Schedule ND-1AC: Schedule ND-1AC - Adoption Credit (2025)
North Dakota · ND Tax Commissioner · Used for tax years 2025
Schedule ND-1AC calculates the North Dakota adoption credit for 2025 based on the federal adoption credit allowed for the tax year. It reports the available credit, the amount used to reduce North Dakota income tax, and any unused credit carried over to 2026.
Who files this form
Use Schedule ND-1AC to claim the North Dakota adoption credit on your 2025 Form ND-1. The credit is based on the federal adoption credit allowed for qualified adoption expenses. The schedule also accounts for unused North Dakota adoption credit carried over from prior years.
The North Dakota credit is 10% of the federal adoption credit allowed for the tax year, limited to 50% of your North Dakota income tax liability before tax credits.
What you'll need
- Federal Form 8839: You must attach it to your state return.
- Federal Schedule 3 (Form 1040) and Form 1040: Use line 6c of Schedule 3 and line 30 of Form 1040, if any, to calculate the federal credit amount for line 1.
- Form ND-1: Use the tax amount from line 20.
- Unused credit carryover amount from tax year 2024, if any: Enter this on line 3.
- Schedule ND-1TC: Report the credit used for 2025 on line 23.
Enter your name as shown on your return and your Social Security number on Schedule ND-1AC.
How to file
Attach Schedule ND-1AC to your 2025 Form ND-1. You must also attach federal Form 8839 to your state return.
Enter the credit used to reduce your 2025 tax from Schedule ND-1AC, line 7, on Schedule ND-1TC, line 23. The provided text does not specify a mailing address or e-filing method.
Common mistakes
- Leaving out required attachments: Attach Schedule ND-1AC to Form ND-1 and federal Form 8839 to your state return.
- Entering more credit on line 7 than you actually use: Enter only the amount used to reduce tax on your 2025 return. The form's example says that if $1,000 is available but only $400 is needed to reduce tax to zero, enter $400.
- Failing to transfer the credit: Enter the amount from line 7 on Schedule ND-1TC, line 23.
Questions people ask
How much is the North Dakota adoption credit?
The credit is 10% of the federal adoption credit allowed for the tax year. It is limited to 50% of your North Dakota income tax liability before tax credits.
What federal amounts do I enter on line 1?
Add Schedule 3 (Form 1040), line 6c, and Form 1040, line 30, if any. Enter the total on line 1.
Can I carry unused credit forward?
Yes. Unused state credit may be carried over and used on subsequent tax years' returns for up to three years. Line 8 shows the unused credit being carried over to tax year 2026.
Where do I enter a carryover from 2024?
Enter any unused North Dakota adoption credit carryover from tax year 2024 on line 3.
Do I need to attach federal Form 8839?
Yes. The form states that federal Form 8839 must be attached to your state return.