Schedule ME: Schedule ME - Credit for Wages Paid to Mobilized Employee (2024)
North Dakota · ND Tax Commissioner · Used for tax years 2024
North Dakota Schedule ME calculates the 2024 income tax credit for wages paid to mobilized employees. It reports employee mobilization periods, employer wages, federal active duty wages, and the credit used or carried over.
Who files this form
Use 2024 Schedule ME to claim the credit for wages paid to an eligible mobilized employee.
The employee must be:
- A legal resident of North Dakota.
- A member of the National Guard or a reserve component of any branch of the U.S. armed forces.
- Mobilized for federal active duty under Title 10 of the United States Code during your tax year.
During the mobilization period, you must continue paying some or all of the employee’s wages. The employee’s federal active duty wages must also be less than the wages you would have paid if the employee had not been mobilized.
No credit is allowed if none of the mobilization period falls within your 2024 tax year.
What you'll need
Have the following information ready:
- Your taxpayer name as shown on your return and your Social Security number or FEIN.
- Each eligible employee’s name and Social Security number.
- The beginning and ending dates of the mobilization period falling within your 2024 tax year.
- The wages you would have paid during that period if the employee had not been mobilized.
- The wages you actually paid during that period.
- The federal active duty wages the employee received during that period.
- Any unused credit carryover needed to complete lines 11 and 14.
Obtain the federal active duty pay information from the employee or their designated representative. The employee’s military Leave and Earnings Statements can be used to determine this amount.
How to file
Attach Schedule ME to Form ND-1, 38, 40, 58 or 60. If you have more than three eligible employees, complete additional schedules as needed.
Transfer the amount from Schedule ME, line 13, to the applicable return or schedule:
- Form ND-1: Schedule ND-1TC, line 13.
- Form 38: Schedule 38-TC, line 11.
- Form 40: Schedule TC, line 19, or Schedule CR, Part III, line 19.
- Form 58: Schedule K, line 16.
- Form 60: Schedule K, line 13.
The supplied text does not provide a mailing address or e-file instructions.
Common mistakes
- Continuing when line 4 is zero or less. The form says to stop because you are not eligible for the credit.
- Claiming a credit when no mobilization falls within 2024. At least part of the mobilization period must fall within your 2024 tax year.
- Entering carryover amounts as a Form 58 or 60 filer. The form directs these filers to enter zero on lines 11 and 14.
- Trying to fit more than three employees on one schedule. Complete additional schedules as needed.
Questions people ask
How is the credit calculated?
Subtract the employee’s federal active duty wages from the wages you would have paid during the mobilization period. If the result is zero or less, no credit is available. Otherwise, take the smaller of that difference or the wages you actually paid, then multiply by 25%. The maximum credit is $1,000 per employee.
What counts as wages?
Wages include gross wages before payroll taxes, employee retirement contributions and other payroll deductions, plus your contributions to the employee’s defined contribution plan. The form lists 401(k), 403(b), profit-sharing, stock bonus and money purchase plans, as well as other plans meeting the definition under Internal Revenue Code Section 414.
Can unused credits carry over to 2025?
Line 14 reports the portion of unused credit eligible for carryover to 2025. Unused credits from the 2022, 2023 and 2024 tax years are eligible. Form 58 and 60 filers are directed to enter zero.
What should a partnership or S corporation enter on line 13?
A partnership, S corporation or limited liability company treated as either must enter the amount from line 12 on line 13 and skip line 14, according to the line 13 instructions.