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New Member
posted Jun 1, 2019 12:26:52 AM

Do I have to pay state tax if I am a Native American Indian Living and Working on my federally recognized reservation. Where do I claim this on my tax return?

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1 Best answer
Level 2
Jun 1, 2019 12:26:57 AM

Tribal members living and working on tribal land are generally not required to file state returns for that income.  You do not say which state you are in, but if this exclusion applies in your state there will be a question in your state return interview to report this situation.  

If you cannot find the question, please comment with your state and I will see if I can find exactly where the question is in your state return.

24 Replies
Level 2
Jun 1, 2019 12:26:57 AM

Tribal members living and working on tribal land are generally not required to file state returns for that income.  You do not say which state you are in, but if this exclusion applies in your state there will be a question in your state return interview to report this situation.  

If you cannot find the question, please comment with your state and I will see if I can find exactly where the question is in your state return.

New Member
Jun 1, 2019 12:27:01 AM

NY

New Member
Jun 1, 2019 12:27:05 AM

Oregon

New Member
Feb 5, 2020 12:26:18 PM

OK

New Member
Feb 5, 2020 2:43:54 PM

My husband is tribal, I am not.  We live on the reservation in Wisconsin.  When filing our state taxes am I correct to say that I deduct his tribal per cap and any income from the tribe on our state tax return so we do not pay state tax on that money.  

Also, if I did not deduct it last year, what steps can I take to amend my state tax return from last year and possibly the year before that?

Expert Alumni
Feb 5, 2020 6:45:09 PM

Yes, you are correct to say that you deduct his tribal per cap and any income from the tribe on your state tax return.  Now to amend your 2017-2018 returns, please do the following.  This is assuming you used Turbo Tax in each of those two years.

 

  1. Sign in at TurboTax.com with the user ID you used when you filed your 2019 return. 
  2. Select Show next to Your tax returns & documents.
  3. Look for your 2018 and 2017 returns.
  4. Starting with the 2018 return Select Download .tax fIle. You'll need this to amend your return.
  • If you don't have access to your tax return, you'll need to pay for access before you can download your .tax file.
  1. Once you've got your .tax file, select 2018, and then select Amend (change) 2018 return.
  2. In the expanded instructions, select download TurboTax Desktop 2018.
  3. Install the TurboTax 2018 software.
  1. Now open your .tax file in the TurboTax 2018 software by choosing File and then Open Tax Return (Windows) or TurboTax and then Open Tax Return (Mac). Browse to the location of your tax file and select Open.
  2. You're ready to amend your 2018 return. Follow these instructions.

Repeat these same steps to amend your 2017 return. Once you are in the software, go to your state return and find that particular section where you made this entry.  

 

Remember for this to work, you would have to prepared your 2017 and 2018 returns in Turbo Tax. if you log in to your current return and don't see your 2017-2018 returns, this may mean that you used a different user ID and you would need to determine what your user id was in each of those years in order to access those accounts.

 

New Member
Feb 5, 2020 7:50:06 PM

@DaveF1006  I know this was to the OP but thank you for the information.

Does the income have to be from tribal pay or can the income be deducted if you are working within tribal jurisdiction and live within jurisdiction but are not paid from a tribal business? I live in Oklahoma.  

Expert Alumni
Feb 9, 2020 5:54:09 AM

If you are a tribal member and live and work in your tribal reservation then that income would be exempt from state taxes.  Here is a link that discusses the restrictions in Oklahoma.  

 

 

New Member
Feb 11, 2020 12:24:50 PM

Connecticut

Expert Alumni
Feb 11, 2020 12:41:48 PM

You must report your income on your state return, but you may be eligible for a modification that will lower or eliminate your taxable income.

You may be able to subtract "any income or gain of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of such tribe or any income or gain of an enrolled member of the Mohegan Tribe who resides in Indian country of such tribe where the income or gain is derived from or connected with Indian country of the tribe."

Please see the first subparagraph of Line 49: Other on page 28 of the 2019 Form CT-1040 Connecticut Resident Income Tax Return Instructions for additional information.

New Member
Feb 20, 2020 4:38:30 PM

I live and work on lac vieux desert tribal land in watersmeet michigan, some how turbo tax does not recognize my tribe... and I'm feeling attacked by the man... I know I should be getting like 9 hundred and something and because of this default, its saying I only get 2 hundred and something... I just wanna get these files without getting ripped off... please help

Expert Alumni
Feb 20, 2020 4:54:32 PM

The state of Michigan signed a tax agreement that benefits many members whose principal residence is within specific agreement areas which is often on or near tribal reservations. Those members living in the agreement area are exempt from state income tax.

