- You are an enrolled member of a federally recognized American Indian tribe.
- You live on the reservation where you are an enrolled member. See Bands and Communities below for exceptions.
- The income is derived from the reservation. This includes:
- Wages for services or employment performed on a reservation
- Interest from a bank located on the reservation
- Distributions from casino profits if the casino is located on the reservation
- Pension income based on contributions due to employment on the reservation
- Military pension income based on pay that was exempt from state tax because you entered the military while residing on the reservation
- Social Security income based on contributions due to employment on the reservation
- Rent and royalty income from real property or personal property located on a reservation
- Net gain from the sale of real property or personal property located on a reservation
- Dividend income from a corporation located on a reservation
- Partnership and S corporation income, dividends or capital gains from business activity on a reservation
- Income from a sole proprietorship from business activity on a reservation
- Farm income from a farm located on a reservation
- Unemployment compensation that is based on employment on a reservation
- Gambling winnings, but only if won on a reservation where you reside
Bands and Communities
You must live and work on your band’s or community’s reservation in order to claim this subtraction. However, if you’re a member of a band of the Minnesota Chippewa Tribe (MCT), you may take the subtraction if you live and receive income on any of the six MCT reservations.
The MCT bands are:
- Mille Lacs (including Hinckley)
- Nett Lake (Bois Forte)
- Fond du Lac
- Leech Lake
- White Earth
- Grand Portage
Note: The Red Lake Tribe, although Chippewa, is not a member of the MCT. Red Lake members must live and work on the reservation where they are enrolled to qualify for this subtraction.
