Why is Turbo tax taxng my husband tribal per capital money of $12,500.00? How do I keep it the Indian Tribal Distribution to not be taxed?

If your husband received a Form 1099-MISC, it indicates that the per capita income is income from Indian gaming proceeds, and is therefore 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 the 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"

To enter into TurboTax::

1. Type "1099-Misc" into the search box)
2. Select Jump to 1099-Misc blue link - continue through the interview.  On the Screen Does any of these uncommon situations apply to you, select This was price winnings