Will the Navajo Nations Hardship Assistance Program Payments be considered taxable income in 2021?

The Navajo Reservation sent out Hardship Assistance payments to it's tribal members, but there was not information on whether this payment would be considered taxable income in 2021.

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No, it is not taxable income because it meets the requirement for disaster relief funds.

A national emergency declaration for COVID-19 was signed by President Trump on March 13, 2020. A tribe’s governing body could also declare a similar emergency declaration under a tribe’s general welfare program and policies.

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