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                            CREDIT FOR INCOME TAX PAID TO ANOTHER
                            STATE OR LOCAL JURISDICTION
                            OFFICE OF STATE TAX COMMISSIONER                                           Schedule ND-1CR
                            SFN 28721 (12-2022)
                                                                                                               2022
Name (First, MI, Last Name)                                                                       Social Security Number

Full-year resident and part-year resident
     All taxpayers: All taxpayers must enter the name of the other state in which state and/or local income tax was
     paid and complete lines 1a through 6.

     Part-year resident: If you were a part-year resident, this credit is allowed only if you reported income to North
     Dakota on Schedule ND-1NR, line 18, that (1) has its source in another state and (2) was received or earned
     while you were a resident of North Dakota.
    Enter the name of the other state in which you paid state and/or local income tax on income
    that is also taxed by North Dakota

1. a.  Federal adjusted gross income from Form ND-1, line 1a                                           1a
    b. How much of the amount on line 1a has its source in the other state? If none, stop here;
       you are not eligible for this credit. See instructions for proper amount to enter here          1b
    c. How much of the amount on line 1b did you (and your spouse, if filing jointly) receive or
       earn while a resident of North Dakota? If none, stop here; you are not eligible for this
       credit. See instructions for proper amount to enter here                                        (S8) 1c
2.  Enter the applicable amount for your residency status as instructed below                          (SJ) 2
       Full-year resident - Enter the amount from Form ND-1, line 1a, less the amount from Form ND-1,
       line 6. (If married filing jointly, this applies only if both spouses were full-year residents.)
       Part-year resident - Enter the amount from Schedule ND-1NR, line 18. (If married filing jointly,
       this applies if either spouse was a part-year resident.)
3.  Divide line 1c by line 2. Round to nearest four decimal places. If line 1c is equal to or more
    than line 2, enter 1                                                                                                3

4.  Enter the amount of your North Dakota tax from Form ND-1, line 19                                  4

5.  Multiply line 4 by line 3                                                                          (SL) 5
6.  Enter the amount of income tax paid to the other state and its local jurisdictions.
    See instructions for proper amount to enter here                                                   (SM) 6
       If you were a full-year resident, go to line 7. (If married filing jointly, this applies if both spouses
       were full-year residents.)
       If you were a part-year resident, skip line 7 and go to line 8. (If married filing jointly, this applies
       if either spouse was a part-year resident.)

Full-year resident only - Complete line 7 only if you were a full-year resident. (If
married filing jointly, this applies only if both spouses were full-year residents.)
7. Credit - Enter the smaller of line 5 or line 6. Enter this amount on Form ND-1, line 21             7

Part-year resident - Complete lines 8 through 11 only if you were a part-year
resident. (If married filing jointly, this applies if either spouse was a part-year resident.)

8.  Enter the amount from line 1b                                                                      (SK) 8
9.  Divide line 1c by line 8. Round to nearest four decimal places. If line 1c is equal to or more than
    line 8, enter 1                                                                                                     9

10. Multiply line 6 by line 9                                                                          (S9) 10

11. Credit  -Enter the smaller of line 5 or line 10. Enter this amount on Form ND-1, line 21           11



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 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.



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 2022 Schedule ND-1CR
SFN 28721 (12-2022), Page 3

Include on this line your share of     Example: Taxpayer B was a resident     Line 6
income included in a composite         of a state other than North Dakota     Enter on line 6 the amount of net 
income tax return or a pass-through    from January 1 through June 30         income tax shown on the other state’s 
entity income tax return filed in the  and a North Dakota resident from       income tax return. If you also paid 
other state - see “Composite income    July 1 through December 31. While      income tax to a local jurisdiction in 
tax or pass-through entity income tax” a resident of the other state, she     the other state, include the amount 
in these instructions.                 received wages of $10,000 for          of net income tax shown on the local 
                                       working in that state. After moving to jurisdiction’s income tax return (or, if 
Example: Taxpayer A is a full-year                                            applicable, the other state’s return). 
                                       North Dakota, she earned additional 
resident of North Dakota. His federal                                         “Net income tax” means the amount 
                                       wages of $18,000 for working in North 
adjusted gross income is $49,000,                                             after income tax credits but before 
                                       Dakota. She also owns land located 
which consists of wages of $48,000                                            withholding and estimated taxes. Do 
                                       in the other state from which she 
and interest income of $1,000. $5,000                                         not include on this line income tax 
                                       received net rental income of $1,000 
of his wages was earned for work he 
                                       per month ($12,000 for the year).      withholding shown on a Form W-2 
performed in another state and is 
                                       Her federal adjusted gross income      or estimated income tax paid to the 
taxable by that state. The amount to 
                                       is $40,000 ($10,000 + $18,000 +        other state or local jurisdiction. 
enter on line 1b of Schedule ND-1CR    $12,000). The wages of $10,000 and 
is $5,000, which is the portion of his the net rental income of $12,000       Include on this line your share of 
federal adjusted gross income that     derived from the other state are       income tax paid on a composite 
has a source in the other state.       taxable by that state. The amount to   income tax return or a pass-through 
                                                                              entity income tax return filed in the 
Line 1c                                enter on line 1b of Schedule ND-1CR 
                                                                              other state - see “Composite income 
Enter the portion of line 1b that was  is $22,000, which is the portion of 
                                                                              tax or pass-through entity income tax” 
received or earned while a resident of her federal adjusted gross income 
                                                                              in these instructions.
North Dakota.                          that has a source in the other state. 
                                       The amount to enter on line 1c of 
                                       Schedule ND-1CR is $6,000, which 
                                       is the portion of her net rental 
                                       income taxed by the other state that 
                                       she received while a North Dakota 
                                       resident.






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