North Dakota 3-Year Averaging Method for Elected Farm Income

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3-Year Averaging Method for Elected Farm Income
Schedule ND-1 FA - Tax Under 3-Year Averaging Method For Elected Farm Income (2023)TAX UNDER 3-YEAR AVERAGING
METHOD FOR ELECTED FARM INCOME
OFFICE OF STATE TAX COMMISSIONER

Schedule ND-1FA

2023

SFN 28727 (12-2023)

Attach to Form ND-1
Your Name As Shown On Form ND-1

Your Social Security Number

See instructions to this schedule to see if you are eligible to use it
1. North Dakota taxable income from Form ND-1, line 18

2. Elected farm income from your 2023 Schedule J (Form 1040), line 2a. If this amount
includes a net long-term capital gain, see instructions. Do not enter more than the
amount on line 1

3. Subtract line 2 from line 1

4. Tax on the amount on line 3 from Tax Table in the 2023 Form ND-1 instructions

5. If you used Schedule ND-1FA to figure your tax for:
2022, enter amount from your 2022 Schedule ND-1FA, line 11.
2021 but not 2022, enter amount from your 2021
Schedule ND-1FA, line 15.
2020 but not 2021 nor 2022, enter amount from your
2020 Schedule ND-1FA, line 3.

If line 5 is zero or less,
see instructions.

Otherwise, enter amount from 2020 Form ND-1, line 18, OR
from 2020 Form ND-EZ, line 1.
6. Divide the amount on line 2 by 3.0

7. Add lines 5 and 6. If less than zero, enter zero

8. Figure the tax on the amount on line 7 using the 2020 Form ND-1/ND-EZ Tax Rate
Schedules on page 2 of the instructions to this schedule

9. If you used Schedule ND-1FA to figure your tax for:
2022, enter amount from your 2022 Schedule ND-1FA, line 15.
2021 but not 2022, enter amount from your
2021 Schedule ND-1FA, line 3.

If line 9 is zero or less,
see instructions.

Otherwise, enter amount from 2021 Form ND-1, line 18, OR
from 2021 Form ND-EZ, line 1.
10. Enter amount from line 6

11. Add lines 9 and 10. If less than zero, enter negative number

12. Figure the tax on the amount on line 11 using the 2021 Form ND-1/ND-EZ
Tax Rate Schedules on page 2 of the instructions to this schedule

13. If you used Schedule ND-1FA to calculate your tax for 2022, enter the
amount from your 2022 Schedule ND-1FA, line 3. Otherwise, enter
amount from 2022 Form ND-1, line 18, OR from 2022 Form ND-EZ,
line 1b

14. Enter amount from line 6

15. Add lines 13 and 14. If less than zero, enter negative number

If line 13 is zero or less,
see instructions.

16. Figure the tax on the amount on line 15 using the 2022 Form ND-1/ Form ND-EZ
Tax Rate Schedules on page 2 of the instructions to this schedule

17. Add lines 4, 8, 12 and 16. Enter this amount on page 2, line 18, of this schedule

2023 Schedule ND-1FA
SFN 28727 (12-2023), Page 2

18. Enter the amount from page 1, line 17

19. If you used Schedule ND-1FA to figure your tax for:
2022, enter amount from your 2022 Schedule ND-1FA, line 12.
2021 but not 2022, enter amount from your 2021
Schedule ND-1FA, line 16.
2020 but not 2021 nor 2022, enter amount from your
2020 Schedule ND-1FA, line 4.

Otherwise, enter amount from 2020 Form ND-1, line 20 (if
full-year resident) or Schedule ND-1NR, line 22 (if full-year
nonresident or part-year resident) OR from 2020
Form ND-EZ, line 2.
20. If you used Schedule ND-1FA to figure your tax for:
2022, enter amount from your 2022 Schedule ND-1FA, line 16.
2021 but not 2022, enter amount from your
2021 Schedule ND-1FA, line 4.
Otherwise, enter amount from 2021 Form ND-1, line 20 (if
full-year resident) or Schedule ND-1NR, line 22 (if full-year
nonresident or part-year resident) OR from 2021
Form ND-EZ, line 2.
21. If you used Schedule ND-1FA to figure your tax for 2022, enter amount
from 2022 Schedule ND-1FA, line 4. Otherwise, enter amount from
2022 Form ND-1, line 19 (if full-year resident) or Schedule ND-1NR,
line 22 (if full-year nonresident or part-year resident) OR from 2022
Form ND-EZ, line 2.

