As you navigate through the North Carolina return, you will see a screen headed "Here's the income that North Carolina handles differently". Scroll down to subheading "Miscellaneous" and click on Learn More for the line that reads "Deductions from North Carolina income". You get the following:
"Tribal Member Gaming Payments: Deduct income that was included in your federal return that meets both of the following requirements:
1. Is earned or received by an enrolled member of a federally recognized Indian tribe.
2. Is derived from activities on a 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."
If you are an enrolled member of the Cherokee tribe and your income is earned on the recognized Cherokee reservation, then you can enter a deduction equal to the amount of the income you earned in this way. Click on Start for "Deductions from North Carolina income", answer "yes" to the question on "Deductions from Federal Adjusted Gross Income", and on the next screen enter the description and the amount of your wages earned on the reservation.
This amount will be removed from your NC state income.
