Schedule ND-1TC: Schedule ND-1TC - Tax Credit (2024)
North Dakota · ND Tax Commissioner · Used for tax years 2024
Schedule ND-1TC figures the credit North Dakota allows for income tax you paid to another state on income that North Dakota also taxes.
Who files this form
Tax year check: Although the request identifies this as a 2024 form, the supplied form is labeled 2025 Schedule ND-1TC. The information below describes the supplied 2025 form, not a verified 2024 version.
If you claim any of the income tax credits listed on Schedule ND-1TC, you must complete the schedule and attach it to Form ND-1. This includes applicable unused credits carried over from earlier tax years.
What you'll need
Gather the documents required for each credit you claim. These may include:
- Credit-specific schedules: ND-1FC for family member care, RZ for renaissance zone credits, ND-1PG for planned gifts, ECC for employer child care contributions, ME for wages paid to a mobilized employee, ND-1QEC for endowment fund contributions, ND-1PSC for nonprofit private school contributions, ND-1AC for adoption, or MCP for qualifying maternity home, child placing agency, or pregnancy help center contributions.
- North Dakota Schedule K-1 and passthrough statements, where required for credits received through an entity.
- Investment reporting forms for agricultural commodity processing facility and seed capital investment credits.
- Employee records: The internship credit requires a schedule of employee names, Social Security numbers, and wages paid. Workforce recruitment and apprentice credits also require employment start dates. If the credit comes through a passthrough entity, attach its statement.
- Insurance documents: For the partnership plan long-term care insurance credit, attach the policy certification statement and the first policy page identifying the insurer and insured people.
- Property Tax Clearance Records, when required, from each applicable North Dakota county.
If no official supporting schedule is specified, attach your own documentation showing your eligibility and how you calculated the credit, including any unused credit carried over from another tax year.
How to file
For the supplied 2025 schedule:
- Enter your name as shown on your return and your Social Security number.
- Complete the lines for the credits you claim and attach the required schedules and supporting documents.
- Complete the property tax clearance section if you claim one of the credits identified in that section. Attach any required county clearance records to Form ND-1.
- On line 26, add lines 1 through 8a, 9a through 11a, 12b through 15b, and 16 through 25a. Enter the total on Form ND-1, line 23.
- Attach Schedule ND-1TC to Form ND-1.
The supplied text does not provide a mailing address or e-file instructions.
Common mistakes
- Missing supporting documents: The form requires documentation of eligibility and credit calculations, including carryovers.
- Skipping the property tax clearance section: All taxpayers must read it. Those claiming the specified credits must complete it and attach required records.
- Assuming every long-term care policy qualifies: The form warns that policies that are not partnership plan policies do not qualify. Check the certification statement or contact the insurer or North Dakota Insurance Department.
- Putting acquired research credits on the wrong line: Research credits obtained from another taxpayer through a sale, assignment, or transfer in 2025 belong on line 9b, not line 9a.
- Completing employee-count and compensation lines for K-1 credits: Disregard lines 8b and 8c, 11b and 11c, or 25b and 25c when the corresponding credit comes from a North Dakota Schedule K-1.
Questions people ask
When is property tax clearance required?
The supplied schedule identifies credits on lines 2, 3, 4, 6, 7, 8a, 9a, 9b, 11a, 17a, 17b, and 21. If you claim one of these credits, complete the clearance section. It asks whether you, or your spouse if filing jointly, hold at least a 50% ownership interest in North Dakota real property. Required clearance records must come from each applicable county and be attached to Form ND-1. Automation credit carryovers from tax years 2019 through 2022 do not require a clearance record.
Where can I get the Property Tax Clearance Record form?
The form is available on the North Dakota Office of State Tax Commissioner's website at www.tax.nd.gov. Use it to obtain the required record from each applicable county.
Can unused credits always be carried forward?
No. The rules depend on the credit. For example, the employer child care contribution credit and the maternity home, child placing agency, or pregnancy help center credit have no carryover provision. The apprentice credit has no carryback or carryforward provision for amounts exceeding tax liability.
Can credits from a passthrough entity be included?
Yes. Several credit lines specifically allow amounts from a North Dakota Schedule K-1. Follow the instructions for the particular credit and attach the required K-1, statement, or supporting schedule.