Per Capita taxable or not?

[WITAXLADY]

Not living on the reservation, taxpayers receive Per Capitas -  on 1099-Misc

Today they were in and said that is not taxable to fed  and state -

Search shows in 2014, the tribes discussed this..

Did it become non-taxable - more like a stimulus vs taxed income?

Irs.gov - says it is taxable

??

thank you

makes a difference if I am amending back to state 2019!!

[Medlin Software, Dennis]

While a member of a tribe, my tribe does not make direct payments. Likely depends on the source of the funds. Gaming revenue is likely taxable. Trust fund income is not likely taxable.

[WITAXLADY]

and how do you know the difference?

Tribe by tribe?

Thx d

[Medlin Software, Dennis]

Probably. The tribe should have the ability to not 1099 if the item is not taxable. Giving a 1099 tells the recipient the amount is being reported as income. A perfect comparison in IHHS (at least what they call it in CA) to care for someone in their home. Those living in the same home as the client (say a parent caring for an adult child, or vice versa) make a statement to the county affirming they live in the same home (which means the amount received is not taxable wages) and no 1099 is generated. Without that statement, a 1099 is issued. Ultimately, the facts determine taxability, even receiving a 1099 does not mean taxable (say if the letter was not prepared or the payer still issued a 1099).

Depending on your engagement, you might accept the 1099 as fact, and leave it up to your client to prove non-taxability. Or maybe your client has engaged you to investigate.