler penalty. If a partnership may be obtained in one of the order may be sent with a letter
does not file Form 58 as required, following ways: containing the following: (1) name of
partnership, (2) partnership’s FEIN,
a minimum $500 penalty may be • Obtain a federal extension. (3) partnership’s address and phone
assessed if the failure continues
after receiving a thirty-day notice • Separately apply for a North number, and (4) statement that the
to file from the Office of State Tax Dakota extension. payment is a 2022 Form 58-EXT
payment.
Commissioner. Federal extension. If an extension
Disaster recovery tax exemptions. of time to file the federal partnership
Exemptions from state and local tax return is obtained, it is automatically Penalty and interest
If an extension of time to file Form 58
filing and payment obligations are accepted as an extension of time to
was obtained, the tax due may be
available to out-of-state businesses file Form 58. If this applies, a separate
paid by the extended due date of the
and their employees who are in North Dakota extension does not have
return without penalty, but extension
North Dakota on a temporary basis to be applied for, nor does the Office
interest will apply—see “Extension
for the sole purpose of repairing of State Tax Commissioner have to be
interest” and “Prepayment of tax due”
or replacing natural gas, electrical, notified that a federal extension has
on this page.
or telecommunication transmission been obtained prior to filing Form 58.
property that is damaged, or under The extended due date for North
Dakota purposes is the same as the
federal extended due date.
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If Form 58 is filed by its due date (or company treated like a partnership Composite filing
extended due date), but the total or S corporation, and any other A composite filing method is available
amount of tax due is not paid by the similar entity. to a partnership with one or more
due date (or extended due date), a eligible nonresident partners. Under
Exemption from withholding. No
penalty equal to 5% of the unpaid tax this method, a partnership calculates
withholding is required if any of the
or $5.00, whichever is greater, must the North Dakota income tax on
following apply:
be paid. an eligible nonresident partner’s
• The distributive share of North
If Form 58 is filed after its due date year-end distributive share of North
Dakota income is less than $1,000.
(or extended due date), and there Dakota income and pays the tax
is an unpaid tax due on it, a penalty • The nonresident partner elects to with Form 58. The tax is calculated
equal to 5% of the unpaid tax due or include the distributive share in a at the highest individual income tax
$5.00, whichever is greater, for the composite filing—see “Composite rate (which is 2.90% for the 2022
month the return was due plus 5% of filing” on this page. tax year), and no adjustments,
deductions, or tax credits are allowed
the unpaid tax due for each additional • The nonresident partner is a
in calculating the tax. A composite
month (or fraction of a month) during passthrough entity and elects
filing satisfies the North Dakota
which the return remains delinquent exemption from withholding on its
income tax filing and payment
must be paid. This penalty may not distributive share of North Dakota
obligations of the eligible nonresident
exceed 25% of the tax due. income. For more information,
partners included in it, which means
obtain Form PWE.
In addition to any penalty, interest they do not have to separately file
must be paid at the rate of 1% per Withholding procedure. This their own North Dakota income tax
month or fraction of a month, except withholding requirement applies to returns. The composite filing method
for the month in which the tax was a nonresident partner’s year-end is optional and does not require prior
due, on any tax due that remains distributive share of North Dakota approval from the Office of State Tax
unpaid after the return’s due date (or income, which is determined at the Commissioner, and a choice to use it
extended due date). end of the partnership’s tax year and may be made on a year-to-year basis.
reported on Form 58, Schedule KP,
Eligible nonresident partner. For
Estimated tax payment Column 6. The requirement does
purposes of this composite filing
(for 2023) not apply to actual distributions
method, a nonresident partner
A partnership may, but is not required made to a nonresident partner
has the same meaning as that
to, make estimated income tax during the tax year. The withholding
used for withholding income tax
payments. For more information, amount is calculated and reported
from nonresident partners—see
including payment options, obtain the on Schedule KP, Column 7. If a
“Withholding from nonresident
2023 Form 58-ES. nonresident partner meets certain
partners” on this page. A nonresident
conditions, an amount less than the
partner is eligible to be included in a
amount calculated at the 2.90%
Withholding from composite filing if both of the following
tax rate may be withheld. For the
apply:
nonresident partners qualifying conditions, see Form PWA.
A partnership must withhold North A partnership must submit a payment • The nonresident partner’s only
Dakota income tax at the rate of for the total amount of withholding source of income within North
2.90% from the year-end distributive reported on Schedule KP, Column 7, Dakota is one or more passthrough
share of North Dakota income of a with Form 58 when it is filed. entities. A passthrough entity
nonresident partner. See “Publicly includes a trust, partnership,
traded partnership” on this page for Publicly traded partnership.
S corporation, limited liability
an exception to this requirement. A publicly traded partnership, as
company treated like a partnership
defined under Internal Revenue Code
or S corporation, and any other
Nonresident partner. For purposes § 7704(b), does not have to withhold
similar entity.
of this withholding requirement, a North Dakota income tax from its
nonresident partner means: unitholders if it meets both of the • The nonresident partner elects
• an individual who is not domiciled following: to be included in a composite
filing. An election is indicated by
in North Dakota; • It is treated as a partnership for the partnership’s calculation and
• a trust, including a grantor trust, federal income tax purposes. reporting of a tax amount for the
that is not organized under North • It reports on Form 58, nonresident partner on Form 58,
Dakota law. This only includes Schedule KP, every unitholder with Schedule KP, Column 8. (If the
trusts that are subject to income a North Dakota distributive share distributive share is a loss, the tax
tax; or of income of over $500. is zero.)
• a passthrough entity that has
a commercial domicile outside The distributive share of North Dakota
North Dakota. A passthrough income included in a composite return
entity includes a partnership, is subject to tax even if it is under
S corporation, limited liability $1,000.
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Composite filing method credited to the next year’s state law so the Office of State Tax
procedure. The tax under estimated tax (line 8) may not be Commissioner can determine the
the composite filing method is increased or decreased. partner’s correct North Dakota taxable
calculated and reported on Form 58, 7. Attach a statement explaining the income and verify if the partner has
Schedule KP, Column 8. A partnership reason(s) for filing the amended filed a return and paid the tax.
must submit a payment for the return. If it is because of changes
total tax reported on Schedule KP, the partnership or the IRS made
Column 8, with Form 58 when it is to the partnership’s 2022 Federal General
filed. Form 1065, attach a copy of the instructions for
amended federal return or IRS
Correcting a previously filed notice. completing
return 8. Complete and provide a corrected Form 58
If a partnership needs to correct an Schedule K-1 (Form 58) to the
error on Form 58 after it is filed, the partners, as required. Complete Federal
partnership must file an amended Form 1065 as follows:
return. There is no special form for Reporting federal changes 1. Complete Federal Form 1065 (or
this purpose. See “How to prepare an If the Internal Revenue Service 1065-B) in its entirety.
amended 2022 return” below. (IRS) changes or audits the federal
If a partnership paid too much tax partnership return, or if a partnership 2. Complete Items A through J at
because of an error on its 2022 files an amended federal partnership the top of page 1 of Form 58—see
Form 58, the partnership generally return, an amended North Dakota page 5.
has three years from the due date of Form 58 must be filed within ninety 3. Complete Schedule FACT on
the return (excluding extensions) or days after the final determination of page 2 of Form 58—see page 5.
the date the return was actually filed, the IRS changes or the filing of the 4. Complete Schedule K on page 3
whichever is later, in which to file an amended federal return. Enclose a of Form 58—see page 7.
amended return to claim a refund of copy of the IRS audit report or the
5. Complete Schedule KP on page 5
the overpayment. See N.D.C.C. amended federal partnership return
of Form 58—see page 10.
