40-UT: Form 40-UT - Underpayment of Estimated North Dakota Income Tax by Corporations (2024)
North Dakota · ND Tax Commissioner · Used for tax years 2024
North Dakota Form 40-UT calculates a corporation's underpayment of estimated income tax and the interest due for 2024. It reports quarterly payments, credits, underpayments or overpayments, and total interest to enter on Form 40.
Who files this form
For tax year 2024, a corporation must complete Form 40-UT and attach it to Form 40 if an estimated payment for any quarter, including overpayment credits from prior quarters, is less than either:
- 90% of the quarterly income tax liability, or
- The prior year's North Dakota income tax liability divided by four.
However, the form says not to complete it if either of these amounts is $5,000 or less:
- Line 1: 2024 Form 40, line 20 minus line 22, which is net income tax liability after withholding.
- Line 3: 2023 Form 40, line 20, which is the prior year's net income tax liability.
When it's due
For the 2024 tax year, enter installment dates in columns A through D corresponding to:
- The 15th day of the 4th month of the taxable year.
- The 15th day of the 6th month of the taxable year.
- The 15th day of the 9th month of the taxable year.
- The 15th day of the first month of the following year.
Interest runs from the installment due date to the earlier of the date the estimated tax is paid or the return's due date without an extension. The form does not print a specific calendar date for that return deadline.
What you'll need
Have these forms and amounts available:
- Your 2024 Form 40, including lines 20 and 22.
- Your 2023 Form 40, including line 20.
- The amount of any 2023 overpayment credited to 2024 tax.
- Amounts paid and withheld for each quarter, along with estimated tax payment dates.
If federal estimated payments used the adjusted seasonal installment method or annualized income installment method, Federal Form 2220 must be attached.
How to file
Attach completed Form 40-UT to your North Dakota Corporation Income Tax Form 40 when filing.
Add the interest amounts from line 8, columns A through D, and enter the total on Form 40-UT, line 9. Also enter that total on 2024 Form 40, line 24b.
If you used the federal adjusted seasonal or annualized income installment method, fill in the circle on line 10 and attach Federal Form 2220.
The supplied form does not provide a mailing address or e-file instructions.
Common mistakes
- Completing the form when line 1 or line 3 is $5,000 or less. Those lines say not to complete the form in that situation.
- Moving to the next column too soon. Complete the remaining lines for column A before proceeding to columns B, C and D.
- Forgetting to carry an overpayment forward. Enter line 7(b)'s overpayment on line 5(c) in the following quarter.
- Using the standard line 4 calculation without checking line 10. If the line 10 circle is filled in, read its instructions before completing line 4 and attach Federal Form 2220.
Questions people ask
How is the regular quarterly installment calculated?
Enter 25% of line 2 or line 3, whichever is less, in each of columns A through D on line 4. Line 2 is 90% of 2024 Form 40, line 20, before withholding. Line 3 is 2023 Form 40, line 20. Special rules apply if the line 10 circle is filled in.
What interest rate does the form use?
Line 8 uses 12% per year, calculated from the installment due date to the earlier of the estimated tax payment date or the return's due date without an extension.
Can an overpayment count toward the next quarter?
Yes. Enter the overpayment from line 7(b) on line 5(c) in the following quarter.
What if I used a seasonal or annualized method for federal estimated payments?
Fill in the circle on line 10. Calculate each quarterly payment due on line 4 in the same manner as for Federal Form 2220, and attach that federal form.