Native American Tribal trust Distributions

[astroantics]

Client received a 1099 Misc with a distribution amount in Box 3. Distribution was from a tribal trust fund. Client doesn't live on the reservation: he's an Illinois resident.

Checked the IRS website. Seem that these distributions are sometimes taxable and sometimes not, depending on the treaty. Federal income tax was withheld, so I'm assuming it's taxable on the federal level. My question is is it taxable by Illinois? Couldn't find anything on the Illinois website. Even called the tribal council and left a message. No callback. Hoping someone here might have run into this situation.

By the way, passed the last part of the EA exam in February. This topic never came up...can't imagine why.

One week to go. Ain't taxes fun?

[Lion]

Congrats!

Congratulations on passing the EA exam! Don't have a clue about the Indian thing.

[RLymanC]

Tribal Distribution

Most states require the individual to live on THEIR OWN reservation to be tax exempt. With out checking IL tax laws, I would include the distribution on both IRS and state retrun.

[equinecpa]

I do returns for a family that receive Indian Tribal Distributions. The income originates from casino operations and such in CA. They live here in TX. TX doesn't have a personal state income tax and it is exempt in CA (though each year I have to have a discussion with CA state about it-we receive requests for returns each year though they are not required to file).

[astroantics]

Thanks to all for your help. I'll try one more search on the Illinois website, but it looks like the distribution is taxable by Illinois.