Schedule ND-1PSC: Schedule ND-1PSC - Nonprofit Private School Tax Credits for Individuals (2024)
North Dakota · ND Tax Commissioner · Used for tax years 2024
Schedule ND-1PSC calculates North Dakota nonprofit private school tax credits for individuals and is attached to Form ND-1. It reports contributions to qualifying North Dakota primary schools, high schools, and colleges, along with school credits from North Dakota Schedule K-1.
Who files this form
Use Schedule ND-1PSC to claim individual income tax credits for charitable contributions to qualifying nonprofit private primary schools, high schools, and colleges in North Dakota. The form also includes lines for credits received through a North Dakota Schedule K-1.
Separate credits are available for each school category. You may qualify for one, two, or all three categories by making separate qualifying contributions. Eligible schools are listed on page 3 of the schedule.
Contributions must be made directly to a qualifying school or specifically designated for its exclusive use, and must qualify as charitable contributions under Internal Revenue Code section 170.
What you'll need
- Contribution proof: Attach a copy of a letter or other document from the school, or copies of the front and back of canceled checks.
- North Dakota Schedule K-1: Attach a copy if you claim a school credit from it.
- School network statement: If your contribution goes through a school network or organization, obtain a statement identifying the qualifying school and the amount contributed to it. The organization must separately account for the funds for that school.
- Allocation statement: For a school serving both primary and high school grades, obtain and attach a school statement identifying the school and showing the contribution allocated to each category.
- Election statement, if applicable: To treat an eligible 2025 contribution as a 2024 contribution, attach a statement saying you are making the election and listing the school's name, contribution date, and amount.
You will also need the tax amount from Form ND-1, line 20, to calculate the credits.
How to file
Complete the applicable parts: Part 1 for primary schools, Part 2 for high schools, and Part 3 for colleges.
- Enter your name as shown on your return and your Social Security number.
- List each qualifying school, its city, and the total amount contributed to it.
- For each category, multiply direct contributions by 50% and add any corresponding North Dakota Schedule K-1 credit.
- Compare that total with 50% of Form ND-1, line 20, and the $2,500 category limit. Enter the smallest amount as that category's credit.
- Transfer the primary school credit to Schedule ND-1TC, line 18; the high school credit to line 19; and the college credit to line 20.
Attach Schedule ND-1PSC and the required supporting documents to Form ND-1. The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Claiming tuition or group payments: Tuition and payments to athletic booster, PTO, or other groups do not qualify, even if they benefit the school.
- Not designating a school: A contribution through a school network or organization qualifies only if you specifically designate it for a qualifying school and the organization separately accounts for the funds.
- Leaving out contribution proof: The schedule requires supporting school documents or copies of both sides of canceled checks.
- Omitting an allocation statement: If a school falls in both the primary and high school categories and you do not attach the required statement, half of the contribution is treated as allocated to each category.
- Using excess credit in another year: Credit exceeding your tax liability is not allowed in any other tax year.
Questions people ask
What is the maximum credit?
Each school category has a maximum credit of $2,500 per tax year. The calculation also limits each category's credit to 50% of the tax amount on Form ND-1, line 20.
What contribution methods are allowed?
A contribution may be made by cash, check, or a trustee-to-donor transfer of money from an IRA under Internal Revenue Code section 408(d).
Can a contribution made in 2025 count for tax year 2024?
Yes. You may elect separately for each contribution to treat a 2025 contribution as made in 2024 if it was made on or before the filing due date, including extensions, for the 2024 Form ND-1. Attach a statement saying you are making the election and providing the qualifying school's name, contribution date, and amount.