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 North Dakota Office of State Tax Commissioner                                    Final            Amended
 Schedule K-1 (Form 38)                                                           Estate's or      Calendar year 2018      (Jan. 1 - Dec. 31, 2018)
                                                                         2018     trust's tax
                                                                                  year:            Fiscal year:     Beginning _______________, 2018
 Beneficiary's Share of North Dakota Income (Loss),                                                                 Ending _______________, 20 ____
 Deductions, Adjustments, Credits, and Other Items
 
    See separate instructions                                                    Part 3 continued . . .
                                                                                 11 Biodiesel/green diesel fuel sales equipment
 Part 1 Estate or trust information                                                   credit
 A  Estate's or trust's federal EIN
                                                                                 12 Geothermal energy device credit
 B  Name of estate or trust                                                      13 Employer internship program credit
                                                                                 14 a  Research expense credit
C  Fiduciary's name, address, city, state, and ZIP code
                                                                                    b  Purchased research credit
                                                                                 15 a  Endowment fund credit (Schedule QEC)
                                                                                    b  Contribution amount (Schedule QEC)
                                                                                    c  Endowment fund credit (ND Schedule K-1)
 Part 2 Beneficiary information
 D  Beneficiary's SSN or FEIN (from Federal Schedule K-1)                           d  Contribution amount (ND Schedule K-1)
                                                                                 16 Workforce recruitment credit
 E  Beneficiary's name, address, city, state, and ZIP code
        (from Federal Schedule K-1)                                              17 Wages paid to mobilized employee credit
                                                                                 18 Nonprofit private primary school credit
                                                                                 19 Nonprofit private high school credit
                                                                                 20 Nonprofit private college credit
 F  What type of entity is this beneficiary? ____________________________                   Nonresident individual, estate, or trust
 G  If beneficiary is an individual, estate, or trust, beneficiary is a:         Part 4     beneficiary: North Dakota income (loss)
        Full-year residentof North Dakota              Part-year         resident
                                                       of North Dakota           21 Interest income
        Full-year nonresident of North Dakota
 H  Is this an eligible nonresident  beneficiary                                 22 Ordinary dividends
     who elected to be included in a composite filing?    Yes            No
                                                                                 23 Net short-term capital gain
 Part 3 All beneficiaries:                                                       24 Net long-term capital gain
        North Dakota adjustments and tax credits
 1  Income from non-ND bonds and securities                                      25 Other portfolio and nonbusiness income
 2  State and local income taxes deducted                                        26 Ordinary business income
 3  Interest from U.S. obligations                                               27 Net rental real estate income
                                                                                 i
 4  Renaissance zone income exemption:                                           28 Other rental income
    a  For projects approved before August 1, 2013
    b  For projects approved after July 31, 2013                                 29 Directly apportioned deductions
 5  New or expanding business income exemption                                   30 Final year deductions
 6  College SAVE contribution deduction                                          31 Other
 7  Renaissance zone:
     a  Historic property preservation credit                                    Part 5     Nonresident beneficiary: North Dakota
     b  Renaissance fund organization credit                                                income tax withheld or composite tax paid
     c  Nonparticipating property owner credit                                   32 North Dakota distributive share of
                                                                                      income (loss)
 8  Seed capital investment credit
  9  Agricultural commodity processing                                           33 North Dakota income tax withheld
       facility investment credit
                                                                                 34 North Dakota composite income tax
10  Biodiesel/green diesel fuel blending credit

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North Dakota Office of State Tax Commissioner