 

According to this State of Michigan Dept of Treasury website, they have listed tribes that are part of the agreement area. Check this site to see if your tribe is listed. if not, then you are not exempt from paying tax.

New Member
Apr 1, 2020 6:52:19 PM

Where do I input that I am exempt from state taxes due to living on a native Reservation and being Native American? 
I’m in AZ

New Member
Apr 1, 2020 6:53:08 PM

AZ

Expert Alumni
Apr 3, 2020 12:26:31 PM

Native Americans living and working on a reservation are allowed to exempt their (reservation) W-2 wages from Arizona state taxation, under Arizona state law. TurboTax supports this exemption, and here are the instructions to enter.

  1. Finish your federal tax return, as your reservation wages are still taxable by the federal government
  2. Begin your Arizona state tax return 
  3. When you reach the screen with a list of items that has the title "Do These Apply to You?"   check the one that is labeled "I Have Adjustments to Federal Income."
  4. Continue until you reach  "Any Income Adjustments"
  5.  Scroll down and select  "I Am a Native America Who Earned Wages While Living and Working on a Reservation"
  6. Click Continue and on the very next screen you should have the option to enter the dollar amount of your wages that are eligible for the Arizona exclusion.

Source: TeresaM

New Member
Feb 19, 2022 8:02:37 AM

Hello, I’m new at filing my own taxes,. So I was wondering how would I fill out/what would I put down for the Tribal Member MT tax exempt? I am a Tribal Member that lives on the reservation here in Montana

Expert Alumni
Feb 19, 2022 8:26:10 AM

The Montana Department of Revenue has two categories for Tribal members. Income is exempt from Montana income tax if all of the following requirements are met:

  • You are an enrolled tribal member of the governing tribe of a reservation;
  • You resided and worked on that reservation; and
  • You earned income by working on that reservation.

If the three conditions above are met, no tax return is needed. Send in this form by mail.

 

If money was earned off the reservation and meets the income threshold, a Montana income tax return will be required. The details of who needs to file a form are under the instructions for Line 2 in the above form.

New Member
Feb 20, 2022 1:10:35 PM

I live in the state of Michigan I am also native American. I cannot find the box to ask me the question about native American. Yes my tribe is listed!

 

Expert Alumni
Feb 20, 2022 1:49:26 PM

The Michigan section of TurboTax includes a section to adjust your income if you are a Resident Tribal Member and to claim the sales tax credit @shirlgrl.

  1. In the Michigan section, go to Here's the income that Michigan handles differently.
  2. Under Miscellaneous select Tribal Income
  3. Once you're completed that section, continue to Take a look at Michigan credits and taxes
  4. Under Other Credits select Tribal Member Sales Tax Credit

For more info on Michigan Tribal Income see Frequently Asked Questions

Returning Member
Mar 1, 2022 2:01:29 PM

Need help. 
I am Native American living and working on my reservation. We have to pay (forced) rent through the school I work at; can this be recorded as a deduction in my taxes? Where does it need to be entered? Is this different than the form 8845? 

Expert Alumni
Mar 1, 2022 2:26:49 PM

Form 8845 is for Employers of American Indians, not employees.

 

If you are an employee, there is not a deduction for rent, whether or not it is required by the employer. Income Tax Guide for Native American Individuals and Sole Proprietors

 

Whether or not you have to pay state taxes and how much you may have to pay, depends on the state in which you live.  

 

 

Returning Member
Mar 1, 2022 2:36:14 PM

Again (I am Native American), the rent I pay is forced because property on reservation land cannot be purchased. The allotment of land is based on families. Therefore, where I work on the reservation is forced. I  cannot deduct this rent cost (even though I can prove how much was paid)? 

Expert Alumni
Mar 1, 2022 3:02:56 PM

No, even if you are Native American, if you are an employee, there is not a special deduction for housing costs on the reservation whether or not you are forced to live there in order to do the job you are doing or not. 

 

The only way your rent would be deductible is if you were self-employed and traveling from your tax home more than 50 miles away to stay on the reservation for your self-employed position. 

New Member
Jan 22, 2023 4:03:18 PM

Mississippi