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?

[KittyM · Accepted solution]

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.

[oliviajohn69]

NY

[swilliamsx1]

Oregon

[omorganu]

OK

[Heavybunny]

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?

[DaveF1006]

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.

• Windows instructions
• Mac instructions

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.

[omorganu]

@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.  

[DMarkM1]

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.  

[Rgrimes97]

Connecticut

[JohnW222]

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.

[Meatdrapes0312]

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

[DaveF1006]

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.

[Timmy264]

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

[Timmy264]

AZ