§ 57-38-40 for other time periods that with the amended North Dakota
may apply. Form 58. 6. Complete lines 1 through 12 on
page 1 of Form 58—see page 12.
How to prepare an amended 2022 7. Complete Schedule K-1, if
W-2/1099 reporting
return required, for the partners—see
requirement
1. Obtain a blank 2022 Form 58. Every partnership doing business in page 12.
2. Enter the partnership’s name, North Dakota that is required to file Rounding of numbers. Numbers
current address, FEIN, etc., in the Federal Form 1099 or W-2 must also may be entered on the return in
top portion of page 1 of Form 58. file one with the Office of State Tax dollars and cents, or they may be
3. Fill in the “Amended return” circle Commissioner. For more information, rounded to the nearest whole dollar. If
at the top of page 1 of Form 58. obtain the guideline Income Tax rounding, drop the cents if less than
Withholding and see “Annual Filing 50 cents and round up to the next
4. Complete Schedules FACT, K, Requirements - W-2 and 1099.” whole dollar amount if 50 cents or
and KP using the corrected
higher. For example, $25.36 becomes
information. However, unless
there is an increase in the Disclosure notification $25.00, and $25.50 becomes $26.00.
Upon written request from the
amount reported on Schedule KP, Fiscal year filers. The tax year for
chairman of a North Dakota legislative
Column 6, of the amended North Dakota income tax purposes
standing committee or Legislative
return, enter on Schedule KP, must be the same as the tax
Management, the law requires the
Column 7, the same amount year used for federal income tax
Office of State Tax Commissioner to
reported on the previously filed purposes. Use the 2021 Form 58 if
disclose the amount of any deduction
return. Then complete lines 1 the partnership’s taxable year began
or credit claimed on a tax return. Any
through 3 on page 1 of Form 58. in the 2021 calendar year. Note: Use
other confidential information, such as
the 2020 Form 58 if the taxable year
5. On line 5 of page 1 of Form 58, a taxpayer’s name or federal employer
began in the 2020 calendar year.
enter the total taxes due from the identification number, may not be
previously filed 2022 Form 58, disclosed.
page 1, line 3.
6. Complete line 7 (overpayment) Use of information
or line 10 (tax due), whichever All of the information on Form 58 and
applies. If there is an its attachments is confidential by law
overpayment on line 7, enter the and cannot be given to others except
full amount on line 9 (refund). On as provided by state law. Information
an amended return, the amount about the partners is required under
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Item F - Indicators manufacturing activity, or any other
Specific line Fill in applicable circles, as follows: type of activity in which the capital
or the services of employees are a
instructions for Initial return. Fill in circle if this is
material income-producing factor.
the first return filed in North Dakota
page 1 of Form 58,
by the partnership.
Item I - Publicly traded
Items A-J Final return. Fill in circle if this is the partnership
last return to be filed in North Dakota Indicate whether the partnership is a
Complete Items A through J publicly traded partnership. A “publicly
by this partnership.
at the top of page 1 of Form traded partnership” is a partnership in
58. Then complete Schedule Farming/ranching partnership. which interests in it are either traded
FACT, Schedule K, and Schedule Fill in circle if this is an LLC that is on an established securities market
KP before completing lines 1 registered as a farming and ranching or are readily tradable on a secondary
through 12 on page 1 of Form 58. LLC with the North Dakota Secretary market.
of State.
Item A - Tax year
The same tax year used for federal Filed by an LLC. Fill in circle if the Item J
income tax purposes (as indicated on entity filing this return is a limited Tiered partnership
the federal partnership return) must liability company (LLC). Indicate whether the partnership
holds an interest in one or more
be used for North Dakota income Composite return. Fill in this circle other partnerships or limited
tax purposes. Fill in the applicable only if (1) the partnership has one or liability companies. If it does,
circle. If the partnership uses a fiscal more nonresident partners eligible to attach a statement to Form 58
year, enter the beginning and ending be included in a composite filing and showing the name and federal
dates of the fiscal year. Use the 2022 (2) all of them elected to include their employer identification number of
Form 58 only if the partnership’s tax distributive shares of North Dakota each partnership or limited liability
year began in the 2022 calendar year. source income in a composite filing. company in which it holds an interest.
See “Composite filing” on page 3 for
Item B - Name and address more information.
Enter the legal name of the Instructions for
partnership on the first line of the Amended return. Fill in circle if
name and address area. If the this return is being filed to correct a Schedule FACT
partnership publicly operates under previously filed 2022 Form 58. See
a fictitious or assumed name (which, “Correcting a previously filed return” (Form 58, page 2)
in most states, must be recorded or on page 3 for more information. General instructions
registered with the state), enter that Extension. Fill in circle if a federal All partnerships must complete the
name on the second line of the name or state extension of time to file the applicable portions of Schedule FACT.
and address area. If filing an amended return was obtained. See “Extension
return, enter the most current of time to file” on page 2 for more If the partnership has ONLY individual,
address. information. estate, and trust partners, complete
Schedule FACT as follows:
Item C - Federal EIN Item G - Number of partners
• 100% North Dakota
North Dakota uses the federal Enter the total number of partners
partnership
employer identification number (FEIN and the number of each type of
If the partnership conducted all of
or federal EIN) for identification partner.
purposes. Enter the federal employer its business within North Dakota
during the tax year, skip lines 1
identification number from page 1 of Item H - Professional service
through 13 and enter “1.000000”
Federal Form 1065. partnership
on line 14.
Indicate whether the partnership is
Item D - Business code number a professional service partnership. • Multistate partnership
Enter the business code number from A “professional service partnership” If the partnership conducted its
the NAICS code list found on the is a partnership that engages in the trade or business both within
Office of State Tax Commissioner’s practice of law, accounting, medicine, and without North Dakota during
website at www.tax.nd.gov. Enter or any other profession in which the the tax year, complete lines 1
the code that most closely describes capital or the services of employees through 14. However, if all of the
the industry in which the partnership are not a material income-producing partners consist of only North
derives most of its income. factor. The services performed by Dakota resident individuals,
the partners themselves must be the estates, and trusts, skip lines 1
Item E - Date business started primary income-producing factor. A through 13 and enter “1.000000”
Enter the date the business started professional service partnership does on line 14.
from page 1 of Federal Form 1065. not include one that primarily engages If the partnership has a partner
in wholesale or retail sales activity, OTHER THAN an individual, estate,
or trust, complete lines 1 through 14
of Schedule FACT.
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Apportionment factor in to construction in progress. Include on Sales Factor
general line 5 the partnership’s share of the
Line 9
In general, the apportionment factor property factor from a North Dakota
Everywhere sales
is a product of a formula consisting Schedule K-1 (Form 58), Part 6.
