N.D.C.C. § 57-38-01.28 — Marriage penalty credit

1. A married couple filing a joint return under section 57 -38-30.3 is allowed a credit of not
to exceed three hundred dollars per couple as determined under this section. The tax
commissioner shall adjust the maximum amount of the credit under this subsection
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each taxable year at the time and rate adjustments are made to rate schedules under
subdivision g of subsection 1 of section 57-38-30.3.
2. The credit under this section is the difference between the tax on the couple's joint
North Dakota taxable income under the rates and income levels in subdivision b of
subsection 1 of section 57-38-30.3 and the sum of the tax under the rates and income
levels of subdivision a of subsection 1 of section 57-38-30.3 on the qualified income of
the lesser-earning spouse, and the tax under the rates and income levels of
subdivision a of subsection 1 of section 57 -38-30.3 on the couple's joint North Dakota
taxable income, minus the qualified income of the lesser-earning spouse.
3. For a nonresident or part -year resident, the credit under this section must be adjusted
based on the percentage calculated under subdivision f of subsection 1 of section
57-38-30.3.
4. For purposes of this section:
a. "Qualifying income" means the sum of the following, to the extent included in
North Dakota taxable income:
(1) Earned income as defined in section 32(c)(2) of the Internal Revenue Code;
and
(2) Income received from a retirement pension, profit -sharing, stock bonus, or
annuity plan.
b. "Qualifying income of the lesser -earning spouse" means the qualifying income of
the spouse with the lesser amount of qualifying income for the taxable year minus
the sum of:
(1) The amount for one exemption under section 151(d) of the Internal Revenue
Code; and
(2) One-half of the amount of the standard deduction under section 63(c)(2)(A)
(4) of the Internal Revenue Code.