Schedule ND-1FA — Farm Income Averaging

# METHOD FOR ELECTED FARM INCOME

OFFICE OF STATE TAX COMMISSIONER
SFN 28727 (12-2025)
Taxpayer's Name As Shown On Form ND-1
Attach to Form ND-1
Social Security Number
See instructions to this schedule to see if you are eligible to use it

North Dakota taxable income from Form ND-1, line 18 1
Elected farm income from your 2025 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
Subtract line 2 from line 1
Tax on the amount on line 3 from Tax Table in the 2025 Form ND-1 instructions
If you used Schedule ND-1FA to figure your tax for: 2024, enter amount from your 2024 Schedule ND-1FA, line 11. 2023 but not 2024, enter amount from your 2023 Schedule ND-1FA, line 15. 2022 but not 2023 nor 2024, enter 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.

Divide the amount on line 2 by 3.0
Add lines 5 and 6. If less than zero, enter zero If line 5 is zero or less, see instructions.
Figure the tax on the amount on line 7 using the 2022 Form ND-1/ND-EZ Tax Rate Schedules on page 2 of the instructions to this schedule
If you used Schedule ND-1FA to figure your tax for: 2024, enter amount from your 2024 Schedule ND-1FA, line 15. 2023 but not 2024, enter amount from your 2023 Schedule ND-1FA, line 3.

Otherwise, enter amount from 2023 Form ND-1, line 18, OR from 2023 Form ND-EZ, line 1b.

Enter amount from line 6
Add lines 9 and 10. If less than zero, enter negative number If line 9 is zero or less, see instructions.
Figure the tax on the amount on line 11 using the 2023 Form ND-1/ND-EZ Tax Rate Schedules on page 2 of the instructions to this schedule
If you used Schedule ND-1FA to calculate your tax for 2024, enter the amount from your 2024 Schedule ND-1FA, line 3. Otherwise, enter amount from 2024 Form ND-1, line 18, OR from 2024 Form ND-EZ, line 1b
Enter amount from line 6
Add lines 13 and 14. If less than zero, enter negative number

If line 13 is zero or less,
13 see instructions.

Figure the tax on the amount on line 15 using the 2024 Form ND-1/ Form ND-EZ Tax Rate Schedules on page 2 of the instructions to this schedule 16
Add lines 4, 8, 12 and 16. Enter this amount on page 2, line 18, of this schedule
Enter the amount from page 1, line 17 18
If you used Schedule ND-1FA to figure your tax for: 2024, enter amount from your 2024 Schedule ND-1FA, line 12. 2023 but not 2024, enter amount from your 2023 Schedule ND-1FA, line 16. 2022 but not 2023 nor 2024, enter amount from your 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.

If you used Schedule ND-1FA to figure your tax for: 2024, enter amount from your 2024 Schedule ND-1FA, line 16. 2023 but not 2024, enter amount from your 2023 Schedule ND-1FA, line 4.

Otherwise, enter amount from 2023 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 2023 Form ND-EZ, line 2.

If you used Schedule ND-1FA to figure your tax for 2024, enter amount from 2024 Schedule ND-1FA, line 4. Otherwise, enter amount from 2024 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 2024 Form ND-EZ, line 2. 21
Add lines 19, 20, and 21 22
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 2025 Form ND-1, line 20.
(F1) 23
If you are required to use Schedule ND-1NR, enter the amount from this line on your 2025 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 2025 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.

# Eligibility

You are eligible to use the 2025
Schedule ND-1FA to calculate your tax for 2025 if you used Schedule J (Form 1040) to calculate your 2025 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 2025.
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 2022,
2023, and 2024 North Dakota income tax returns to complete the 2025 Schedule ND-1FA. If you do not have a copy of any of these returns, see the back cover of the 2025 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 2022, 2023, or 2024, you must use the corrected amounts when completing Schedule ND-1FA.
Specific line instructions

# Line 2

Enter your elected farm income from the 2025 Schedule J (Form 1040), line 2a. However, if you claimed an exclusion on line 6 of your 2025 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 2025 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 2025 Schedule ND-1FA.

