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Individual Income Tax for Tribal Members
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Taxable Income and Credits
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Minnesota residents who are required to file a federal income tax return must file a Minnesota return, even if all or part of their income is exempt from state tax.
For income tax purposes, you are a resident of Minnesota if you reside on an Indian reservation in the state. For details about reservations in the state, see Minnesota Indian Tribes (MN.gov).
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Calculating Taxable Income
If you are a member of an American Indian Tribe who receives income from the reservation where you live and work and are an enrolled member, you must subtract this income from Minnesota income on line 19 of Schedule M1M, Income Additions and Subtractions. Subtracted income is not taxable to Minnesota.
Note: If you live off the reservation, all federally taxable income is taxable to Minnesota. You cannot subtract it.
- Wages for services performed on the reservation
- Distributions from casino profits from a casino located on the reservation
- Gambling winnings won on the reservation where you reside
- Interest from a bank located on the reservation
- Unemployment compensation based on employment performed on the reservation
- Military pension income if your military pay was exempt from state taxation under the federal Service Member’s Civil Relief Act of 2003 because you entered the military while residing on the reservation
- Social Security pension, if the contributions to Social Security came from wages paid for working on the reservation
- Pension income from an employee pension plan, if the contributions to the pension plan came from wages paid for working on the reservation
- Income from a sole proprietorship (or ordinary income from partnerships or S corporations) doing business on the reservation
- Rent and royalty income from real property or personal property located on the reservation
- Farm income from a farm located on the reservation
- Dividend income from a corporation located on the reservation
- Net gain from the sale of real property and personal property sold on the reservation
If you are a Minnesota Chippewa Tribe member, you can exclude income regardless of which Minnesota Chippewa Tribe reservation you live and work on. This affects members of these Tribes:
- Mille Lacs
- Nett Lake (Bois Forte)
- Fond du Lac
- Leech Lake
- White Earth
- Grand Portage
An American Indian with exempt reservation income must determine the Child and Dependent Care Credit based on income taxable to Minnesota. If all of your income is exempt from Minnesota income tax, you are not eligible for the Child and Dependent Care Credit.
You may not refuse to take a subtraction for your exempt income to receive a larger credit or refund.
You may qualify for a Child Tax Credit of $1,750 per qualifying child, with no limit on the number of children claimed. This is a refundable credit, meaning you can receive a refund even if you do not owe tax.
Advance Payments of the Child Tax Credit
Beginning with tax year 2024, you can choose to receive part of your Child Tax Credit for the next year in three advance payments before you file your next income tax return. For details, visit Advance Payments of the Child Tax Credit.
The Working Family Credit is based on all income, including nontaxable income. You can receive the full credit even if Minnesota does not tax your income.
Starting with your 2024 taxes, if you are a renter, you can claim the Renter's Credit as part of your Minnesota Individual Income Tax return (Form M1). You will no longer file a Renter's Property Tax Refund return (Form M1PR). This means renters who previously filed both returns will not receive a separate refund later in the year.
The Renter's Credit is a refundable credit on an income tax return. It will be part of the amount owed or refund.
For more information, see Renter's Credit.
