81-03-02.2-01 Nonresident filing status and reporting of income.

1. A nonresident individual who moves into this state with the intent to establish permanent residence acquires status as a resident immediately upon entering this state. That individual may file an individual income tax return for the first tax year either as a resident or as a nonresident. 2. An individual who elects to file an individual income tax return as a resident the first tax year in this state must report to this state total income from all sources for the entire year and must pay taxes on that income. That individual is entitled to a tax credit for taxes paid to another state on any portion of that income. 3. An individual who elects to file an individual income tax return as a nonresident the first tax year in this state must report to this state total income from all sources for that portion of the tax year during which the individual resided in this state. Income from tangible property located in this state must be reported to this state for the entire year. 4. If a resident individual moves out of this state during a tax year with the intent to change residency, that individual must file an individual income tax return as a nonresident and must report to this state total income from all sources for that portion of the tax year during which the individual resided in this state. Income from tangible property located in this state must be reported to this state for the entire year. 5. This rule is effective for taxable years beginning before January 1, 2001. History: Effective July 1, 1985; amended effective June 1, 2002. General Authority: NDCC 57-38-56 Law Implemented: NDCC 57-38-04