Enter the partnership’s total
of an equally-weighted average of The average value of owned and sales or receipts, less returns or
three factors: property, payroll, and rented property is assigned to North allowances, for the tax year. Sales
sales. Each factor represents the Dakota if the property is located generally means all gross receipts
percentage of the partnership’s North in North Dakota. The amount of a partnership. However, the types
Dakota activity compared to its total attributable to mobile property is of sales or gross receipts included
activity everywhere. A partnership generally assignable to North Dakota in the sales factor depend on the
multiplies its business income by the based on a ratio of the property’s nature of the partnership’s regular
apportionment factor to determine time spent in North Dakota. For more business activities and may include
the portion of its business income complete information on the property amounts other than sales reported
attributable to North Dakota. factor, see N.D. Admin. Code on Form 1065, line 1. Include on this
If the partnership includes the §§ 81-03-09-15 through 81-03-09-21 line the partnership’s share of the
distributable share of income and 81-03-09-33. everywhere sales from a North Dakota
from another partnership in its Schedule K-1 (Form 58), Part 6.
apportionable business income, Payroll Factor
Line 10
include in the numerator and Line 8 North Dakota sales
denominator of each factor the Enter the amount of total For sales of tangible property, the
partnership’s proportionate share of compensation paid to employees sale is assigned to North Dakota if the
the other partnership’s apportionment for the tax year. This includes gross destination of the property is in North
factors—see the specific line wages, salaries, commissions, and Dakota, regardless of the shipping
instructions for more information. any other form of remuneration paid terms. For sales of other than tangible
Do not include in the factors any to the employees. Use the amount property, the sale is assigned to
property, payroll, or sales related to before deductions for deferred North Dakota if the income-producing
allocable nonbusiness income—see the compensation, flexible spending plans, activity which gave rise to the
instructions to Form 58, Schedule K, and other payroll deductions. Do not receipt is performed in North Dakota.
line 24, for what constitutes allocable include amounts paid for employee Include on this line the partnership’s
nonbusiness income. benefit plans that are not considered share of the North Dakota sales
If the amount of any factor’s taxable wages to the employee. An from a North Dakota Schedule K-1
denominator is zero, exclude that employee is an individual treated as (Form 58), Part 6. For more complete
factor from the calculation. an employee under the usual common information, see N.D. Admin. Code
law rules, which generally mirror an §§ 81-03-09-26 through 81-03-09-31
Special apportionment rules individual’s status for purposes of and 81-03-09-34.
may apply in the case of certain unemployment compensation and the
industries or unique circumstances. Federal Insurance Contribution Act. Line 11
For additional information on the Do not include on this line guaranteed Throwback sales
apportionment factor, see N.D.C.C. payments to partners. Enter the amount of sales shipped
Ch. 57-38.1 and N.D. Admin. Code
Ch. 81-03-09. Compensation of an employee’s from a location in North Dakota that
services performed entirely within are delivered to the U.S. government
North Dakota is assigned to North or to another state or country
Specific line instructions Dakota. For an employee whose where the sales are not subject to
Property Factor services are performed in more than a tax measured by income in that
one state, compensation is generally jurisdiction. For more complete
Lines 1 through 6 assigned to North Dakota based on information, see N.D. Admin. Code
Owned and rented property the amount of compensation reported §§ 81-03-09-29 and 81-03-09-30.
Enter on the applicable line the to North Dakota for unemployment
average value of real and tangible compensation purposes. Whether Line 14
personal property owned and rented or not state income tax was Apportionment factor
by the partnership. For owned withheld from an employee’s Divide line 13 by the number of
property, this generally means the compensation does not affect where factors having an amount greater than
average of the original cost (before the compensation is assigned for zero in column 1 on lines 7, 8, and 12.
depreciation) used for federal income apportionment factor purposes. Enter the result on this line.
tax purposes. For rented property, Include on this line in the applicable
this generally means the amount of column the partnership’s share of the
rent paid multiplied by eight. Certain payroll factor from a North Dakota
property items are subject to special Schedule K-1 (Form 58), Part 6. For
rules. Do not include amounts related more complete information on the
payroll factor, see N.D. Admin. Code
§§ 81-03-09-22 through 81-03-09-25.
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7
is exempt from federal income tax. income. Attach a statement
Instructions for Do not include interest income from showing the calculation of the
Schedule K securities or bonds issued by North exempt income.
Dakota or its political subdivisions.
(Form 58, page 3)
Do not enter on this line any income Line 6
All partnerships must complete that is treated as nonbusiness income Eminent domain gain
Schedule K. The purpose of this subject to allocation under N.D.C.C. Enter on this line the taxable portion
schedule is to show the total amount §§ 57-38.1-04 through 57-38.1-08. of a gain from the disposition of
of North Dakota adjustments, credits, Include the nonbusiness income on property due to the exercise of
and other items distributable to Schedule K, line 24. eminent domain.
its partners. These items may be
applicable to the preparation of the Line 2 Line 7a
partners’ North Dakota income tax State and local income taxes Renaissance zone historic
returns. Enter on this line the taxes measured property preservation tax credit
by income that were incurred by Enter on this line the amount from
Schedule K-1 from another
the partnership and deducted in Schedule RZ, Part 7, line 4. Attach
passthrough entity. Include on
calculating the partnership’s ordinary Schedule RZ.
the applicable lines of Schedule K
income (loss). Include franchise or
any adjustments, credits, etc., from
privilege taxes measured by income Line 7b
a North Dakota Schedule K-1, as
paid to any taxing authority, including Renaissance fund organization
instructed in the partner or beneficiary
a foreign country. investment tax credit
instructions to that form.
Enter on this line the amount from
Reminder: Be sure to attach to Line 3 Schedule RZ, Part 7, line 5. Attach
Form 58 any prescribed schedule Interest from U.S. obligations Schedule RZ.
or other supporting document Enter on this line interest income from
specified in the instructions. U.S. obligations and from securities Line 7c
the interest from which is specifically Renaissance zone nonparticipating
Property tax clearance exempted from state income tax by property owner tax credit
North Dakota Century Code federal statute. Include the portion of Enter on this line the amount from
§ 57-01-15.1 provides that, before dividend income from a mutual fund Schedule RZ, Part 7, line 6. Attach
certain state tax incentives may be attributable to the fund’s investment Schedule RZ.
claimed, a taxpayer must obtain a in the same kinds of securities.
property tax clearance record from Line 8
Do not enter on this line interest
each North Dakota county in which Seed capital investment tax credit
income from securities of the Federal
the taxpayer holds a 50 percent If the partnership invested in a
Home Loan Mortgage Corporation
or more ownership interest in real qualified business for purposes of the
(Freddie Mac), Federal National
property. The property tax clearance seed capital investment tax credit,
Mortgage Association (Fannie Mae),
record(s) must be attached to the multiply the total amount invested
Government National Mortgage
North Dakota tax return on which during the 2022 tax year by 45%
Association (Ginnie Mae), or from
the incentive is claimed. Certain tax and enter the result on this line.
a federal income tax refund or
incentives on Form 58, Schedule K, See N.D.C.C. Ch. 57-38.5. Attach a
repurchase agreement. Attach a
are subject to this requirement. The copy of the Qualified Seed Capital
statement identifying the specific
incentives subject to this requirement Business Investment Reporting
securities from which the interest
are identified in the box at the top of Form. Or, if claiming a seed capital
was derived.
