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Level 1
April 1, 2023
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Mineral Right Royalties

  • April 1, 2023
  • 1 reply
  • 21 views

I live in Montana and inherited mineral rights in North Dakota.  Each year I receive a 1099-MISC with royalties listed in box 4 and state tax witholding in box 16 (paid to ND).  The Royalty income is less than $500 annually and the state taxes paid are less than $10.  The last couple of years, I have filed a ND non-resident tax form which results in a refund of $5 each year.  This seems silly to have to file a non-resident form in North Dakota only to receive a $5 refund on the overpayment of the state taxes.  I understand filing if taxes were due, but that is not the case each year with the small refund.  Do I need to bite the bullet and continue to file each year?  Any help is appreciated!  Thank you!  

    Best answer by KrisD15

    The state requirement is that you do file. 

     

    According to the State of North Dakota:

    A nonresident of North Dakota (which means you do not live here for more than 7 months) is required to file a North Dakota individual income tax return if: 1) you are required to file a federal return, AND 2) receive income from a source in North Dakota.

     

    These sources could include income from:

     

    • Property – rents, royalties, or gains from sales/exchanges
    • Gambling activities
    • Subchapter S Corporation – income other than wages
    • Sales of goods, personal, or professional services into North Dakota

    ND link

    1 reply

    KrisD15
    KrisD15Answer
    Level 15
    April 1, 2023

    The state requirement is that you do file. 

     

    According to the State of North Dakota:

    A nonresident of North Dakota (which means you do not live here for more than 7 months) is required to file a North Dakota individual income tax return if: 1) you are required to file a federal return, AND 2) receive income from a source in North Dakota.

     

    These sources could include income from:

     

    • Property – rents, royalties, or gains from sales/exchanges
    • Gambling activities
    • Subchapter S Corporation – income other than wages
    • Sales of goods, personal, or professional services into North Dakota

    ND link

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