PWA: Form PWA - Passthrough Entity Withholding Nonmember Adjustment (2025)

North Dakota · ND Tax Commissioner · Used for tax years 2025

North Dakota Form PWA lets an eligible nonresident member request reduced income tax withholding from a passthrough entity. It reports estimated income, estimated tax payments, additional withholding from wages, and the adjusted amount the entity should withhold.

Who files this form

Form PWA lets an eligible nonresident member request reduced North Dakota income tax withholding from a passthrough entity. It is not a required request for every nonresident member.

A passthrough entity must generally withhold 2.50% of a nonresident member’s North Dakota distributive share of income if that share is $1,000 or more and is not included in a composite return.

You may use Form PWA if any of these apply:

  • You already paid estimated North Dakota income tax on that income.
  • You had additional North Dakota income tax withheld from wages to cover the expected tax on that income.
  • An offsetting North Dakota loss or income adjustment will make your North Dakota taxable income smaller than your North Dakota distributive share.

When it's due

For the 2025 adjustment, submit the completed Form PWA to the passthrough entity before the last day of the entity’s tax year to which the adjustment applies. The form does not give a specific calendar date for this deadline.

What you'll need

Have the following information ready to complete Form PWA:

  • The nonresident member’s name and Social Security number or FEIN.
  • The tax year of the passthrough entity to which the adjustment applies.
  • The estimated North Dakota distributive share of income and estimated total North Dakota taxable income.
  • Estimated North Dakota income tax already paid and additional North Dakota income tax withheld from wages. These amounts must be for the same tax year in which the distributive share is reportable on the member’s North Dakota return.
  • The member’s signature and date.

The passthrough entity provides its name and FEIN in Part 2.

How to file

Nonresident member

  1. Complete Part 1 and identify the tax year to which the adjustment applies.
  2. On line 1, enter the smaller of your estimated North Dakota distributive share of income or estimated total North Dakota taxable income.
  3. Multiply line 1 by 2.50% (.025) for line 2.
  4. Enter estimated North Dakota income tax paid on line 3a and additional North Dakota tax withheld from wages on line 3b.
  5. Add lines 3a and 3b for line 4. Subtract line 4 from line 2 to calculate the amount to withhold on line 5.
  6. Sign, date, and submit the form to the passthrough entity.

Passthrough entity

  1. Complete Part 2 and withhold only the amount shown in Part 1, line 5, for the specified tax year.
  2. Fill in the member’s “Form PWA or Form PWE” circle on the applicable return schedule:
  • Form 38: Schedule BI, Column 6.
  • Form 58: Schedule KP, Column 7.
  • Form 60: Schedule KS, Column 7.
  1. Attach a copy of Form PWA to your North Dakota income tax return. Keep the original signed copy for your records.

The form does not specify a mailing address or an e-file method for submitting Form PWA.

Common mistakes

  • Leaving out the Social Security number or FEIN. Disclosure is mandatory. The form warns that a missing number may delay or prevent processing.
  • Using tax payments or wage withholding from the wrong year on line 3. These amounts must be for the same tax year in which the distributive share is reportable on the member’s North Dakota income tax return.
  • Using the member’s tax year when the entity has a different tax year. The form directs you to specify the passthrough entity’s tax year to which the adjustment applies.

Questions people ask

Who counts as a nonresident member?

A nonresident member is an individual not domiciled in North Dakota, a trust not organized in North Dakota, or a passthrough entity without a commercial domicile in North Dakota.

What counts as a passthrough entity?

The form includes partnerships of all types, S corporations, trusts, limited liability companies not taxed as C corporations, and other entities not taxed at the entity level for North Dakota income tax purposes.

Can a member request an exemption instead of reduced withholding?

If the nonresident member is itself a passthrough entity, it may be eligible to elect an exemption from withholding on its North Dakota distributive share. The form refers these members to Form PWE for more information.

Who keeps the original signed Form PWA?

The passthrough entity keeps the original signed copy and attaches a copy to its North Dakota income tax return.

Official sources

All versions of PWA