Schedule K. investment credit from a North
Dakota Schedule K-1, attach a
If the partnership is claiming any Line 4
statement identifying the qualified
of the specified incentives, it must Renaissance zone exemption
business in which the investment
complete the property tax clearance Enter on this line the amount from
was made.
section at the top of Schedule K. If Schedule RZ, Part 7, line 1c. Attach
the partnership is required to attach Schedule RZ.
Line 9
a property tax clearance record, Ag commodity investment tax
obtain one by completing the form Line 5
credit
Property Tax Clearance Record, which New or expanding business
If the partnership invested in a
is available on the Office of State Tax income exemption
qualified business for purposes of the
Commissioner’s website. If the partnership qualified for the
agricultural commodity processing
new or expanding business income
facility investment tax credit, multiply
Line 1 exemption under N.D.C.C.
the total amount invested during the
Income from state, local, and Ch. 40-57.1, enter the exempt
2022 tax year by 30% and enter the
foreign securities and bonds portion of the partnership’s business
result on this line. The partnership
Enter on this line interest and income. See N.D. Admin. Code
is allowed no more than $250,000
dividend income from state, local, § 81-03-01.1-06 for guidance on
in total credits for investments
and foreign securities and bonds that calculating the amount of the exempt made in tax years 2005 and after.
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8
See N.D.C.C. Ch. 57-38.6. Attach Line 12 to-fill position in North Dakota, it is
a copy of the Ag Commodity Employer internship program tax allowed a tax credit equal to 5% of
Processing Facility Investment credit the compensation paid during the
Reporting Form. Or, if claiming an If the partnership hired an eligible first 12 months to the employee
agricultural commodity processing college student under a qualifying hired to fill that position. The credit
facility investment credit from a internship program set up in North may be claimed in the first taxable
North Dakota Schedule K-1, attach Dakota, it is allowed a credit equal year beginning after the employee
a statement identifying the facility to 10% of the compensation paid to completes the first 12 consecutive
in which the investment was the intern. For details, see N.D.C.C. months of employment. For details,
made. § 57-38-01.24. The partnership is see N.D.C.C. § 57-38-01.25.
allowed no more than $3,000 of
Line 15a. Enter the allowable credit
Line 10 credits for all tax years.
on this line.
Biodiesel or green diesel fuel
Line 12a. Enter the allowable credit
blending tax credit Line 15b. Enter the number of
on this line.
If the partnership is a licensed eligible employees whose first 12
supplier of biodiesel or green diesel Line 12b. Enter the number of months of employment ended during
fuel, it is allowed a credit equal to eligible interns employed during the the partnership’s 2021 tax year.
five cents per gallon for blending 2022 tax year. Disregard this line
Line 15c. Enter the total
biodiesel or green diesel fuel having if the credit is from a passthrough
compensation paid to the eligible
at least a 5% blend (“B5”) that meets entity.
ASTM specifications. The blending employees’ during their first 12
must be done in North Dakota. For Line 12c. Enter on this line the consecutive months of employment
this purpose, a “supplier” means a total compensation paid to eligible ending in the partnership’s 2021 tax
person who distributes the biodiesel interns during the 2022 tax year (as year.
or green diesel fuel from a terminal shown on their 2022 Form W-2s).
in North Dakota. Enter the credit on Disregard this line if the credit is from Line 16
this line. See N.D.C.C. § 57-38-01.22. a passthrough entity. Credit for wages paid to a
Attach a statement showing the mobilized employee
calculation of the credit. Line 13 Enter on this line the amount from
Research expense tax credit Schedule ME, line 13. N.D.C.C.
Line 11 A credit is allowed for conducting § 57-38-31. Attach Schedule ME.
Biodiesel or green diesel fuel sales qualified research in North Dakota. For
equipment tax credit details, see N.D.C.C. § 57-38-30.5. Lines 17 through 19
If the partnership is a licensed seller Enter the allowable credit on this line. Nonprofit private school tax
of biodiesel or green diesel fuel, it is Attach a statement showing the credits
allowed a credit equal to 10% of the computation of the base amount Tax credits are allowed under
costs to adapt or add equipment to and the credit. N.D.C.C. § 57-38-01.7 for making
its North Dakota facility to enable it charitable contributions to qualifying
to sell diesel fuel having at least a Line 14 nonprofit private primary schools,
2% biodiesel or green diesel blend Endowment fund tax credit high schools, and colleges located
(“B2”) that meets ASTM specifications. A tax credit is allowed for making a in North Dakota. A separate credit
For this purpose, a “seller” means a contribution to a qualified endowment is allowed for each of the three
person who acquires the fuel from fund. For more information, categories of school—primary school,
a wholesale supplier or distributor see Schedule QEC (for filers of high school, and college. For each
for resale to a consumer at a retail Forms 38, 40, 58, and 60) Attach category of school, the credit equals
location. Except for costs incurred Schedule QEC. 50% of the contributions made to all
eligible schools within the category.
before January 1, 2005, include Lines 14a and 14b. Enter on these
(Note: For a partner other than
eligible costs incurred before the tax lines the applicable amounts from
another passthrough entity, additional
year in which sales of the eligible Schedule QEC.
biodiesel or green diesel fuel begin. limitations on the allowable credit
The credit is allowed in each of five Lines 14c and 14d. Enter on apply at the partner level.) A list of
tax years, starting with the tax year these lines an endowment fund the eligible schools within each of
in which sales of the eligible biodiesel credit and the related contribution the three categories of schools is
or green diesel fuel begin. Enter amount shown on a North Dakota provided on page 14.
the credit on this line. See N.D.C.C. Schedule K-1 received from an estate,
Election. A partnership may elect, on
§ 57-38-01.23. Attach a statement trust, partnership, or S corporation.
a contribution by contribution basis,
showing the calculation of the to treat a contribution as having been
credit. Line 15
made during the 2022 tax year if it
Workforce recruitment tax credit
is made on or before the due date,
If the partnership employs
including extensions, for filing the
extraordinary recruitment methods
2022 Form 58. Make the election by
to hire an employee to fill a hard-
attaching to the return a document
containing the following:
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1. A statement that the election is Line 19. Enter on this line the credit approval letter issued to the
being made. allowable credit for contributions to partnership by the North Dakota Office
2. Name of qualifying school. qualified nonprofit private colleges. of State Tax Commissioner.
3. Date of contribution. Line 22
Line 20
4. Amount of contribution. Angel investor investment credit Credit for hiring an individual
with a developmental disability or
To qualify, a contribution must be Important! This line is only for mental illness
made directly to, or specifically credits attributable to investments A tax credit is available for employing
designated for the exclusive use of, a made in qualified businesses an individual with a developmental
qualifying school. by angel funds organized and disability or mental illness. To
School network or organization. certified on or after July 1, 2017. qualify, an employer must apply for
If a contribution is made payable If a partnership is a member of a and obtain certification from the
to the account or fund of a school North Dakota angel fund that is North Dakota Department of Human
network or organization that governs organized and certified on or after Services, Vocational Rehabilitation
or benefits multiple schools, the July 1, 2017, a credit is allowed to Division, that the individual has a
contribution will qualify only if the the partnership if it participates in severe disability, is eligible for the
partnership specifically designates it a qualified investment made by the agency’s services, and requires
for the use of a qualifying school, and angel fund in a qualified business. customized or supported employment
the network or organization separately The angel fund is required to provide to become employed. The credit is
accounts for the funds on behalf of a Participating Angel Investor equal to 25% of the wages paid to the
that school. The partnership must Statement to the partnership, individual during the tax year, up to a
obtain a statement from the network which evidences the partnership’s maximum credit of $1,500 per year.
