| Information for Native American Taxpayers (FAQ)0 |
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| How to Qualify |
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Are you an American Indian? If so, you may be able to subtract all or part of your personal income, if all three of the following requirements are met:
- You are an enrolled member of a federally recognized American Indian Tribe, and
- Your income is earned in Indian Country, and
- You live in federally recognized Indian Country. (See Below).
“Indian Country” is defined as any land within a current Federal Indian reservation boundary in Oregon and other lands in Oregon held in trust by the United States Government for a tribe.
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| Frequently Asked Questions |
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Question:
I am an enrolled member of a federally recognized American Indian tribe and live and work in Indian Country in Oregon. What type of income is exempt from Oregon personal income tax?
Answer:
- Wages earned for work performed in Indian Country in Oregon.
- Income from a business or real estate located in Indian Country in Oregon.
- Retirement income if the contributions to the plan were derived from or connected with services performed in Indian Country.
- Unemployment Compensation if the benefits are received as a result of work performed in federally recognized Indian Country.
- Interest, dividends, capital gains from the sale of stocks, and other intangibles, regardless of where the bank accounts, brokerage firm, etc. are located.
- Gambling winnings from Indian gaming centers (casinos).
- Indian tribal disbursements from casino earnings, if the other requirements are met.
Question:
I receive a distribution from my tribe for casino revenues. Is this distribution taxable to Oregon?
Answer:
Under Oregon law, if you lived in Indian Country in Oregon at the time the distribution was received and you are an enrolled member of a federally recognized American Indian tribe, then the distribution is not taxable to Oregon.
Question:
Do I need to file an Oregon personal income tax return?
Answer:
Yes. ORS 316.777 does not relieve you from your requirement to file an Oregon personal income tax return. Oregon law allows a subtraction for income earned or derived from sources within the boundaries of federally recognized Indian country in Oregon, by tribal members living within those boundaries.
You must report your total income on both the federal and Oregon tax returns. On the Oregon return use the “Other subtraction” line to subtract all of your income that qualifies. Please write on the other subtraction line, “300.”
Question:
What documentation do I need?
Answer:
You need to provide the following information or documentation with your Oregon tax return:
A completed copy of the “Exempt Income Schedule for Enrolled Members of a Federally Recognized American Tribe” Form 150-101-687. Provide the following information on the form:
- The physical address of where you worked, and
- The physical address of where you lived, and
- The name of the tribe you are enrolled with and your membership number.
This form is available through the Department of Revenue’s web site, at Department of Revenue Tax Forms and Instructions.
Question:
Do I need to have withholding taken out of my pay?
Answer:
No, if all requirements are met for the subtraction, you may claim exempt on the form W-4 for Oregon only.
Question:
If one member of household is exempt is the whole household income exempt?
Answer:
No, only the income earned by the enrolled tribal member, if that person meets the other two requirements.
Question:
I live on the reservation in a very rural area. I receive all of my mail at a Post Office Box in town. Why can’t I use my mailing address?
Answer:
You may use your Post Office Box address on the return. However, to qualify for the subtraction you must have a physical address in Indian Country on the exempt income schedule.
Question:
I am a member of the Siletz Indian tribe, but I live and work on the Warm Springs Indian reservation. Are the wages I earn for my work at the casino taxable to Oregon?
Answer:
No. To claim the Oregon subtraction, the following three requirements must be met:
- The income must be derived from sources within the boundaries of any federally recognized Indian country in Oregon.
- You must be an enrolled member of a federally recognized American Indian tribe.
- You must reside in federally recognized Indian country in Oregon at the time the income is earned.
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