2018
Beneficiary’s Instructions for North Dakota Schedule K-1 (Form 38)

Purpose of form  North Dakota income subject to North an amended North Dakota income tax return
North Dakota Schedule K-1 (Form 38) Dakota income tax withholding. See to report the revised information, in which
is a supplemental schedule provided Part 5 of the schedule. case a copy of the amended Schedule K-1
by a fiduciary of an estate or trust to its  North Dakota income tax withheld from (Form 38) must be attached to your amended
beneficiaries. It provides information the your distributive share of North Dakota North Dakota income tax return. If you
beneficiaries may need to complete their income. See Part 5 of the schedule. previously elected to include your distributive
North Dakota income tax returns. For this share of North Dakota income in a composite

purpose, “beneficiary” includes an owner of a North Dakota income tax paid on your filing, and you are not changing that election,
distributive share of North Dakota income
grantor trust. you generally do not have to take any action
in a composite filing. See “Composite
Resident individual, estate, or trust filing election” under “General and should retain the amended Schedule K-1
(Form 38) for your tax records.
beneficiary. If you are a North Dakota instructions” and Part 5 of the schedule.
resident individual, estate, or trust, your entire
Specific Instructions
distributive share of income from the estate General instructions
or trust is subject to North Dakota income These instructions explain where to report the Part 3
tax. North Dakota Schedule K-1 was issued information from Schedule K-1 (Form 38) on All beneficiaries–North Dakota
to you only to show your distributive share of the North Dakota income tax return. adjustments and tax credits
the estate’s or trust’s North Dakota statutory
adjustments and tax credits that may affect Tax year. References to a North Dakota Except for a nonresident beneficiary who
form and line number contained in these
your North Dakota income tax return. See elected to be included in a composite filing,
instructions are references to the form in
Part 3 of the schedule. the information in Part 3 of Schedule K-1
use for the 2018 calendar year. However, (Form 38) applies to all beneficiaries.
Nonresident individual, estate, or trust if you file your return on a calendar year
beneficiary. If you are a nonresident basis, but the estate or trust files its return The following lists show where to enter
individual, estate, or trust, only the portion on a fiscal year basis, report the amounts on an amount from Part 3 of Schedule K-1
of your distributive share of income from your return for the year in which the estate’s (Form 38) on the North Dakota income tax
the estate or trust that is derived from North or trust’s fiscal year ends. For example, if return. Use the list that applies to your return.
Dakota sources is subject to North Dakota the estate or trust has a fiscal year ending in “Not applicable” in the right-hand column
income tax. North Dakota Schedule K-1 was February 2019, report the amounts from the means that the item does not apply and should
issued to you to show your distributive share 2018 Schedule K-1 (Form 38) on your 2019 not be entered on the return.
of the following items: tax return. The estate’s or trust’s tax year is
 North Dakota income, gains, losses, and shown at the top of the schedule. Lines 1–20
deductions. See Part 4 of the schedule. Composite filing election. If Item H in Part 2 Form ND-1 filer:
 North Dakota statutory adjustments and of Schedule K-1 (Form 38) is checked “Yes,” Include the amount
tax credits. See Part 3 of the schedule. you elected to include your distributive share from this schedule: On:
 North Dakota income tax withheld from of North Dakota income in a composite Lines 1–2 Not applicable
your distributive share of North Dakota filing by the fiduciary. Ignore any amounts Line 3 Form ND-1, line 7
income. See Part 5 of the schedule. shown in Parts 3 through 5 of Schedule K-1 Line 4a Sch. RZ, Part 1, line 19a
(Form 38); they are not applicable if you Line 4b Sch. RZ, Part 1, line 19b
 North Dakota income tax paid on your elected to be included in a composite filing. Line 5 Sch. ND-1SA, line 2
distributive share of North Dakota income
The income tax paid on your behalf by the Line 6 Form ND-1, line 14
in a composite filing. See “Composite
fiduciary under the composite filing method Line 7a Sch. RZ, Part 4, line 7
filing election” under “General
satisfies your North Dakota income tax filing Line 7b Sch. RZ, Part 5, line 4
instructions” and Part 5 of the schedule.
and payment obligations with respect to your Line 7c Sch. RZ, Part 6, line 6
Partnership or corporation beneficiary. North Dakota distributive share of income Line 8 Sch. ND-1TC, line 4
If you are a partnership, C corporation, from the estate or trust. The North Dakota Line 9 Sch. ND-1TC, line 3
S corporation, or a limited liability company distributive share of income and composite Line 10 Sch. ND-1TC, line 6
treated like a partnership or corporation, income tax paid, as shown in Part 5 of Line 11 Sch. ND-1TC, line 7
North Dakota Schedule K-1 was issued to Schedule K-1 (Form 38), are provided only Line 12 Sch. ND-1TC, line 12b
you only to show your distributive share of for your information. If you later choose to Line 13 Sch. ND-1TC, line 8a
North Dakota statutory adjustments and tax revoke your composite filing election and file Line 14a Sch. ND-1TC, line 9a
credits. See Part 3 of the schedule. your own North Dakota income tax return, Line 14b Sch. ND-1TC, line 9b
follow the instructions to Parts 3 through 5 Line 15a Sch. ND-1TC, line 15b
If you are a partnership, S corporation, or
to transfer the amounts from Schedule K-1 Line 15b See instructions to
a limited liability company treated like a (Form 38) to your return. Form ND-1, line 4a
partnership or S corporation, and if your
Line 15c Sch. ND-1TC, line 15b
commercial domicile is located outside North Amended Schedule K-1 (Form 38). If
Line 15d See instructions to
Dakota, the schedule may also show your you receive an amended North Dakota Form ND-1, line 4a
distributive share of the following items: Schedule K-1 (Form 38) from the fiduciary
Line 16 Sch. ND-1TC, line 11a
for the estate or trust, you generally must file

