Section 81-03-02.1-01 - Credit for taxes paid to another state1. A resident who pays income tax to another state or territory of the United States or the District of Columbia on income which is also taxed by this state, is entitled to a tax credit. The tax credit may be deducted from the North Dakota income tax liability. A copy of the income tax return filed with another jurisdiction must be filed with the North Dakota income tax return and the tax commissioner may require the taxpayer to have the copy certified by the other jurisdiction. 2. If a North Dakota resident is paying income tax to more than one jurisdiction other than North Dakota, on income which is also taxed by this state, a separate computation must be made to determine the amount of the tax credit available from each jurisdiction. These separate tax credits must be added together to determine the total tax credit which may be reported on the taxpayer's North Dakota tax return. 3. A taxpayer who is a part-year resident of North Dakota may claim a credit for taxes paid to another state only if the income taxed by North Dakota and the other state was earned or received during the time the taxpayer was a North Dakota resident. A copy of the income tax return filed with the other state must be filed with the North Dakota income tax return. The tax commissioner may require a certified copy of the other state's return. 4. If married taxpayers file a joint federal income tax return and each spouse had different states of residence during the tax year, the credit is available to the spouse who is required to file a North Dakota income tax return. 5. Subsections 3 and 4 are effective for tax years beginning after December 31, 2000. N.D. Admin Code 81-03-02.1-01
Effective July 1, 1985; amended effective July 1, 1989; June 1, 2002.General Authority: NDCC 57-38-56
Law Implemented: NDCC 57-38-04, 57-38-30.3