North Dakota - deductions?

[Bill Tubbs]

Anyone from North Dakota that can tell me if there are any deductions my client would be able to take, and/or where to find them? I looked at foorm ND-1 and didn't see much that would seem to apply. (I know Wisconsin has deductions for tuition, rent, and much more). My client is a 26-year-old Wisconsin resident (but may have to file ND as a full-year resident due to the 7-month rule), and living in ND to pursue higher graduate studies (masters degree, I think).

Thanks,
Bill

[gkaiseril]

Other factors to consider

From the North Dakota site:

"Q: How do I determine if I am a resident of North Dakota?

A: For North Dakota individual income tax purposes, state law defines a resident as any natural person who either (1) is domiciled in North Dakota, or (2) physically resides more than seven months of the tax year in a permanent place of abode maintained in North Dakota. Domicile is your residence by law and is commonly referred to as your legal residence. It generally means the place that is your permanent home to which you always intend to return whenever absent from it. If you have more than one physical place of abode, only one of them may be your domicile. Domicile is based on your intent and your actions.

If you are not domiciled in North Dakota for any part of the tax year, you are deemed by law to be a full-year resident of North Dakota if you maintain a permanent place of abode in North Dakota and spend more than 210 days of the tax year in North Dakota. A permanent place of abode means a house, apartment, or other dwelling containing cooking and bathroom facilities that is suitable for year-round living and is maintained on a permanent or indefinite basis. This 7-month rule does not apply to individuals on active duty in the U.S. armed forces who are domiciled in another state, nor does it apply to Minnesota or Montana residents covered under the income tax reciprocity agreements with those states. The 7-month rule also does not apply if you moved into or out of North Dakota during the year and the move constituted a change in your legal residence. Then you are considered a part-year resident of North Dakota."

Students fall into a gray area. They may spend more than 7 mounts in ND, but are they there on a permanent or indefinite basis? This would be shown by actions to establish oneself in ND like getting an ND drivers license or state ID with an ND address or registering to vote and voting in ND elections would show that intent. Keeping a WI driver's license or state ID with a WI address and maintaining voter registration and voting in WI elections would indicate an intent to return to WI and should allow an exception to the general rule.

[Bill Tubbs]

deductions?

I am aware of the 7-month rule and will need to ask the correct questions of the client. Regardless whether Resident or Non-Resident, client earned enough in ND to have to file a federal return (which seems to be the requirement for filing a ND return), and I am therefore wondering what deductions would be applicable.... Rent? Tuition?

Bill