I am exempt from state taxes how do i enter that ?

Forum|Forum|2 years ago
February 23, 2024
2 replies
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I am a enrolled member of a federal reconize tribe in north carolina and I am exempt from paying state taxes turbo tax is charging me to file state taxes

TurboTax Deluxe Online

LindaS5247

Please clarify your question. Are you asking if your are free from paying state taxes in North Carolina or is it free to file state taxes since you are a member of a federally recognized tribe?

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malter10

In Michigan Tribal Members are state tax Exempt- This has been very easy until now. There was a form that loaded and it made all of the changes.

SteamTrain

Employee

@smurfjackson

OK, so that's a maybe.

1) You must be an enrolled member of the exact same Tribe for the Tribal area you work on.

2) You must live on that same Tribal area.

3) The W-2 must represent only working there in that tribal area, not outside it.

not sure about interest and investment income though...

NC Instructions say:

"Line 27. Exempt Income Earned or Received by a Member of a Federally Recognized Indian Tribe. You may deduct the income that meets both of the following requirements:
a. Is earned or received by an enrolled member of any federally recognized Indian tribe.
b. Is derived from activities on any federally recognized Indian reservation while the member resides on the reservation. Income from intangibles having a situs on the reservation and retirement income associated with activities on the reservation are considered income derived from activities on the reservation."

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To remove the W-2 income or other earnings received while on the reservation...finish all of the Federal section.

Then there is a Miscellaneous area in the NC Q&A where you go to remove those $$ earned working on the Tribal Reservation. (Pictures are from Desktop software...Online should be similar):