Filing requirements
As an American Indian you are required to file an Oregon personal income tax return if your gross income is more than the threshold amount for your filing status (See "Do I need to file? for filing thresholds). However, you may be able to subtract all or part of your income if all of the following are true:
- You are an enrolled member of a federally recognized American Indian tribe.
- Your income is earned in Indian country.
- You live in federally recognized Indian country.
If you are eligible for the subtraction, complete Schedule OR-EIS. Keep the completed schedule with your tax records; we may ask for it later. See the schedule instructions for information about qualifying income exemptions.
Even if you subtract all of your income on your Oregon return and don't have to pay any tax, you may qualify for refundable tax credits that are based on your federal adjusted gross income. See our “Tax benefits for families" page for details.
Report your total income on both federal and Oregon tax returns. Claim code "300" on your
Schedule OR-ASC (section B) or
OR-ASC-NP (section C).
Tax-exempt income from tribal fishing rights activities (ORS 316.785)
Income from fishing-rights related activity is exempt from federal and state taxation if the income is derived by:
- An enrolled member of a federally-recognized American Indian tribe (either directly or through a qualified Indian entity) or
- A qualified Indian entity.
Wages are taxable if paid by an employer who is not:
- An enrolled member of the same tribe or
- A qualified Indian entity.
Wages are also taxable if paid to an employee who is not an enrolled member of the tribe whose fishing rights are exercised. Tribal members must fish in their own waters to be exempt.
A "qualified Indian entity" must be 100 percent owned by a federally recognized Indian tribe or tribal members, and substantially all of its management functions must be performed by tribal members. It may be jointly owned by more than one tribe or members of more than one tribe.
Employment tax form preparation
- Do not include exempt wages on Form 940, Form 941, Form W2, or Oregon Form OQ.
- Wages paid for non-fishing activities are subject to all applicable employment taxes, including withholding and employment tax reporting.
If only exempt fishing-rights related income is paid to a tribal member, no Form W2 is required.