Is tribal per capita income considered taxable income?

Forum|Forum|6 years ago
May 31, 2019
2 replies
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I support my tribal boyfriend (who is married, but separated), but receives a tribal per capita quarterly. He does not work and earns $4500 per year in per capita. This is his only income. Can I claim him on my taxes? The only information I have found is if a person makes more than $4000 in TAXABLE income, they cannot be claimed.. but this is income that is claimed as a 1099-MISC.... Is he claimable? And no, he is not filing jointly with his ex, they are legally still married because they cannot afford divorce.

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Best answer by MargaretL

Since he received 1099-MISC, it would indicate that the per capita income is income from Indian gaming proceeds and therefore it is taxable. Unfortunately, you will not be able to claim him on your taxes.

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"

MargaretLAnswer

Employee

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.

Indian Gaming Proceeds
Indian Tribal Distrib
Native American Distrib"

tasha7131Author

Employee

Thank you for your help! I was searching for answers all morning. 🙂

Layled27

Are there any scenarios for which a tribal member receiving per capita from gaming funds would be exempt from having to pay or be taxed on?

DianeW777

No. Enter tribal distributions from Form 1099-MISC, Box 3 on Line 21, Form 1040 Schedule 1. As indicated in a previous response the IRS shows the following information and a link is provided for your convenience.

Include a description of the income in the space provided on Line 21.
Use the correct description to make sure your tax return goes through processing without delays. 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
Spell the descriptions exactly as listed above. For example, if you spell out distribution rather than using distrib, the IRS may reject your return and delay your refund.
- Reporting Tribal Per Capita Distributions

How to report Other Income on your tax return:

To report this income you can use the following steps.

Go to the Wages and Income section of TurboTax
Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Other reportable Income > Enter a description (noted above) and the amount

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