North Dakota Tax Commissioner Ryan Rauschenberger today shared helpful information for retired North Dakota military service members regarding passage of North Dakota House Bill 1053.
“With the passage of HB 1053, North Dakota resident taxpayers are now exempt from paying income tax on their military retirement,” Rauschenberger said. “North Dakota proudly joins 20 other states that currently exclude military retirement benefits from income tax.”
Beginning with the 2019 tax return, a new line on the North Dakota income tax return will be dedicated to the exclusion. Even with the exemption, military retirees that have a federal income tax filing requirement will still have to file an individual income tax return to claim the exclusion.
If a military retiree has already been withholding North Dakota income tax from their payments in 2019, depending on their tax situation, they may be entitled to a refund for withholding already paid. The refund can be claimed when they file their 2019 individual income tax return in 2020.
Rauschenberger encourages military retirees to go to www.dfas.mil/retiredmilitary to change their North Dakota income tax withholding to zero. For additional tax filing requirements and other information for military service members, taxpayers may go to www.nd.gov/tax/military.
Taxpayers can stay up-to-date on North Dakota tax-related matters by visiting the Office of State Tax Commissioner’s website at www.nd.gov/tax or by connecting on Facebook, Twitter, LinkedIn and YouTube.