# 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 8. Use the schedule that corresponds to your filing status for the 2022 tax year.
Single
If revised taxable income
Married filing jointly and Qualifying surviving spouse
If revised taxable income
The revised tax is equal to: for tax year is:
Over But not over for tax year is: The revised tax is equal to:
Over But not over
41,775 … 1.10% of the revised taxable income $ 0 $ 41,775 101,050 … $ 459.53 + 2.04% of amount over $ 101,050 210,825 … 1,668.74 + 2.27% of amount over 210,825 458,350 … 4,160.63 + 2.64% of amount over 458,350 … 10,695.29 + 2.90% of amount over
Married filing separately
If revised taxable income
$ 0 $ 69,700 … 1.10% of the revised taxable income 41,775 69,700 168,450 … $ 766.70 + 2.04% of amount over $ 69,700 101,050 168,450 256,650 … 2,781.20 + 2.27% of amount over 168,450 210,825 256,650 458,350 … 4,783.34 + 2.64% of amount over 256,650 458,350 458,350 … 10,108.22 + 2.90% of amount over 458,350
Head of Household
If revised taxable income
The revised tax is equal to:
The revised tax is equal to: for tax year is:
Over But not over for tax year is:
Over But not over
34,850 … 1.10% of the revised taxable income $ 0 $ 34,850 84,225 … $ 383.35 + 2.04% of amount over 84,225 128,325 … 1,390.60 + 2.27% of amount over 128,325 229,175 … 2,391.67 + 2.64% of amount over 229,175 … 5,054.11 + 2.90% of amount over $ 0 $ 55,900 … 1.10% of the revised taxable income $ 34,850 55,900 144,400 … $ 614.90 + 2.04% of amount over $ 55,900 84,225 144,400 233,750 … 2,420.30 + 2.27% of amount over 144,400 128,325 233,750 458,350 … 4,448.55 + 2.64% of amount over 233,750 229,175 458,350 … 10,377.99 + 2.90% of amount over 458,350

# 2023 Form ND-1/ND-EZ Tax Rate Schedules

If you used Form ND-1 or Form ND-EZ for the 2023 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 2023 tax year.
Single
If revised taxable income
Married filing jointly and Qualifying surviving spouse
If revised taxable income
The revised tax is equal to: for tax year is:
Over But not over for tax year is: The revised tax is equal to:
Over But not over
44,725 … 0.00% of the revised taxable income $ 0 $ 44,725 225,975 … $ 0.00 + 1.95% of amount over $ 225,975 … 3,534.38 + 2.50% of amount over
Married filing separately
If revised taxable income
$ 0 $ 74,750 … 0.00% of the revised taxable income 44,725 74,750 275,100 … $ 0.00 + 1.95% of amount over $ 74,750 225,975 275,100 … 3,906.93 + 2.50% of amount over 275,100
Head of Household
If revised taxable income
The revised tax is equal to:
The revised tax is equal to: for tax year is:
Over But not over for tax year is:
Over But not over
37,375 … 0.00% of the revised taxable income $ 0 $ $ 0 $ 59,950 … 0.00% of the revised taxable income $ 37,375 37,375 137,550 … $ 0.00 + 1.95% of amount over 137,550 … 1,953.41 + 2.50% of amount over 59,950 250,550 … $ 0.00 + 1.95% of amount over $ 59,950 137,550 250,550 … 3,716.70 + 2.50% of amount over 250,550

# 2024 Form ND-1/ND-EZ Tax Rate Schedules

If you used Form ND-1 or Form ND-EZ for the 2024 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 2024 tax year.
Single
If revised taxable income
Married filing jointly and Qualifying surviving spouse
If revised taxable income
The revised tax is equal to: for tax year is:
Over But not over for tax year is: The revised tax is equal to:
Over But not over
47,150 … 0.00% of the revised taxable income $ 0 $ 47,150 238,200 … $ 0.00 + 1.95% of amount over $ 238,200 … 3,725.48 + 2.50% of amount over
Married filing separately
If revised taxable income
$ 0 $ 78,775 … 0.00% of the revised taxable income 47,150 78,775 289,975 … $ 0.00 + 1.95% of amount over $ 78,775 238,200 289,975 … 4,118.40 + 2.50% of amount over 289,975
Head of Household
If revised taxable income
The revised tax is equal to:
The revised tax is equal to: for tax year is:
Over But not over for tax year is:
Over But not over
39,375 … 0.00% of the revised taxable income $ 0 $ $ 0 $ 63,175 … 0.00% of the revised taxable income $ 39,375 39,375 144,975 … $ 0.00 + 1.95% of amount over 144,975 … 2,059.20 + 2.50% of amount over 63,175 264,100 … $ 0.00 + 1.95% of amount over $ 63,175 144,975 264,100 … 3,918.04 + 2.50% of amount over 264,100