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Line 17 Sch. ND-1TC, line 13 Line 13 Form 40, Sch. TC, Form 38 filer (nonresident only):
Line 18 Sch. ND-1TC, line 18 line 17 Include the amount On Page 2, Part 2,
Line 19 Sch. ND-1TC, line 19 Line 14a Form 40, Sch. TC, line 7 from this schedule: Column B:
Line 20 Sch. ND-1TC, line 20 Line 14b Form 40, Sch. TC, line 8 Line 21 Line 1
Line 15a Form 40, Sch. TC, Line 22 Line 2
Form 38 filer: line 16 Lines 23–24 Line 4
Include the amount Line 15b Form 40, Sch. SA, line 5 Lines 25–29 Line 5
from this schedule: On: Line 15c Form 40, Sch. TC, Line 30 Line 4 (if capital
Lines 1–2 Not applicable
line 16 loss) or line 8 (if net
Line 3 Form 38, page 2, Part 1, Line 15d Form 40, Sch. SA, line 5 operating loss)
line 4a Line 16 Form 40, Sch. TC, Line 31 Line 8
Line 4a Sch. RZ, Part 1, line 19a line 20
Line 4b Sch. RZ, Part 1, line 19b Line 17 Form 40, Sch. TC, Part 5
Lines 5-6 Form 38, page 2, Part 1, line 21 Nonresident beneficiary only
line 4d Line 18 Form 40, Sch. TC, line 3 Lines 32 through 34 only apply if you are (1)
Line 7a Sch. RZ, Part 4, line 7 Line 19 Form 40, Sch. TC, line 2 an individual not domiciled in North Dakota,
Line 7b Sch. RZ, Part 5, line 4 Line 20 Form 40, Sch. TC, line 1 (2) a trust, including a grantor trust, not
Line 7c Sch. RZ, Part 6, line 6
Line 8 Sch. 38-TC, line 3 Forms 58 and 60: Include the amounts from organized under North Dakota law, or (3) a
Line 9 Sch. 38-TC, line 2 lines 1–20 of this schedule on the applicable passthrough entity, such as a partnership, with
Line 10 Sch. 38-TC, line 4 lines of Schedule K of Form 58 or Form 60. a commercial domicile outside North Dakota.
Line 11 Sch. 38-TC, line 5
Line 12 Sch. 38-TC, line 10b Part 4 Line 32
This is the net amount of your North Dakota
Line 13 Sch. 38-TC, line 6a Nonresident individual, estate,
distributive share of income (loss) from the
Line 14a Sch. 38-TC, line 7a or trust beneficiary only–North
estate or trust. Do not enter the amount from
Line 14b Sch. 38-TC, line 7b Dakota income (loss)
Line 15a Sch. 38-TC, line 12c this line anywhere on your return. It is for
Line 15b Form 38, page 2, Part 1, If you are a nonresident individual, estate, or your information only.
line 2 trust, lines 21 through 31 of Part 4 show your
Line 15c Sch. 38-TC, line 12c share of the estate’s or trust’s North Dakota Line 33
Line 15d Form 38, page 2, Part 1, income, gains, losses, and deductions that you This is the amount of North Dakota income
line 2 must report on your North Dakota income tax tax withheld by the fiduciary from your North
