1.    A married couple filing a joint return under section 57-38-30.3 is allowed a credit of not to exceed three hundred dollars per couple as determined under this section. The tax commissioner shall adjust the maximum amount of the credit under this subsection    each taxable year at the time and rate adjustments are made to rate schedules under subdivision g of subsection 1 of section 57-38-30.3.

Terms Used In North Dakota Code 57-38-01.28

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
  • year: means twelve consecutive months. See North Dakota Code 1-01-33

2.    The credit under this section is the difference between the tax on the couple’s joint North Dakota taxable income under the rates and income levels in subdivision b of subsection 1 of section 57-38-30.3 and the sum of the tax under the rates and income levels of subdivision a of subsection 1 of section 57-38-30.3 on the qualified income of the lesser-earning spouse, and the tax under the rates and income levels of subdivision a of subsection 1 of section 57-38-30.3 on the couple’s joint North Dakota taxable income, minus the qualified income of the lesser-earning spouse.

3.    For a nonresident or part-year resident, the credit under this section must be adjusted based on the percentage calculated under subdivision f of subsection 1 of section 57-38-30.3.

4.    For purposes of this section:

a.    “Qualifying income” means the sum of the following, to the extent included in North Dakota taxable income:

(1) Earned income as defined in section 32(c)(2) of the Internal Revenue Code; and (2) Income received from a retirement pension, profit-sharing, stock bonus, or annuity plan.

b.    “Qualifying income of the lesser-earning spouse” means the qualifying income of the spouse with the lesser amount of qualifying income for the taxable year minus the sum of:

(1) The amount for one exemption under section 151(d) of the Internal Revenue Code; and

(2) One-half of the amount of the standard deduction under section 63(c)(2)(A) (4) of the Internal Revenue Code.