topic What are the steps for filing a W2 on and out of state taxes that has a state tax, but you resided on an Indian reservation that doesn’t have the state tax? in State tax filing

What are the steps for filing a W2 on and out of state taxes that has a state tax, but you resided on an Indian reservation that doesn’t have the state tax?

13tyleteagu — Tue, 03 Feb 2026 12:58:38 GMT

Re: What are the steps for filing a W2 on and out of state taxes that has a state tax, but you re...

BillM223 — Wed, 05 Feb 2025 22:51:25 GMT

Many members of Indian nations do not pay taxes on jobs on their reservations, but do pay tax on jobs elsewhere. This is a generalization because I do not know what nation you belong to nor what state you are in.

Give us your nation and state so we can answer more completely.

Re: What are the steps for filing a W2 on and out of state taxes that has a state tax, but you re...

13tyleteagu — Wed, 05 Feb 2025 22:58:54 GMT

The region is in North Carolina In Cherokee. I am not part of any tribe, but I worked And was paid on the Qualla Boundaries where the reservation is. As a person who just worked and had a paycheck there on the reservation, do I still pay state tax?

Re: What are the steps for filing a W2 on and out of state taxes that has a state tax, but you re...

BillM223 — Wed, 05 Feb 2025 23:14:24 GMT

Yes, you owe tax to the federal government and to the state government.

Line 27 of the D-400 says:

"Line 27. Exempt Income Earned or Received by a Member of a Federally Recognized Indian Tribe. You may deduct the income that meets both of the following requirements: a. Is earned or received by an enrolled member of any federally recognized Indian tribe. b. Is derived from activities on any federally recognized Indian reservation while the member resides on the reservation. Income from intangibles having a situs on the reservation and retirement income associated with activities on the reservation are considered income derived from activities on the reservation."

Since you are not a member of a recognized Indian tribe or nation, you cannot use this exclusion.