Oklahoma Tribal Income Exemption

[CBeamer]

I spoke with the TurboTax live resource earlier today about this. He told me that my income is qualified for exemption being a Cherokee citizen, living on the reservation as recognized a month ago, and working for a clinic also on the reservation.

He also told me that he believes that the income from the other clinic I work for, located on the Creek reservation, should be exempt because I am a remote employee so all of the work performed is done on the Cherokee reservation. 

I called OTC to ask what documentation I need to submit to prove the work is performed on Cherokee land, and she told me that I have to be employed by the tribe for it to count. But... that isn't how it reads and if that were the case why would they have issued that document after the reservation decision discussing the impact on state income tax? 

I've contacted the head of the Cherokee Nation Commerce Department and they said they do not give tax advice and do not have anyone employed by the Cherokee Nation who would give tax advice. They said to follow instruction of a tax professional.

So I'm trying to figure out what is the truth and what documentation I would need to submit as a remote employee?

[AmyC]

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 see OK instructions and review the information on page 18 under Tribal Income.

[CBeamer]

Yeah... OTC issued a statement early April though that they're choosing to believe that the McGirt decision was intended for criminal matters only and that to be tribal exempt, you have to work FOR the tribe.

They're going to get screwed in refunds, but whatever they flat out told me they're going to reject anyone that doesn't work for the tribe until the Supreme Court tells them they can't

[AmyC]

Oooof, Thanks for that update. That does change things. Somebody always challenges these things, even a class action suit possibly in this case. When things change again, you can file an amended return or you can file as you want now and fight through a legal battle. Good luck!

[nmtom]

So if my income is from my tribe do i need to submit a copy of my W-2 to the state of ok tax commission or because I e-filed it is unnecessary. SO just send in CDIB and a bill showing i live within the city limits.  

[CBeamer]

From what I understand, you have to have proof of the income and proof of where you live, so yes the W-2 will cover your employment proof as well as the location of the workplace on your tribe's land. Then the card, and proof showing that you live on your tribe's land too.

[nmtom]

Thank you, I figured as much! I just wanted to double check so it doesn’t get delayed any more than it has to.