You make the callBy: National Association of Tax Professionals
November 18, 2021

Question: Aiyanna received COVID-19 relief payments directly from her Native American government tribe. Are the tribal COVID-19 payments reported as taxable income?

Answer: No. Generally, the COVID-19 relief payments individuals receive from their Indian tribal government are not included in gross income and will not result in taxable income to them if the payments are used for reasonable and necessary personal, living, family or funeral expenses. Aiyanna should not receive a Form 1099-MISC for the payments because they are not subject to §6041 information reporting requirements.

Various COVID-19 relief provisions that benefit tribes and tribal members allow tribes to provide emergency relief payments to tribal members and their families for necessary expenses resulting from the COVID-19 pandemic. These provisions are found in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Consolidated Appropriations Act, 2021 (CAA) and the American Rescue Plan Act of 2021 (ARP).

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penAbout National Association of Tax Professionals

The National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.

The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.

Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.

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