Schedule MCP: Schedule MCP - Contributions to a Maternity Home (2024)
North Dakota · ND Tax Commissioner · Used for tax years 2024
North Dakota Schedule MCP reports contributions to qualified maternity homes, child placing agencies, or pregnancy help centers and calculates the related income tax credit. It also reports credits received through a North Dakota Schedule K-1 and is attached to Form ND-1, 38, 40,
Who files this form
Use Schedule MCP to claim the credit for contributions to a qualified maternity home, child placing agency, or pregnancy help center. The credit is available to individuals, corporations, estates, trusts, and passthrough entities.
Qualified organizations include:
- A nonprofit maternity home located in North Dakota.
- A child placing agency licensed by North Dakota Health and Human Services (HHS).
- A pregnancy help center recognized by HHS.
You may also report a credit passed through to you on a North Dakota Schedule K-1.
What you'll need
Have the following information and documents ready:
- Your name as shown on your return and your Social Security number or FEIN.
- Each qualified organization's name, address, and contribution amount.
- A copy of a letter or other document from the qualified organization, or copies of the front and back of canceled checks, to support your contributions. Attach this documentation.
- A copy of any North Dakota Schedule K-1 reporting a credit you enter on line 3. Attach that copy.
- If completing lines 5–8, the tax amount from Form ND-1, line 20, or Form 38, line 1.
How to file
Attach Schedule MCP to Form ND-1, 38, 40, 58, or 60.
- List each qualified organization, its address, and your contribution on line 1. Add direct contributions on line 2.
- Enter any credit from a North Dakota Schedule K-1 on line 3 and attach the K-1. Add lines 2 and 3 on line 4.
- Passthrough entities and C corporations complete only lines 1–4. For passthrough entities, the amounts on lines 2 and 4 may not exceed $2,500.
- If filing Form ND-1 or Form 38, continue to line 5. Enter the tax amount specified on the schedule, multiply it by 50% on line 6, and use the $2,500 maximum on line 7. On line 8, enter the smallest of lines 4, 6, and 7. Transfer line 8 to Schedule ND-1TC, line 24, or Schedule 38-TC, line 19.
The schedule also directs filers to report line 4 on these applicable lines:
- Form 38: Schedule K-1, line 22.
- Form 40: Schedule TC, line 21, and, if consolidated, Schedule CR, Part III, line 21.
- Form 58: Schedule K, line 23.
- Form 60: Schedule K, line 20.
Attach the required contribution documentation.
Common mistakes
- Leaving out contribution proof. Attach a letter or other document from the qualified organization, or copies of both sides of canceled checks.
- Omitting a Schedule K-1 attachment. Attach a copy when reporting a North Dakota Schedule K-1 credit on line 3.
- Ignoring the credit limit. The credit may not exceed 50% of tax liability before credits or $2,500, whichever is less.
- Carrying excess credit to another year. Credit above the limit cannot be carried back or forward.
- Completing extra lines for a passthrough entity or C corporation. These filers complete only lines 1–4. Passthrough entities must also limit the amounts on lines 2 and 4 to $2,500.
Questions people ask
How much is the credit?
The credit equals your qualifying contributions made during the tax year, but it cannot exceed 50% of your tax liability before credits or $2,500, whichever is less.
Can I use excess credit in another year?
No. Credit above the limitation cannot be carried back or forward.
What if I received the credit through another entity?
If you own an interest in a partnership or S corporation, or are a beneficiary of an estate or trust, enter the credit reported on your North Dakota Schedule K-1 on line 3. Attach a copy of that K-1.
What proof of my contribution should I attach?
Attach a copy of a letter or other document from the qualified organization, or copies of the front and back of canceled checks supporting your contributions.