Indian Employment Credit
A credit for employers who hire and retain qualified employees who are enrolled members of Indian tribes and work on Indian reservations.
Estimate Your Savings
This is a simplified estimate. Actual savings depend on your complete tax situation.
Eligibility
Employers of enrolled members of Indian tribes on reservations
Requirements
- 1Employee must be enrolled member or spouse of enrolled member
- 2Must work on Indian reservation
- 3Wages must exceed $50,000 inflation-adjusted
Required Tax Forms
Understanding the Indian Employment Credit
A credit for employers who hire and retain qualified employees who are enrolled members of Indian tribes and work on Indian reservations.
Tax credits directly reduce the amount of tax you owe, making them more valuable than deductions which only reduce taxable income. The Indian Employment Credit can reduce your tax liability by up to $20,000.
To claim this credit, you will need to file Form 8845 and Form 3800 with your annual tax return. Make sure you meet all eligibility requirements and keep documentation of qualifying expenses or activities.
Calculate Your Full Tax Picture
Use our free tax calculators to estimate your total tax liability and savings.
Browse Credits by Category
Frequently Asked Questions
What is the Indian Employment Credit?
A credit for employers who hire and retain qualified employees who are enrolled members of Indian tribes and work on Indian reservations.
How much is the Indian Employment Credit worth?
The Indian Employment Credit is worth up to $20,000 per year. The average taxpayer saves approximately $4,000.
Who is eligible for the Indian Employment Credit?
Employers of enrolled members of Indian tribes on reservations. Key requirements include: Employee must be enrolled member or spouse of enrolled member; Must work on Indian reservation; Wages must exceed $50,000 inflation-adjusted.
What forms do I need to claim the Indian Employment Credit?
You will need to file Form 8845, Form 3800 with your tax return to claim this credit.
Is the Indian Employment Credit refundable?
Most business and energy tax credits are nonrefundable but can be carried forward to future tax years.
Can I claim the Indian Employment Credit with other tax credits?
Yes, in most cases you can claim the Indian Employment Credit along with other eligible tax credits. However, some credits have interactions that may reduce the benefit. Consult a tax professional for your specific situation.