40: Form 40 - Corporation Income Tax Return (2024)
North Dakota · ND Tax Commissioner · Used for tax years 2024
North Dakota Form 40 is the Corporation Income Tax Return for 2024. It reports income allocated or apportioned to North Dakota, adjustments, exemptions, tax credits, and payments to calculate the corporation's tax liability, balance due, or overpayment.
What you'll need
Gather the documents and schedules that apply to your return:
- Income and apportionment information: Federal Form 1120 amounts referenced by the applicable schedules, plus property, payroll and sales information needed for apportionment.
- Supporting worksheets: Attach worksheets where requested for adjustments, exemptions, loss carryforwards and credits. Interest on U.S. obligations requires a statement regarding the obligations.
- Oil and gas royalty withholding: Attach Form 1099-MISC if reporting this withholding on line 22.
- Estimated-tax underpayment interest: Attach Form 40-UT for line 24b.
- Consolidated returns: Complete and attach all three parts of Schedule CR.
- Credit documentation: Attach the worksheets, documentation and schedules specified for the credits claimed, such as Schedule RZ, ME or MCP.
- Property tax clearances: For credits on Schedule TC lines 6–14, 16–18 or 22, attach a clearance for each county where the corporation has a 50% or greater interest in North Dakota real property. This requirement also applies to officers responsible for the corporation's state tax filing or payment obligations.
Additional statements or schedules are required for certain answers on page 2, including combined reporting in other states, included disregarded single-member LLCs and captive REITs.
How to file
- Select the calendar or fiscal tax year and mark one filing method on page 1, line 1.
- Complete Schedule SA for statutory adjustments, regardless of filing method. Use the income and apportionment schedules that apply to your filing method.
- Answer the required questions on page 2 and attach the required supporting documents.
- Complete the tax, payment and balance-due or overpayment lines. Have the officer sign and date the return, and complete the preparer fields if applicable.
Mail the return to:
Office of State Tax Commissioner
600 E. Boulevard Ave., Dept. 127
Bismarck, ND 58505-0599
Make payment payable to ND State Tax Commissioner.
Common mistakes
- Marking more than one filing method: Page 1, line 1 says to mark only one circle.
- Using the wrong apportionment schedule: Consolidated North Dakota filers using method b1 or c1 must use Schedule CR, Part II, not Schedule FACT.
- Missing required clearances: Failure to attach required county property tax clearances may result in a credit being disallowed.
- Using the wrong number format: Round dollar amounts to whole dollars. Carry apportionment calculations to six decimal places as directed.
- Misunderstanding a water's edge election: Marking the circle in years two through five does not start a new five-year election. Marking it for a sixth year does. The election must be made on the originally and timely filed return.
Questions people ask
Does every corporation use Schedule SA?
Yes. The form says Schedule SA is used by all corporations, regardless of filing method.
Is there an extra tax for water's edge filers?
Yes. Line 17 imposes a surtax of 3.5% of line 15 for water's edge filers only.
Can I apply an overpayment to next year's estimated tax?
Yes. On the 2024 return, line 25a lets you apply part of the overpayment to 2025 estimated tax. The minimum is $5.
Will an amount under $5 be refunded?
No. The form states that there is no refund under $5. It also directs you to enter $0 on the balance-due or overpayment line if the calculated amount is less than $5.