North Dakota - Credit for Taxes Paid to Another State

Note: The best practice when entering multiple state tax information into Tax Processors Plus Online is to start with the nonresident return(s) and finish with the resident return. This allows the income tax data from the nonresident state(s) to transfer to the resident return.

North Dakota residents may claim a nonrefundable credit for taxes paid to another state. The income must be taxed by both jurisdictions. This credit is for state or local income taxes imposed on a taxpayer's income; it does not apply to foreign income taxes.

Before starting the North Dakota return, prepare the nonresident return(s). Once all nonresident return(s) are finished, create the Indiana resident return and Tax Processors Plus Online will automatically calculate the credit based on the nonresident return information.

If the North Dakota return is for a part-year resident, print a copy of the nonresident return(s) to refer to when entering the information for the credit.

To enter or adjust the credit for taxes paid to another state in the North Dakota individual tax return in Tax Processors Plus Online, from the North Dakota Return menu select:

• Credits
• Credit for Taxes Paid to Another State

Additional Information:

North Dakota State Tax Information

Which states does North Dakota have a reciprocal agreement with?

ND Tax Individual Income Tax Exemptions

ND Tax: Individual Income Tax Forms & Instructions  

Tax Processors Plus Online strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.