Bismarck, N.D. – Tax Commissioner Ryan Rauschenberger announced today that his office has completed correcting individual income tax returns for more than 23,000 North Dakotans who received unemployment benefits in 2020, which were not subject to income tax because of the American Rescue Plan Act.

The American Rescue Plan Act, enacted on March 11, 2021, is a federal law which provides that the first $10,200 of unemployment benefits received in 2020 are not subject to income tax for taxpayers with a modified adjusted gross income of less than $150,000.

“North Dakota taxable income is based on federal taxable income, so the exclusion affects North Dakota filers,” Rauschenberger stated. “We have worked throughout the past three months to correct tens of thousands of individual income tax returns, so that these North Dakotans saved time and expense by not needing to file an amendment.”

To offer relief to taxpayers, the North Dakota Office of State Tax Commissioner recalculated returns and issued refunds for full-year North Dakota residents with an individual income tax return that was filed or postmarked before April 1, 2021. If there was a balance of tax due the balance due was adjusted. Taxpayers received a mailed notice reflecting the recalculation prior to receiving the refund. The refunds issued to North Dakota taxpayers totaled over $1,850,000.

Taxpayers that filed a 2020 return as a nonresident or part-year resident are advised to amend their individual income return if North Dakota taxable income is affected. More information regarding filing an amendment is available on the Office of State Tax Commissioner’s website at www.nd.gov/tax. 

If taxpayers believe their returns should have been corrected and have not received notice from the Office of State Tax Commissioner, they can contact the office at 701-328-1247 or individualtax@nd.gov to receive help.

For federal returns previously filed with the IRS, taxpayers should follow guidance from the IRS on the IRS website at www.irs.gov. 

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, or LinkedIn.                                                            

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