22. Add lines 19, 20, and 21

23. Subtract line 22 from line 18. Enter result on your return as follows:
If you (and your spouse, if filing jointly) were full-year residents,
enter the amount from this line on your 2023 Form ND-1, line 19.
If you are required to use Schedule ND-1NR, enter the amount from
this line on your 2023 Schedule ND-1NR, line 22.

Caution: If you (and your spouse, if filing jointly) are full-year residents, the
tax on line 23 above may be higher than the tax calculated without the use of
this schedule.
If you are required to use Schedule ND-1NR, the tax on line 23 above is not
your actual tax liability. You must enter the tax from line 23 of this schedule
on your 2023 Schedule ND-1NR, line 22, and complete the remainder of
Schedule ND-1NR to calculate your actual tax liability. Please note that the
tax calculated based on the use of Schedule ND-1FA may be higher than the
tax calculated without it.
Attach this schedule to your Form ND-1 only if you are choosing to pay
the tax based on its use.

(F1) 23

023 Schedule ND-1FA
2
SFN 28727 (12-2023), Page 3

General instructions
Eligibility

You are eligible to use the 2023
Schedule ND‑1FA to calculate your
tax for 2023 if you used Schedule J
(Form 1040) to calculate your 2023
federal income tax.
The use of Schedule ND-1FA is elective.
You do not have to use it even though
you used Schedule J (Form 1040) to
calculate your federal income tax for
2023.
IMPORTANT: It is possible for the tax
calculated using Schedule ND‑1FA to
be higher than the tax calculated on
all of your income using the regular
method (without Schedule ND-1FA).
Complete and attach Schedule ND‑1FA
to your Form ND‑1 only if you are
electing to pay the tax that results
from using Schedule ND-1FA.

Copies of base period
returns

You will need copies of your 2020,
2021, and 2022 North Dakota income
tax returns to complete the 2023
Schedule ND-1FA. If you do not have
a copy of any of these returns, see
the back cover of the 2023 Form ND-1
instruction booklet for information on
how to obtain one.
If you filed an amended North Dakota
income tax return, or if the Office of
State Tax Commissioner made changes
to your North Dakota income tax
return for 2020, 2021, or 2022, you
must use the corrected amounts when
completing Schedule ND-1FA.

Specific line
instructions
Line 2

Enter your elected farm income from
the 2023 Schedule J (Form 1040),
line 2a. However, if you claimed an
exclusion on line 6 of your 2023
Form ND-1 attributable to a net longterm capital gain included in your
federal elected farm income, subtract
that portion of the exclusion from your
federal elected farm income and enter
the result on this line.

Lines 5, 9, and 13

For purposes of completing lines 5, 9,
and 13 of the 2023 Schedule ND-1FA,
your North Dakota taxable income may
be a negative number. If your North
Dakota taxable income for a base year
is mathematically less than zero, use
the negative number for purposes of
completing these lines.

No filing requirement for base
year. If you were not required to file a
North Dakota income tax return for one
or more of the base years, you must
complete the applicable North Dakota
return for each base year for which
a return was not filed. Complete the
return through the line on which the
tax is calculated. Use the figures from
the return completed for the base year
to complete the applicable lines of the
2023 Schedule ND-1FA.

023 Schedule ND-1FA
2
SFN 28727 (12-2023), Page 4

2020 Form ND-1/ND-EZ Tax Rate Schedules
If you used Form ND-1 or Form ND-EZ for the 2020 tax year, use these tax rate schedules to calculate the
tax to enter on line 8. Use the schedule that corresponds to your filing status for the 2020 tax year.
Single
If revised taxable income
for tax year is:

The revised tax is equal to:

Married filing jointly and Qualifying widow(er)
If revised taxable income
for tax year is:
The revised tax is equal to:

$
0 $ 40,125......................... 1.10% of the revised taxable income
40,125 97,150.... $
441.38 + 2.04% of amount over $ 40,125

