North Dakota Immigrants Eligible for Federal EITC but No State Credit in 2025

Key Takeaways

• North Dakota immigrants can claim federal EITC in 2025 but no state-level EITC exists yet.
• Starting 2026, child tax credit includes children with ITINs, expanding immigrant family eligibility.
• State credits focus on property tax relief, business incentives, and support for seniors and disabled.

Recent updates to tax benefits and credits for immigrants in North Dakota bring both clarity and some changes for the 2025 tax year. Immigrants living and working in North Dakota often ask about their eligibility for important tax credits like the Earned Income Tax Credit (EITC) and The child tax credit, as well as any state-level programs that might help reduce their tax burden. Here’s a detailed breakdown of what’s changed, who is affected, what actions are required, and what these updates mean for pending and future applications.

Summary of What Changed

As of July 11, 2025, North Dakota still does not offer a state-level Earned Income Tax Credit (EITC). However, immigrants who live in North Dakota can still claim the federal EITC if they meet the federal requirements. The federal child tax credit remains available, but there’s a notable change coming: starting with the 2026 tax year, families will be able to claim the child tax credit for children with either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). This is a significant update for many immigrant families.

North Dakota continues to offer several state-level tax credits and relief programs, but these are mostly focused on property tax relief, investment incentives, and support for specific groups like seniors and people with disabilities. There are also ongoing discussions about increasing property tax credits, but these proposals have not yet become law.

Who Is Affected

These updates affect several groups:

• Immigrant workers and families: Especially those with children, as changes to the child tax credit could expand eligibility.
• Homeowners and renters: Particularly those who are seniors or have disabilities, as they may qualify for property tax relief.
• Business owners and investors: Those involved in agriculture, fuel supply, or certified businesses may benefit from specific credits.
• Employers: Companies hiring interns in North Dakota can access internship employment credits.
• Married couples: Those filing jointly with qualified income may be eligible for a marriage credit.

Effective Dates

• Federal EITC and Child Tax Credit: The current rules apply for the 2025 tax year. The change allowing ITINs for the child tax credit starts with the 2026 tax year.
• State-level credits: Most credits and relief programs are ongoing, but any changes from legislative proposals will be announced if and when they become law.

Required Actions

To benefit from these credits, immigrants and other residents should:

• Check eligibility for each credit based on their residency, income, and family situation.
• Gather necessary documents, such as SSNs or ITINs for themselves and their children.
• File tax returns accurately and on time, including all required forms.
• Apply for state-level credits through the North Dakota Tax Department or local tax offices.
• Stay informed about pending legislative changes that could affect future credits.

Detailed Overview of Tax Credits and Benefits

Federal Earned Income Tax Credit (EITC)

Current Status in North Dakota

North Dakota does not have its own state-level EITC. This means residents cannot claim an extra EITC on their state tax return. However, the federal EITC is still available to qualifying residents, including immigrants.

Who Can Claim the Federal EITC?

• Immigrants with a valid Social Security Number (SSN): You can claim the federal EITC if you, your spouse (if filing jointly), and any qualifying children have valid SSNs.
• Immigrants with an Individual Taxpayer Identification Number (ITIN): Currently, ITIN holders are not eligible for the federal EITC. However, there are ongoing discussions at the federal level about expanding EITC eligibility to ITIN filers in the future.

Eligibility Requirements

• You must have earned income from work.
• Your income must fall below certain limits, which depend on your filing status and number of children.
• You must be a U.S. citizen or resident alien for the entire year.
• You cannot file as “married filing separately.”

How to Claim

• File a federal tax return (Form 1040) and complete the EITC section.
• Include SSNs for all family members listed on the return.
• For more information, visit the IRS EITC page.

Federal Child Tax Credit

Current Status and Upcoming Change

The child tax credit is a federal program that helps families with children reduce their tax bill. Until the 2025 tax year, only children with valid SSNs qualify. Starting in the 2026 tax year, children with an ITIN will also qualify. This is a major change for many immigrant families who have children with ITINs but not SSNs.

Who Can Claim the Child Tax Credit?

• Immigrants with qualifying children: If your child has a valid SSN (for 2025) or an ITIN (starting in 2026), you may be eligible.
• You must have a qualifying child under age 17 who lives with you for more than half the year.
• You must meet income limits set by the IRS.

How to Claim

• File a federal tax return (Form 1040) and complete the child tax credit section.
• Provide SSNs or ITINs for all qualifying children.
• For more details, visit the IRS Child Tax Credit page.

North Dakota State-Level Credits and Programs

While North Dakota does not offer a state-level Earned Income Tax Credit, it does provide several other credits and relief programs that can help immigrants and other residents.

Primary Residence Credit

• Who can claim: All homeowners in North Dakota who live in their primary residence.
• Benefit: Up to $500 credit against property tax.
• How to apply: File an application with your local tax assessor’s office or through the North Dakota Tax Department.

Homestead Property Tax Credit & Renter’s Refund

• Who can claim: Residents age 65 or older, or those with a permanent and total disability.
• Income limits: Apply; check with the North Dakota Tax Department for current thresholds.
• Benefit: Reduces property tax for homeowners or provides a refund for renters.
• How to apply: Submit an application with supporting documents to the local tax office.

