Graph of common distributions Type of Distribution Taxability if individual has certificate of competence, subject to SE tax, and how reported Taxability if individual is non-competent, subject to SE tax, and how reported if taxable Authority Income held in trust for the non-competent Indian patent holder which is derived directly from allotted and restricted Indian lands while such lands are held by the US as trustee N/A Not includible for federal tax. Not subject to SE tax. Squire V. Capoeman, 351 U.S. 1 (1956) Osage headright income from tribal mineral interests received by a competent Osage Includible for federal tax, but not subject to SE if it is a royalty interest (Sch E). Net income from a working interest (Sch C) is subject to SE N/A Rev. Ruling 70-116 Rev. Ruling 77-78 Osage mineral interest held in trust by the US for non-competent Osage Indian N/A Not includible for federal tax. Not subject to SE tax. Rev. Ruling 70-116 Income derived directly from unallotted tribal lands with no treaty or statute to exempt from federal tax Includible for federal tax. The question of SE tax is determined by the characterization of the income, as well as where to report. Includible for federal tax. The question of SE tax is determined by the characterization of the income, as well as where to report. Rev. Ruling 67-284 Income from a possessory holding on tribal lands N/A Not includible for federal tax. Not subject to SE tax. Amy T. Critzer V. the US Sale of land, the proceeds of which were placed in trust with the US Government Not includible for federal tax. Not subject to SE tax. Not includible for federal tax. Not subject to SE tax. Public Law 251 Payments made under legislatively provided social benefit programs for promotion of the general welfare Not includible for federal tax. Not subject to SE tax. Not includible for federal tax. Not subject to SE tax. IRC Section 139E Payments made to a trust on behalf of minor or incompetent members of an Indian tribe when trust is revocable N/A Not taxable because it is a revocable trust. Certain taxable payments of Indian casino profits Includible for federal tax. Not subject to SE tax. Includible for federal tax. Not subject to SE tax. IRC section 3402(r) Economic development grants from revenues from Class III gaming Not includible for federal tax. Not subject to SE tax. Not includible for federal tax. Not subject to SE tax. Non-reimbursable grants for stimulating and increasing Indian entrepreneurship and employment Not includible for federal tax. Not subject to SE tax. Not includible for federal tax. Not subject to SE tax. Indian Financing Act of 1974 – Indian Business Grants – Title IV