97,150 202,650....
1,604.69 + 2.27% of amount over
97,150
202,650 440,600....
3,999.54 + 2.64% of amount over 202,650
440,600..................... 10,281.42 + 2.90% of amount over
440,600

$
0 $ 67,050......................... 1.10% of the revised taxable income

67,050 161,950.... $
737.55 + 2.04% of amount over $ 67,050
161,950 246,700....
2,673.51 + 2.27% of amount over 161,950
246,700 440,600....
4,597.34 + 2.64% of amount over 246,700
440,600.....................
9,716.30 + 2.90% of amount over
440,600

Over

But not over

Married filing separately
If revised taxable income
for tax year is:
Over

But not over

The revised tax is equal to:

$
0 $ 33,525......................... 1.10% of the revised taxable income
33,525 80,975.... $
368.78 + 2.04% of amount over $ 33,525

80,975 123,350....
1,336.76 + 2.27% of amount over 80,975
123,350 220,300....
2,298.67 + 2.64% of amount over 123,350
220,300.....................
4,858.15 + 2.90% of amount over
220,300

Over

But not over

Head of Household
If revised taxable income
for tax year is:
Over

But not over

The revised tax is equal to:

$
0 $ 53,750......................... 1.10% of the revised taxable income

53,750 138,800.... $
591.25 + 2.04% of amount over $ 53,750
138,800 224,700....
2,326.27 + 2.27% of amount over 138,800
224,700 440,600....
4,276.20 + 2.64% of amount over 224,700
440,600.....................
9,975.96 + 2.90% of amount over
440,600

2021 Form ND-1/ND-EZ Tax Rate Schedules
If you used Form ND-1 or Form ND-EZ for the 2021 tax year, use these tax rate schedules to calculate the
tax to enter on line 12. Use the schedule that corresponds to your filing status for the 2021 tax year.
Single
If revised taxable income
for tax year is:

The revised tax is equal to:

Married filing jointly and Qualifying widow(er)
If revised taxable income
for tax year is:
The revised tax is equal to:

$
0 $ 40,525......................... 1.10% of the revised taxable income
40,525 98,100.... $
445.78 + 2.04% of amount over $ 40,525

98,100 204,675....
1,620.31 + 2.27% of amount over
98,100
204,675 445,000....
4,039.56 + 2.64% of amount over 204,675
445,000..................... 10,384.14 + 2.90% of amount over
445,000

$
0 $ 67,700......................... 1.10% of the revised taxable income

67,700 163,550.... $
744.70 + 2.04% of amount over $ 67,700
163,550 249,150....
2,700.04 + 2.27% of amount over 163,550
249,150 445,000....
4,643.16 + 2.64% of amount over 249,150
445,000.....................
9,813.60 + 2.90% of amount over
445,000

Over

But not over

Married filing separately
If revised taxable income
for tax year is:
Over

But not over

The revised tax is equal to:

$
0 $ 33,850......................... 1.10% of the revised taxable income
33,850 81,775.... $
372.35 + 2.04% of amount over $ 33,850

81,775 124,575....
1,350.02 + 2.27% of amount over 81,775
124,575 222,500....
2,321.58 + 2.64% of amount over 124,575
222,500.....................
4,906.80 + 2.90% of amount over
222,500

Over

But not over

Head of Household
If revised taxable income
for tax year is:
Over

But not over

The revised tax is equal to:

$
0 $ 54,300......................... 1.10% of the revised taxable income

54,300 140,200.... $
597.30 + 2.04% of amount over $ 54,300
140,200 226,950....
2,349.66 + 2.27% of amount over 140,200
226,950 445,000....
4,318.89 + 2.64% of amount over 226,950
445,000..................... 10,075.41 + 2.90% of amount over
445,000

2022 Form ND-1/ND-EZ Tax Rate Schedules
If you used Form ND-1 or Form ND-EZ for the 2022 tax year, use these tax rate schedules to calculate the
tax to enter on line 16. Use the schedule that corresponds to your filing status for the 2022 tax year.
Single
If revised taxable income
for tax year is:

The revised tax is equal to:

Married filing jointly and Qualifying widow(er)
If revised taxable income
for tax year is:
The revised tax is equal to:

