How does North Dakota tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in North Dakota.
• If you're considered a full-year resident or part-year resident of North Dakota, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
• If you're Native American with North Dakota sourced income you may have a filing requirement. See the North Dakota Guideline: Income Taxation of Native Americans.
• If you worked in Montana or Minnesota while a resident of North Dakota and taxes were withheld from your wages, you may need to file a Montana or Minnesota state tax return for a refund.


2. I worked remotely from North Dakota.
• North Dakota taxes income earned for personal services or activities performed while in North Dakota (even if you're a nonresident), or income earned from an North Dakota property (such as a rental property located in North Dakota). This includes remote work for an employer or clients based outside North Dakota if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state if you're a full-year or part-year resident.


3. I lived in another state and worked remotely for an employer based in North Dakota, and I didn't work physically at any time in North Dakota.
• Nonresidents may have a filing requirement if you made income from a source in North Dakota.
• If your employer was based in North Dakota, they may have withheld taxes on your North Dakota wages as shown on your W-2. If you were not a North Dakota resident and you had taxes withheld you may request a refund by filing a North Dakota nonresident tax return.

If your wages were minimal and you didn't do any other business in North Dakota, it's possible you will be exempt from filing regardless of residency. See the North Dakota form ND-1CR instructions for more information.