or organization that identifies the investment. For qualified investments The credit is allowed for each eligible
qualifying school and the amount made after June 30, 2017, that fall individual hired. Attach a copy
contributed to it. If the qualifying into the partnership’s 2022 tax year, of the certification letter from
school falls into both the primary and multiply the investment amount Human Services.
high school categories, also see the by the applicable credit rate shown
next paragraph. on the statement. If a partnership Line 23
Schools in both primary and high participates in more than one qualified Professional service partnership
school categories. If a contribution investment during the tax year, guaranteed payments
is made to a qualifying school that calculate the credit separately for each Lines 23a through 23c apply only
provides education in one or more Participating Angel Investor Statement if the partnership marked “Yes” to
grades in both the primary school received and add the separately Item H on page 1 of Form 58. See
category (kindergarten through 8th calculated amounts. the instructions to Form 58, page 1,
Item H, on page 5.
grades) and the high school category Enter the credit amount on this
(9th through 12th grades), a separate line. Do not enter on this line Line 23a. Enter the total guaranteed
credit is allowed for the portion of the an angel investor credit from payments from Federal Form 1065,
contribution designated for use within a North Dakota Schedule K-1. Schedule K, line 4.
each school category. The partnership A partnership is not allowed to Line 23b. Enter the portion of the
must obtain a statement from the claim an angel investor credit from amount on line 24a that was made to
qualifying school or the school another passthrough entity. See individual partners as a reasonable
network or organization that identifies N.D.C.C. § 57-38-01.26 (effective salary for personal services,
the qualifying school and shows for investments made after June 30, regardless of where the services
the amount contributed within each 2017). were performed. Do not include any
category of school. If the partnership
does not obtain a statement, one- Attach a copy of the Participating guaranteed payments for other than
half of the total contribution will be Angel Investor Investment personal services.
deemed to have been made to each Statement. Line 23c. Enter the portion of the
category of school. amount on line 23b that was made
Line 21 to nonresident individual partners for
Line 17. Enter on this line the Automation tax credit personal services performed within
allowable credit for contributions to Important! This line only applies North Dakota.
qualified nonprofit private primary to the automation income tax
schools. credit program in effect for the Line 24
2019 through 2022 tax years. Allocable nonbusiness income
Line 18. Enter on this line the Lines 24a and 24b apply only if the
allowable credit for contributions If the partnership qualified for the partnership meets all of the following:
to qualified nonprofit private high automation tax credit under N.D.C.C.
schools. § 57-38-01.36, enter on this line the • It is a multistate partnership, i.e.,
amount of the credit shown on the it carries on its trade or business
activity both within and without
North Dakota.
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10
• It has one or more nonresident
individual, estate, or trust Worksheet for Schedule KP, Column 6
partners. For nonresident partners and tax-exempt organization partners only—
see instructions to Schedule KP, Column 6.
• It has allocable nonbusiness
1. Partner’s amount from Schedule KP, Column 5 ........................1 _______________
income. Generally, all income
received by a partnership is 2. Professional service partnership only:
Guaranteed payments for services only
considered business income unless included in the amount on line 1.............. 2 _______________
clearly classifiable as nonbusiness
3. Allocable income (less related expenses)
income. The classification of included in the amount on line 1.............. 3 _______________
income by the labels used to
4. Interest from U.S. obligations included
describe it—for example, interest, in the amount on line 1 .......................... 4 _______________
dividends, rents, royalties,
5. Add lines 2, 3, and 4 ............................................................5 _______________
operating income, or nonoperating
income—is generally not relevant 6. Apportionable income (loss). Subtract line 5 from line 1 ........... 6 _______________
in determining whether income is 7. Apportionment factor from Schedule FACT, line 14 ...................7 __.____________
business or nonbusiness income. 8. Multiply line 6 by line 7 ........................................................8 _______________
For more information, see N.D. 9. Professional service partnership only: Guaranteed payments
Admin. Code § 81-03-09-03. for services performed within North Dakota ......................9 _______________
Nonbusiness income is not 10. Allocable income (less related expenses) reportable to
North Dakota ................................................................... 10 ______________
apportioned using the apportionment
factor (from Schedule FACT) but is 11. Add lines 8, 9 and 10. Enter result in Column 6 ...................... 11 ______________
allocated within or without North
Dakota as provided under N.D.C.C. Line 24a. Enter the total allocable
§§ 57-38.1-04 through 57-38.1-08 income (less related expenses) from Instructions for
and N.D. Admin. Code all sources within and without North Schedule KP
§ 81-03-09-09. Expenses must be Dakota.
attributed to the nonbusiness income (Form 58, page 5)
in a manner which fairly distributes Line 24b. Enter the portion of the Schedule KP must be completed
all of the partnership’s expenses to its amount on line 24a that is allocable to to provide information about each
business and nonbusiness income. North Dakota. partner. If the partnership has more
than seven partners, complete and
If the partnership has an item of Line 25 attach additional schedules as needed
nonbusiness income subject to Disposition of I.R.C. Section 179 to list all partners. If more than one
allocation, the partnership must take property Schedule KP is needed, complete
this into account when calculating Lines 25a through 25d apply only if lines 1 through 4 on only one of them,
the North Dakota distributive share the partnership sold, exchanged, or and include the combined amount
of income or loss reportable on disposed of property for which an for all of the schedules on that one
Schedule KP and Schedule K-1 I.R.C. Section 179 deduction was schedule.
(Form 58). See the instructions to passed through to the partners.
Schedule KP, Column 6, on page 10 Note: The partnership is required
for more information. In addition to to report this same information on All Partners
completing lines 24a and 24b, the a separate statement attached to (Columns 1 through 5)
partnership must attach the following Federal Form 1065, Schedule K, Columns 1 and 2
to Form 58: line 24. Enter the name, mailing address, and
• A statement on which each item For lines 25a through 25d, multiply partner’s identifying number as shown
of nonbusiness income is shown the corresponding combined amount on the partner’s Federal Schedule K-1.
along with its related expenses. for all partners as reported on If the partner is a single member
• A statement explaining the basis Federal Form 1065, Schedule K, limited liability company (LLC) that is
for treating the item of income line 20c, by the apportionment factor a disregarded entity for federal income
as nonbusiness income subject to from Schedule FACT, line 14, and tax purposes, enter the owner’s name,
allocation. enter the result. However, if the address, and identifying number.
• If an item of nonbusiness income property disposed of is treated as a
is allocated to a state other than nonbusiness asset the gain or loss Column 3
North Dakota, a copy of that other from which is subject to allocation Identify the entity type of the partner
state’s income tax return must under N.D.C.C. §§ 57-38.1-04 through by entering the applicable code letter
be attached. If the partnership is 57-38.1-08, subtract the amounts as follows:
not required to file an income tax for that asset before multiplying by
return with the other state, the the apportionment factor. Include the
partnership must indicate this in nonbusiness gain or loss from the
the attached statement. disposition on Form 58, Schedule K,
line 24.
