Oklahoma exempt tribal income

[mmortimer]

My question is related to better understanding the term "workin on tribal land" and what the scope of that means. My wife is a member of the Chickasaw tribe, and she lives and works within Grady County, one of the counties in the "Chickasaw Nation Treaty Territory". Now, she works for a public school in the county, and it is not on any kind of reservation. However, it is still within what could be considered "Chickasaw Nation Territory".

Because my wife lives and works within a Chickasaw territory, but it is not on a true "reservation", does she still quality for this exemption?

[SundayInSalem]

Your wife's income is exempt if she lives and works in "Indian country".  Check with the school's payroll department. They can probably tell you.

Oklahoma says If the tribal member’s principal residence is on “Indian country” as defined in 18 U.S.C. Section 1151, the income earned on Indian country may be deducted. Legally acknowledged Indian country must be within the jurisdiction of the tribe of which he or she is a member. All claimants must provide sufficient information to support that these requirements have been satisfied.

Provide the following information for tax year 2021:

1. A copy of your tribal membership card or certification by your tribe as to your tribal membership during the tax year; and
2. A copy of the trust deed, or other legal document, that describes the real estate upon which you maintained your principal place of residence and that was an Indian allotment, restricted, or held in trust by the United States during the tax year. If your name does not appear on the deed, or other document, provide proof of residence on such property; and
3. A copy of the trust deed, or other legal document, that describes the real estate upon which you were employed or performed work or received income and that was held by the United States of America in trust for a tribal member or an Indian tribe or that was allotted or restricted Indian land during the tax year. Also a copy of employment or payroll records that show you are employed on that Indian country or an explanation of your work on Indian country; and
4. Any other evidence which you believe supports your claim that you meet all of the criteria for exemption from income tax.

See page 18 of 2021 Oklahoma Resident Individual Income Tax Forms and Instructions

[AmyC]

The lawsuit has things muddy in this area.  OK needs to decide if criminal or all personal are subject to  the working for the tribe laws.

Currently, legal documents for Oklahoma state 3 main requirements:

1. You are a member of a recognized tribe

2.    You work on the tribal land associated with your tribe

3.    You live on land associated as belonging to the tribe.  

Oklahoma asks for significant documentation on this as well.  Please click on the following link, 511 Packet, and review the information on page 18,  under Exempt Tribal Income.

However, since the criminal McGirt case, the door is open to say you must be working for the tribe. Since this has over 5,000 appeals, no idea what OK will decide for the common person. You can check the latest public news here. Since your wife is not working for the tribe, this case could be prevent your claim at some point.