Schedule K-1 (Form 38): Schedule K-1 (Form 38) - Beneficiary's Share of North Dakota Income (Loss), Deductions, Adjustments, Credits, and Other Items (2024)
North Dakota · ND Tax Commissioner · Used for tax years 2024
North Dakota Schedule K-1 (Form 38) is a supplemental schedule that an estate's or trust's fiduciary provides to its beneficiaries. It reports beneficiaries' shares of North Dakota adjustments and tax credits and, where applicable, income, losses, deductions, tax withheld, and co
Who files this form
The fiduciary of an estate or trust provides Schedule K-1 (Form 38) to beneficiaries to help them complete their North Dakota income tax returns. A beneficiary includes an owner of a grantor trust.
- North Dakota resident individuals, estates, and trusts: Your entire distributive share of the estate’s or trust’s income is subject to North Dakota income tax. Part 3 shows North Dakota adjustments and tax credits.
- Nonresident individuals, estates, and trusts: Only the share derived from North Dakota sources is subject to North Dakota income tax. Parts 3 through 5 provide adjustments, credits, income, and tax payment information.
- Partnerships and corporations: Part 3 provides adjustments and credits. Certain passthrough entities with a commercial domicile outside North Dakota may also receive withholding and composite tax information.
If you elected composite filing, the tax paid by the fiduciary satisfies your North Dakota filing and payment obligations for your distributive share of income from that estate or trust.
What you'll need
- Federal Schedule K-1: The form identifies this as the source for the beneficiary’s SSN or FEIN, name, and address.
- North Dakota Schedule K-1 (Form 38): Attach a copy to your return when reporting withholding from line 36 or claiming line 37 composite tax as withholding after choosing to file your own return.
- Amended Schedule K-1: Attach a copy if you file an amended North Dakota return to report revised information.
- Statement explaining differences: For Part 4 income and deductions, attach a statement explaining any difference between the amount on Schedule K-1 and the amount reported on your North Dakota return.
Common mistakes
- Using the wrong tax year: If you file on a calendar-year basis and the estate or trust uses a fiscal year, report the amounts for the year in which its fiscal year ends.
- Transferring amounts despite a composite election: If Item H is checked “Yes,” ignore Parts 3 through 5 unless you later revoke the election and file your own return.
- Reporting line 35 as income on your return: This line is informational only. Do not enter it anywhere on your return.
- Ignoring federal limitations: For Part 4 items limited on your federal return, report only the portion included in federal adjusted gross income. Attach an explanation of any difference.
- Entering items marked “Not applicable”: These items should not be entered on your return.
Questions people ask
What does “Yes” in Item H mean?
It means you elected to include your North Dakota distributive share of income in a composite filing by the fiduciary. Parts 3 through 5 are not applicable to your own return while that election applies.
Where do I report North Dakota tax withheld on line 36?
Individuals use Form ND-1, line 26. Estates and trusts use Form 38, page 1, line 8. Partnerships use Form 58, page 1, line 4. S corporations use Form 60, page 1, line 5. Attach a copy of Schedule K-1 (Form 38).
What if I receive an amended Schedule K-1?
You generally must file an amended North Dakota income tax return and attach the amended schedule. If you elected composite filing and are keeping that election, you generally do not need to take action. Keep the amended schedule for your records.
Which return year should I use if the estate or trust has a fiscal year?
If you file on a calendar-year basis, use the year in which the estate’s or trust’s fiscal year ends. The printed example says that a fiscal year ending in February 2025 means amounts from the 2024 Schedule K-1 belong on your 2025 return.