State & Local Tax Impacts of COVID-19 for North Dakota – 2021

Thoughtware Alert Published: May 03, 2021 | Updated: Jul 19, 2021
SALT GOV COVID TW - 1

Information current as of June 30, 2021.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to North Dakota

  • North Dakota announced that individual income tax filers have until May 17, 2021, to file their income tax return and pay the tax due. In addition, North Dakota conforms to the federal American Rescue Plan Act of 2021 (ARPA) provision under which the first $10,200 of unemployment benefits aren’t subject to income tax. This applies to unemployment benefits received in 2020 for taxpayers having an adjusted gross income of less than $150,000.
    • North Dakota Tax Commissioner’s Office, News Release; March 18, 2021.
  • North Dakota provided guidance on how it will handle the $10,200 exclusion from individual income tax for unemployment compensation income in the ARPA. The Tax Commissioner will recalculate the return and issue a refund for the returns of full-year North Dakota residents who filed their returns before April 1, 2021. The process of recalculating returns will begin on April 20, 2021, and the target date for completion is June 30, 2021. Nonresidents and part-year residents must file amended returns to take advantage of this exclusion. 
    • North Dakota tax commissioner, Notice; April 8, 2021.
  • North Dakota has rescinded its state of emergency. As such, the provisions of Executive Order 2020-08.3 that continued the noncharge of COVID-19 unemployment insurance benefits into 2021 is no longer in effect as of April 30, 2021. Employer accounts weren’t charged with COVID-19 unemployment insurance benefits from March 13, 2020, through April 30, 2021. As a result, these UI benefit charges weren’t used in the computation of the 2021 employer state unemployment insurance tax rates. Employers will be charged with unemployment insurance benefits (as normal) starting on May 1, 2021. 
    • North Dakota Executive Order 2021-09; April 30, 2021.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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