Tax Agreement Tribes: A “Resident Tribal Member” (Member must be on the list submitted by their Tribe to the State of Michigan.) of a federally recognized Indian tribe that has an active tax agreement with the State of Michigan may subtract certain income that is included in his or her “Adjusted Gross Income”identified on line 10 of the MI-1040. Such exempt income may include income derived from wages, interest, and pension income. For a list of agreement tribes, go to www.michigan.gov/taxes and select “Income Tax” and then “Native American.” A list of tribes’ names will be available; click to access the tax agreement and proceed to Section IV.
Non-Tax Agreement Tribes: If your tribe is not listed, your tribe does not have an active tax agreement with Michigan. Non-agreement members, see Revenue Administrative Bulletin 1988-47 for guidelines in determining exempt income that may be subtracted on line 20.
NOTE: Michigan income earned while living outside of your Agreement Area (see your tribe’s agreement for a description of your Agreement Area) or Indian Country (as defined under 18 U.S.C. 1151 for Non-Agreement Tribes) may not be subtracted from Michigan AGI.