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February 6, 2021
Question

I am a member of a tribe, work for that tribe, and lived on that tribes land. I sold my home before the year ended and do not live on the land anymore How will that work?

  • February 6, 2021
  • 1 reply
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I lived on their land for most of 2020. I am wondering how I can file this year

1 reply

February 7, 2021

You would file your tax return paying tax on any earnings you received for the services you performed. If you received a W-2, you will report your wages, etc. 

  • Native Americans usually pay federal income tax on their personal incomes.
  • Income may be tax-exempt at the state and local  level when a Native American individual earns it on tribal lands.
  • Individual Native Americans who receive per capita gaming distributions from their tribe must pay federal tax on this income.

If you received any Per Capita distributions you can click here for more information for your specific situation.

 

The sale of your home would be reported if you received a Form 1099-S.  There is a home sale exclusion for federal tax purposes if you meet the qualifications.

 

You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you're Married Filing Jointly, you won't pay taxes on the first $500,000.  That income is free and clear as long as:

  • You owned the home.
  • It was your main home for two years or more within the five years leading up to the sale.
  • You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.

For more information about the sale of your home see IRS Topic 701.

  • Open your TurboTax account
    • Search (upper right) > Type sale of home > Press enter > click on the Jump to.... link
    • For each entry follow the screens to make your entries
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