<< All News Tuesday, March 19, 2024 - 01:00 am

Members of the North Dakota National Guard Team,

North Dakota is striving to become the most military-friendly state in the nation and many of you are eligible to receive money back when you file your state income tax return.

The Attorney General Letter Opinion 2024-L-01 has been issued in reference to N.D.C.C. 57-38-30.3(2)(g) defining “military pay”!

North Dakota income tax will still be deducted from your paycheck, but you will receive it back when you file your state income tax return.

“Military pay” that includes ND taxable income will be returned to the taxpayer as an annual individual tax deduction/adjustment. “Military pay” has been defined to include the following statuses:

  • AGR
  • Dual-Status Technician
  • Dual-Status State Employee
  • ADOS
  • Title 32
  • Title 10
  • State Active Duty
  • Annual Training
  • Federal Inactive Duty Training (Drill)

The Attorney General provided their legal opinion that taxable pay received by a member of the armed forces of the United States for serving in any AGR, Dual-Status Technician, Dual-Status State Employee, or ADOS status constitutes military pay under N.D.C.C. 57-38-30.3(2)(g). This is in addition to taxable compensation received by a member of the military on federal active duty under Title 10 or Title 32, on state active duty, full-time National Guard duty for Annual Training, or on federal inactive duty training.

When submitting your taxes, make sure to list military pay as the source to be exempt from North Dakota State taxes on that pay. The ND Tax Department has updated Form ND-1, which includes Line 10 for military pay.  Form ND-1 Link

Ensure your online tax filing service is using the updated Form ND-1. If the filing service, you are using does not have the updated Form ND-1 you will need to address that issue directly with the service provider.

Dual-Status technicians should be prepared to submit their SF-50 from MyBiz, to their tax preparer to show pay is from a dual-status position.

Army – SF 50

Air – SF 50

Other tax information can be found on the ND Office of State Tax Commissioner website.  

<< All News