Oklahoma exempt tribal income

[corey-barnett23]

I don't live on tribal land but I work at a casino on tribal land and am a member of that tribe. Am I  allowed to file under this? If so, would it be my full wages from the casino?

[DanielV01 · Accepted solution]

No, unfortunately it does not appear that you qualify.  Oklahoma has 3 main requirements:

1.    You are a member of a recognized tribe (you seem to qualify on that point)

2.    You work on the tribal land associated with your tribe (also checks)

3.    You live on land associated as belonging to the tribe.  (This you would need to prove)

Oklahoma asks for significant documentation on this as well.  Please click on the following link:  https://www.ok.gov/tax/documents/511Pkt-16.pdf  and review the information on page 15, column1, under Tribal Income

[Jeff5022]

So does it matter who you are employed by?  I am Cherokee and work and live in Cherokee nation but am not employed by the Cherokee nation.  Does that matter who the employer is. It doesn't look clear.

[AmyC]

No. You must be a tribal member, live and work on tribal land If you are working for your employer on tribal land, you qualify for the deduction.

The Ok instructions for 2020, page 18 states that you enter all income earned and then reduce your income on sch 511A line 10 by your qualified exempt tribal income. 

Exempt Tribal Income

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 2020:

. A copy of your tribal membership card or certification by your tribe as to your tribal membership during the tax year; and

• 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
• 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
• Any other evidence which you believe supports your claim that you meet all of the criteria for exemption from income tax.

All information to support your claim for refund must be provided with your return

@Jeff5022

[Mtabor1980]

So we if we rifle how and where do we send this information to be exempt. In years past turbo tax gave me this information. Last 3 years they have not. I didn’t submit information. Guess what got 2018 2019 notices this week because of it. Thanks again turbo tax. 

[Mtabor1980]

So we if we e file how and where do we send this information to be exempt. In years past turbo tax gave me this information. Last 3 years they have not. I didn’t submit information. Guess what got 2018 2019 notices this week because of it. Thanks again turbo tax. 

[PattiF]

You will need to mail your return with the following documents attached to the return.

The Ok instructions for 2020, page 18 state that you enter all income earned and then reduce your income on Sch 511A line 10 by your qualified exempt tribal income. 

Exempt Tribal Income

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 2020:

. A copy of your tribal membership card or certification by your tribe as to your tribal membership during the tax year; and

• 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
• 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
• Any other evidence which you believe supports your claim that you meet all of the criteria for exemption from income tax.

All information to support your claim for refund must be provided with your return.

[kgarris99]

I feel you on this. Just received 2017, 2018, and 2019 adjustments today. I have been trying to get answers all morning with no luck. 

[Mtabor1980]

It instructs you how to submit that info online. 
not sure how long it takes

i also just sent in my 2020 info in the mail to cover this years 

[iJohn134]

FYI to anyone stumbling on this thread. The requirements for the exemptions as per the yearly guideline PDF they put out is NOT accurate. The wording, at the very least is non-descript, if not outright deceptive.

See Okla. Admin. Code § 710:50-15-2 to see the actual wording. Even then, it doesn't seem to align with how the Oklahoma Tax Commission is applying the code; I've been hearing from both friends and family that the state of Oklahoma, years after (4 years, in my brother's case) have come back, requiring they pay the money back because "They did not work for the Cherokee Nation." (in our case)

The wording of the PDF and the wording of the admin code, in my layman's understanding, does not state that you need to work FOR the Tribe, just that the place you're working has to be under Tribal jurisdiction.

Watch yourself and take care, friends.

[Catladygracie88]

Just for clarification please. I am a register member, the house I own is on tribal land and I work for my employe full time from home. My employer is not tribal owned it’s a large corporation so do I still qualify for this?

[DaveF1006]

It depends. According to the main three requirements, you qualify.

1.    You are a member of a recognized tribe (you seem to qualify on that point)

2.    You work on the tribal land associated with your tribe (also checks)

3.    You live on land associated as belonging to the tribe.  (This you would need to prove)

It doesn't say specifically that you need to work for the Tribe in order to claim an exemption but you may wish to consult with a tax expert that is well familiar with this process. Working in your home on the land appears to qualify for the exemption. 

Oklahoma asks for significant documentation on this as well.  Please click on the following link:  https://www.ok.gov/tax/documents/511Pkt-16.pdf  and review the information on page 15, column1, under Exempt Tribal Income page 14. 

[Catladygracie88]

@DaveF1006 @Thank you for your response!! 

[CBeamer]

Tribal income tax exemption for remote workers. Due to the recent rulings in Oklahoma, I’m a Cherokee citizen now living on a Cherokee reservation. I have 2 jobs. One is located within the Cherokee reservation. 

The other is located on the Creek reservation, of which I am not a member. But since I work from home 100% of the time does that mean all of my income is earned on the Cherokee reservation and would be exempt? 

[CBeamer]

The other is located on the Creek reservation, of which I am not a member. But since I work from home 100% of the time does that mean all of my income is earned on the Cherokee reservation and would be exempt? 

[DawnC]

No, one the income descriptions that is not excludable from OK income tax is “Either the source of the income or the place of residence is under the jurisdiction of a tribe of which the taxpayer is not a member.” Okla. Admin. Code § 710:50-15-2  @CBeamer