Line 16 Sch. 38-TC, line 9a return. Transfer these amounts to your North Dakota distributive share of income. Enter
Line 17 Sch. 38-TC, line 11 Dakota income tax return as instructed below this amount on your return as follows:
Line 18 Sch. 38-TC, line 15 based on the type of return you are filing.
Line 19 Sch. 38-TC, line 16  If an individual, enter on Form ND-1,
Line 20 Sch. 38-TC, line 17 If the full amount of any item is not included line 26.
in your adjusted gross income on your federal  If an estate or trust, enter on Form 38,
income tax return because of limitations on
Form 40 filer: page 1, line 8.
Include the amount the deductibility of a passive activity loss,  If a partnership, enter on Form 58, page 1,
from this schedule: On: capital loss, section 179 deduction, or for line 4.
Line 1 Form 40, Sch. SA, line 4 any other reason, enter on your North Dakota  If an S corporation, enter on Form 60,
Line 2 Form 40, Sch. SA, line 3 return only that portion of the item included page 1, line 5.
Line 3 Form 40, Sch. SA, in your federal adjusted gross income.
Attach a copy of North Dakota
line 11 Attach a statement to your North
Schedule K-1 (Form 38) to your return.
Line 4a Sch. RZ, Part 1, line 19a Dakota income tax return explaining any
Line 4b Sch. RZ, Part 1, line 19b difference between the amount shown on
Line 5 Form 40, Page 1, line 9 North Dakota Schedule K-1 (Form 38) and Line 34
Line 6 Not applicable the amount reported on your North Dakota If you elected to include your North
Line 7a Sch. RZ, Part 4, line 7 income tax return. Dakota distributive share of income (loss)
Line 7b Sch. RZ, Part 5, line 4 in a composite filing, this is the amount of
Line 7c Sch. RZ, Part 6, line 6 Form ND-1 filer (nonresident only): North Dakota composite income tax paid
Line 8 Form 40, Sch. TC, Include the amount On Schedule ND-1NR, on your behalf by the fiduciary. For more
line 12 from this schedule: Column B: information, see “Composite filing election”
Line 9 Form 40, Sch. TC, Lines 21-22 Line 2 on page 1 of these instructions.
line 15 Lines 23-24 Line 4
Line 10 Form 40, Sch. TC, Lines 25–29 Line 6 Note: If you later choose to file your own
line 13 Line 30 Line 4 (if capital North Dakota income tax return, you may
Line 11 Form 40, Sch. TC, loss) or line 8 (if net claim this amount as a tax payment on your
line 14 operating loss) return. Attach a copy of the North Dakota
Line 12 Form 40, Sch. TC, line 4 Line 31 Line 8 Schedule K-1 (Form 38) to your return to
support the amount claimed.

North Dakota Office of State Tax Commissioner
2018 Beneficiary’s Instructions for North Dakota Schedule K-1 (Form 38) Page 2

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