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mikemo0

Solved

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?

Forum|Forum|6 years ago
June 1, 2019
8 replies
0 views

No text available

TurboTax Deluxe Online

Best answer by KittyM

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.

KittyMAnswer

Employee

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.

Oregon

Connecticut

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.

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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

shirlgrl

I live in the state of Michigan I am also native American. I cannot find the box to ask me the question about native American. Yes my tribe is listed!

ErnieS0

The Michigan section of TurboTax includes a section to adjust your income if you are a Resident Tribal Member and to claim the sales tax credit @shirlgrl.

In the Michigan section, go to Here's the income that Michigan handles differently.
Under Miscellaneous select Tribal Income
Once you're completed that section, continue to Take a look at Michigan credits and taxes
Under Other Credits select Tribal Member Sales Tax Credit

For more info on Michigan Tribal Income see Frequently Asked Questions

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PattiF

The Montana Department of Revenue has two categories for Tribal members. Income is exempt from Montana income tax if all of the following requirements are met:

You are an enrolled tribal member of the governing tribe of a reservation;
You resided and worked on that reservation; and
You earned income by working on that reservation.

If the three conditions above are met, no tax return is needed. Send in this form by mail.

If money was earned off the reservation and meets the income threshold, a Montana income tax return will be required. The details of who needs to file a form are under the instructions for Line 2 in the above form.

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dereknewmexico

Need help.
I am Native American living and working on my reservation. We have to pay (forced) rent through the school I work at; can this be recorded as a deduction in my taxes? Where does it need to be entered? Is this different than the form 8845?

Vanessa A

Form 8845 is for Employers of American Indians, not employees.

If you are an employee, there is not a deduction for rent, whether or not it is required by the employer. Income Tax Guide for Native American Individuals and Sole Proprietors

Whether or not you have to pay state taxes and how much you may have to pay, depends on the state in which you live.

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dereknewmexico

Again (I am Native American), the rent I pay is forced because property on reservation land cannot be purchased. The allotment of land is based on families. Therefore, where I work on the reservation is forced. I cannot deduct this rent cost (even though I can prove how much was paid)?

Junior576243

Mississippi

ErnieS0

No. You do not have to pay Mississippi state income tax if you are a Native American Indian living and working on your federally recognized reservation.

Mississippi says: “A Native American living and working on an Indian Reservation in Mississippi is exempted from Mississippi Income Tax on the income earned on the reservation.”

Your employer should not have withheld state income tax. If they did, speak with your employer to see if they can correct your W-2.

Fill out and give your employer a Form 80-340 to claim an exemption from future withholding.

If you cannot get a corrected W-2, you can add a negative adjustment on your Mississippi return. On the screen Enter Any Other Income and Losses, enter your tribal wages as a negative number.

See: Withholding Tax FAQs

@Junior576243

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