$
0 $ 41,775......................... 1.10% of the revised taxable income

41,775 101,050.... $
459.53 + 2.04% of amount over $ 41,775
101,050 210,825....
1,668.74 + 2.27% of amount over 101,050
210,825 458,350....
4,160.63 + 2.64% of amount over 210,825
458,350..................... 10,695.29 + 2.90% of amount over
458,350

$
0 $ 69,700......................... 1.10% of the revised taxable income

69,700 168,450.... $
766.70 + 2.04% of amount over $ 69,700
168,450 256,650....
2,781.20 + 2.27% of amount over 168,450
256,650 458,350....
4,783.34 + 2.64% of amount over 256,650
458,350..................... 10,108.22 + 2.90% of amount over
458,350

Over

But not over

Married filing separately
If revised taxable income
for tax year is:
Over

But not over

The revised tax is equal to:

$
0 $ 34,850......................... 1.10% of the revised taxable income
34,850 84,225.... $
383.35 + 2.04% of amount over $ 34,850

84,225 128,325....
1,390.60 + 2.27% of amount over 84,225
128,325 229,175....
2,391.67 + 2.64% of amount over 128,325
229,175.....................
5,054.11 + 2.90% of amount over
229,175

Over

But not over

Head of Household
If revised taxable income
for tax year is:
Over

But not over

The revised tax is equal to:

$
0 $ 55,900......................... 1.10% of the revised taxable income

55,900 144,400.... $
614.90 + 2.04% of amount over $ 55,900
144,400 233,750....
2,420.30 + 2.27% of amount over 144,400
233,750 458,350....
4,448.55 + 2.64% of amount over 233,750
458,350..................... 10,377.99 + 2.90% of amount over
458,350

Extracted from PDF file 2023-north-dakota-schedule-nd-1fa.pdf, last modified August 2023

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More about the North Dakota Schedule ND-1FA Individual Income Tax TY 2023

We last updated the 3-Year Averaging Method for Elected Farm Income in February 2024, so this is the latest version of Schedule ND-1FA, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule ND-1FA directly from TaxFormFinder. You can print other North Dakota tax forms here.

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Related North Dakota Individual Income Tax Forms:

TaxFormFinder has an additional 44 North Dakota income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the North Dakota Schedule ND-1FA.

Form Code	Form Name
Schedule ND-1NR	Nonresident and Part-Year Resident Schedule Nonresident
Schedule ND-1CR	Credit for Income Tax Paid to Another State Tax Credit
Schedule ND-1TC	Tax Credits Tax Credit
Schedule ND1-PG	Planned Gift Tax Credit Tax Credit
Schedule ND-1CS	Calculation of Tax on Proceeds from Sale of Income Tax Credit Tax Credit
Schedule ND-1FC	Family Member Care Credit Tax Credit
Schedule ND-1PG	Planned Gift Tax Credit Tax Credit
Schedule ND-1PSC	Nonprofit Private School Tax Credits for Individuals Tax Credit
Schedule ND-1QEC	Qualified Endowment Fund Tax Credit Tax Credit
Schedule ND-1S	[OBSOLETE] Allocation of Income by Same-Sex Individuals Filing A Joint Federal Return

Download all ND tax forms View all 45 North Dakota Income Tax Forms

Form Sources:

North Dakota usually releases forms for the current tax year between January and April. We last updated North Dakota Schedule ND-1FA from the Office of State Tax Commissioner in February 2024.

Show Sources >

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of North Dakota Schedule ND-1FA

We have a total of twelve past-year versions of Schedule ND-1FA in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2023 Schedule ND-1FA

Schedule ND-1 FA - Tax Under 3-Year Averaging Method For Elected Farm Income (2023)

2022 Schedule ND-1FA

Schedule ND-1 FA - Tax Under 3-Year Averaging Method For Elected Farm Income (2022)

2021 Schedule ND-1FA

Schedule ND-1 FA 2021 - Tax Under 3-Year Averaging Method For Elected Farm Income

2020 Schedule ND-1FA

Schedule ND-1 FA - Tax Under 3-Year Averaging Method for Elected Farm Income

2019 Schedule ND-1FA

Schedule ND-1 FA - Tax Under 3-Year Averaging Method for Elected Farm Income (2019)

2018 Schedule ND-1FA