Many people hear about tribal benefits and tax law and assume it’s too complicated. Here’s the simple version.

Section 139E is in Title 26 of the U.S. Code, which is the federal tax code. It’s a finance law. It says that benefits your tribe provides through a written general welfare program may not count as taxable income to you.

That affects your household revenue, because money you’re not taxed on is money you keep. It also affects the tribe’s expenses. When a program follows the rules, with written guidelines, no favoritism, nothing lavish, and no payment for services, the tribe can run it without creating a tax problem for members.

Know your benefits. Protect your benefits.

Follow us for a series on this topic.

General education, not legal or tax advice.

Federal citations: Tribal General Welfare Exclusion Act of 2014, Pub. L. 113-168; 26 U.S.C. 139E; 26 CFR 1.139E-1.