North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-03 - Income Taxes and Privilege Taxes Based on Income
Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries
Section 81-03-02.1-06 - Adjustments for pay received from armed forces

Universal Citation: ND Admin Code ยง 81-03-02.1-06

Current through Supplement No. 394, October, 2024

A portion of the pay received for service in the armed forces by a resident of this state is not subject to income tax imposed by this state. This portion is determined as follows:

1. An amount up to a maximum of one thousand dollars for pay received by an individual for services performed while on active duty for the armed forces of the United States or as payment for attending periodic training meetings for drill and instruction as a member of the national guard or of a reserve unit of the armed forces of the United States may be deducted from income taxable in this state subject to the following:

a. The deduction may not exceed actual total pay received from such services for the tax year.

b. The deduction may not be claimed as an adjustment on the North Dakota individual income tax return if the amount received for such services was excluded or deducted from gross income for federal income tax purposes.

2. An amount up to, but not exceeding, three hundred dollars per month for pay received by an individual for services performed while on active duty for the armed forces of the United States outside of the United States or the District of Columbia may be deducted from income taxable in this state subject to the following:

a. During the time for which the deduction is taken, the individual's rank must have been below major in the United States army, air force, or marines; below lieutenant commander in the United States navy; or below surgeon in the United States public health service.

b. The individual must have been on active duty stationed outside any state of the United States or the District of Columbia for thirty consecutive days in the year the deduction is claimed. After the initial thirty consecutive days, the person may claim the deduction for any full month or for a fraction of a month.

c. The individual must have earned three hundred dollars or more per month. If the individual was paid less than three hundred dollars per month, the deduction must be limited to actual pay received for the month.

d. The three hundred dollar per month deduction is in addition to the one thousand dollar deduction in subsection 1, and the total of the two may not exceed the individual's total pay for such services for the tax year the deduction is claimed.

e. The deduction may not be claimed as an adjustment on the North Dakota individual income tax return if the amount received for such services was excluded or deducted from gross income for federal income tax purposes.

General Authority: NDCC 57-38-56

Law Implemented: NDCC 57-38-01.2

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