- 2 -
|
2022 Schedule ND-1CR
SFN 28721 (12-2022), Page 2
General instructions You filed an individual income income tax from the wages, do not
tax return with the other state complete this schedule. Instead, you
Who is eligible on which you were allowed must file a Montana individual income
You may be eligible for a credit for an income deduction or a tax tax return to obtain a refund of the
income tax paid to another state credit to offset the other state’s Montana income tax withheld.
or local jurisdiction if both of the income tax on your share of the
Income other than wages from
following apply: pass-through entity’s income.
Montana sources—If you are a
• You were a North Dakota resident Other jurisdiction’s income tax resident of North Dakota and you paid
for all or part of the tax year. return—The credit is allowed only income tax to Montana on income
• You paid income tax for the tax if you, or a pass-through entity in other than wages—such as income
year to North Dakota and to the the case of a composite or entity- from a business, rental property, or
other state or local jurisdiction on level income tax, file an income tax the sale of real property—complete
the same income. If you were a return with the other state or local Schedule ND-1CR to calculate the
part-year resident of North Dakota, jurisdiction. The credit is not allowed allowable credit for the tax paid on
the credit is allowed if the eligible based on income tax withholding this income.
income was earned or received shown on a Form W-2 or estimated
during the time you were a North income tax paid to the other state or Did you work in Minnesota?
Dakota resident. local jurisdiction. If you worked in Minnesota while
a resident of North Dakota and
A “state” means any of the Joint filers with different
maintained a home in North Dakota
other 49 U.S. states, the District residency statuses. If you are
to which you returned at least once
of Columbia, and a U.S. territory. filing a joint return and you and
every month, the wages you receive
A “local jurisdiction” means a city, your spouse have different residency
for this work are not taxable by
township, county, etc., within a state. statuses, the credit is available to
Minnesota under the income tax
either or both of you, if you meet the
reciprocity agreement between the
Qualifying taxes—The credit is eligibility requirements.
allowed for income taxes you paid two states. If this applies to you, but
to another state and any of its local Credit for income tax paid your employer withheld Minnesota
jurisdictions. The credit is not allowed to multiple states or local income tax from the wages, do not
for income tax paid to a foreign jurisdictions—If you paid income complete this schedule. Instead,
country or its local jurisdictions, nor tax to more than one other state for you must file a Minnesota individual
is it allowed for any tax that is not an the tax year, complete a separate income tax return to obtain a refund
income tax (e.g., property or sales Schedule ND-1CR for each state. If of the Minnesota income tax withheld.
taxes). you also paid income tax to a local
Income other than wages from
jurisdiction in another state, include
Minnesota sources—If you are a
Composite income tax or pass- the income tax paid to the local
resident of North Dakota and you paid
through entity income tax. If you jurisdiction on the Schedule ND-1CR
income tax to Minnesota on income
owned an interest in a partnership, completed for the state in which the
other than wages—such as income
S corporation, or a limited liability local jurisdiction is located. Add the
from a business, rental property, or
company treated like a partnership or separate credit amounts from all of
the sale of real property—complete
S corporation, you may claim a credit the Schedule ND-1CR forms and enter
Schedule ND-1CR to calculate the
for your allocable share of an income the total on Form ND-1, line 21.
tax paid by the pass-through entity to allowable credit for the tax paid on
another state if either of the following Note: If another state assesses you this income.
apply: additional income tax after you file
your North Dakota income tax return, Specific line instructions
• You elected to be included in a you have up to one year following the
composite income tax return filed date you paid the additional tax to the Line 1b
on your behalf in the other state other state to file an amended North Enter the items of income, gain, loss,
by the pass-through entity, which Dakota return to claim the credit and and adjustments to income included
satisfied your personal income tax obtain a refund. This applies even in your federal adjusted gross income
filing and payment requirements in though the regular time periods for that have their source in the other
that state. filing a refund claim have expired. state. Generally, they have their
You do not have to file an source in the other state if they are
income tax return in the Did you work in Montana? taxable or deductible under the tax
other state under a law that If you worked in Montana while a laws of the other state or its local
imposes the income tax on the resident of North Dakota, the wages jurisdictions. Do not include personal
pass-through entity’s income you receive for this work are not or dependency exemptions, standard
tax payment satisfies your taxable by Montana under the income deduction or itemized deductions,
requirement to file and pay tax reciprocity agreement between or any other adjustment to federal
income tax on your share of the the two states. If this applies to you, adjusted gross income allowed or
pass-through entity’s income. but your employer withheld Montana required by the tax laws of the other
state or its local jurisdictions.
|