A member of a Native American tribe in Utah who lives and works on the reservation where he/she is an enrolled member is exempt from Utah income tax on the reservation income.
A "reservation" must be within the currently recognized reservation boundaries set by the federal government. This includes land removed from the Uintah and Ouray Reservation under Hagen vs. Utah (510 U.S. 399 (1994)).
You must include qualifying income in your federal adjusted gross income in order to subtract it on your Utah return.
Passive income (interest, dividends, etc.) you receive is also not taxable if you are a Native American living on a reservation. Your passive income is taxable if you live off the reservation.
The following table shows the conditions for subtracting income earned by tribal and non-tribal members.
| Resides on Reservation? | Employed on Reservation? | May Claim Deduction? |
|---|
| Yes |
Yes |
Yes, on income earned on the reservation where enrolled |
| No |
Yes |
No |
| Yes |
No |
Not on income earned off the reservation * |
| Yes |
No, earn military income off the reservation |
Yes, on military income earned off the reservation |
| No |
No |
No |
| Yes, but a non-tribal member |
Yes |
No |
| No |
Yes, but non-Native American |
No |
* If you are required to work both on and off the reservation, please contact the Utah State Tax Commission at 801-297-7705 or toll-free at 1-800-662-4335 extension 7705, to determine if the income qualifies for this deduction.
Enter the exempt income (subtraction) on your Utah TC-40A, Part 2, using code 77.
You must also enter on the TC-40A your enrollment/census number and Nation/Tribe code from the following list.
| Code | Nation / Tribe |
|---|
| 1 |
Confederated Tribes of the Goshute Reservation |
| 2 |
Navajo Nation Reservation |
| 3 |
Paiute Indian Tribe of Utah |
| 4 |
Skull Valley Band of Goshute Indians |
| 5 |
Ute Indian Tribe |
| 6 |
Other tribe |
Keep all records and documentation to support this subtraction.