Schedule K-1 (Form 38): Schedule K-1 (Form 38) - Beneficiary's Share of North Dakota Income (Loss), Deductions, Adjustments, Credits, and Other Items (2025)
North Dakota · ND Tax Commissioner · Used for tax years 2025
North Dakota Schedule K-1 (Form 38) is a supplemental schedule an estate or trust's fiduciary provides to its beneficiaries. It reports beneficiaries' shares of North Dakota adjustments and tax credits and, when applicable, income, losses, deductions, income tax withheld, and com
Who files this form
The fiduciary of an estate or trust provides North Dakota Schedule K-1 (Form 38) to beneficiaries. It gives beneficiaries information they may need for their North Dakota income tax returns. For this schedule, a beneficiary includes an owner of a grantor trust.
- Resident individuals, estates, and trusts: Your entire distributive share of income from the estate or trust is subject to North Dakota income tax. Part 3 shows North Dakota adjustments and tax credits.
- Nonresident individuals, estates, and trusts: Only the portion of your distributive share derived from North Dakota sources is subject to North Dakota income tax. Parts 3 through 5 provide relevant adjustments, credits, income, deductions, and tax information.
- Partnerships and corporations: Part 3 shows North Dakota adjustments and tax credits. Certain passthrough entities with a commercial domicile outside North Dakota may also receive withholding or composite tax information in Part 5.
If you elected to be included in a composite filing, the tax paid by the fiduciary satisfies your North Dakota filing and payment obligations for your North Dakota distributive share from that estate or trust.
What you'll need
- Federal Schedule K-1: The beneficiary's SSN or FEIN, name, and address on the North Dakota schedule come from the federal schedule.
- North Dakota Schedule K-1 (Form 38): Attach a copy to your return when reporting tax withheld on line 37. Also attach a copy if you later file your own return and claim the composite tax on line 38 as withholding.
- Amended Schedule K-1: If you must amend your North Dakota return to report revised information, attach a copy of the amended schedule.
- Statement explaining differences: For Part 4 amounts, attach a statement explaining any difference between the amount shown on the schedule and the amount reported on your North Dakota return.
Common mistakes
- Entering line 36 on your return: This net North Dakota distributive share amount is for information only. Do not enter it anywhere on your return.
- Using Parts 3 through 5 despite a composite election: If Item H is checked “Yes,” ignore those amounts unless you later revoke the election and file your own North Dakota return.
- Reporting the full Part 4 amount when federal limits apply: Report only the portion included in your federal adjusted gross income. Attach a statement explaining the difference.
- Entering items marked “Not applicable”: These items do not apply and should not be entered on your return.
- 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.
Questions people ask
What does Item H checked “Yes” mean?
You elected to include your North Dakota distributive share of income in a composite filing by the fiduciary. The tax paid on your behalf satisfies your North Dakota filing and payment obligations for that share of income. Parts 3 through 5 are not applicable to you while that election remains in effect.
What should I do 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 previously elected composite filing and are not changing that election, you generally do not need to take action. Keep the amended schedule for your tax 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. For example, amounts from a 2025 Schedule K-1 for an estate or trust whose fiscal year ends in February 2026 belong on your 2026 return.
Where does an individual report North Dakota tax withheld on line 37?
Enter it on Form ND-1, line 26, and attach a copy of North Dakota Schedule K-1 (Form 38) to your return.