Form Ndw-M - Exemption From Withholding For A Qualifying Spouse Of A U.s. Armed Forces Servicemember Page 2

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return whenever you are absent from
Instructions to
Instructions for
it. Domicile is based on your intent
Form NDW-M
employer
and actions, which must be consistent.
The Servicemembers Civil Relief
Act provides that the domicile of a
Purpose of form
Requirement to withhold
U.S. armed forces servicemember
does not change based only on the
The Military Spouses Residency Relief
North Dakota income tax law requires
servicemember’s presence in a state in
Act (“Act”) (P.L. 111-97) is federal
you to withhold North Dakota income
compliance with military orders. The
legislation that was signed into law on
tax from wages paid to an employee if
Military Spouses Residency Relief Act
November 11, 2009. This Act amended
the employee performs services within
provides that a civilian spouse’s domicile
the Servicemembers Civil Relief Act to
North Dakota and the wages are subject
does not change based only on the
provide a number of benefi ts to civilian
to federal income tax withholding.
civilian spouse’s presence in a state to be
spouses of active duty U.S. armed forces
with the servicemember.
Form NDW-M exemption
servicemembers. If certain conditions
are met, one of the benefi ts exempts a
An exception to the requirement to
Completing Form NDW-M
civilian spouse’s compensation received
withhold North Dakota income tax
If you meet all of the eligibility
for working in the state where the
applies if an employee completes and
requirements for the exemption from
servicemember spouse is stationed.
gives to you a Form NDW-M. This
withholding, fi ll in the last two digits of
exception applies only if you have a
An employee whose wages are exempt
the calendar year in the upper right-hand
Form NDW-M on fi le for the employee;
from North Dakota income tax because
corner, then fi ll out Items 1 through 3 of
it is not enough that the employee is
of the Act may use Form NDW-M to
Part 1. Attach a copy of your dependent
eligible for the exemption under the Act.
apply for exemption from North Dakota
military ID card to Form NDW-M, and
income tax withholding.
give them to your employer.
What you must do
If an employee gives you a completed
When the withholding
Instructions for
Form NDW-M, do the following:
exemption takes effect
employee
1. Check to see that all items in Part 1
Form NDW-M takes effect on the later of
are fi lled in and a copy of the
(1) the date you give it to your employer
employee’s dependent military ID
or (2) the fi rst payroll period your
Eligibility
card is attached. If not, return the
employer is able to put the exemption
form to the employee;
If you are a civilian spouse of an active
into effect. The exemption does not
2. Fill in Part 2;
duty U.S. armed forces servicemember,
apply to wages paid prior to the date
3. Keep the original signed
you may complete Form NDW-M if you
Form NDW-M takes effect.
Form NDW-M and the attached
meet all of the following conditions:
copy of the military ID card for your
Annual renewal
• You and your servicemember spouse
payroll records; it relieves you of
maintain domicile in a state other than
Form NDW-M is valid only for the
your obligation to withhold North
North Dakota. This applies even if
calendar year for which it is completed.
Dakota income tax, and you shall
you have different states of domicile.
Provided you are still eligible, you
be held harmless from liability for
See “Domicile outside North Dakota”
must fi le a new Form NDW-M for each
withholding based on the employee’s
below;
subsequent year you want to continue
representations on the form; and,
• Your servicemember spouse’s
the exemption from North Dakota
4. Mail a copy of the completed
permanent duty station is in North
withholding.
Form NDW-M and attached military
Dakota; and,
ID card to:
• You are in North Dakota only because
Notifi cation of ineligibility
Attn: Withholding Tax Section
you want to be with your service-
Offi ce of State Tax Commissioner
You must notify your employer to begin
member spouse who is stationed in
600 E. Blvd. Ave., Dept. 127
the withholding of North Dakota income
North Dakota.
Bismarck, ND 58505-0599
tax from your wages if you become
ineligible for the exemption. This would
Domicile outside North
Or fax it to the Withholding Tax
occur in the following cases:
Dakota
Section at (701) 328-1942.
• Divorce from the servicemember;
“Domicile” refers to your residence
• Death of the servicemember;
by law, and is also referred to as your
• Change in domicile to North Dakota
Questions
legal residence. It is the place that
by either spouse; or
is your permanent home, and is the
• A change in the servicemember’s
If you have questions about this form,
place to which you always intend to
permanent duty station to a location
call the Withholding Tax Section at
outside North Dakota.
(701) 328-1248. Or send an e-mail to
withhold@nd.gov.

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