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).