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Chart - Some common types of distributions

 

Graph of common distributions

Type of distribution

Taxability if individual owns land in fee simple status , subject to SE (self employment) tax, and how reported

Taxability if allotted/ restricted land held in trust by the U.S. government for the benefit of an individual, subject to SE tax, and how reported if taxable

Authority 
Income held in trust for the 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 member of the  Osage Nation

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 

Revenue Ruling 70-116  PDF

Revenue Ruling 77-78, 1977-1 C.B. 12 PDF
Osage mineral interest held in trust by the US for a member of the Osage Nation N/A 

Not includible for federal tax.

Not subject to
SE tax. 

 Revenue Ruling 70-116  PDF
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.

 Revenue Ruling 67-284  PDF
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 subject to
SE tax. 

Not subject to
SE tax. 

 IRC Section 139E
Payments made to a trust on behalf of minor or legally 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