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ITG FAQ #4 Answer - Can I request federal income tax withholding on non-gaming per capita distributions?

 

There is no requirement for a tribe to withhold on such payments. However, non-gaming per capita distributions are still considered gross income to the recipient, and these distributions must be reported on the individual¡¯s income tax return, subject to Federal Income taxes. To avoid a possible balance due when filing an income tax return, a tribe may withhold Federal Income Taxes, at the member¡¯s request, on non-gaming per capita distributions.

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