Proposed Property Tax Relief

• What’s changing: There are ongoing discussions in the North Dakota legislature about increasing the primary residence property tax credit from $500 to $1,250.
• Status: Not yet implemented. Watch for updates from the North Dakota Tax Department or local news.

Other State Credits

• Agricultural Commodity Facility Investment Credit: For investments in approved agricultural zones.
• Seed Capital Investment Credit: For investments in certified North Dakota businesses.
• Biodiesel Fuel Supplier and Seller Credits: For licensed fuel suppliers and sellers.
• Internship Employment Credit: For employers who hire interns in North Dakota.
• Marriage Credit: For married couples filing jointly with qualified income.

How to Apply for State Credits

• Most credits are claimed when you file your North Dakota state tax return.
• Some require separate applications or supporting documents.
• For details, visit the North Dakota Tax Department’s official website.

Implications for Pending Applications

If you have already applied for any of these credits or plan to do so soon, here’s what you need to know:

• Federal EITC and Child Tax Credit: If you are waiting for approval or a refund, the current rules apply for the 2025 tax year. If you have children with ITINs, you will need to wait until you file your 2026 return to claim the child tax credit for them.
• State-level credits: Pending applications for property tax relief or other credits will be processed under current rules. If new laws are passed, the North Dakota Tax Department will provide guidance on how to claim increased credits or new benefits.

What Immigrants Should Do Next

To make sure you get all the tax benefits you qualify for, take these steps:

1. Check your eligibility for each credit, especially if you have children or own a home.
2. Get the right identification numbers: Make sure you, your spouse, and your children have valid SSNs or ITINs as needed.
3. Keep good records: Save documents like pay stubs, W-2s, and proof of residency.
4. File your taxes on time: Missing deadlines can mean missing out on credits.
5. Ask for help if needed: Contact the North Dakota Tax Department or a trusted tax preparer if you have questions.

Economic and Policy Impacts

Tax credits like the Earned Income Tax Credit and child tax credit can make a big difference for immigrant families in North Dakota. They help lower the amount of tax you owe and can even result in a refund. This extra money can help pay for food, housing, and other essentials.

Analysis from VisaVerge.com suggests that expanding eligibility for credits like the EITC and child tax credit could help more immigrant families achieve financial stability. However, these changes depend on decisions made by lawmakers at both the federal and state levels.

Staying Up to Date

Because tax laws and credits can change, it’s important to stay informed. Here’s how:

• Check the North Dakota Tax Department website regularly for updates on state credits and relief programs.
• Watch for news about changes to federal tax credits, especially if you have children with ITINs.
• Contact local tax authorities if you have questions about your eligibility or how to apply.

Official Resources

• North Dakota Tax Department: For the latest information on state credits, forms, and application procedures, visit www.tax.nd.gov.
• City of Watford City Assessor: For property tax relief questions, contact Rita Olson at [email protected] or 701-444-8401.

Frequently Asked Questions

Can immigrants in North Dakota claim the Earned Income Tax Credit?
– Yes, if you have a valid SSN and meet the income and residency requirements for the federal EITC. North Dakota does not offer a separate state EITC.

Can I claim the child tax credit for my child with an ITIN?
– Not for the 2025 tax year. Starting in 2026, you can claim the child tax credit for children with ITINs.

Are there any state-level tax credits for immigrants in North Dakota?
– While there is no state EITC, immigrants who own homes, are seniors, or have disabilities may qualify for property tax relief. Business owners and investors may also qualify for specific credits.

What should I do if I’m not sure which credits I qualify for?
– Visit the North Dakota Tax Department website or contact a local tax professional for help.

Conclusion and Next Steps

The 2025 tax year brings some important updates for immigrants in North Dakota, especially regarding the child tax credit. While the state does not have its own Earned Income Tax Credit, federal credits remain available to those who qualify. State-level programs focus mainly on property tax relief and business incentives.

To make the most of these benefits:

• Review your eligibility for each credit.
• File your taxes accurately and on time.
• Stay informed about upcoming changes, especially the expansion of the child tax credit to ITIN holders in 2026.
• Use official resources like the North Dakota Tax Department for the most current information.

By following these steps, immigrants in North Dakota can take full advantage of available tax credits and programs, helping to improve their financial well-being and support their families.

Learn Today

Earned Income Tax Credit (EITC) → A federal tax credit for low to moderate-income workers to reduce their tax liability.
Child Tax Credit → A federal credit helping families reduce taxes for each qualifying child under age 17.
Individual Taxpayer Identification Number (ITIN) → An IRS tax processing number issued to individuals ineligible for a Social Security Number.
Primary Residence Credit → A North Dakota state credit offering up to $500 property tax reduction for homeowners.
Homestead Property Tax Credit → A state program reducing property taxes for seniors or permanently disabled homeowners or renters.

This Article in a Nutshell

Immigrants in North Dakota face key tax updates: federal EITC remains accessible in 2025. Child tax credit expands in 2026 to include ITIN children. State programs aid property tax relief and business incentives, guiding immigrants to optimize benefits for financial stability and family support.
— By VisaVerge.com