Are their earnings exempt from California income tax?
Generally, California taxes the entire income of residents of the state, and the California source income of nonresidents. If your clients meet all of the following requirements, their income is exempt from California income tax: • They must be members of a federally recognized Indian tribe. • For a list of all federally recognized tribes, go to the IRS website at www.irs.gov. Search for federally recognized tribes. A list is available in Internal Revenue Service Bulletin Number 2002-42, Rev. Proc. 2002-64 (page 718). You can find a listing of federally recognized California Indian tribes on the National Conference of State Legislatures website at ncsl.org (search for federally recognized). • They must live in their tribe’s Indian country, which includes reservations, dependent Indian communities, and Indian trust allotments. • The income they earn must be sourced in the same Indian country in which they live, and where they are tribal members. 4. What if my clients meet all of the req