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Entity type Code letter Box 13 Other deductions (In the Exception: Complete the Worksheet
Individual ..................... I case of an individual, trust, for Schedule KP, Column 6 on this
C corporation ................ C or estate partner, only page to calculate the amount to enter
S corporation ................ S include deductions that are in Column 6 if any of the following
Partnership ................... P allowed as a deduction from apply:
Estate .......................... E gross income in calculating
• The partnership is a professional
Trust ............................ T adjusted gross income
service partnership that made
Exempt organization ...... O for federal income tax
guaranteed payments for services
purposes.)
Note: A “C corporation” is a performed by nonresident
Box 20 Include the gain (loss)
corporation that files Federal individual partners. These
from an I.R.C. Section 179
Form 1120; an “S corporation” payments are not apportioned, but
property disposition. For
is a corporation that files Federal are allocated to the state where
purposes of calculating
Form 1120S; and the “Trust” entity the services were performed by
the gain or loss, include
type only applies to a trust that the partner. See the instructions
all of the Section 179
files Federal Form 1041 or, in lieu of to Form 58, page 1, Item H, on
deduction passed through
filing Federal Form 1041, elects an page 5 for more information.
to the partner, regardless of
alternative reporting method under • The partnership has an item of
whether or not the partner
the federal income tax regulations. nonbusiness income subject to
actually deducted all of it.
allocation. See the instructions to
If the partner is a limited liability
Form 58, Schedule K, line 24, on
company (LLC) that is a disregarded Nonresident Partners and page 9 for more information.
entity for federal income tax purposes Tax-Exempt Organization • The amount in Column 5 includes
or a nominee on Federal Schedule K-1,
Partners Only
enter the code letter for the type of interest from U.S. obligations.
entity of the entity’s owner. If the (Columns 6 through 8)
Column 7
LLC is treated like a C corporation, For purposes of Columns 6 through 8,
Nonresident partner only
partnership, or S corporation, enter a nonresident partner means:
the code letter for that particular If a nonresident partner’s distributive
entity type. • an individual who is not domiciled share of North Dakota income
in North Dakota; in Column 6 is $1,000 or more,
Column 4 • a trust, including a grantor trust, multiply the amount in Column 6 by
Enter the partner’s ownership that is not organized under North 2.90% (.029) and enter the result
percentage as provided in the Dakota law. This only includes in Column 7. However, the following
partnership agreement. (This trusts that are subject to income exceptions apply:
percentage may differ from the tax; or • If a nonresident partner gives you
partner’s profit or loss percentage.) • a passthrough entity that has a completed Form PWA, enter the
a commercial domicile outside amount from line 5 of Form PWA
Column 5 North Dakota. A passthrough in Column 7 and fill in the circle
Enter the sum of the following entity includes a partnership, under “Form PWA or Form PWE.”
items from the partner’s Federal S corporation, limited liability • If a nonresident partner gives
Schedule K-1 (Form 1065), Part III: company treated like a partnership you a completed Form PWE, leave
Box 1 Ordinary business income or S corporation, and any other Column 7 blank and fill in the circle
(loss) similar entity. under “Form PWA or Form PWE.”
Box 2 Net rental real estate income For a tax-exempt organization partner, • If a nonresident partner elected to
(loss) only report its distributive share of be included in a composite filing,
Box 3 Other net rental income North Dakota income in Column 6. leave Column 7 blank and see the
(loss) Columns 7 and 8 do not apply to a instructions to Column 8.
tax-exempt organization partner.
Box 4c Total guaranteed payments See “Withholding from nonresident
partners” on page 3 for more
Box 5 Interest income Column 6
information.
Box 6a Ordinary dividends Nonresident partner and tax-
Box 7 Royalties exempt organization partner only
Column 8
Complete Column 6 for each
Nonresident partner only
Box 8 Net short-term capital gain nonresident partner and tax-exempt
Note: Leave Column 8 blank if
(loss) organization partner. Except as
Column 7 was completed for the
Box 9a Net long-term capital gain provided below, multiply the
nonresident partner.
(loss) partner’s amount in Column 5 by
Box 10 Net section 1231 gain (loss) the apportionment factor from
Schedule FACT, line 14, and enter the
Box 11 Other income (loss)
result in Column 6.
Box 12 Section 179 deduction
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12
Complete Column 8 for each To make the election, enter the Line 12
nonresident partner electing to portion of line 7 to be applied on Balance due
be included in a composite filing. line 8. If this election is made, the The balance due must be paid in full
Multiply the amount in Column 6 by election and the amount applied may with the return. The payment may
2.90% (.029) and enter the result in not be changed after the return is be made electronically in one of the
Column 8. If the amount in Column 6 filed. If this is an amended return, do following ways.
is zero or less, enter zero in Column 8. not make an entry on this line.
• Online—A payment may be made
See “Composite filing” on page 3 for
online with an electronic check or a
more information. Line 10
debit or credit card. The electronic
Tax due
check option is free. North Dakota
A tax due must be paid in full with the
contracts with a national payment
Specific line return when the return is filed. See
service to provide the debit or
the instructions to line 12 for payment
instructions for credit card option. There is a fee
options.
for the debit or credit option, none
page 1 of Form 58, of which goes to the State of North
Line 11
Dakota. To pay online, go to
lines 1-12 Penalty and interest
www.tax.nd.gov/payment.
The Office of State Tax Commissioner
Complete Schedule FACT, will notify the partnership of any • Electronic funds transfer—A
Schedule K, and penalty and interest payable on a tax payment may be made by means
Schedule KP before due shown on Form 58. However, the of an Automated Clearing House
partnership may calculate the penalty (ACH) credit transaction that
completing lines through 12 the taxpayer initiates through
and interest amounts and include
on page 1 of Form 58. them in the balance due on Form 58. its banking institution. For more
information, go to our website at
Line 4 Penalty. Calculate the penalty www.tax.nd.gov.
Income tax withholding amount as follows:
Enter the North Dakota income If paying with a paper check or money
tax withholding shown on a 2022 • If Form 58 is filed by the due date order, complete a 2022 Form 58-PV
Form 1099 or North Dakota (or extended due date), but the payment voucher and enclose it with
Schedule K-1. Be sure the state total amount of tax due is not paid the payment. Make the check or
identified on the Form 1099 is North with the return, the penalty is money order payable to “ND State
Dakota. Also enter the North Dakota equal to 5% of the unpaid tax or Tax Commissioner,” and write the last
income tax withholding shown on a $5.00, whichever is greater. four digits of the partnership’s FEIN
2021 North Dakota Schedule K-1 if the • If Form 58 is filed after its due and “2022 Form 58” on the check or
entity that issued it has a fiscal tax date (or extended due date), and money order. A check must be drawn
year ending in the partnership’s 2022 there is an unpaid tax due on it, a on a U.S. or Canadian bank, be in U.S.
tax year. Do not enter on this line penalty equal to 5% of the unpaid dollars, and use a standard 9-digit
North Dakota extraction or production tax due (with a $5.00 minimum) routing number. A check drawn on a
taxes withheld from mineral interest applies for the month the return foreign bank (except one in Canada)
income, such as an oil or gas royalty, was due, plus 5% of the unpaid cannot be accepted.
because they are not income taxes. tax due (with a $5.00 minimum)
Attach a copy of the Form 1099 or for each month or fraction of a
North Dakota Schedule K-1. month the return remains unfiled, Instructions
not to exceed the greater of 25% for completing
Line 5 of the unpaid tax due or $25.00.
