topic Re: Native American state tax exemption in State tax filing

Native American state tax exemption

KScottK — Mon, 23 Feb 2026 09:49:48 GMT

My wife is a member of the Luiseno Indian Tribe in southern California, and we live in Colorado (not on the reservation, obviously). They receive a small amount of money each year which is reported on a 1099-MISC. I have included that in our federal tax return and am now looking at the state tax forms for Colorado. In the Miscellaneous section is a Native American Indian Reservation Income field which is labeled Income Earned on the Reservation. Do I leave this empty since we do not live on the reservation? It's confusing because the income is directly for tribal membership.

Thank you.

Re: Native American state tax exemption

ErnieS0 — Mon, 23 Feb 2026 09:47:28 GMT

Yes. Leave this space empty. The subtraction is only available to tribal members living on tribal land.

Colorado says:

Line 12 Qualified Reservation Income

List any amount of income that was derived wholly from reservation sources by an enrolled tribal member who lives on the reservation, which was included as taxable income on the Federal income tax form.

Submit proof of tribal membership, residence, and source of income. This must be submitted every three years by taxpayers claiming this subtraction.

Page 13 of 104 Book, Colorado Individual Income Tax Filing Guide

Re: Native American state tax exemption

KScottK — Sat, 24 Feb 2024 14:55:30 GMT

Thank you, ErnieSO.

I'm working on taxes again and this was, once again, helpful!