My wife received money on a 1099-misc from her tribe just for being a member of that tribe. Do we report this as income as a tribal gaming payment?

[MargaretL · Accepted solution]

Yes - that's how you report it. Since she received 1099-MISC, it would indicate that the per capita income is income from Indian gaming proceeds and therefore it is taxable. 

In general, the per capita payments issued to a member of Indian tribes are not subject to federal income tax, unless they are from gaming proceeds.

Per Irs: “If you are a member of a federally recognized tribe and have received income from tribal per capita distributions or from Indian gaming proceeds, here is some important information.

Reported on a 1099-MISC income statement, this income should be included on Line 21 of Form 1040, with a description. The correct description will allow the return to process as quickly as possible! For paper or e-file returns, please enter one of the following descriptions on Line 21:

Indian Gaming Proceeds
Indian Tribal Distrib
Native American Distrib"

[Critter]

You can report it as other income on Form 1040 line 21. Here's how to enter it in TurboTax.

·        Click the Federal Taxes tab ( Personal in the Home & Business version)

·        Click Wages & Income. (Personal income in the H & B version)

·        Click "I'll choose what I work on."

·        On the screen "Your 2015 Income Summary," scroll all the way down to the last section, "Less Common Income."

·        Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."

·        On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."

·        The next screen asks, "Did you receive any other taxable income." Click Yes.

·        On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.

·        On the next screen click Done.

The income will be reported on Form 1040 line 21 with the description that you entered.