Estimated tax payments Schedule K-1
Enter the amount paid with the Interest. Calculate the interest
2022 Forms 58-EXT and 58-ES plus amount as follows: A partnership is not subject to North
Dakota income tax. Instead, the
any overpayment applied from the • If an extension of time to file partners are responsible for reporting
2021 Form 58. However, if filing an Form 58 was obtained, extension and paying any applicable North
amended return, do not enter any interest is calculated at the rate of Dakota income tax on their shares of
previously paid estimated tax amount; 12% per year on any tax due from the partnership’s income reportable to
instead, enter the amount of the total the due date of the return to the North Dakota.
taxes due from line 3 of the previously earlier of the extended due date or
filed original or amended return. the date the return was filed. North Dakota Schedule K-1 (Form 58)
• If the total amount of tax due must be used by a partnership to
Line 8 provide its partners with information
is not paid by the due date (or
Application of overpayment to they will need to complete a North
extended due date) of the return,
2023 Dakota income tax return. The
interest is calculated at the rate
If there is an overpayment on line 7, information to be included in the
of 1% per month or fraction of a
the partnership may elect to apply schedule will depend on the type of
month on the unpaid tax, except
part or all of it as an estimated partner. In the case of certain credits
for the month in which the return
payment toward its 2023 tax liability.
was due.
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13
reported on Schedule K-1 (Form 58), Item F Lines 7 through 22
additional supporting information If the partner is an individual, estate, Enter on the corresponding lines
must be provided with Schedule K-1 or trust, fill in the applicable circle to the partner’s share of each amount
— see the instructions to Part 3. indicate the legal residency status of shown on Form 58, Schedule K,
the partner for North Dakota income lines 7 through 22. Also, for the
North Dakota Schedule K-1 (Form 58) tax purposes. If an individual partner following lines, additional supporting
must be completed and given to: changed his or her legal residency information must be provided with
• Each nonresident partner for to or from North Dakota during the Schedule K-1:
which the partnership is required tax year, mark the part-year resident
to report the North Dakota status. In the case of an estate Lines 8 and 9. Provide a statement
distributive share of income on or trust partner, only the full-year identifying the qualified business
Form 58, Schedule KP, Column 6. resident or full-year nonresident or qualified agricultural commodity
status will apply. processing facility in which the
• Each partner to which a share of qualifying investment was made.
a North Dakota adjustment or tax Item G
credit from Form 58, Schedule K, For an eligible nonresident partner, Line 15. Provide a statement
lines 1 through 22, is distributable. indicate whether the partner is identifying the qualified nonprofit
• Each partnership or corporation included in a composite filing by filling organization and the qualified
partner for the purpose of in the applicable circle. endowment fund to which the
qualifying contribution was made.
reporting a share of the Item I
apportionment factors from Enter the partner’s ownership Line 21. Provide a statement
Form 58, Schedule FACT. percentage from Form 58, identifying the angel fund that made
• Each tax-exempt organization Schedule KP, Column 4. the qualified investment in the
partner. qualified business.
If there are no North Dakota Part 3
Part 4
adjustments or tax credits on All partners—
Nonresident individual,
Form 58, Schedule K, lines 1 North Dakota adjustments
estate, or trust partner
through 22, a North Dakota and tax credits
Schedule K-1 does not have to be only— North Dakota income
given to a North Dakota resident If there are any North Dakota (loss)
individual, estate, or trust. adjustments or tax credits on
Form 58, Schedule K, lines 1 Complete Part 4 for a nonresident
In addition to the North Dakota through 22, complete this part for all individual, estate, or trust partner.
Schedule K-1 (Form 58), the partners.
partnership must provide the Line 23
partner with a copy of the Partner’s Lines 1 and 2 Partnership’s apportionment
Instructions for North Dakota Enter on the corresponding lines the factor
Schedule K-1 (Form 58). amount determined by multiplying Enter the partnership’s apportionment
A copy of all North Dakota each amount shown on Form 58, factor from Form 58, Schedule FACT,
Schedule K-1 forms must be enclosed Schedule K, lines 1 and 2, by the line 14.
with Form 58 along with any required same percentage used to determine
supporting statements. the partner’s distributive share of Lines 24 through 37
income (loss) from the partnership. Income and loss items
Amended schedule. If a partnership Except as provided under
files an amended Form 58, the Lines 3 through 5 Exceptions 1 through 3 below,
partnership must issue amended Enter on the corresponding lines the multiply the corresponding
North Dakota Schedule K-1 forms to partner’s share of each amount shown amount from the partner’s Federal
its partners. Fill in the “Amended” on Form 58, Schedule K, lines 3 Schedule K-1, Part III, boxes 1
circle at the top of the North Dakota through 5. through 13, and any I.R.C. § 179
Schedule K-1 (Form 58). property disposition gain (loss)
Final schedule. Fill in the “Final” Line 6 included in box 20 by the
circle at the top of the North Dakota Enter on this line the amount partnership’s apportionment factor
Schedule K-1 (Form 58) if it is the last determined by multiplying the amount from Schedule FACT, line 14, and
one to be issued by the partnership to on Form 58, Schedule K, line 6, by the enter the result on the corresponding
the partner. same percentage used to determine line of Part 4, lines 24 through 37.
the partner’s distributive share of For “Other deductions” from box 13
income (loss) from the partnership.
Part 2 of Federal Schedule K-1, only include
Partner information deductions that are allowed as a
deduction from gross income in
Item E calculating adjusted gross income for
Enter the code letter for the partner federal income tax purposes.
from Form 58, Schedule KP, Column 3.
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14
For purposes of calculating the gain If the calculation of any amount on Line 42
or loss for I.R.C. § 179 property lines 24 through 37 of Part 4 was North Dakota factors
dispositions included in box 20 of affected by the removal or inclusion Enter in the corresponding column the
Federal Schedule K-1, include all of of net nonbusiness income, attach partner’s share of the partnership’s
the Section 179 deduction passed a statement to the partner’s North North Dakota apportionment
through to the partner, regardless of Dakota Schedule K-1 (Form 58) factor amounts from Form 58,
whether or not the partner actually identifying the net nonbusiness Schedule FACT, Column 2, lines 7, 8,
deducted all of it. income and showing the calculation of and 12.
the amount entered on the applicable
Exception 1: Professional service
line(s) of Part 4. Line 43
partnership. If the partnership is
Total factors
a professional service partnership, Exception 3: Interest from U.S.
Enter in the corresponding column the
calculate the amount to enter on obligations. Do not include interest
partner’s share of the partnership’s
line 27 (guaranteed payments) by from U.S. obligations in determining
total factor amounts from Form 58,
adding the following two amounts: the amount to enter on Part 4, line 28.
