Has anyone heard of a tax refund or a deduction given to people who can prove a native american bloodright relation and are employed in the state of New York? If so, do you know what the official name of the credit / what IRS form is called? Thanks so much for your help.

Adam

Welcome to Answerpool.

While I'm sure you heard this somewhere, it just isn't true. Native Americans do not get a tax refund or deduction based on their heritage.
See here for more American Indian tax questions within Bulletin No. 2006-15 of April 10, 2006.


The only change in tax laws occur when a Native American operates a business on Native American land. You can contact the IRS directly if this situation applies to you.


If you have any questions, please contact the IRS at www.irs.gov or Click here for local New York State tax questions.

Thanks for your help.

It seems, through Form 8845, that native americans can get some type of tax break. Anyone familiar with this form and its restrictions?

Adam

Indian Employment Credit
Credit against Federal taxes calculated on wages of up to $20,000 for each qualified employee who is an enrolled member of an Indian tribe (or spouse of an enrolled member) who lives on or near an Indian reservation. Available for existing employees and new hires. (See IRS Form 8845) - http://www.ci.rochester.ny.us/index.cfm?id=65
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Internal Revenue Service (IRS)

OMB Number: 1545-1417.
Type of Review: Extension.
Title: Indian Employment Credit.
Form: IRS form 8845.
Description: Employers can claim a credit for hiring American
Indians or their spouses to work within an Indian reservation. The
credit is figured by multiplying by 20% the increase in wages and
health insurance costs over the comparable amount paid or incurred
during calendar year 1993.
Respondents: Business or other for-profit. - [Federal Register: October 27, 2005 (Volume 70, Number 207)[Notices]
[Page 62017]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27oc05-82]]

You can obtain Form 8845 here. The rules are listed on the form.

Indian tribal businesses do pay a wide variety of taxes, including taxes on wagering, occupational taxes, and employment taxes. For federal income tax purposes, however, Indian tribes are governmental entities and, as such, are not required to pay taxes on the income generated by the Indian tribes, including income generated by commercial activities. So, that means that while gaming profits generated by the tribes are not taxed at the tribal level, any payments of those profits in the form of per capita payments to tribal members are considered taxable income under the IRS code.