Question:
Is a Native American Indian subject to Colorado income
tax?
Income earned by a Native American Indian is
usually
subject to Colorado taxes just as it would be for any other taxpayer.
However, there is an exception for income if it is earned:
-
on the Indian Reservation, and
-
by a reservation tribal member (enrolled member) while
domiciled on the reservation.
This income can be subtracted from taxable income on the “Other
Subtractions” line of Form 104. Write “Income earned on a reservation
by a tribal member” on the explanation line. This would include casino
winnings if won in a casino located on the reservation on which the
tribal member resides when the income is received. Other income earned
off the reservation by the taxpayer will still be subject to Colorado
tax.
Income earned by a Native American Indian or on a Native American
Reservation that is subject to Colorado tax includes:
income earned on a reservation by anyone not living on
that reservation,
income earned by a reservation member while working off
the reservation,
income earned by a tribal member on a reservation other
than the reservation to which they belong and reside,
income earned by a
taxpayer who is not a Native American Indian even if they live and/or
work on a reservation.
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