Schedule FACT, Column 1, lines 7, 8,
• Guaranteed payments for services and 12.
performed within North Dakota by Part 5
the partner. Nonresident partner and
• Guaranteed payments for other tax-exempt organization Before you file
than personal services multiplied partner only Form 58
by the partnership’s apportionment Complete Part 5 for a nonresident
Signatures
factor from Schedule FACT, line 14. partner and a tax-exempt organization
The return must be signed and dated
partner for which an amount was
by a general partner or an authorized
Exception 2: Allocable required to be entered on Form 58,
representative of the partnership.
nonbusiness income. If the Schedule KP, Column 6.
partnership treated any part of a
If the partnership pays someone
distributable item of income from Line 38 other than one of its partners or
the partner’s Federal Schedule K-1 ND distributive share of income an employee of the partnership to
as nonbusiness income subject to (loss) prepare the return, the paid preparer
allocation, calculate the amount to Enter the partner’s North Dakota also must sign and date the return.
enter on the corresponding line of this distributive share of income (loss)
part in the following steps: from Form 58, Schedule KP, Column 6. Preparer authorization check-off
The partnership may authorize the
1. Subtract the net nonbusiness
income (gross amount less Line 39 North Dakota Office of State Tax
related expenses) from ND income tax withheld Commissioner (Tax Department) to
the applicable distributable Enter the amount of North Dakota discuss matters pertaining to its 2022
amount shown on the Federal income tax withheld from the Form 58 with the preparer who signed
Schedule K-1. partner’s North Dakota distributive it. To do so, fill in the circle next to
2. Multiply the remaining distributive share of income from Form 58, the signature area in the lower right-
amount, if any, (from step 1) by Schedule KP, Column 7. hand corner of page 1 of Form 58.
This authorization applies only to the
the partnership’s apportionment individual whose signature and printed
factor from Schedule FACT, Line 40
line 14. ND composite income tax name appear in the paid preparer
Enter the amount of North Dakota section of the signature area. It does
3. Add the result (from step 2) to composite income tax on the partner’s not apply to the firm, if any, shown in
the portion, if any, of the net North Dakota distributive share of that section.
nonbusiness income allocable income from Form 58, Schedule KP, This authorization allows the Tax
to North Dakota, and enter the Column 8. Department to contact the preparer
result on the corresponding line
to answer any questions that may
of Part 4.
Part 6 arise during the processing of the
Note: If any portion of the net Partnership or corporation partnership’s return. It also authorizes
nonbusiness income removed from the the preparer to respond to questions
distributable amount (in step 1 above) partner only
is allocable outside North Dakota, do Complete Part 6 for a partner that is and to provide any information
not enter it anywhere on North Dakota a partnership, corporation, or other missing from the return, to contact
Schedule K-1 (Form 58). entity treated like a partnership or the Tax Department to inquire about
corporation. the status of the return’s processing
and related refund or payment, and
to respond to Tax Department notices
that the partnership shares with the
preparer pertaining to math errors or
return preparation. (Tax Department
notices will be sent only to the
partnership.)
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This authorization automatically
expires on the due date (including Qualified nonprofit private schools
extensions) for filing the 2023 (for Form 58, Schedule K, lines 17 through 19)
Form 58. For purposes of the credits on Form 58, Schedule K, lines 17 through 19, the following
This authorization does not authorize lists the qualifying schools in each school category. (Note: These lists are subject to
change.)
the preparer to receive a refund
check, to bind the partnership in
Primary Schools (Grades K through 8)
any way (including any additional
tax liability), or to represent Anne Carlsen Center (Jamestown) Red River Adventist Elementary School
the partnership before the Tax Bishop Ryan Catholic School (Minot) (Fargo)
Department for any other purpose. Brentwood Adventist Christian School School of the Holy Family (Mandan)
(Bismarck) Shanley High-Sullivan Middle School
Cathedral of the Holy Spirit Elementary (Fargo)
Assembling a paper return School (Bismarck) Shiloh Christian School (Bismarck)
Please assemble Form 58 and its Christ the King Catholic Montessori SonShine Elementary (Minot)
required attachments in the following School (Mandan) St Alphonsus Elementary School
order: Dakota Memorial School (Minot) (Langdon)
Dakota Montessori School (Fargo) St Anne Elementary School (Bismarck)
1. Form 58. Forest River School (Fordville) St Ann’s Catholic School (Belcourt)
2. Schedule FACT. Grace Lutheran Elementary School St Bernard Mission School (Fort Yates)
3. Schedule K. (Fargo) St Catherine Elementary School
Hillcrest SDA School (Jamestown) (Valley City)
4. Schedule KP. Holy Family – St. Mary’s Elementary St John’s Academy (Jamestown)
5. All other required North Dakota School (Grand Forks) St John’s Elementary School (Wahpeton)
schedules and forms (other Holy Spirit Elementary School (Fargo) St Joseph Elementary School (Mandan)
than North Dakota Schedule K-1 Hope Christian Academy (Dickinson) St Joseph Elementary School
forms). Invitation Hill Adventist School (Devils Lake)
(Dickinson) St Joseph’s Elementary School (Williston)
6. North Dakota Schedule K-1 Johnson Corners Christian Academy St Mary’s Academy (Bismarck)
forms. (Watford City) St Mary’s Elementary School (Bismarck)
7. Required supporting statements. Little Flower Elementary School (Rugby) St Michael’s Elementary School
Martin Luther School (Bismarck) (Grand Forks)
8. Complete copy of Form 1065 Nativity Elementary School (Fargo) The Innovation School (Bismarck)
(or 1065-B) including Federal New Testament Baptist Christian School Trinity Elementary East School
Schedule K-1 forms. (Larimore) (Dickinson)
Oak Grove Lutheran Elementary School Trinity Elementary North School
A balance due may be paid (Fargo) (Dickinson)
electronically (see page 12 of these Our Redeemer’s Christian School (Minot) Trinity Elementary School (West Fargo)
instructions). If paying with a paper Prairie Learning Education Center Trinity Elementary West School
check, enclose the check and a 2022 (Raleigh) (Dickinson)
Form 58-PV payment voucher with the Prairie Voyager Adventist School
return. (Grand Forks)
High Schools (Grades 9 through 12)
Anne Carlsen Center (Jamestown) Our Redeemer’s Christian School (Minot)
Bishop Ryan Catholic School (Minot) Prairie Learning Education Center
Dakota Adventist Academy (Bismarck) (Raleigh)
Dakota Memorial School (Minot) School of the Holy Family (Mandan)
Hope Christian Academy (Dickinson) Shanley High-Sullivan Middle School
Johnson Corners Christian Academy (Fargo)
(Watford City) Shiloh Christian School (Bismarck)
New Testament Baptist Christian School St Mary’s Central High School (Bismarck)
(Larimore) Trinity Jr/High School (Dickinson)
Oak Grove Lutheran Middle/High School Williston Trinity Christian School
(Fargo) (Williston)
Colleges (Education above 12th grade)
Jamestown College (Jamestown) United Tribes Technical College
Trinity Bible College (Ellendale) (Bismarck)
Turtle Mountain Community College University of Mary (Bismarck)
(Belcourt) ND Independent College Fund
(Bismarck)
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