North Dakota classifies any individual who does not meet the qualifications of residency status under the North Dakota income tax law as a nonresident. This law states that residents are those who are either domiciled in the state or have maintained a permanent place of abode in North Dakota and is physically present in the state for over seven months (210 days) of the tax year.
In North Dakota, “domicile” is defined as a person’s lawful residence. Typically, a domicile is the permanent home that the individual maintains intent to return to whenever away. A taxpayer may have multiple places of abode, however, only they only have one domicile. Domicile is determined in relation to the intentions and actions of an individual.
If you do not domicile within the state during any part of the tax year, you are considered a full-year nonresident for tax purposes. Taxpayers who domicile in North Dakota for a portion of the tax year are classified as part-year residents.
Even if you don’t domicile in the state during the tax year, you will be taxed as a full-year resident if you keep a permanent home in the state and remain present for more than 210 days of the ax year in North Dakota. The tax law uses the concept of “Permanent place of abode”, which is defined as any home, apartment, or other shelter that has adequate cooking and bathing facilities. It must be a place that can sustain year round living, and needs to be permanently maintained.
The 210 day – seven month rule does not apply in the following circumstances:
- Members of the United States Armed Forced who are stationed in state but maintain a domicile elsewhere.
- Residents of Minnesota or Montana who are covered under reciprocity tax laws in their respective state
- A person who moved in or out of the state and changed domicile
When is a Nonresident Required to File Income Tax?
Nonresidents of North Dakota are required to file income tax with the state if they are required to file federal income tax returns and have income from sources within North Dakota.
A taxpayer that moves during the year, and the move causes a change in legal residence, is classified as a part-year resident of North Dakota. Part-year residents are required to file an individual income tax return in accordance with the state if they are supposed to file a federal return and they have earned taxable income in the state of North Dakota.
Taxable income in North Dakota for a part-year resident is determined by the income they received from wages, rents, or gains and losses from sources within the state during the time they are a nonresident, combined with all of the income earned (regardless of where it was earned) while they are a resident of North Dakota.
